MAC: Mines and Communities

Freeport revises third quarter figure

Published by MAC on 2003-11-11

Freeport revises third quarter figure

Brad Ricks, Mineweb

November 11 2003

FREEPORT McMoran Copper and Gold, majority owner and operator of the Grasberg copper-gold mine in Indonesia, has revised its third quarter report resulting in the lowering of its net income and revenue figures. The company's review of the quarter results showed that some copper anode contract sales from its subsidiary Atlantic Copper included in the report should not be recognised until the fourth quarter.

As a result the company dropped its third quarter income to US$47.4 million after originally reporting an income of US$62 million.

September quarter revenue dropped US$36.8 million to US$632 million while operating income was also adjusted, down US$15.5 million to US$286.3 million from the figures originally reported.

In other news, Indonesian authorities have launched a probe into the massive landslide, which killed eight people at the Grasberg mine last month.

Associated Press reported that the probe had been launched after government investigators learned that management of the company knew the wall would collapse but did not take sufficient action.

"There was information from one of the employees to the head of the mining operations at Freeport that there could be a landslide," Suryatono, the Indonesian energy ministry official leading the probe, said.

AP said the government has forced Freeport to suspend operations at part of the Grasberg mine since the incident and has ordered the company to hire a new geological consultant to prevent further landslides.

This follows reports in Australian newspapers last week that Freeport and 16% owners of the mine Rio Tinto knew about the build up of rocks and mud that caused the landslide and yet failed to act.

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