Grasberg Project and Financial Update
Indonesia Downstream Processing Update FREEPORT
FOREMOST IN COPPER
PT-FI committed in 2018 IUPK to construct 2 mm tpy
in-country Cu concentrate processing facility by
December 2023
> Construction of new smelter has been delayed by COVID-19
>>> Capital costs shared 51% 49% (PT Inalum/FCX)
Smelter spend to be debt financed
> Initial $1 bn of PT-FI financing in place to advance projects
>>> Annual debt service cost expected to be essentially
offset by phase out of export duty
New Greenfield Smelter
> 1.7 mm mt of annual concentrate capacity
› Designed to be world's largest flash
smelter/convertor facility
› Advancing groundwork/preparation
› Project expected to be completed as soon as
feasible in 2024*
› Target price: ~$2.8 bn**
**
Dependent on no further pandemic-related disruptions
Excludes capitalized interest, owner's costs and commissioning
e = estimate. See Cautionary Statement.
Preliminary Estimate of Spending
on Greenfield Smelter and PMR
$0.3
($ in bns)
$1.4
2022e
$0.9
2023e
$0.5
2021e
2024e
NOTE: Capital spending on the smelter will be debt financed (economics shared 49%
by FCX) and will not be deducted from cash available for returns to shareholders.
Excludes capitalized interest, owner's costs and commissioning.
PT Smelting Expansion
> 30% increase to existing smelter to add 300,000
mt of annual concentrate capacity
› Advancing commercial arrangements
› Target completion of YE 2023
>
Cost estimate: $250 mm
Joko Widodo, President of Indonesia,
attended October 2021
groundbreaking ceremony.
Precious Metals Refinery (PMR)
› To be constructed to process gold and silver
from new greenfield smelter and PT Smelting
> Cost estimate: $250 mm
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