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Safety/Atl Copper

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SAFETY

SAFETY

Our safety performance has consistently compared favorably to the average performance of U.S. and international mining companies. In 2003, our lost-time injury rate per 200,000 hours worked was 0.34 compared to the U.S. metallic mining industry average rate of 2.18 for 2002 (the latest data available). Our total reportable rate (all reportable injuries) for 2003 was 0.65 compared to the U.S. average of 3.70.

However, an October 9, 2003 slippage of material in the Grasberg open pit mine resulted in the deaths of eight workers. On November 22, 2003, two workers were asphyxiated in an underground tunnel conveying ore from the Grasberg mine to mill facilities. The incident occurred when ore from the Grasberg surface mine containing previously unencountered concentrations of elemental sulphur released fumes in the tunnel. These were unforeseeable events. These disheartening accidents contributed to PT Freeport Indonesia's fatal accident rate per 200,000 hours worked of 0.06, compared to the U.S. average of 0.01.

While unforeseeable, these events were unacceptable and a comprehensive series of safety initiatives have been and are being implemented to improve safety performance. Due to safety concerns accociated with the slippage, PT Freeport Indonesia changed its mine plan sequencing to shift from mining high-grade ore to focus on mining the south wall of the pit so that safe access to the high-grade ore areas can be restored. Other safety initiatives include the addition of safety personnel, and management emphasis on the top priority to be given to safety policy and procedures through direct contact with employees in the field and direct involvement of management in the implementation of safety procedures and policy.
Visit our web sites at: www.fcx.com and www.ptfi.com.

ATLANTIC COPPER, S.A.

ENVIRONMENTAL PROGRAMS UPDATE

As a wholly owned subsidiary of Freeport-McMoRan Copper & Gold Inc., Atlantic Copper, S.A. is also committed to sustainable development in its operations through its Policy of Social Responsibility, social development and environmental management programs. Atlantic Copper, S.A. management is currently participating in a program designed to help Spanish companies integrate the principles of sustainable development into all their decisions and activities.

In 2003, the environmental management systems at Atlantic Copper's operations in Huelva, Córdoba and Barcelona were audited by the Spanish Association for Standardization and Certification (AENOR), in accordance with ISO 14001:96 international certification standard and the new European Union Environmental, Eco-Management and Eco-Auditing (EMAS) Regulation No. 761/2001. All of these received positive results from the audits, which are required annually to retain the ISO 14001 certification that Atlantic Copper achieved in prior years.

The annual Freeport-McMoRan Copper & Gold Inc. internal, environmental and safety audit was conducted at the Huelva operations in 2003. (The smaller Córdoba and Barcelona operations are audited on a bi-annual basis). The audit report noted that environmental programs at the Huelva smelter facility were comprehensive, well-managed and reflected a strong commitment by all levels of management to fulfill the company's environmental responsibilities. The facility was found to be in material compliance with applicable Spanish and European Union laws, regulations and directives.

At the Atlantic Copper smelter, molten copper from the furnace is cast into anodes using a continuous casting wheel. In 2003, Atlantic Copper produced almost 650 million pounds of anodes.

In February 2003, Atlantic Copper and the Andalusian Regional Government entered into a Voluntary Agreement for Sustainable Development that establishes a plan for Atlantic Copper to achieve compliance with the new European Union requirements of the Integrated Pollution Prevention and Control Program (IPPC). The agreement establishes Atlantic Copper as a leader within its sector in moving forward promptly to implement this program, which will be required of all industries in the European Union by October 30, 2007.
Visit our web site at: www.atlantic-copper.es.