We realize that due to the nature of our business – the activities it requires and the effects it creates – various groups have varying opinions about our operations. We also realize that we have a real impact on the success and viability of communities in which we do business. An important part of our success is collaboration with stakeholders. We strive to continuously maintain dialogues with local communities – providing avenues for us to provide information and explain the implications of issues regarding our operations and for local residents to be able to ask questions and express their views so we can achieve mutual understanding.

Most of our operations around the world have various types of stakeholder engagement efforts such as formal community advisory/engagement panels, consultation activities, open house programs, facility tours and community information sessions. We also participate on numerous community boards, councils and committees.

In advance of our commitment to build and maintain constructive and positive relationships with our Papuan neighbors in Indonesia, we engage in continual dialogue with local leaders there. These dialogues have led to important agreements with the Amungme and Kamoro people. A Memorandum of Understanding consummated in 2000 by Amungme and Kamoro local community organizations and PT Freeport Indonesia focuses on socioeconomic resources, human rights, land rights and environmental issues. This landmark agreement, achieved after five years of negotiations, fosters continuous dialogue to improve mutual understanding and respect, to enable the local people to achieve their aspirations and to continue harmonious relationships.

In North America, we have established formal Community Partnership Panels in four of our active mine communities and two communities under care-and-maintenance status. We are currently establishing panels in four additional active mine-site communities in 2008. Through these formal Partnership Panels, we are able to facilitate an open dialogue and community development planning process in collaboration with community leaders. We also have Community Outreach Offices in four locations where we are conducting reclamation and remediation activities to ensure the availability of information to community members.

In South America, Cerro Verde has established Community Outreach Offices in Yarabamba and Uchumayo neighboring the mine. These offices are open every day to receive questions, concerns and other inquiries and serve as a base from which to deploy community development programs.

Going forward, our company-wide goal is to ensure that each of our operations globally has a formalized stakeholder engagement program through which community members and the local operation have the opportunity to work together to address impacts, concerns and priorities that affect the quality of life and sustainability of the local area. We are committed to ensuring that each site has the ongoing support, training and tools needed to improve our ability to engage with and respond to our communities.

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