Enron Mail

Subject:Atlantic Copper/Freeport McMoran
Cc:mark.frevert@enron.com, michael.farmer@enron.com,michael.hutchinson@enron.com, thomas.boettcher@enron.com, eric.gadd@enron.com, michael.brown@enron.com
Bcc:mark.frevert@enron.com, michael.farmer@enron.com,michael.hutchinson@enron.com, thomas.boettcher@enron.com, eric.gadd@enron.com, michael.brown@enron.com
Date:Tue, 3 Oct 2000 11:05:00 -0700 (PDT)


I mentioned in a voicemail today that you should be receiving a phone call
from James (Jimbo) Moffet (504) 582-4000. He is Chairman of Freeport McMahon
in New Orleans. James had mentioned to Thomas Boettcher & Michael Hutchinson
in our Metals group that he knew you and wanted to make sure you were
supportive of our discussions with them. Here is the background on a
possible acquisition that we have brought up with them:

Enron Metals is very interested in pursuing further discussions
with Atlantic Copper on the acquisition of their smelter in Spain. Estimated
capital would be US$350 Million. Acquiring this asset gives us the
opportunity to build copper and copper concentrate positions and more
effectively managing our positions in the market place. We would finance this
off balance sheet.

Mr. James Targetta, head of Atlantic Copper (copper smelter and refinery in
Spain and fully owned by Freeport McMoran) had a conversation with James
Moffet, Chairman of Freeport McMoran last Friday informing him about our
preliminary conversations. Moffet advised Targetta not to proceed further
until he speaks to you since he has known you for 25 years.

In addition, Targetta mentioned the possibility for Enron purchasing all the
copper mining activities of Freeport McMoran which would leave them as an
oil and exploration company.

We think there are some great possibilities here.

If you have not heard from him in the next few days, I would really
appreciate you giving Moffet a call. I would be more than happy to get a
more extensive briefing for you if you think you need it. I look forward to
discussing this further with you.