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Introduction |
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Welcome
to the Freeport-McMoRan Copper
& Gold Inc.'s |
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On the cover: |
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Birds and aquatic life flourish in the Ajkwa estuary, where Freeport Indonesia’s environmental team has an extensive assisted mangrove colonization program on newly formed land. |
To Our Stakeholders
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On March 19, 2007, Freeport-McMoRan Copper
& Gold Inc. completed its acquisition of Phelps Dodge Corporation,
creating the world’s largest publicly traded copper company. The new
Freeport-McMoRan Copper & Gold Inc. will be an international mining
industry leader with its corporate headquarters in North America
with large, long-lived, geographically diverse assets and
significant proven and probable reserves of copper, gold and
molybdenum. The world requires the metals we produce to sustain and
expand economies and to build infrastructure in developing nations. While this is a dramatic change within our company, it does neither alter our commitments nor our longstanding, mutually beneficial partnerships with our stakeholders in Indonesia and Spain. Through our Indonesian mining affiliate, PT Freeport Indonesia, we have long been a major producer of copper from mineral ore containing significant amounts of gold. Additionally, we continue to produce copper products from our wholly owned Atlantic Copper, S.A. smelter in Spain and our 25-percent-owned Gresik smelter in Indonesia, which are essential for the construction, communications, transportation, electronics, energy transmission and other industries on which the world relies. Because the acquisition of Phelps Dodge was not completed until March 19, 2007, this report focuses on the activities of Freeport-McMoRan Copper & Gold Inc., its affiliates and subsidiaries during 2006. This report, entitled “Underlying Values,” focuses on our sustainable development programs — which are based on our underlying commitments that help build the foundation for vibrant communities. We recognize that the economic need for our products must be balanced with social and environmental considerations so that, in meeting the demands of the present generation, we do not impair the lives of future generations. This is the core concept of sustainable development. We embrace this responsibility both as one of our principal duties as a corporate citizen and as a sound and prudent business practice. Working toward sustainable development in our business operations and programs helps ensure healthy environments for our workforce and the communities in our areas of operation, which are vital to our on-going success. We have a strong Environmental Policy and a Social, Employment and Human Rights Policy which guides us on the path toward sustainable development. We recognize the significant challenges we must overcome to stay on that path and are cognizant that our mining operations have impacts on the surrounding environment and neighboring communities. Our responsibility and commitment is to minimize and mitigate environmental impacts and to maximize the beneficial economic and social results of our operations. This is not a static commitment expressed through rigid programs. We are committed to continuous improvement in our sustainable development performance. Accordingly, we assess our environmental management and social development programs annually in a constant search for better ways of achieving our sustainable development goals. In this regard, we do not rely solely on our own judgment, having learned from experience the value of looking at our programs through independent audits. During 2006, the International Center for Corporate Accountability team visited our operations site in Indonesia for a follow-up to its 2004 independent audit of our social and human rights programs. The International Certification Services Division of Société Générale de Surveillance (SGS), an International Standardization Organization (ISO) 14001 registration and certification organization based in Geneva, Switzerland, with offices in Indonesia, performed a surveillance audit on PT Freeport Indonesia’s environmental management system during 2006. PT Freeport Indonesia also participated in the environmental management performance assessments organized by the Indonesian Ministry of Environment. These outside audits provide us with invaluable insights and recommendations now being implemented to improve our sustainable development performance. In Papua, Indonesia, we are mining the world’s largest reserve of copper and gold and our planning horizons extend decades into the future. We do not make these plans alone. Our operations, projects and programs are carried out in partnership with the Government of Indonesia, the Province of Papua, Mimika Regency and neighboring communities — who all have a stake in seeing that our contributions result in a sustainable future that benefits all. We maintain a regular dialogue with our stakeholders to ensure mutual success. Our commitment to sustainable development is significant. We invested over $100 million in sustainable development programs during 2006 in Papua, including $27 million on environmental management and $77 million on social development. But monetary amounts fail to convey the significance of our environmental programs or the beneficial impacts of our educational, healthcare, social and economic development programs on neighboring communities in Papua. This Working Toward Sustainable Development Report documents these efforts. In addition, this report seeks to put human faces on these efforts — introducing you to some of the individuals who work to implement the progressive programs leading to sustainable development. They share our commitment and together we are working for a bright future for all our stakeholders. |
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James R. Moffett Chairman of the Board March 19, 2007 |
Richard C. Adkerson Chief Executive Officer |
Armando Mahler President–Director PT Freeport Indonesia |
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