Freeport enjoys strong end to year

Freep      Freeport enjoys strong end to year

 

 

FREEPORT-McMoRaN has doubled quarterly net profit to $US463.2 million, with the result underpinned by both metals prices and operational performance.

Freeport, which controls the massive Grasberg copper-gold mine in Papua, Indonesia, posted a full-year net profit of $US934.6 million on the back of record sales for the year of 1.46 billion pounds of copper and 2.8Moz of gold. Gold production was double that achieved in 2004.

The results could not have come at a better time for the New Orleans-based Freeport, which is facing increased scrutiny over its dealings with the Indonesian military. The company is now reportedly the subject of a US Government inquiry.

In response to an article in the New York Times claiming Freeport had paid Indonesian military and police officials around $US20 million, chief executive Richard Adkerson revealed the company had paid the Indonesian Government a total of $US1 billion since 2004 in taxes and royalties.

Adkerson said this sum was fully disclosed and also included money paid to the government for security – totalling around $US7 million annually.