PROPERTY, PLANT, EQUIPMENT AND DEVELOPMENT COSTS, NET

12 Months Ended

Dec. 31, 2012

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,
	2012			2011
Proven and probable reserves	$	4,630		$	4,572
VBPP	1,067			1,071
Development and other	3,821			3,447
Buildings and infrastructure	3,811			3,151
Machinery and equipment	9,472			8,171
Mobile equipment	3,447			2,859
Construction in progress	3,402			2,704
Property, plant, equipment and development costs	29,650			25,975
Accumulated depreciation, depletion and amortization	(8,651		)	(7,526		)
Property, plant, equipment and development costs, net	$	20,999		$	18,449

FCX recorded $2.2 billion for VBPP in connection with the FMC acquisition in 2007 and transferred none to proven and probable reserves during 2012, $23 million during 2011 and $739 million prior to 2011. Cumulative impairments of VBPP total $481 million, of which $4 million was recorded in 2012, $6 million in 2011 and none in 2010.

Capitalized interest is primarily related to FCX's capital projects and totaled $81 million in 2012, $109 million in 2011 and $66 million in 2010.

- 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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