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Stakeholder Engagement

In the mining sector, project life-cycles can span decades. That is why early, transparent and consistent engagement with stakeholders is critical. Doing so creates mutually beneficial opportunities and reduces sustainability-related risks to our plans. We always seek strategic partnerships with host governments, communities and development partners to ensure the viability of our projects while delivering meaningful benefits including post-closure.

Our operational-level teams regularly engage with community stakeholders, development institutions and nongovernmental organizations (NGOs). Mining operations maintain 5-year community engagement and development plans that identify affected or interested parties and programs for ongoing engagement and consultation. Issues raised through stakeholder engagement help inform the risks and opportunities identified in each operation’s sustainable development risk register and assist in developing social investment strategies. Resulting engagements with hundreds of entities occur via community foundations, formal grievance systems, workshops, participatory group panels or focus groups, town hall meetings and surveys. Engagement with stakeholders also occurs through regulatory consultation processes with local governments and community groups, including indigenous peoples, as part of project plans.

From a medium to longer-term risk radar perspective, Freeport-McMoRan’s corporate Sustainable Development Department and senior personnel regularly work with the socially responsible investment community and NGOs to understand issues of concern or interest and where Freeport-McMoRan may have influence to advance sustainability progress such as contributions to the UN Sustainable Development Goals. In 2015, our corporate team engaged with over 50 investor organizations, sustainability analyst firms, banking institutions, NGOs and multi-stakeholder initiatives on topics including fatality prevention, environmental management, revenue transparency, human rights, resettlement programs, water resources and community development.

Artisanal Mining | Biodiversity | Community Engagement and Development | Corruption
Energy Management | Human Rights | Labor Relations | Product Stewardship | Safety and Health |
Tailings and Waste Rock Management | Water Supply and Management

Example Stakeholder Group Interaction Regarding Sustainability Focus Areas

Artisanal Mining

Academia

Conduct research and baseline studies of artisanal mining networks

Customers

Engaging value chain members on human rights issues associated with illegal artisanal mining

Governments

Communications regarding security-related risks, and engagement on the Voluntary Principles on Security and Human Rights

Local Community (including artisanal miners)

Education programs in communities regarding risks associated with artisanal mining, and opportunities for alternative livelihoods

Biodiversity

Academia

Belgium University of Liege, Gembloux Agronomy Group, biodiversity conservation at TFM; habitats within and near our operations provide local educational opportunities aligned with our focus on science, technology, engineering and mathematics (STEM)

Investment Community

Briefings on our biodiversity programs

Workforce

Through annual biodiversity photo competition

Nongovernmental organizations (NGOs)

Partnering with organizations such as Wildlife Habitat Council to promote improved habitats and educational opportunities

Community Engagement and Development

Academia

Arizona State University Lodestar training program for community capacity-building

Foundations/Trust Funds

Funding, governance and sustainable investment decision support

Governments

Engagement with the company regarding long-term capacity building in education, healthcare and economic development

Local and Regional Communities (including Indigenous Peoples)

5-year community engagement and development plans with community engagement methods and development objectives aligned with identified risks and opportunities

Investment Community

Briefings on our social development programs

Workforce

Volunteerism and Matching Gifts program

NGOs

Engagement with local development organizations to support capacity building in communities

Corruption

Governments

Promotion and implementation of the Extractive Industries Transparency Initiative (EITI)

Workforce

Anti-corruption training and awareness programs

Suppliers

Communications on expectations of proper business conduct, including our Supplier Code of Conduct

Energy Management

Governments

Providing support for renewable energy standards when feasible

NGOs

Active participation in the CDP since reporting year 2006

Suppliers

Coordination on technological advances for efficiency in metals processing equipment

Human Rights

Customers

Engagement regarding our company-wide human rights programs and performance

Governments

Engagement regarding requests for impartial and independent investigations to security incidents, and human rights training/socialization of company policies and programs with government bodies and government-provided security

Local Community

Human Rights training and communications regarding grievance mechanisms

Investment Community

Program updates via teleconferences, meetings and email information exchange

NGOs

Active promotion and involvement in the Voluntary Principles on Security and Human Rights

Workforce (including security contractors)

Human Rights training programs and communications regarding grievance mechanisms

Labor Relations

Governments

Engagement and coordination with governmental bodies regarding status of collective bargaining agreements

Investment Community

Updates via teleconferences, webcasts and in-person meetings

Workforce

Ongoing engagement regarding schedule, wages, benefits, worker conduct and safe workplaces

Product Stewardship

Governments

Engagement and monitoring  governmental bodies regarding current or emerging compliance requirements associated with market access for our products

Trade Associations

Participating in and monitoring product stewardship related agendas

Customers

Proactive communication in the value chain concerning common stewardship and sustainability performance attributes of our operations and products

Safety & Health

Governments

Interaction with regulators, including operational inspections

Investment Community

Performance updates via teleconferences, webcasts and in-person meetings

Workforce (including unions)

Workforce training and outreach regarding safety performance, particularly Fatality Prevention

