PROPERTY, PLANT, EQUIPMENT AND MINING DEVELOPMENT COSTS, NET

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment, Net [Abstract]

Property, Plant, Equipment and Mining Development Costs, Net

PROPERTY, PLANT, EQUIPMENT AND MINE DEVELOPMENT COSTS, NET

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

	December 31,
	2018			2017
Proven and probable mineral reserves	$	7,089		$	3,974
VBPP	477			536
Mine development and other	8,195			6,213
Buildings and infrastructure	8,051			7,553
Machinery and equipment	12,985			12,330
Mobile equipment	4,010			3,766
Construction in progress	3,006			2,971
Oil and gas properties	27,292			27,453
Total	71,105			64,796
Accumulated depreciation, depletion, and amortizationa	(43,095		)	(41,802		)
Property, plant, equipment and mine development costs, net	$	28,010		$	22,994

a. Includes accumulated amortization of $27.3 billion and $27.4 billion for oil and gas properties at December 31, 2018 and 2017, respectively.

In 2018, FCX recorded $4.6 billion for proven and probable mineral reserves and other property, plant, equipment and mine development costs associated with the acquisition of PT Rio Tinto Indonesia (refer to Note 2 for further discussion).

FCX recorded $1.7 billion for VBPP in connection with the FMC acquisition in 2007 (excluding $544 million associated with mining operations that were sold) and transferred $59 million to proven and probable mineral reserves during 2018 and $752 million prior to 2018 ($112 million in 2017). Cumulative impairments of VBPP total $485 million, which were primarily recorded in 2008.

Capitalized interest, which primarily related to FCX’s mining operations’ capital projects, totaled $96 million in 2018, $121 million in 2017 and $92 million in 2016.

During 2017 and 2018, FCX concluded there were no events or changes in circumstances that would indicate that the carrying amount of its long-lived mining assets might not be recoverable.