We operate in regions of varying ethnic, religious and cultural backgrounds and are generally the largest employer in local communities. The resulting diverse backgrounds and perspectives of our workforce are an asset. We make efforts to hire locally for all positions as this practice promotes understanding of local cultures and complements our long-standing commitment to community engagement and development. PTFI, for example, maintains the largest workforce of all Freeport-McMoRan operations. Located in the remote province of Papua, Indonesia, it is PTFI's policy to prioritize the hiring of indigenous Papuans. At year-end 2011, 99 percent of PTFI employees were Indonesian and of that total, 32 percent were indigenous Papuans. At our TFM operation in the DRC, 98 percent of our employees are Congolese citizens. We also employ over 200 Native Americans at our U.S. operations.

Women have traditionally been underrepresented in the mining sector, and we continue to seek ways to recruit and foster career development for females in our Company. We have several women in key management roles within our organization, including our Chief Financial Officer. While we have added more females to our employee base, the percentage of women represented in our Company has remained at 9 percent, which is below our 15 percent target. In 2012 we are increasing our participation in recruiting events and career fairs focused on diversity.

Freeport-McMoRan views the diverse perspectives and backgrounds of its employees as a corporate asset. Our policies are designed to encourage, incentivize and reward employees based on individual merit and to recognize, protect and promote human rights wherever we do business. It is our policy to make all employment decisions on the basis of merit and the essential functions of a position.

We prohibit discrimination and harassment, and our Principles of Business Conduct and Human Rights Policy require that all employees treat everyone in and around our operations with dignity and respect. Freeport-McMoRan defines discrimination as an act or practice of treating a person differently than others, causing a negative impact, based on that person belonging to a class or category rather than treating the person fairly on the basis of individual merit. Discrimination can take a number of forms and can be based on various categories such as disability, use of genetic information, age, race, ethnicity, religion and gender.

Freeport-McMoRan and its affiliates have established various mechanisms for employees and others to report concerns regarding potential discrimination. One of the primary mechanisms is the Freeport-McMoRan Compliance Line, a phone system managed by an independent third party that allows concerns to be reported anonymously. In addition, Freeport-McMoRan and its affiliates have established Human Rights Compliance Officers and community grievance procedures. In 2011, of the reports made through the Freeport-McMoRan Compliance Line, 41 included allegations of some form of discriminatory or harassing conduct. Five of these reports included allegations that were substantiated, and appropriate disciplinary and remedial action was taken.

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