We are a leading international mining company with headquarters in Phoenix, Arizona. Our company was incorporated under the laws of the state of Delaware on November 10, 1987. We operate large, long-lived, geographically diverse assets with significant proven and probable mineral reserves of copper, gold and molybdenum, and wemolybdenum. We are one of the world’s largest publicly traded copper producers. Our portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; and significant mining operations in North America and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru.

We believe that we have a high-quality portfolio of long-lived copper assets positioned to generate long-term value. PT Freeport Indonesia (PT-FI) continues to advance several projects inThe ramp-up of underground mining at the Grasberg minerals district relatedin Indonesia continues to advance on schedule, and in fourth-quarter 2021, we achieved quarterly copper and gold volumes approximating 100 percent of the development of its large-scale, long-lived, high-grade underground ore bodies, and we are nearing completion of a project to developprojected annualized levels. Also, the Lone Star leachable ores nearcopper leach project at our Safford mine is exceeding the Safford operationinitial design capacity of 200 million pounds annually and produced approximately 235 million pounds of copper in eastern Arizona, which is now approximately 75 percent complete. We are also pursuing other opportunities2021. During 2022, we plan to enhance our mines’ net present values, and we continue to advance studies for future development oforganic growth initiatives at our copper resources, the timing of which will be dependentoperating sites, based on a favorable operational and market conditions.outlook.

During 2019,2021, we advanced initiatives in our North Americaadopted and South America mining operationsimplemented a performance-based payout framework. Refer to enhance productivity, expand marginsItem 1A. “Risk Factors,” Item 5. “Market for Registrant’s Common Equity, Related Stockholder Matters and reduce the capital intensityIssuer Purchases of the business through the utilization of new technology applications in combination with a more interactive operating structure. The pilot program initiated at the Bagdad mine in northwest Arizona in late 2018 was successful in utilizing data science, machine learningEquity Securities,” MD&A and integrated functional teams to address bottlenecks, provide cost benefits and drive improved overall performance. The program is now being implemented across our North America and South America operations.Note 10 for further discussion.

At December 31, 2019,2021, our estimated consolidated recoverable proven and probable mineral reserves totaled 116.0107.2 billion pounds of copper, 29.627.1 million ounces of gold and 3.583.39 billion pounds of molybdenum. Following is a summarythe allocation of our estimated consolidated recoverable proven and probable mineral reserves at December 31, 2019,2021, by geographic location (refer to “Mining Operations” and “Mineral Reserves” for further discussion):

In North America, we operate seven copper mines - Morenci, Bagdad, Safford (including Lone Star), Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico, and two molybdenum mines - Henderson and Climax in Colorado. In addition to copper, certain of our North America copper mines also produce molybdenum concentrate, gold and silver. In South America, we operate two copper mines - Cerro Verde in Peru and El Abra in Chile. In addition to copper, the Cerro Verde mine also produces molybdenum concentrate and silver. In Indonesia, PT-FI operates in the Grasberg minerals district. In addition to copper, the Grasberg minerals district also produces gold and silver.

Following is a summary of the geographic locationsallocation of our consolidated copper, gold and molybdenum production for the year 20192021 by geographic location (refer to “Mining Operations” and MD&A for further information):

The geographic locations of our operating mines are shown on the world map below.

Following is a brief discussion of our primary natural resources –- copper, gold and molybdenum. For further discussion of historical and current market prices of these commodities, refer to MD&A and Item 1A. “Risk Factors.”&A.

In general, demand for copper reflects the rate of underlying world economic growth, particularly in industrial production and construction. According to Wood Mackenzie, a widely followed independent metals market consultant, copper’s end-use markets (and their estimated shares of total consumption) are construction (28(29 percent), electrical applications (28(27 percent), consumer products (21(22 percent), transportation (12(11 percent) and industrial machinery (11 percent). We believe copper will continue to be essential in these basic uses as well as contribute significantly to new technologies for clean energy, efficiencies, to advance communications and to enhance public health. Examples of areas we believe will require additional copper in the future include: (i) high efficiency motors, which consume up to 75 percent more copper than a standard motor; (ii) electric vehicles, which consume up to four

times the amount of copper in terms of weight compared to vehicles of similar size with an internal combustion engine, and require copper-intensive charging station infrastructure to refuel; and (iii) renewable energy such as wind and solar, which consume four to five times the amount of copper compared to traditional fossil fuel generated power.

Gold is used for jewelry, coinage and bullion as well as various industrial and electronic applications. Gold can be readily sold on numerous markets throughout the world. Benchmark prices are generally based on London Bullion Market Association (London) quotations. During 2019,2021, the London PM gold price averaged $1,393$1,799 per ounce, ranging from a low of $1,270$1,684 per ounce to a high of $1,546$1,943 per ounce, and was $1,515$1,806 per ounce on December 30, 20192021 (there was no London PM gold price quote on December 31, 2019)2021).

