2007-12-04_GENERAL DOCUMENTS - M1977493

• Permit No: M1977493
• IBM Index Class Name: GENERAL DOCUMENTS
• Doc Date: 12/4/2007
• Doc Name: Climax Mine announes restart
• From: Climax Molybdenum Comapny
• To: DRMS
• Permit Index Doc Type: Gen. Correspondence
• Media Type: D
• Archive: No

Permit #: M1977493 Confidential?:
Doc. Type: Press Release
From: Climax Molybdenum Company
Doc. Name: Climax Mine announces restart
,' Doc. Date: 12-4-2007
Specialist: ACS
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To: DRMS
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One North Central Avenue ~ Phoenix, AZ 85004 Financial Contacts: Media Contact:
Kathleen L. Quirk David P. Joint William L. Collier
[phone] [phone] [phone]
Freeport-McMoRan Copper & Gold Inc.
Announces Plans to Restart Climax Molybdenum Mine
PHOENIX, AZ, December 4, 2007 -Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) announced today
it plans to proceed with the restart of the Climax molybdenum mine near Leadville, Colorado. The initial
$500 million project involves the restart of open pit mining and the construction of new state of the art
milling facilities. Annual production is expected to approximate 30 million pounds of molybdenum
beginning in 2010 at estimated cash costs approximating $3.50 per pound. The project is designed to
enable the consideration of a further large scale expansion of the Climax mine. FCX will evaluate a
second phase of the Climax project which could potentially double future annual molybdenum production
to approximately 60 million pounds.
The Climax mine is believed to be the world's largest, highest grade and lowest cost undeveloped
molybdenum deposit. Using along-term molybdenum price of $6.50 per pound, reserves are estimated
at 180 million tons at 0.165 percent molybdenum (0.5 billion pounds of recoverable molybdenum). In
addition, there is an estimated 466 million tons grading 0.17 percent molybdenum of mineralized material
($10 per pound long-term molybdenum price) with substantial upside.
Richard C. Adkerson, FCX's Chief Executive Officer, said, "We are pleased to announce
the decision to proceed with this financially attractive project and continue our leadership
position as the world's largest producer of molybdenum. This project will provide long-term,
low cost production and enable us to continue our long-standing tradition of providing our
customers with high quality molybdenum products and service."
Orders for certain long-lead items have been placed and work on the project will commence
immediately. Major construction activities are expected to begin in the spring of 2008 after the winter
season. The mill is located in the Colorado Rocky Mountains at an elevation of 11,400 feet. Construction
employment will begin with approximately 150 workers and peak at over 500. The operation will employ
approximately 350 when production begins.
Climax is a historically significant mine with first ore processed in 1918. The mine and mill were
last operated in 1995. Reclamation and environmental projects have continued over amulti-year period
and will continue in areas no longer required for mining operations.
FCX also announced plans to increase its molybdenum processing capacity by 20 million pounds
per annum through the conversion of its copper concentrate leach facility at Bagdad, Arizona, to a
molybdenum concentrate leach facility by 2010. FCX has four additional molybdenum processing facilities
at Green Valley, Arizona; Fort Madison, Iowa; Stowmarket, United Kingdom and Rotterdam, Netherlands.
FCX is a leading international mining company with headquarters in Phoenix, Arizona. FCX
operates large, long-lived, geographically diverse assets with significant proven and probable reserves of
copper, gold and molybdenum. FCX has a dynamic portfolio of operating, expansion and growth projects
in the copper industry and is the world's largest producer of molybdenum. Additional information about
FCX is available on our web site at www.fcx.com.
Freeport-McMoRan Copper & Gold