The smelter is operated by P.T. Smelting, which is 70%-controlled by Mitsubishi of Japan. Freeport’s operating arm, P.T. Freeport Indonesia, holds a 25% stake, with the remainder held by Nippon Mining & Metals.
Production at the US$625-million project started in late 1998. Over the next two years, annual throughput will gradually reach design capacity of 200,000 tonnes of copper cathode.
Half of the concentrates processed at Gresik come from the Grasberg copper-gold mine in Irian Jaya, which milled an average 221,700 tonnes per day during the first quarter. The ore averaged 1.14% copper, 1.31 grams gold and 2.77 grams silver per tonne, and this translated into production of 160,000 tonnes copper — nearly a 25% increase over the first quarter of 1998. Gold production reached 609,800 oz., a 40% increase over the first quarter of 1998. Silver production held steady at 693,800 oz.
Cash production costs at Grasberg fell to US11 cents per lb. copper.
Freeport’s first-quarter earnings amounted to US$17.7 million (11 cents per share) on revenue of US$415.8 million, compared with US$26.6 million (15 cents per share) on US$396.1 million in the corresponding period of 1998.
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