Freeport-McMoRan Copper & Gold
Freeport-McMoRan Copper & Gold (NYSE:FCX) is said to be in the final stage of negotiations with the Democratic Republic of Congo over the Tenke Fungurume copper/cobalt project.
The mine is the largest undeveloped copper and cobalt project in the world, and included the highest grade as well.
This will be a huge win for Freeport, which has taken some negative blows recently, especially on the news China will be tightening up on its money supply in 2010, which some assume will result in less demand for raw materials, although that's not a proven reality at this time, and could turn around easily, as the iron ore story has unfolded where China was attempting push down the prices, which didn't work because demand is so strong for steel in the country. The same could happen with copper and cobalt.
Another major story for Freeport is the lower yields coming from its Grasberg property in Indonesia, which Tenke Fungurme would address for years into the future.
Tenke Fungurme is estimated to have the resources to produce up to 250 million pounds of copper and 18 million pounds of cobalt on an annual basis. That would and will be a boon for Freeport.
Freeport-McMoRan Copper & Gold
No comments:
Post a Comment