Introduction

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  Freeport-McMoRan Copper & Gold

Welcome to Freeport-McMoRan Copper & Gold Inc.'s  Working Toward Sustainable Development Report
2003 Economic, Social and Environmental Report
I. ECONOMIC IMPACTS
INTRODUCTION
The world needs the metals we produce for expanding economies and developing nations. The copper concentrate from our mining complex in Papua, Indonesia, and the copper products from our wholly owned smelter in Spain and our 25-percent-owned smelter in Indonesia are essential for communications, electronics and industry. Yet the modern world also aspires to a sustainable society where economic, social and environmental issues are balanced to meet the needs of the present without impairing the ability of future generations to meet their own needs.

At Freeport-McMoRan Copper & Gold Inc., we share this aspiration because it is responsible thinking as well as prudent business practice. We are mining one of the world's largest mineral deposits and our planning horizon is 30 to 40 years into the future. Working toward sustainable development through our operations and programs helps ensure a healthy environment and communities in our area of operation, which is vital to our future success.

Like most industrial activities, our mining operations impact the environment and nearby communities. In order to work toward sustainability in our operations, we are committed to minimizing, mitigating and rehabilitating environmental impacts and to maximizing positive economic and social development results. This is a continuous effort that seeks constant improvement, conducted in partnership with governments and local communities where we operate.

The faces of the programs that lie at the heart of our commitment to ensure a healthy environment and strong communities in our area of operation in Papua, Indonesia.
Top from left: Papuan employee development, agro-forestry business development, and provision of
Bottom from left: Community sports programs, education and infrastructure.


Demonstrating the strength of our commitment, we spent a total of $93 million on sustainable development programs in the area of our mining operations during 2003, including $52 million on environmental management and $41 million on social development. Our world-class mining operations, long-lived ore reserves and strong Contract of Work with the Indonesian government ensure a long project life in Papua. However, the social, cultural and environmental projects we establish lay the groundwork for future generations to benefit from economic activity not dependent on mining.

It is this continuous effort to create sustainable development that is described in this annual report.
 

Financial Benefits to Indonesia

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Institute For Economics and Social Research, Faculty of Economics, University of Indonesia, 2003 Study (multiplier effect of PT Freeport Indonesia contributions)
Figure 1. The financial benefits to the people and Government of Indonesia in the illustration above are shown for 2003 and cumulative amounts for the years 1992-2003.  



 

Direct benefits to the local community include provision of medical infrastructure. The 75-bed Mimika Community Hospital was built with funds from the Freeport Partnership Fund for Community Development.
 
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