All of our mining locations undergo a thorough screening process to ensure environmentally and socially appropriate land use. In cases involving land rights issues, Freeport- McMoRan Copper & Gold Inc. works diligently to ensure that all parties are treated fairly and receive just compensation. By working with community leaders, governments and other public interest groups, we can create fair practices and programs in addressing land rights and compensation issues in a manner that reflects our commitment to fairness and respect.

At our PT Freeport Indonesia operation, we recognize land rights of the indigenous community to areas where they have traditionally conducted hunting and gathering. We have committed to a number of local recognition programs developed under mutual agreement with the local Papuan communities. These programs include the Amungme and Kamoro Trust Funds, the Freeport Partnership Fund for Community Development, and recognition projects providing infrastructure and community development assistance to select villages. We receive grievances from the local community members related to purported prior existing land rights associated with areas impacted by our operations. A total of 14 claims were made during 2008 and have been reviewed and were determined to be invalid and unsubstantiated. To strengthen our grievance mechanisms company-wide, we are developing and implementing comprehensive systems for recording, processing and responding to community grievances.

Freeport-McMoRan Copper & Gold Inc. is committed to resettle communities only when necessary. At our project site in the Democratic Republic of Congo, Tenke Fungurume Mining is implementing a Resettlement Action Plan (in accordance with the International Finance Corporation Performance Standard No. 5) for three villages located in project-impacted areas. Before implementing a village resettlement plan, we first try to minimize involuntary resettlement by exploring viable, alternative project designs and engaging with affected populations and appropriate government authorities.

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