FCX_Freeport-McMoRan Copper & Gold Inc. - Sustainable Development, Sustainability Report

Public Health

One of the highest priorities for Freeport-McMoRan Copper & Gold Inc. is improving public health in the communities in which we operate. Illness and disease can devastate employees, their families and the network of people who support a community’s infrastructure. We coordinate with local governments and other organizations to identify and prioritize unmet needs for health care infrastructure and services, and we work with partners to try to fill those gaps. Funding from the company has helped advance medical care, access to medicines, health education and prevention programs.

At the Cerro Verde mine in Peru, we initiated a baseline study of the local community’s health status. This study will help to identify the greatest health needs. The results will be used to set priorities for the coming years and measure the success of programs funded by the company to ensure that resources are being applied effectively. Ongoing programs in Cerro Verde include health education, hygiene and sanitation, disease and illness prevention, and mother/child nutrition. One of our flagship projects in Peru was funding for a new cancer center at a local hospital.

In North America, our foundation has supported a drug abuse education and prevention program in each of our five operating communities in Arizona. Drug abuse is a serious public health concern for local stakeholders. Working with the Partnership for a Drug Free Arizona, we have implemented parent training and distributed educational materials to assist parents, teachers and other adult leaders in talking to youth about drugs and drug abuse prevention.

In the Mimika Regency of Papua, where health care was primitive before the development of our operations, PT Freeport Indonesia is now a leading partner in curative and preventive health care services. The company supplements government health services for the whole population of Mimika with financing, infrastructure and technical support. We fund two hospitals through our community partnership with the Amungme and Kamoro Community Development Organization, and we operate four primary community health centers as part of our Public Health and Malaria Control Department. We also operate significant preventive care programs to combat malaria, tuberculosis and HIV/AIDS.

As we develop operations in the Democratic Republic of Congo, we are working with local health agencies and non-governmental organizations to develop and implement public health programs including malaria control, clean water and sanitation and HIV/AIDS initiatives. Tenke Fungurume Mining expanded a program for installing clean water wells to over 30 villages in the mining concession during 2008. Ultimately, all 43 villages in the concession will be included in the program. We are also implementing a ventilated latrine program targeting villages in the concession as well as the larger communities of Tenke and Fungurume.

In 2008, Tenke Fungurume Mining also implemented a community-based malaria control program throughout the concession, which included indoor residual spraying of over 50,000 community structures and education on and distribution of over 30,000 insecticide-treated bed nets. Freeport-McMoRan Copper & Gold Inc. has completed an extensive baseline health survey and developed a community health action plan based on the information gleaned. For more information on the survey and its use in developing a Community Health Action Plan, please read our case study.

PT Freeport Indonesia’s employee volunteer and community outreach team supports public health education programs across the Indonesian archipelago. Photo: Jakarta-based employees and family members help to raise HIV/AIDS awareness in the AIDS Walk 2008.

Artisanal Mining – Addressing the Risk to Public Health

One of the many social challenges of operating at PT Freeport Indonesia’s Grasberg Mine in Papua is the large number of artisanal miners illegally panning for gold in the Otomona River system. These activites hamper the progress toward long-term sustainable development for the region. While the company cannot regulate their practices or presence, the company coordinates and communicates regularly with the local and provincial government authorities on the issue. The company and the local government are seriously concerned about the potential use of mercury by artisanal miners in the gold-refining process, which could potentially pollute the environment and create health risks for the local community and the miners themselves.

In 2008, PT Freeport Indonesia met many times with the local government and police authorities to discuss the risk of mercury that could be potentially used by artisanal miners. As an outcome of the discussions, a presentation was made to over 250 artisanal miners and gold store operators. Most of those in attendance were unaware of the health risks that can occur if directly exposed to mercury vapors when using it to extract gold. In addition to this presentation, the company reached hundreds of other artisanal miners throughout the year, both in the highlands and lowlands, by handing out flyers in Indonesian and local tribal languages and working with local churches to promote awareness and education on the environmental and health dangers of using mercury.

PT Freeport Indonesia does not use mercury in its processes, but is monitoring potential environmental risks and impacts related to the possible use of mercury by illegal miners. In June 2008, the company installed a continuous mercury air monitoring system, one of the most advanced mercury analyzers currently available. At present, the monitor has not detected any significantly elevated mercury level in the air, with all detected values falling within global background. Also as part of the company’s routine environmental monitoring system, we regularly check mercury levels in the river ecosystem, generating an extensive data set from a large geographic area. Results to date have shown no difference between rivers inside and outside the company’s area of operations, and mercury concentrations detected in all media are at levels believed to be safe for humans and ecosystems.

PT Freeport Indonesia is committed to protecting and promoting the health of the environment and local community through meaningful engagement with the artisanal miners and other neighbors. Indications to date are that mercury is not being used in the area, and that education and other tools are raising awareness to help ensure that mercury is not introduced.

Gold panning activities in the Otomona river system in Papua, Indonesia.

PT Freeport Indonesia Community Liaison Officer Nathan Kum meets with a group of illegal panners to discuss the challenging issue of moving their activities from unsafe areas.

PT Freeport Indonesia installed a state-of-the-science continuous air monitoring system to detect the possible presence of mercury sometimes associated with artisanal mining activities.

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