UNITED STATES

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): October 8, 2015

 

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FREEPORT-McMoRan INC.

(Exact name of registrant as specified in its charter)

 

   Delaware    001-11307-01    74-2480931   
  

(State or other jurisdiction

of incorporation)

  

(Commission

File Number)

  

(IRS Employer

Identification No.)

  

 

      333 North Central Avenue         
      Phoenix, AZ       85004-4414   
      (Address of principal executive offices)       (Zip Code)   

Registrant’s telephone number, including area code:  (602) 366-8100

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 8.01  Other Events.

Freeport-McMoRan Inc. (FCX) issued a press release dated October 8, 2015, announcing that PT Freeport Indonesia (PTFI) and the Government of Indonesia have engaged in productive discussions regarding PTFI’s long term operating rights and investment plans. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated in this Item 8.01 by reference. A copy of the Letter dated October 7, 2015, from the Minister of Energy and Mineral Resources, Republic of Indonesia, is attached hereto as Exhibit 99.2 and is incorporated in this Item 8.01 by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

The Exhibits included as part of this Current Report are listed in the attached Exhibit Index.


SIGNATURES

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 hereunto duly authorized.

 

        FREEPORT-McMoRan INC.
    By: /s/ Kathleen L. Quirk
          -----------------------------------------
     

    Kathleen L. Quirk

     

    Executive Vice President, Chief Financial Officer

    & Treasurer (authorized signatory and

    Principal Financial Officer)

Date: October 8, 2015


Freeport-McMoRan Inc.

Exhibit Index

 

Exhibit

Number

    
99.1    Press release dated October 8, 2015, titled “PT Freeport Indonesia and the Government of Indonesia Agree on Continuation of Operations of the Grasberg Mining Complex Beyond 2021.”
99.2    Letter dated October 7, 2015, from Minister of Energy and Mineral Resources, Republic of Indonesia.


Exhibit 99.1

 

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    333 North Central Avenue  ¡  Phoenix, AZ 85004    Financial Contacts:       Media Contact:
   Kathleen L. Quirk    David P. Joint    Eric E. Kinneberg
   (602) 366-8016    (504) 582-4203    (602) 366-7994

PT Freeport Indonesia and the Government of Indonesia

Agree on Continuation of Operations of the

Grasberg Mining Complex Beyond 2021

 

 

PHOENIX, AZ, October 8, 2015 – Freeport-McMoRan Inc. (NYSE: FCX) announced today that PT Freeport Indonesia (PT-FI) and the Government of Indonesia have engaged in productive discussions regarding PT-FI’s long term operating rights and investment plans. The Government is currently developing economic stimulus measures which include revisions to mining regulations to promote economic and employment growth.

In consideration of PT-FI’s major investments and prior and ongoing commitments to increase benefits to Indonesia, including previously agreed higher royalties, domestic processing, divestment and local content, the Government has assured PT-FI that the Government will approve the extension of operations beyond 2021, including the same rights and the same level of legal and fiscal certainty provided under its Contract of Work.

James R. Moffett, Chairman of Freeport-McMoRan Inc., stated, “We are pleased with the assurances from the Government of Indonesia of legal and fiscal certainty and look forward to continuing our long term partnership and investment plans to advance the economy, jobs and economic velocity in Papua.”

Sudirman Said, Indonesia’s Minister of Energy and Mineral Resources, said, “We welcome the continuation of Freeport’s investments in Papua which will provide increasing benefits to the national and local economies.”

FCX is a premier U.S.-based natural resources company with an industry-leading global portfolio of mineral assets, significant oil and gas resources and a growing production profile. FCX is the world’s largest publicly traded copper producer.

FCX’s portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; significant mining operations in the Americas, including the large-scale Morenci minerals district in North America and the Cerro Verde operation in South America; the Tenke Fungurume minerals district in the DRC; and significant U.S. oil and natural gas assets in the Deepwater GOM, onshore and offshore California and in the Haynesville natural gas shale, and a position in the Inboard Lower Tertiary/Cretaceous natural gas trend onshore in South Louisiana.

Cautionary Statement Regarding Forward-Looking Statements: This press release contains forward-looking statements, which are all statements other than statements of historical facts, such as expectations relating to the Indonesian government’s approval of the extension of PT-FI’s operations beyond 2021, including the same rights and the same level of legal and fiscal certainty provided under its Contract of Work. FCX cautions readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, projected or assumed in the forward-looking statements.

