Security and human rights issues are important to all businesses. As part of our security programs, we maintain our own internal security departments, which perform functions such as protecting company facilities, monitoring the shipment of company goods, assisting in traffic control and aiding in rescue operations.

Some of our operations are situated in remote locations or in developing countries with histories of conflict, poverty, substandard educational opportunities, high unemployment and political instability. In these areas, we work closely with the host government and cooperate with government security authorities assigned or stationed in the vicinity of our project areas. Ensuring professional relationships between government security personnel, our company employees and the local communities where we work is of prime importance to our management, our employees and our stakeholders.

In certain of these remote locations, such as Papua, Indonesia, and Katanga, Democratic Republic of Congo, we, on the same basis as all businesses and residents of each of these countries, rely on the respective governments for the provision of public order, upholding the rule of law and protection of personnel and property. In Indonesia, the Grasberg mine has been designated by the government as one of Indonesia’s national vital assets. This designation as a national vital asset has historically resulted in the Indonesian security institutions (including both police and military) playing a significant role in protecting our area of operations. The governments are responsible for employing their respective security personnel and funding and directing their operations. However, because of the limited resources of the respective governments, the remote locations and lack of development in these countries, the governments look to us to provide logistical and infrastructure support, as well as supplemental funding for these necessary services.

As a signatory to the Voluntary Principles on Security and Human Rights and as committed to the ICMM principles, we recognize and manage human rights related risks by educating our employees and business and community partners about human rights. At our mining sites in Indonesia and the Democratic Republic of Congo, we are providing human rights training for all internal security personnel, as well as facilitating training for contract and host government personnel.

As part of our commitment to transparency, we report on our financial contributions to governments, including the support that we provide to host government security institutions at operations where logistical support is required. The support for the government-provided security in these foreign locations includes in-kind assistance and monetary allowances to mitigate living costs and the hardship elements of assignment to the mining areas. This type of support helps maintain positive morale by ensuring that personnel are properly fed, lodged and provided the logistical resources necessary to patrol and secure our operating area. Support for the government security institutions assigned to our area of operations represents a prudent and considered step by us to protect our workforce and property, and to meet the expectations imposed by the respective governments on companies conducting business in remote areas. This provision of support is consistent with our obligations under our agreements with the respective governments, our philosophy of responsible corporate citizenship and the Voluntary Principles on Security and Human Rights. We periodically review our support practices to ensure that they are appropriate, lawful and properly controlled.

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