|Traded as|| NYSE: FCX |
S&P 500 Index component
|Industry|| Metals and Mining |
|Founder||Eric Pierson Swenson, et al|
|Headquarters|| Freeport-McMoRan Center |
| Gerald J. Ford, Chairman |
Richard Adkerson, President & CEO
Kathleen L. Quirk, CFO
|Products|| Copper |
Number of employees
11,000 in North America
12,200 in Indonesia
5,400 in South America
1,400 in Europe and other locations.
|Subsidiaries||PT Freeport Indonesia|
PT Irja Eastern Minerals
Atlantic Copper, S.A.
Freeport-McMoRan Inc., (FMCG) often called Freeport, is a mining company based in the Freeport-McMoRan Center, in Phoenix, Arizona.
Freeport-McMoRan Center is a highrise located in Downtown Phoenix, Arizona. It is located adjacent to Arizona State University's Downtown campus. Upon completion in 2009, the building was the first high-rise office tower to open in Downtown Phoenix in nearly eight years. It is named for mining company Freeport-McMoRan whose headquarters are located in the building.
Phoenix is the capital and most populous city of Arizona, with 1,626,000 people. It is also the fifth most populous city in the United States and the only state capital with a population of more than one million residents. The state capital accounts for 23% of the state population.
The current company was created in 1981 through the merger of Freeport Minerals, formerly Texas Freeport Sulphur Company and McMoRan Oil & Gas Company, becoming Freeport-McMoRan Inc.
Freeport Sulphur Company was founded July 12, 1912 by the eldest son of Svante Magnus "E.M." Swenson, banker Eric Pierson Swenson, with a group of investors, to develop sulfur mining at Brian Mound salt dome, along the US Gulf Coast.Freeport, Texas was also established in Nov. 1912 to house workers, and serve as a port for Houston, rivaling Galveston and Corpus Christi.
Swante M. Swenson was the founder of the SMS Ranches in West Texas. It was through his efforts that Swedish immigration to Texas was begun in 1848.
Sulfur (also spelled sulphur) is a chemical element with the symbol S and atomic number 16. It is abundant, multivalent, and nonmetallic. Under normal conditions, sulfur atoms form cyclic octatomic molecules with a chemical formula S8. Elemental sulfur is a bright yellow, crystalline solid at room temperature.
A salt dome is a type of structural dome formed when a thick bed of evaporite minerals found at depth intrudes vertically into surrounding rock strata, forming a diapir. It is important in petroleum geology because salt structures are impermeable and can lead to the formation of a stratigraphic trap.
Freeport mined sulphur along the Gulf Coast using the Frasch Process, the patents for which had expired in 1908.Previously, Union Sulphur Company founder and patent-holder Herman Frasch had enjoyed a monopoly on the process. The company became known as Freeport Sulphur, later changing its corporate name to Freeport Minerals.
The Union Sulphur Company was an American sulfur mining corporation founded in 1896 by the famous inventor Herman Frasch. It utilized the Frasch Process to extract previously inaccessible sulfur deposits located beneath swampland in Louisiana. The Union Sulphur Company dominated the world sulfur market until its patents expired in 1908. Its success led to the development of the present-day city of Sulphur, Louisiana. After its sulfur patents expired, the company transitioned into oil and natural gas production and was renamed the Union Sulphur & Oil Company and later the Union Oil & Gas Corporation.
Herman Frasch [or Hermann Frasch] was a chemist, mining engineer and inventor known for his work with petroleum and sulphur.
In 1922, Freeport started producing sulphur from Hoskins Mound in Brazoria County, Texas. 111-117:
Brazoria County is a county in the U.S. state of Texas. As of the 2010 census, the population of the county was 313,166. The county seat is Angleton.
Enterprise to support Freeport Sulphur's business and the new town's infrastructure led to the incorporation of a holding company on September 30, 1913, to join the newer assets with Freeport Sulphur. Officers of the new holding company, Freeport Texas Company, were:
Infrastructure is the fundamental facilities and systems serving a country, city, or other area, including the services and facilities necessary for its economy to function. Infrastructure is composed of public and private physical improvements such as roads, bridges, tunnels, water supply, sewers, electrical grids, and telecommunications. In general, it has also been defined as "the physical components of interrelated systems providing commodities and services essential to enable, sustain, or enhance societal living conditions".
