Freeport-McMoRan recognizes the international concern over trade in minerals that are being mined in certain areas of the DRC by rebel groups and used to buy weapons to support regional military conflicts and acts of violence against civilians. TFM is a copper and cobalt mine, and copper and cobalt are not classified as “conflict minerals” under the Dodd-Frank Act, OECD guidelines and other similar initiatives. Nonetheless, TFM maintains product control and custody procedures to ensure that it mines, processes and sells only those minerals that originate in the Company’s mining concession. These procedures include specific actions, in coordination with governmental authorities, to return and track ore mined illegally on the concession by artisanal miners. The product control and custody procedures also include a system in place for tracking copper and cobalt products from the mine to the point of transfer to the customer.

While TFM’s operations are not located near the conflict region, some stakeholders, including certain customers, inquire about TFM’s product control processes due to its presence in the DRC. From time to time, TFM hosts supply chain customers seeking to conduct site-level audits of its sustainability practices, including product control procedures. To help address stakeholder inquiries, in the first quarter of 2012, Freeport-McMoRan requested independent assurance of TFM’s product control and custody procedures during its ICMM assurance review.