News Release
Jan. 06, 1998

DUKE ENERGY AND WESTCOAST ENERGY

CHARLOTTE, NC. -- A consortium headed by Duke Energy International LLC (DEI), a subsidiary of Duke Energy Corporation, and Westcoast Energy International Inc. has acquired a 195-megawatt coal-fired power plant and transmission facilities under construction in Irian Jaya, Indonesia, from PT Freeport Indonesia Company (PTFI), which is the principal mining affiliate of Freeport-McMoRan Copper & Gold Inc., and Rio Tinto, which is PTFI’s joint venture partner. The new power facilities will support a major expansion of PTFI’s copper and gold mining and milling operation expected to be completed in early 1998.

The new power-related assets are valued at approximately US$360 million. Ownership in PT Puncakjaya Power (PIP), the Indonesian company established by the consortium to own and manage the power-related facilities, is as follows: Duke Energy International, 42.86 percent; Westcoast, through its affiliate Westcoast Power Inc., 42.86 percent; and PT Prasarana Nusantara Jaya, an Indonesian investor, 14.28 percent.

PIP acquired 194 megawatts of power generation facilities in Irian Jaya from PTFI in 1994 and 1995. With the recent transaction, PIP now owns and manages all electric power facilities serving PTFI’s mining operations in Irian Jaya. The power facilities total 389 megawatts of capacity and approximately US$560 million in assets.

"Our goal is to maximize the value we bring to PT Freeport Indonesia Company by providing reliable, efficient electricity to its Irian Jaya operations," said Bruce Williamson, president of Duke Energy International. "Indonesia is an important market in the world economy. Duke Energy International will continue to offer its technical, commercial and financial capabilities to help the country develop and improve its energy infrastructure to meet future growth."

"This project is a cornerstone for Westcoast’ s growth in the Asia-Pacific region," said Michael Stewart, president of Westcoast Energy International. "It also reflects Westcoast’ s strategic plan to increase our involvement in the electrical power business."

The new power plant will have three 65-megawatt units. Construction of units one and two is scheduled to be complete in early 1998, followed by the third unit in August 1998. Duke/Fluor Daniel, a partnership between Duke Energy Corporation and Irvine, Calif.-based Fluor Daniel, is designing and building the power plant. The facility will be operated by PJP.

DEI develops, owns and operates energy projects worldwide. Its capabilities include natural gas exploration, production, processing, transportation and supply, and generation, delivery and marketing of electric power and thermal energy. DEI is a subsidiary of Duke Energy Corporation (NYSE:DUK), a global energy company based in Charlotte, N.C., with $22 billion in assets.

Westcoast Energy International Inc. is a subsidiary of Vancouver, British Columbia-based Westcoast Energy Inc. (TSE:W; NYSE:WE). Westcoast Energy’s interests include natural gas gathering and processing facilities, gas transportation and storage facilities, gas distribution companies as well as power generation, international and energy services businesses. The company has assets of about $10 billion.

PT Prasarana Nusantara Jaya (PNJ), an Indonesian limited liability company, develops and owns infrastructure-related investments in Indonesia. PNJ is a wholly owned subsidiary of PT Austindo Nusantara Jaya, which focuses on commercial and industrial investments. PNJ has interests in several power generation projects in the early stages of development.

PTFI, an affiliate of Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX), is one of the world’s largest and lowest-cost copper and gold mining companies. FCX is engaged in mineral exploration and development, mining and milling of copper, gold and silver in Irian Jaya, Indonesia, and the smelting and refining of copper concentrates in Spain. FCX is also involved in a joint venture to construct and operate a smelter/refinery in Indonesia.

Contact: Randy Wheeless
Phone: 704 382-8379
24 Hour Phone: 704 594-0681
Email: crwheele@duke-energy.com