Tailings and Waste Rock Management

Governments

Engagement regarding regulatory obligations and closure planning

Local Community

Engagement with community members regarding dust prevention programs associated with our tailings storage facilities or mitigation of remediation impacts at PTFI

Investment Community

Correspondence via teleconferences, meetings and information exchange, particularly regarding controlled riverine tailings management at PTFI

Water Supply and Management

Governments

Coordination on strategies for long-term water supplies; engagement regarding regulatory obligations and projects to protect or enhance water quality

Local Community

Engagement with community groups, including indigenous peoples, on long-term mutually  beneficial options for water supplies; coordination on projects to protect or enhance access to clean water for populations near our operations

NGOs

Active participation in the CDP Water Disclosure since reporting year 2010


The table below is a broader presentation of our engagement activities with stakeholder groups.

Communities | Customers | Employees and Contractors | Governments | Indigenous Peoples
Non-governmental Organizations (NGOs)
| Shareholders and Financial Community | Suppliers | Unions

Stakeholder Groups

Typical Areas of Interest

Typical Methods of Engagement

Communities

Local communities have important needs and interests associated with our operations and expansion projects.

  1. Employment opportunities
  2. Economic development
  3. Education
  4. Health and safety
  5. Environmental protection
  1. Public community engagement forums (e.g.,   Community Partnership Panels)
  2. Community Liaison Officer programs
  3. Formal governance structures of   community trust funds
  4. Local media placements
  5. Specific meeting requests
  6. Community grievance systems

Customers

The natural resources that we produce are essential to the world’s economies. Our products are sold to customers in the global marketplace.

  1. Quality products
  2. Delivery commitments
  3. Regulatory compliance
  4. Product stewardship
  5. Sustainability programs
  1. Site-level sustainability audits or data requests
  2. Daily interactions with our sales department
  3. Customer satisfaction surveys
  4. Operations tours
  5. Product information sheets
  6. Supply chain sustainability surveys

Employees and Contractors

At December 31, 2015, we employed a diverse workforce of approximately 34,500 employees and 37,500 contractors across our operations.

  1. Health and safety
  2. Operational change
  3. Workforce management
  4. Alignment with community interests
  5. Training and career development
  1. Health and safety programs and initiatives
  2. Timely site-level dissemination of company   news and events
  3. Two-way communications with supervisors   and management
  4. Direct home mailings
  5. Freeport-McMoRan Compliance Line
  6. Company intranet

Governments

We work with governments at national, regional and local levels.

  1. Resource access
  2. Environmental protection
  3. Taxes and royalties
  4. Economic development
  5. Water projects
  6. Workforce development
  1. Interaction with Company management
  2. Regulatory processes and requirements
  3. Governmental representation at stakeholder   engagement forums
  4. Engagement via national and international   trade associations

Indigenous Peoples

We engage with the indigenous Papuans in Papua, Indonesia; Native Americans in the United States; and the communities of Alto Loa (Chile’s First People).

  1. Land rights
  2. Education
  3. Employment and career development
  4. Cultural heritage
  1. Local leadership by tradition or election
  2. Training and capacity-building programs
  3. Workshops and meetings
  4. Community Liaison Officer programs
  5. Community development programs and   trust funds
  6. Grievance management systems

Nongovernmental Organizations (NGOs)

We interact regularly with NGOs (international and local) focused on a broad range of sustainability topics. These groups frequently include development agencies, educational institutions, civic organizations, environmental protection groups and groups interested in issues related to human rights.

  1. Economic development
  2. Education
  3. Human rights
  4. Health and safety
  5. Environmental performance
  6. Corporate governance
  7. Ethics
  1. Formal partnerships
  2. Mine tours/site visits
  3. Research and studies
  4. Inquiries and requests for information
  5. Project proposals
  6. Conference participation

Shareholders and Financial Community

We regularly work with institutional investors, securities analysts, socially responsible investment (SRI) analysts and investors, banks, rating agencies and the financial media.

  1. Financial performance
  2. Corporate governance
  3. Access to capital
  4. Environmental performance
  5. Health and safety
  6. Human rights
  7. Business risk
  1. Public news releases and presentations
  2. Public filings with the Securities and Exchange Commission
  3. Public presentations to the investment community
  4. Communications between our Sustainable Development department and the SRI community
  5. Annual meeting of stockholders/solicitation of proxies
  6. Sustainability reporting
  7. Topical survey participation

Suppliers

Our suppliers range from local businesses near our operations to large, international companies.

  1. Adherence to our Supplier Code of Conduct
  2. Long-term business relationships
  3. Agreement terms
  1. Contract administrators
  2. Community development representative  interaction with local businesses
  3. Entrepreneurial programs

Unions

Employees at certain operating sites are represented by unions according to applicable agreements.

  1. Wages and benefits
  2. Work schedule
  3. Health and safety
  4. Job security
  1. Communications with employees and labor representation on workforce related topics per governmental requirements and Collective Labor Agreements



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