Mine Closure

www.fcx.com

 Freeport-McMoRan Copper & Gold

MINE CLOSURE
In December 2004, PT Freeport Indonesia completed an updated closure management plan, representing the company’s latest analyses and strategies on closure management. PT Freeport Indonesia is committed to fulfilling its closure obligations, with disturbed areas being reclaimed by native vegetation or developed in a manner consistent with decisions made in consultation with local stakeholders and the Government of Indonesia. The company also supports the development of the stakeholder communities in the areas in which we operate.

These positions are consistent with our commitment to integrate sustainable development considerations within the corporate decision-making process.

Because of the long life of the mine based on currently proven and probable reserves — approximately 70 years in total and extending almost 34 years in the future — the scope of the closure management plan remains broad. The plan is consistent with existing Indonesian laws and regulations, current commitments (Contract of Work, AMDAL, and operational management plans), international mine closure principles and practices and the current allocation of financial provisions to fund mine closure costs. PT Freeport Indonesia’s overall closure strategy is to identify, monitor and mitigate impacts, both environmental and social, through ongoing management programs during the operations phase. This will ensure that decommissioning, reclamation and environmental monitoring activities required at closure and during the post-closure phase can be managed effectively; the effects of mine closure on the local economy and communities can be managed and the transfer of any remaining assets and the responsibility for the mining area to the Government of Indonesia can be achieved smoothly and efficiently. Funds are being set aside to implement the closure plan as detailed in the 2006 Annual Report of Freeport-McMoRan Copper & Gold Inc. The closure management plan will be updated approximately every five years.