Substantially all of PT-FI’s concentrate sales contracts provide final copper pricing in a specified future month (generally one to four months from the shipment date) primarily based on quoted LME monthly average settlement copper prices. Revenues from PT-FI’s concentrate sales are recorded net of royalties, export duties, treatment charges and allowances for unrecoverable metals.

We produce gold almost exclusively from the Grasberg minerals district. The gold we produce is primarily sold as a component of our copper concentrate or in slimes, which are a product of the smelting and refining process. Gold generally is priced at the average London price for a specified month near the month of shipment. Revenues from gold sold as a component of our copper concentrate are recorded net of treatment and refining charges, royalties, export duties and allowances for unrecoverable metals. Revenues from gold sold in slimes are recorded net of refining charges.

Our operations are subject to extensive and complex laws and regulations, including environmental laws and regulations governing the generation, storage, treatment, transportation and disposal of hazardous substances; solid waste disposal; air emissions; wastewater discharges; remediation, restoration and reclamation of environmental contamination, including mine closures and reclamation; protection of endangered and threatened species and designation of critical habitats; and other related matters. In addition, we must obtain regulatory permits and approvals to start, continue and expand operations. As a mining company, compliance with environmental, health and safety laws and regulations is fundamental toan integral and a substantial costcostly part of our business. We conduct our operations in a manner that aims to protect public health and the environment, and we believe our operations are in compliance with applicable laws and regulations in all material respects.

For information about environmental regulation, litigation and related costs, refer to Item 1A. “Risk Factors” and Notes 1 and 12.

The top 10 producers of copper comprise approximately 43 percent of total worldwide mined copper production. We currently rank fourthFor the year 2021, we ranked second among those producers, with approximately fiveseven percent of estimated total worldwide mined copper production. Our competitive position is based on the size, quality and grade of our ore bodies and our ability to manage costs compared with other producers. We have a diverse portfolio of mining operations with varying ore grades and cost structures. Our costs are driven by the location, grade and nature of our ore bodies, and the level of input costs, including energy, labor and equipment. The metals markets are cyclical, and our ability to maintain our competitive position over the long term is based on our ability to acquire and develop quality deposits, hire and retain a skilled workforce, and to manage our costs.

Following are maps and descriptions of our mining operations in North America (including both copper and molybdenum operations), South America and Indonesia. We consider our material mines, as defined under the disclosure requirements of Subpart 1300 of Regulation S-K (S-K 1300), to be the Morenci mine in North America, the Cerro Verde mine in Peru and the Grasberg minerals district in Indonesia. Refer to Exhibits 96.1, 96.2 and 96.3 for the Technical Report Summaries that have been prepared for our material mines in support of the disclosure and filing requirements of the SEC under S-K 1300.

In the U.S., most of the land occupied by our copper and molybdenum mines, concentrators, SX/EW facilities, smelter, refinery, rod mills, molybdenum roasters and processing facilities is owned by us or is located on unpatented mining claims owned by us. Certain portions of our Bagdad, Sierrita, Miami, Chino, Tyrone, Henderson and Climax operations are located on government-owned land and are operated under a Mine Plan of Operations or other use permit. We hold various federal and state permits or leases on government land for purposes incidental to mine operations.

We own a 72 percent undivided interest in Morenci, with the remaining 28 percent owned by Sumitomo Metal Mining Arizona, Inc. (15 percent) and SMM Morenci, Inc. (13 percent). Each partner takes in kind its share of Morenci’s production.

Morenci is an open-pit copper mining complex that has been in continuous operation since 1939 and previously was mined through underground workings. In the 1880s, Phelps Dodge & Company (Phelps Dodge) first invested in the

area, and through acquisition, consolidated all mining operations in the area by the 1920s. Phelps Dodge was acquired by FCX in 2007. Morenci is located in Greenlee County, Arizona, approximately 50 miles northeast of Safford on U.S. Highway 191. The property is located at latitude 33.07 degrees north and longitude 109.35 degrees

west using the World Geodetic System (WGS) 84 coordinate system. The site is accessible by a paved highway and a railway spur.

The Morenci mine is a porphyry copper deposit that has oxide, secondary sulfide and primary sulfide mineralization. The predominant oxide copper mineral is chrysocolla. Chalcocite is the most important secondary copper sulfide mineral, with chalcopyrite as the dominant primary copper sulfide.

