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## Making Metal for a Positive 

## Market 

## PT Freeport Indonesia Concentrate Sales 

2005e Sales: 2.7 million dry metric tons 

<img src='content_image/55249.jpg'>

Investment in smelters provides downstreamintegration,boosting marketingstrategy.Positive m arket fundamentals for copper an d gold coincide with operations suc cess. 

Smeltingand Refining The product of our PT Freep ort Indonesia mining and milling operations in the Indonesian province of Papua is sold in the form of copper concentrate. We extract ore from our Grasbe rg open-pit and Deep Ore Zone underground mines and process it at our mill facility, essentially separating the material containing copper and gold from the r est of the mined ore. Our copper concentrate is sold to smelters and refineries around the world, including two smelters in which we have ownership interest. Our investment in smelters serves an important role in our concentrate marketing strategy. Through downstrea m integration, we assure placement of a significant port ion of our concentrate production. Atlantic Copper, S.A. is our wholly owned smelting unit in Spain, and PT Smelting is PT Freeport Indonesia’s 25-percent- owned Indonesian smelting unit. The remainder of ou r copper concentrate is sold principally under long-te rm contracts to customers with long-standing and positive commercial relationships with our Company . Our largest non-affiliated customers are located in Asia . 