Hugh Findlay was one of the first two Mormon missionaries to enter India and initiated Mormon missionary work in the Shetland Islands.
Richard H. Williams was an American politician from New York.
Harry Kearsarge Knapp was a United States financier and a prominent executive in the Thoroughbred horse racing industry in which he had been a steward, secretary-treasurer and vice-chairman of The Jockey Club.
The new corporation's principal assets were listed as:
In 1919, minority stockholders John R. Williams & Sons, First National Bank of Richmond, Virginia vice-president, W. M. Addison, Benjamin P Alsopp, E. L. Norton, and Samuel W. Travers solicited proxies to use at the April 5th annual stockholders' meeting, claiming, according to reports, that "management has refused them adequate information regarding the property. President E.P. Swenson denies that information as been thus withheld and states that the board, which represents the dominant interests, has no vacancies at the present time."
in 1928, shareholder and scion of one of the founding investment firms, John Langbourne Williams & Sons, Langbourne Meade Williams, Jr. launched a proxy fight for control of the company. In 1929, he then sought help from his former supervisor at Lee, Higginson & Co., J.T. Claiborne, who then enlisted clerk John Hay Whitney — who had become one of the wealthiest men in America following the 1927 death of his father, Payne Whitney.Williams eventually gained control of the company from founder Swenson, becoming its president in 1931, with Claiborne as a Vice-President, and Whitney as Chairman. Williams also served as Chairman during 1958 - 1967.
Williams led the company's diversification, beginning with the purchase of manganese deposits in Oriente Province, Cuba.
In 1932, Freeport Sulphur Company acquired the sulphur rights for Lake Grande Ecaille and vicinity in Plaquemines Parish, Louisiana, and escalated the development of sulphur deposits in the Grand Ecaille dome in 1933, still using the Frasch Process developed by Dr. Herman Frasch, who had, in 1895, enjoined the American Sulphur Company into a partnership, forming the Union Sulphur Company, to initiate the first successful sulphur mining at Grand Ecaille, with which Freeport, like other competitors, would compete upon expiry of the Frasch patents in 1908.From its earliest inception, sulphur mining was the catalyst that developed Port Sulphur, Louisiana.
The company produced nickel during World War II and potash in the 1950s.In 1955, Freeport Nickel invested $119 million, of which $100 million came from the U.S. government, into construction of a nickel-cobalt mine at Moa Bay, Cuba, and a refinery at Port Nickel, Louisiana. On March 11, 1957, the U.S. government announced a contract to buy nickel and cobalt from the company.
In 1956, the company formed the Freeport Oil Company.In 1958, the company sold an oil discovery near Lake Washington in Louisiana for approximately $100 million to Magnolia Petroleum Company.
In 1959, Freeport geologists confirmed the 1936 Dutch discovery of the rich Ertsberg copper and gold deposits, now known as the Grasberg mine, in extremely rugged, remote country in the Jayawijaya Mountains in what was then called the Netherlands New Guinea.
In 1967, the company negotiated a contract with the Indonesian government to develop the Ertsberg deposit. 101-kilometre (63 mi) long access road (a project that required boring kilometer long tunnels through two mountains) and constructing the world's longest single span aerial tramway. The tramways were needed to move people, supplies and ore because a 2,000-foot (610 m) cliff separates the Ertsberg mine (at 12,000 feet (3,700 m) elevation) from the mill (at 10,000 feet). Moving copper concentrate from that mill to the shipping port required installation of a 109-kilometre (68 mi) slurry pipeline — then the world's longest. Mine construction and startup cost about US$200 million. The Ertsberg project was an engineering marvel, but the mine's early financial performance was disappointing. Depressed copper prices and high operating costs kept profits marginal during the 1970s.In their feasibility study, Freeport geologists estimated that the orebody totaled 33 million tons averaging 2.5% copper, making it the largest above-ground copper deposit ever discovered. Construction of an open pit mine began in May 1970 and in mid-1973 the mine was declared fully operational. Officials at Bechtel, the primary project contractor, called mine development at Ertsberg "the most difficult engineering project they had ever undertaken." The challenges included building a
In 1969, McMoRan Exploration Company was founded, which, in 1981, would merge with Freeport Minerals, formerly Freeport Sulphur, to form Freeport-McMoRan.
