Foreign media news on July 20: Freeport McMoRan released its financial report on Thursday, saying that its second-quarter profit fell by 60% because of the decline in production and sales due to delays in shipments from Indonesia. Freeport operates the huge Grasberg mine in Indonesia, but its export license expired on June 10, when Indonesia began banning raw ore exports. The company has not exported any copper ore since the export license expired.
Indonesia's domestic smelter PT Smelter has been on a routine 75-day maintenance shutdown since May 1, putting more pressure on Freeport's sales.
Freeport-McMoRan said that copper sales in the second quarter were 1.03 billion pounds, down 5.3% year-on-year; production in the same period fell 1% to 1.07 billion pounds.
If Indonesian operations resume exports from late July, Freeport expects to sell 1 billion pounds of copper in the third quarter.
The average realized price of copper fell nearly 5% in the second quarter and cash costs rose 4.3%, further denting profits. Volumes fell in North America, while operating expenses surged amid higher maintenance, supply and labor costs. The company's CEO Richard? Adkerson had said in April that labor costs would continue to rise.
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