Freeport-McMoRan Copper & Gold Inc. reported lower net
income and sales in the second quarter, primarily due to the
May tunnel collapse at its Grasberg Mine in Indonesia.
income of $482 million for the quarter ended June 30 fell 32.1
percent from $710 million a year earlier on sales that dropped
4.2 percent to $4.29 billion from $4.48 million.
companys second-quarter copper and gold production
volumes missed initial estimates by 125 million pounds and 120
million ounces, respectively, Freeport vice chairman, president
and chief executive officer Richard Adkerson said in a
"That is really what
drove the shortfall of our performance," he said, referring to
the May 14 tunnel collapse in Indonesia that killed 28 people
and injured 10 (
amm.com, May 15).
Freeport was also
impacted by a "very volatile season" in copper, Adkerson
Comex copper prices
were trading at a little more than $3.05 per pound June 28,
down 9.5 percent from around $3.37 per pound April 1.
Despite this, "we are
very confident about the long-term (fundamentals) of this
marketplace," Adkerson said.