Freeport begins shipping copper from new Congo mine

By Carole Vaporean

NEW YORK, April 22 (Reuters) - Freeport-McMoRan Copper & Gold Inc (FCX.N) began shipping the first copper cathode produced at its Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo on Wednesday.

"Today, we are looking at our first actual shipment of copper from that operation to the marketplace. The first truck shipment is leaving today. It takes an average of 20 to 30 days one way," Chief Executive Officer Richard Adkerson told analysts on a conference call.

"That involves trucking the copper cathode from the DRC to the South Africa marketplace. It's a test shipment. But we are producing copper there. We have an inventory of cathodes ready for shipment," he said.

The largest publicly traded copper producer's chief said Freeport has been shipping construction material on the same route for over a year, "It's not like we're just starting."

"But it's an important quarter for Tenke. The production team beat my own estimates about when we'd first be able to produce copper there," the CEO said.

Earlier on Wednesday, the Phoenix, Arizona-based mining company reported first-quarter profit slumped sharply and revenue dropped by more than half as the global economic downturn weakened metal demand and prices. [nN22411505]

It reported capital expenditures of $519 million for the first quarter, with nearly 50 percent related to Tenke Fungurume. The company expects capital expenditures of $1.3 billion for 2009, down from $2.7 billion in 2008.

Freeport will complete its spending at Tenke roughly by mid-2009, Adkerson said, but spending plans continue to be reviewed and may be revised based on market conditions.