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): January 6, 1998
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 January 6, 1998:
FREEPORT-McMoRan COPPER & GOLD INC. ANNOUNCES
SALE OF INDONESIAN ELECTRICAL POWER ASSETS
NEW ORLEANS, LA., January 6, 1998 -- Freeport-McMoRan
Copper & Gold Inc. (FCX) announced today that its principal
mining affiliate, P.T. Freeport Indonesia Company (PTFI), and Rio
Tinto, PTFI's joint venture partner, have sold their interests in
a 195-megawatt coal-fired power plant and transmission facilities
under construction in Irian Jaya, Indonesia to a consortium
consisting of Duke Energy International LLC, Westcoast Energy
International Inc. and P.T. Prasarana Nusantara Jaya. The new
power facilities will support a major expansion of PTFI's copper
and gold mining and milling operation expected to be completed in
early 1998.
P.T. Puncakjaya Power (PJP), the Indonesian operating
company established by the consortium to own and manage the
power-related facilities, has purchased PTFI's and Rio Tinto's
interests in the new power plant and transmission facilities. In
addition, the consortium has purchased PTFI's previous 30 percent
ownership interest in PJP. Proceeds to PTFI were approximately
$239 million, net of transaction costs. PTFI will use the
proceeds to repay outstanding debt and for other general
corporate purposes. PJP also purchased Rio Tinto's interest in
the same joint venture assets for approximately $121 million.
PJP acquired approximately 194 megawatts of power generation
facilities in Irian Jaya from PTFI in 1994 and 1995. PJP now owns
and manages all electric power facilities serving PTFI's mining
operations in Irian Jaya providing a total capacity of 389
megawatts.
PTFI, an affiliate of Freeport-McMoRan Copper & Gold Inc.
(NYSE:FCX), is one of the world's largest and lowest cost copper
and gold mining companies. FCX is engaged in mineral exploration
and development, mining and milling of copper, gold, and silver
in Irian Jaya, 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.
Duke Energy International LLC develops, owns and operates
energy projects worldwide. Its capabilities include natural gas
exploration, production, processing, transportation and supply,
along with generation, delivery and marketing of electric power
and thermal energy. Duke Energy International is an affiliate of
Duke Energy Corp. (NYSE:DUK), a global energy company with $22
billion in assets.
Westcoast Energy International Inc. is a subsidiary of
Vancouver, British Columbia-based Westcoast Energy Inc. (TSE:W;
NYSE:WE). Westcoast Energy's interests include natural gas
gathering and processing facilities, gas transportation and
storage facilities, gas distribution companies as well as power
generation, international and energy services businesses. The
company has assets of approximately $10 billion.
P.T. Prasarana Nusantara Jaya (PNJ), an Indonesian limited
liability company, develops and owns infrastructure-related
investments in Indonesia and is a wholly owned subsidiary of PT
Austindo Nusantara Jaya. PNJ has interests in several power
generation projects in Indonesia, which are in the early stages
of development.
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: /s/C. Donald Whitmire
------------------------------
C. Donald Whitmire
Controller-Financial Reporting
(authorized signatory and
Principal Accounting Officer)
Date: January 7, 1998
