Env Audit/ISO 14001

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 Freeport-McMoRan Copper & Gold

III. ENVIRONMENTAL MANAGEMENT
ENVIRONMENTAL AUDITS

In our Environmental Policy, we commit our company to routine internal and external environmental audits to assess our environmental compliance, management systems and practices. PT Freeport Indonesia's environmental audits provide our managers with information on current environmental performance and help identify opportunities for improvement.

In 2003, two environmental audits were conducted. Representatives from Freeport-McMoRan Copper & Gold Inc. audited PT Freeport Indonesia's operations in August as part of the annual corporate internal auditing program. In November, the International Certification Services Division of Société Générale de Surveillance (SGS), an ISO 14001 registration body based in Geneva, Switzerland with offices in Indonesia, conducted an environmental management system audit of PT Freeport Indonesia as a requirement to maintain the ISO 14001 certification granted in 2001. (Please see ISO 14001 Environmental Management System section below.) Actions have been taken to implement recommendations for improvements that were made in both audits.

Our environmental management system also includes an in-house environmental inspection program that is conducted continually throughout the year. These inspections are conducted at 369 facilities, including contractors and privatized companies, from the Grasberg mine site to the port. The purpose is to assess conformance by all facilities to our environmental management system. The results from these inspections serve as a measurement of our environmental performance and a basis for determining continual improvement. The results are also used in the calculation of employee bonuses, providing an added incentive for our workforce to maintain high environmental performance.

 

ISO 14001 ENVIRONMENTAL MANAGEMENT SYSTEM

ISO (International Standardization Organization) 14001 is an international standard that provides companies with a systematic approach to effective environmental management and continuous improvement. PT Freeport Indonesia was one of the first mining operations in Indonesia to achieve this recognition when we were awarded ISO 14001 certification in December, 2001 for our mining and ore processing operations. This significant achievement demonstrates our strong commitment to providing effective environmental management at our operations. This formal certified environmental management system is the basis for measuring continual improvements in our environmental performance, a cornerstone of ISO 14001.

Periodic follow-up reviews are required by ISO 14001 protocols. These are conducted by the certification agency to determine the status of conformance and to assess continued certification for our operational facilities. PT Freeport Indonesia was reviewed in 2002 and again in November 2003 in conjunction with the audit by the certification agency, SGS International Certification Services, Inc. The audit verified that PT Freeport Indonesia's Environmental Management System was in conformance to the ISO 14001 standards in both 2002 and 2003 and remains certified.