SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 27, 1997
FREEPORT-McMoRan COPPER & GOLD INC.
Delaware 1-9916 74-2480931
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation or Number)
organization)
1615 Poydras Street
New Orleans, Louisiana 70112
Registrant's telephone number, including area code: (504) 582-4000
Item 5. Other Events.
The following news release was issued by Freeport-McMoRan Copper
& Gold Inc. on February 27, 1997:
NEW ORLEANS, LA., February 27, 1997 -- Freeport-McMoRan Copper &
Gold Inc. (FCX) announced today that FCX, BRE-X Minerals LTD
(BRE-X) and Indonesian interests have signed a binding agreement
in connection with the previously announced transaction whereby
FCX has agreed to acquire a 15 percent interest in two Indonesian
companies that are expected to be granted Contracts of Work
(COWs) to explore and develop the mining rights in the Busang II
and Busang III areas of East Kalimantan, Indonesia. Each company
will be owned 45 percent by BRE-X, 40 percent by Indonesian
interests, including the Government of Indonesia (GOI), and 15
percent by FCX. The participants have appointed FCX as the sole
operator of the Busang II and Busang III properties.
In consideration for the transaction, FCX has agreed to
provide 25 percent of the total estimated cost of delineating a
proven reserve and constructing the initial Busang mine complex,
up to $400 million. Additionally, FCX has agreed to arrange, on
behalf of the Indonesian companies, a $1.2 billion project
financing commitment from The Chase Manhattan Bank for the
remaining estimated costs of the initial Busang mine complex.
FCX has undertaken a due diligence review of the Busang
properties and expects to commence preparation of a feasibility
study during the second quarter of 1997 that will form the basis
for the initial mine and mill development with an initial
production objective of 100,000 to 150,000 metric tons of ore per
day. The transactions are subject to receipt of COWs and other
approvals from the GOI and certain other conditions.
FCX will use its best efforts as a 15 percent interest
holder and operator, working with our partners and the GOI, to
ensure that the environmental impacts of the Busang mine are
minimized and that the positive social and economic impacts are
maximized, both for the local population and for the people of
Indonesia as a whole. That is the essence of FCX's policy
wherever it operates.
FCX is engaged in mineral exploration and development,
mining and milling of copper, gold and silver in Irian Jaya,
Indonesia and the smelting and refining of copper concentrates in
Spain. FCX is also involved in a joint venture to construct and
operate a smelter/refinery in Indonesia.
SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly
authorized.
FREEPORT-McMoRan COPPER & GOLD INC.
By:
------------------------------
Michael A. Weaver
Controller - Financial Reporting
(authorized signatory and
Principal Accounting Officer)
Date: March 13, 1997