In 1971, the company changed its name to Freeport Minerals Company, (not to be confused with Freeport Minerals Corporation, founded in 1834).
In 1981, Freeport Minerals Company merged with the McMoRan Oil and Gas Company. The McMoRan Oil and Gas Company was founded in 1967 by three partners, William Kennon McWilliams Jr. ("Mc"), James Robert (Jim Bob) Moffett ("Mo"), who were both petroleum geologists, and Mack Rankin ("Ran"), "a specialist in land-leasing and sales operations." Kent McWilliams (died 1997) was extremely knowledgeable about the micro-paleontology of the Louisiana and Texas coasts.
In 1981, the company formed a 70/30 joint venture with an affiliate of FMC Corporation to operate a gold mine in Jerrit Canyon, Nevada. 196,000 troy ounces (6,100 kg) of gold in its first full year of operation. In 1985, the company headquarters moved to New Orleans, Louisiana. The company also sold a 25% interest in some[ which? ] oil and gas reserves to Britoil for $73.5 million.In 1982, Freeport Gold Company was the world's largest gold producer, producing
In 1989, the company sold about $1.5 billion in assets to finance development of the Grasberg mine and the Main Pass offshore sulfur-oil-gas deposit off Louisiana.
In 1994, the company completed the corporate spin-off of its entire interest in Freeport-McMoRan Copper & Gold, which owned the Grasberg mine.
In 1995, RTZ, a predecessor of Rio Tinto Group made a $450 million investment in the company.
In 1997, IMC Global, a large fertilizer producer, acquired Freeport-McMoRan Inc., the former parent company that now owned the sulfur and fertilizer businesses, in a $750 million transaction. Shareholders of Freeport-McMoRan received shares of IMC Global.
The Indonesian government asked Freeport to substantiate Bre-X's claims of having found the largest gold mine ever discovered. In 1997, the company announced that its prospective partner Bre-X did not have gold reserves at its Indonesian mine, as it had reported. Bre-X subsequently was exposed as a fraud and went bankrupt.
In 1998, low commodity prices forced the company to suspend its dividend.
In 2003, the company was subpoenaed as part of an investigation by anti-trust authorities in the United States, Canada, and Europe into price fixing in the copper industry.
On March 19, 2007, the company acquired Phelps Dodge and became the largest copper producer of any public company in the world. The corporate headquarters was moved from New Orleans, Louisiana to Phoenix, Arizona.
In 2012, the company announced agreements to acquire affiliated companies McMoRan Exploration Company and Plains Exploration & Production Company for a total enterprise value of over $20 billion. The transaction added significantly to the company's petroleum assets.The transaction was criticized as a conflict of interest due to the common ownership of the companies. In 2015, the company paid a $137.5 million settlement to resolve claims that executives and directors had conflicts of interest that resulted in the company overpaying in that transaction.
In 2014, the company sold its assets in the Eagle Ford shale to Encana for $3.1 billion.In 2015, the company announced job cuts at its Sierrita Mine in Arizona due to low copper and molybdenum prices.
On December 28, 2015, the company announced that James R. Moffett would resign as chairman of the company and be replaced by Gerald J. Ford. Moffett received $16.1 million in severance pay and cash retirement plans totaling more than $63 million. Moffett continued to consult for the company for annual fees of $1.5 million.
In May 2016, the company sold a 13% interest in its Morenci Mine to Sumitomo Group for $1 billion in cash.
Fourth qtr 2016, Freeport sold its deepwater assets, including the Marlin TLP, and the Holstein and Horn Mountain spars, to Anadarko Petroleum Corp.
