PROPERTY, PLANT, EQUIPMENT AND DEVELOPMENT COSTS, NET

12 Months Ended

Dec. 31, 2011

Property, Plant and Equipment, Net [Abstract]

Property, Plant, Equipment and Development Costs, Net

PROPERTY, PLANT, EQUIPMENT AND DEVELOPMENT COSTS, NET

The components of net property, plant, equipment and development costs follow:



	December 31,
	2011			2010
Proven and probable reserves	$	4,572		$	4,503
VBPP	1,071			1,100
Development and other	3,447			3,188
Buildings and infrastructure	3,151			2,815
Machinery and equipment	8,171			7,523
Mobile equipment	2,859			2,365
Construction in progress	2,704			1,885
Property, plant, equipment and
development costs	25,975			23,379
Accumulated depreciation, depletion and
amortization	(7,526		)	(6,594		)
Property, plant, equipment and
development costs, net	$	18,449		$	16,785

FCX recorded $2.2 billion for VBPP in connection with the FMC acquisition in 2007 and transferred to proven and probable reserves $23 million during 2011, $197 million during 2010 and $542 million prior to 2010. Cumulative impairments of VBPP total $477 million, of which $6 million was recorded in 2011, and none in 2010 and 2009.

FCX capitalized interest totaling $109 million in 2011, $66 million in 2010 and $78 million in 2009. Capitalized interest primarily related to the development projects at the Climax, Cerro Verde and Candelaria mines, and in the Grasberg minerals district in Indonesia in 2011; at the Climax and El Abra mines in 2010; and at the Tenke Fungurume mine in 2009.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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