Morenci Mine Targeting 225 Million Pounds Of Copper
PHOENIX, AZ - James R. Moffett, Chairman of Freeport-McMoRan Copper & Gold Inc. (FCX) reported that the Morenci Copper Mine in Southeast Arizona, is expanding mining and milling capacity to process additional sulfide ores identified through exploratory drilling. The approximate $1.4 billion project is targeting incremental annual production of approximately 225 million pounds of copper in 2014 (an approximate 40 percent increase from 2012) through an increase in milling rates from 50,000 metric tons of ore per day to approximately 115,000 metric tons of ore per day and mining rates from 700,000 short tons per day to 900,000 short tons per day. The targeted increase in mining rates has been achieved, engineering activities are nearing completion and construction activities for the new mill and related facilities are in progress.
The Morenci mine is a porphyry copper deposit that has oxide and secondary sulfide mineralization, and primary sulfide mineralization. The predominant oxide copper mineral is chrysocolla. Chalcocite is the most important secondary copper sulfide mineral and chalcopyrite the dominant primary copper sulfide. The Morenci operation includes a concentrator that produces copper and molybdenum concentrates; a crushed-ore leach pad and stacking system; a low-grade run-of-mine leaching system; four solution extract (SX) plants; and three electrowinning (EW) tank houses that produce copper cathode. Morenci also has a concentrate leach direct-electrowinning facility.
FCX operates seven open-pit copper mines in North America - Morenci, Bagdad, Safford, Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico. All of the North America mining operations are wholly owned, except for Morenci. FCX records its 85 percent joint venture interest in Morenci using the proportionate consolidation method. In addition to copper, certain of FCX's North America copper mines (Sierrita, Bagdad, Morenci and Chino) also produce molybdenum concentrates, which are sold to FCX's molybdenum sales company at market-based pricing.
FCX has increased production from its North America copper mines in recent years and continues to evaluate a number of opportunities to invest in additional production capacity at several of its North America copper mines in response to positive exploration results.
Consolidated copper sales volumes from North America of 353 million pounds in first-quarter 2013 were higher than first-quarter 2012 sales of 338 million pounds primarily reflecting increased production at the Chino mine.
FCX expects sales from the North America copper mines to be approximately 1.45 billion pounds of copper for the year 2013, compared with 1.35 billion pounds in 2012, primarily reflecting higher production at Morenci and Chino.
Average unit net cash costs (net of by-product credits) for the North America copper mines of $1.86 per pound of copper in first-quarter 2013 were higher than unit net cash costs of $1.51 per pound in first-quarter 2012 primarily reflecting higher mining rates and lower molybdenum credits.
FCX estimates that average unit net cash costs (net of by-product credits) for the North America copper mines would be approximately $1.89 per pound of copper for the year 2013, based on current sales volume and cost estimates and assuming an average molybdenum price of $11 per pound for the remainder of 2013. North America's average projected unit net cash costs would change by approximately $0.025 per pound for each $2 per pound change in the average price of molybdenum for the remainder of 2013.
FCX is a leading international mining company that operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum. FCX is the world's largest publicly traded copper producer and has a dynamic portfolio of operating, expansion and growth projects in the copper industry. FCX is also the world's largest producer of molybdenum and a significant gold producer.
The company's global workforce includes approximately 34,000 employees. The company has a strong commitment to safety performance, environmental management and to the local communities where it operates. FCX is a founding member of the International Council on Mining and Metals and committed to implementation of the ICMM Sustainable Development Framework.