Phelps Dodge News

Freeport-McMoRan Copper & Gold Inc. & Phelps Dodge Corp. announced they have signed a definitive merger agreement under which FCX will acquire Phelps Dodge for approx., $25.9 billion in cash & stock, creating the world’s largest publicly traded copper company.

The combined company will be a new industry leader with large, long-lived, geographically diverse assets & significant proven & probable reserves of copper, gold & molybdenum. The company’s increased scale of operations, management depth & strengthened cash flow will provide an improved platform to capitalize on growth opportunities in the global market.

The combined company will be the largest North American-based mining company. The company will enjoy an excellent cost position, long reserve life, a diversified geographic footprint, & an attractive growth profile. FCX currently operates the world-class Grasberg mine, located in Papua, Indonesia, which is the world’s largest copper & gold mine in terms of reserves. Phelps Dodge has mines in operation or under development in N. & S. America, & Africa, including the world-class Tenke Fungurume development project in the Democratic Republic of the Congo. The combined company will represent one of the most geographically diversified portfolios of operating, expansion & growth projects in the copper mining industry.