In August 2017, the company agreed to give a 51% interest in the Grasberg mine to the Government of Indonesia and build a smelter in exchange for a special permit to operate the mine until 2041.
In 2018, the company ranked at number 176 on the Fortune 500 list.During this year, Indonesian President Joko Widodo also planned to take control of 51% of Freeport Indonesia's equity, effectively handing over control of Freeport Control to Indonesian government. The Indonesian government will need to settle payments of $3.85 billion during the takeover process. The Indonesian government finalized the process on December 21, 2018.
Freeport is the largest producer of molybdenum, and second largest producer of copper, in the world.In 2015, 67% of its revenues were from the sale of copper, 11% from the sale of petroleum, 10% from the sale of gold, and 5% from the sale of molybdenum. In 2015, sales to Phillips 66 accounted for 7% of the total revenues of the company.
Some of the company's mining operations are as follows:
Freeport Cobalt holds a 100% interest in Kisanfu, a copper and cobalt exploration project located near Tenke. This subsidiary also owns a large cobalt refinery in Kokkola, Finland, along with a related sales and marketing business. FCX has an effective 56% of that enterprise. Negotiations in 2016 to include these cobalt projects in a sale to China Molybdenum of Tenke Fungurume Mine--a cobalt/copper mine in DRC Congo--in did not bear fruit.
Freeport Cobalt owns a large cobalt refinery located in Kokkola, Finland, and a related sales and marketing business. FCX holds an effective 56% interest in that enterprise.
Past board members include Henry Kissinger (1995 - 2001), John Hay Whitney, Robert A. Lovett, Benno C. Schmidt Sr. (1954 - 1967), Gus Long, Arleigh Burke, J. Stapleton Roy, Godfrey Rockefeller and his cousin-in-law, Jean Mauzé.
The company operates the world's largest and most profitable gold mine, the Grasberg mine in Papua, Indonesia.
In 2005, The New York Times reported that the company paid local military and police generals, colonels, majors and captains, and military units, a total of nearly US$20 million between 1998 and 2004. One individual received up to US$150,000. The payments were meant to secure the reserve. The company responded that the payments were not for individuals, but rather for infrastructure, food, housing, fuel, travel, vehicle repairs and allowances to cover incidental and administrative costs. According to the report, anonymous sources within the company also claimed that company chairman James R. Moffet courted Indonesia's dictator and "his cronies", cutting them in on deals. Another employee is said to have worked on a program to monitor environmentalists' e-mails and telephone conversations, in cooperation with Indonesian military intelligence officers.
The Grasberg mine's tailings "severely impacted" more than 11 square miles (28 km2) of rainforest, according to a 1996 Dames & Moore environmental audit. The report, endorsed by Freeport, also estimated that during the life of the mine 3.2 billion tons of waste rock—a great part of which generates acid—will be dumped into the local river system. Overburden (waste rock) from the mine has polluted a nearby lake due to acid mine drainage.
Citing extensive, long-term and irreversible environmental damage in New Guinea, The Government Pension Fund of Norway has excluded Freeport-McMoRan from its investment portfolio, following a recommendation from the fund's ethical council.
The company is a signatory participant of the Voluntary Principles on Security and Human Rights. However, the company has been accused of funding the Indonesian government to secure its reserve through militaristic oppression of the native West Papuan people.
Production at the mine has been affected by several strikes:
On October 17, 2011, the company halted operations in Papua amid a strike that led to a deteriorating security situation and intensified calls for Papuan independence. Seventy percent of Grasberg workers joined the strike, appealing for higher pay September 15, 2011, blocking roads, clashing with police and cutting the pipeline in several places.
In October 2014, around 1,000 workers stayed home and demanded the firing of 50 managers as a result of a fatal accident at the Grasberg mine. Production declined to 60-70% of normal levels as a result of the strike.
In 2017, 5,000 workers at the mine participated in a labor strike that lasted over 4 months.
