FCX_Freeport-McMoRan Copper & Gold Inc. - Sustainable Development,Transparency of Government Payments

We endorse the Extractive Industries Transparency Initiative (EITI), which is a commitment for governments to disclose revenues, and for oil, gas and mining companies to disclose payments to governments. The DRC and Indonesia are candidate countries under EITI and, thus, our TFM and PTFI operations participate directly in the process. Our Cerro Verde operation also participates in Peru, which became an EITI compliant country in February 2012. In 2011, the United States declared that it will implement the EITI, and we will participate and support the process of implementation.

Our payments to host governments via taxes, royalties, and other obligations are a significant contribution to national, regional and local development. In addition to our EITI commitments, our practice is to report material cash payments to governments in all countries in which we conduct business, as presented below.

2011 Cash Payments to Governments ^(a) for the year ended December 31, 2011 ($ in millions)
	U.S.	Chile	Peru	Indonesia	DRC	Other Countries ^(b)	Total
Corporate Income Taxes, Net of Refunds	$ 396	$ 360	$ 615	$ 1,621	$ 2	$ 3	$ 2,997
Withholding Taxes on Foreign Dividends	-	110	-	206	-	-	316
Employee Payroll Taxes	321	21	38	72	36	25	513
Dividends	-	-	-	202	-	-	202
Royalties and Net Severance Taxes	46	66	-	188	32	-	332
Property Taxes	72	1	-	9	-	2	84
Other Taxes and Fees	23	22	80	141	126	2	394
Total	$ 858	$ 580	$ 733	$ 2,439	$ 196	$ 32	$ 4,838

^(a)	This schedule reflects a voluntary effort by Freeport-McMoRan to capture its material cash payments to governments (net of refunds).
^(b)	Represents cash payments to governments by Freeport-McMoRan’s other business groups that are located outside of the countries where Freeport-McMoRan conducts its mining operations.

Click here for a reconciliation of payments to governments presented in the 2011 Key Economic Contributions by Operating Region table and 2011 Cash Payments to Governments tables.