The Freeport-McMoRan Social Investment Criteria is a set of guidelines designed to ensure that resources are used effectively to address high-priority needs and facilitate local capacity building to sustain communities when our operations cease. These criteria help toward our long-term goal of decreasing community dependencies on our operations and ensure that we are entering into partnerships that support sustainability. We partner with NGOs, foundations, and other community and government institutions globally to support community development initiatives.

We have established community foundations or social funds in Indonesia, Peru, the U.S. and most recently in the DRC to ensure that communities and local governments have a direct voice in how these funds are used. These community foundations and funds typically account for more than 50 percent of our annual community investment globally. Our yearly community investment expenditures have exceeded our 1 percent target since inception in 2009; however, decreases in commodity prices or other adverse business conditions can inhibit our ability to meet or exceed this target consistently.

PTFI has committed through 2016 to provide one percent of its annual revenue for the development of the local communities in its area of operation through the Partnership Fund which is managed by the Amungme and Kamoro Community Development organization (LPMAK). PTFI's share of contributions to the Partnership Fund totaled over $54 million in 2011. Due to the disruption in production caused by the prolonged strike in the fourth quarter, impacts to the Partnership Fund from reduced revenue contributions will be realized in 2012 as payments are made in arrears.

Also, our Cerro Verde operation in Peru contributed $41 million to its local development fund in 2011. From 2007 to April 2011, Cerro Verde contributed over $146 million to the fund to support health, education and infrastructure initiatives. The contribution structure to the development fund has expired and the structure and/or requirements for social development contributions are being reviewed by the mining industry and the new Peruvian National Government.

TFM has committed to contribute 0.3 percent of net sales revenue from production to a community development fund to assist local communities with development of infrastructure and related services. This fund is a platform to work jointly with the local government and community to fulfill their local development plans, meet basic community needs and promote good governance. Community development fund contributions totaled $4 million in 2011.

In North America, we have established Community Investment Funds in communities near five of our operations. The funds — which have awarded more than $2.3 million since their inception — use an innovative program model that involves local community leadership in determining how to invest Freeport-McMoRan Copper & Gold Foundation funds. Each fund is governed by a committee of community members and Company representatives. The committee reviews grant requests and determine which programs and projects best address local priorities.

Through philanthropy and volunteerism, Freeport-McMoRan employees are dedicated to making our communities better places to live and work. Employees helped raise a record-setting amount during the Company's 2011 United Way campaign. Employees contributed more than $1.1 million, and when combined with the Company's generous matching gifts program, a total of more than $3.1 million was raised for United Way. In 2011, we added a full-time employee volunteer coordinator, and an increasing number of employees are supporting Freeport-McMoRan's commitment to community assistance and development. In our home state of Arizona alone, employees completed 110 community service projects focused on youth development, education, safety and the environment.

Due to the diversity of our operations and the communities in which we work, we provide different levels of community infrastructure and support services. In order to improve how we identify, assess and establish these programs, we utilize our criteria for social investments to support capacity building objective. Our Social Investment Criteria is a set of guidelines designed to ensure that proposed projects are aligned with priorities identified by local communities through engagement activities/participatory processes; encourage self-reliance and create long-term benefits that outlast Company support and include measurements of progress that can be evaluated. In this section we describe some of our community infrastructure and services investments primarily provided for public benefit near some of our operations in 2011.

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