Important factors that can cause FCX’s actual results to differ materially from those anticipated in the forward-looking statements include supply of and demand for, and prices of, copper, gold, molybdenum, cobalt, crude oil and natural gas, mine sequencing, production rates, industry risks, regulatory changes, political risks, drilling results, potential additional oil and gas property impairment charges, potential lower of cost or market inventory adjustments, potential impairment of long-lived mining assets, FCX’s ability to complete transactions with strategic investors interested in investing capital in the development of its oil

 

 

 

        Freeport-McMoRan    1        


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and gas and mining properties, FCX’s ability to launch or complete the previously announced potential initial public offering of a minority interest in Freeport-McMoRan Oil & Gas Inc. on acceptable terms or at all, any decisions with respect to and the timing and success of any other strategic alternatives for FCX’s oil and gas business, the outcome of negotiations with the Indonesian government regarding PT-FI”s Contract of Work, PT-FI’s ability to obtain renewal of its export license after January 28, 2016, PT-FI’s ability to renew its bi-annual labor agreement expiring in September 2015, the potential effects of violence in Indonesia, the resolution of administrative disputes in the Democratic Republic of Congo, weather- and climate-related risks, labor relations, environmental risks, litigation results and other factors described in more detail in Part I, Item 1A. “Risk Factors” of FCX’s annual report on Form 10-K for the year ended December 31, 2014, as updated by FCX’s subsequent filings with the Securities and Exchange Commission.

Investors are cautioned that many of the assumptions on which FCX’s forward-looking statements are based are likely to change after the forward-looking statements are made, including for example commodity prices, which FCX cannot control, and production volumes and costs, some aspects of which FCX may not be able to control. Further, FCX may make changes to its business plans that could affect its results. FCX cautions investors that it does not intend to update forward-looking statements more frequently than quarterly notwithstanding any changes in FCX’s assumptions, changes in business plans, actual experience or other changes, and FCX undertakes no obligation to update any forward-looking statements.

#  #  #

 

 

 

        Freeport-McMoRan    2        


Exhibit 99.2

 

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MINISTER OF ENERGY AND MINERAL RESOURCES

    REPUBLIC OF INDONESIA

 

      Our Ref. 7522/13/MEM/2015

  October, 7th, 2015

Mr. James R. Moffett

Chairman of the Board Freeport McMoRan Inc.

Subject: Request for Operation Extension

Thank you for your previous letter on October 7th, 2015 and regarding for it, we can convey things as follow:

  1.

While the Government proceeds in addressing the legal and regulation aspects, PT Freeport Indonesia will continue to operate pursuant to the Contract of Work through 30 December 2021. The Government acknowledges that PT Freeport Indonesia has applied for the extensions pursuant to the provisions of its Contract of Work.

 

  2.

The Government of Indonesia has received the letter from PTFI regarding the extension of the contract, dated 9 July 2015, as it has been stated in our letter number 6665/05/MEM/2015, 11 September 2015.

 

  3.

I assure you that the Gol is completing the amendment of legal framework of governing the coal and mineral resources, including the changing of the PP to accommodate the foreign investment in Indonesia. Regarding PTFI’s proposal of contract extension, Gol warrants PTFI would be able to submit the proposal of contract extension immediately upon implementation of the regulatory amendment and the Government will not unreasonably withhold or delay approval. It is further understood that the approval will ensure the same rights and the same level of legal and fiscal certainty as contained in the Contract of Work.

 

  4.

Regarding PTFI’s proposal of contract extension, the GOI acknowledges that PTFI and The Gol have discussed and agreed upon all items stated in the MOU dated 25 July 2014. The Gol commits to ensure the continuation of foreign investment in Indonesia. However, due to legal constraints according to the GOI, the approval of PTFI’s contract extension will be given promptly after the GOI implements the regulatory amendment.


      

Concurrently with the approval of the contract extension for Gol, PTFI commits to continuing its investment program in Indonesia involving approximately $18 Billion USD.

Thank you for your cooperation.

 

   

Minister of Energy and Mineral Resources,

 

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Sudirman Said

Cc:

Presiden Republic of Indonesia

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