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Social & Human Rights Audit in Indonesia – 2007 Update

Transparency is an essential element of being a good corporate citizen. Freeport-McMoRan Copper & Gold Inc. seeks to achieve transparency by publishing this report and by opening our operations to be examined by external auditors.

In 2004, PT Freeport Indonesia engaged the International Center for Corporate Accountability (ICCA) to perform an independent audit of our Indonesian operations, focusing on key components of our Social, Employment & Human Rights Policy.

A followup ICCA audit in 2006 also broadened the scope of the original review, to include an evaluation of five of PT Freeport Indonesia’s contract companies that provide specialty drilling, hospitality and dining, and other services at the Grasberg mine site. As third parties operating under contract to PT Freeport Indonesia, these companies are also bound by our Social, Employment & Human Rights Policy. Overall, these audits concluded that each company needed to improve their compliance, and we are committed to working with these companies to help address these concerns.

The 2006 audit further covered the health care programs funded through the Freeport Partnership Fund. Over the last 10 years, PT Freeport Indonesia has provided over $100 million for the medical care of the Papuan people. ICCA found that these health care programs and public health initiatives were well designed, staffed by committed medical professionals and competently run. PT Freeport Indonesia will work with the local organization that administers the funds to address the ICCA recommendations, which include moving resources from curative care to primary and preventative public health education and wellness initiatives.

Moving forward, we will continue to assess our social development, employment and human rights programs and will undertake independent professional audits on a periodic or as-needed basis. We will provide regular updates in our annual sustainable development reports as part of our ongoing commitment to transparent operations that respect the rights of individuals and communities around the world.

The full text of the ICCA audit reports and PT Freeport Indonesia’s responses are available on our web site or ICCA’s web site.

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