Based on 2014 data, the Political Economy Research Institute ranked Freeport-McMoRan 13th among corporations emitting airborne pollutants in the U.S. The ranking is based on emission quantities and toxicity.In 2012, the company paid a $6.8 million fine to the United States Department of the Interior for pollution at the company's Morenci copper mine in southeastern Arizona.
The Amung people are a group of about 17,700 people living in the highlands of the Papua province of Indonesia. Their language is called Damal.
Phelps Dodge Corporation was an American mining company founded in 1834 as an import-export firm by Anson Greene Phelps and his two sons-in-law William Earle Dodge, Sr. and Daniel James. The latter two ran Phelp, James & Co., the part of the organization based in Liverpool, England. The import-export firm at first exported United States cotton from the Deep South to England, and imported various metals to the US needed for industrialization. With the expansion of the western frontier in North America, the corporation acquired mines and mining companies, including the Copper Queen Mine in Arizona and the Dawson, New Mexico coal mines. It operated its own mines and acquired railroads to carry its products. By the late 19th century, it was known as a mining company.
The Chino Mine, also known as the Santa Rita mine, is an open-pit copper mine located in the town of Santa Rita, New Mexico 15 miles (24 km) east of Silver City. The mine was started as the Chino Copper Company in 1909 by mining engineer John M. Sully and Spencer Penrose, and is currently owned and operated by Freeport-McMoRan Inc. subsidiaries. The area where the mine is located is at an average elevation of 5,699 feet (1,737 m).
Rio Tinto is an Anglo-Australian multinational and one of the world's largest metals and mining corporations. The company was founded in 1873, when a multinational consortium of investors purchased a mine complex on the Rio Tinto, in Huelva, Spain, from the Spanish government. Since then, the company has grown through a long series of mergers and acquisitions to place itself among the world leaders in the production of many commodities, including aluminium, iron ore, copper, uranium, and diamonds. Although primarily focused on extraction of minerals, Rio Tinto also has significant operations in refining, particularly for refining bauxite and iron ore. The company has operations on six continents, but is mainly concentrated in Australia and Canada, and owns its mining operations through a complex web of wholly and partly owned subsidiaries. Rio Tinto has joint head offices in London and Melbourne.
The Grasberg mine is the largest gold mine and the second largest copper mine in the world. It is located in the province of Papua in Indonesia near Puncak Jaya, the highest mountain in Papua. It has 19,500 employees. It is mostly owned by Freeport-McMoRan (FCX), which owns 48.74% of PT Freeport Indonesia (PT-FI), the principal operating subsidiary in Indonesia, including 9.36% owned through its wholly owned subsidiary, PT Indocopper Investama. The government of Indonesia owns 51.23% of PT Freeport Indonesia through Indonesia Asahan Aluminium.
Porphyry copper deposits are copper orebodies that are formed from hydrothermal fluids that originate from a voluminous magma chamber several kilometers below the deposit itself. Predating or associated with those fluids are vertical dikes of porphyritic intrusive rocks from which this deposit type derives its name. In later stages, circulating meteoric fluids may interact with the magmatic fluids. Successive envelopes of hydrothermal alteration typically enclose a core of disseminated ore minerals in often stockwork-forming hairline fractures and veins. Because of their large volume, porphyry orebodies can be economic from copper concentrations as low as 0.15% copper and can have economic amounts of by-products such as molybdenum, silver and gold. In some mines, those metals are the main product.
KGHM Polska Miedź S.A., commonly known as KGHM, is a Polish multinational corporation that employs near 34,000 people around the world and has been a leader in copper and silver production for more than 50 years. In 1991, the company was established as a state enterprise and since 1997, their shares have been traded on the Warsaw Stock Exchange. Currently, KGHM operates 9 open-pit and underground mines located in Poland, Canada, the USA and Chile and is actively advancing 4 projects. KGHM produces key global resources including copper, copper sulphate, gold, silver, nickel, nickel sulphate, molybdenum, rhenium, lead, sulphuric acid, selenium and platinum group metals.
Copper mining in the United States has been a major industry since the rise of the northern Michigan copper district in the 1840s. In 2017 the United States produced 1.27 million metric tonnes of copper, worth $8 billion, making it the world's fourth largest copper producer, after Chile, China, and Peru. Copper was produced from 23 mines in the US. Top copper producing states in 2014 were Arizona, Utah, New Mexico, Nevada, and Montana. Minor production also came from Idaho, and Missouri. As of 2014, the US had 45 million tonnes of known remaining reserves of copper, the fifth largest known copper reserves in the world, after Chile, Australia, Peru, and Mexico.
Copper mining in Arizona, a state of the United States, has been a major industry since the 19th century. In 2007 Arizona was the leading copper-producing state in the US, producing 750 thousand metric tons of copper, worth a record $5.54 billion. Arizona's copper production was 60% of the total for the United States. Copper mining also produces gold and silver as byproducts. Byproduct molybdenum from copper mining makes Arizona the nation's second-largest producer of that metal. Although copper mineralization was found by the earliest Spanish explorers of Arizona, the territory was remote, and copper could seldom be profitably mined and shipped. Early Spanish, Mexican, and American prospectors searched for gold and silver, and ignored copper. It was not until the completion of the Southern Pacific Railroad in 1876 that copper became broadly economic to mine and ship to market.
Lundin Mining is a multinational minerals company with operations in the United States, Sweden, Portugal, and Chile. Lundin Mining is headquartered in Toronto, Ontario and trades on the Toronto Stock Exchange as part of the S&P/TSX 60 index. The company also trades on the Swedish Nordic Exchange with an overall market capitalization of around 5.3 billion CAD as at July 24, 2018.
The Safford Mine is an open-pit copper mine located in Graham County, Arizona, eight miles (13 km) north of the city of Safford. The mine is owned and operated by Freeport-McMoran Copper & Gold.
The New Cornelia mine is a currently inactive open-pit copper mine in Pima County, Arizona, United States. It was the only productive mine in the Ajo mining district, and is located just outside the town of Ajo, which was built as a company town to serve the New Cornelia mines. The roughly circular pit is one and a half miles across at its widest point, and 1,100 feet deep at the center.
The Climax mine, located in Climax, Colorado, United States, is a major molybdenum mine in Lake and Summit counties, Colorado. Shipments from the mine began in 1915. At its highest output, the Climax mine was the largest molybdenum mine in the world, and for many years it supplied three-fourths of the world's supply of molybdenum.
The Bagdad Mine is a large copper mine located in Arizona, in the southwestern part of the United States. Bagdad represents one of the largest copper reserves in the United States and in the world, having estimated reserves of 873.6 million tonnes of ore grading 0.36% copper. It is located in Yavapai County, Arizona, just west of the unincorporated community of Bagdad. It is owned by Freeport-McMoRan. Copper is produced from chalcopyrite and molybdenum from molybdenite. Copper oxides include chrysocolla, malachite and azurite. The mine's concentrator has a capacity of 75,000 metric tons per day using stockpile leaching, with pressure leaching for molybdenum.
The Morenci Mine is a large copper mine located in Arizona, in the southwestern part of the United States. Morenci represents one of the largest copper reserves in the United States and in the world, having estimated reserves of 3.2 billion tonnes of ore grading 0.16% copper. It is located in Greenlee County, just outside the communities of Morenci and Clifton. Freeport-McMoRan is the principal owner and, since 2016, Sumitomo Group has owned a 13% interest in the mine.
The Sierrita Mine is a large copper mine located in the Sierrita Mountains of Arizona, in the southwestern part of the United States. The mine is located in southern Pima County, southwest of Tucson and west of Green Valley-Sahuarita.
The Cerro Verde mine is a very large copper mine located about 20 miles southwest of Arequipa, in southwestern Peru. Cerro Verde represents one of the largest copper reserves in Peru and in the world, having estimated reserves of 4.63 billion tonnes of ore grading 0.4% copper and 113.2 million oz of silver.
Molybdenum mining in the United States produced 65,500 metric tons of molybdenum in 2014, worth US$1.8 billion. The US was the world’s second-largest molybdenum producer, after China, and provided 25% of the world’s supply of molybdenum.