The Morenci operation consists of two concentrators capablewith a milling design capacity of milling 132,000 metric tons of ore per day, which produce copper and molybdenum concentrate; a 68,00072,500 metric ton-per-day, crushed-ore leach pad and stacking system; a low-grade run-of-mine (ROM) leaching system; four SX plants; and three EW tank houses that produce copper cathode. Total EW tank house capacity is approximately 900 million pounds of copper per year. Morenci’s available mining fleet consists of one hundred and forty-one 236-metric tonfifty-four 236-metric-ton haul trucks loaded by 13 electric shovels with bucket sizes ranging from 47 to 57 cubic meters, which aremeters. Morenci’s mining fleet is capable of moving an average of 815,000 metric tons of material per day. One of Morenci’s concentrators, which has a milling capacity of approximately 50,000 metric tons of ore per day was restarted in July 2021 after being on care and maintenance

Morenci’s production, including our joint venture partner’spartners’ share, totaled 0.9 billion pounds of copper and 5 million pounds of molybdenum in 2021, 1.0 billion pounds of copper and 6 million pounds of molybdenum in 2020, and 1.0 billion pounds of copper and 5 million pounds of molybdenum in 2019, 1.0 billion pounds of copper and 9 million pounds of molybdenum in 2018, and 1.0 billion pounds of copper and 12 million pounds of molybdenum in 2017.2019.

Morenci is located in a desert environment with rainfall averaging 13 inches per year. The highest bench elevation is 2,0001,900 meters above sea level and the ultimate pit bottom is expected to have an elevation of 840780 meters above sea level. The Morenci operation encompasses approximately 69,50061,700 acres, comprising 51,300 acres of fee lands and 18,20010,400 acres of unpatented mining claims held on public mineral estate and numerous state or federal permits, easements and rights-of-ways.rights-of-way.

The Morenci operation’s electrical power is primarily sourced from Tucsonsupplied by our wholly owned subsidiary, Morenci Water and Electric Power Company Arizona Public Service Company and(MW&E). MW&E sources its generation services through our wholly owned subsidiary, Freeport-McMoRan Energy Services, through capacity rights at the Luna Energy facilityFacility in Deming, New Mexico.Mexico, and other power purchase agreements. Although we believe the Morenci operation has sufficient water sources to support current operations, we are a party to litigation that may impact our water right claims or rights to continued use of currently available water supplies, which could adversely affect our water supply for the Morenci operation. Refer to “Governmental Regulations” above, Item 1A. “Risk Factors” and Item 3. “Legal Proceedings” for further discussion.

Our wholly owned Bagdad mine is an open-pit copper and molybdenum mining complex located in Yavapai County in west-central Arizona. It is approximately 60 miles west of Prescott and 100 miles northwest of Phoenix. The property can be reached by U.S. Highway 93 to State Route 97 or Arizona Highway 96, which ends at the town of Bagdad. The closest railroad is at Hillside, Arizona, 24 miles southeast on Arizona Highway 96. The open-pit mining operation has been ongoing since 1945, and prior mining was conducted through underground workings.

The Bagdad mine is a porphyry copper deposit containing both sulfide and oxide mineralization. Chalcopyrite and molybdenite are the dominant primary sulfides and are the primary economic minerals in the mine. Chalcocite is the most common secondary copper sulfide mineral, and the predominant oxide copper minerals are chrysocolla, malachite and azurite.

The Bagdad operation consists of an 81,600a concentrator with a milling design capacity of 77,100 metric ton-per-day concentratortons of ore per day that produces copper and molybdenum concentrate, a SX/EW plant that willcan produce approximately 56 million pounds per year of copper cathode from solution generated by low-grade stockpile leaching, and a pressure-leach plant to process molybdenum concentrate. The available mining fleet consists of thirty-seven 235-metric tonthirty-two 235-metric-ton haul trucks loaded by sixeight electric shovels with bucket sizes ranging from 30 to 48 cubic meters, which are capable of moving an average of 250,000236,000 metric tons of material per day.

Bagdad’s production totaled 184 million pounds of copper and 9 million pounds of molybdenum in 2021, 216 million pounds of copper and 11 million pounds of molybdenum in 2020, and 218 million pounds of copper and 13 million pounds of molybdenum in 2019, 199 million pounds of copper and 10 million pounds of molybdenum in 2018, and 173 million pounds of copper and 9 million pounds of molybdenum in 2017.2019.

Bagdad is located in a desert environment with rainfall averaging 15 inches per year. The highest bench elevation is 1,200 meters above sea level and the ultimate pit bottom is expected to be 150 meters above sea level. The Bagdad operation encompasses approximately 33,10051,200 acres, comprising 21,90040,000 acres of fee lands and 11,200 acres of unpatented mining claims held on public mineral estate and numerous state or federal permits, easements and rights-of-ways.

Bagdad receives electrical power from Arizona Public Service Company. We believe the Bagdad operation has sufficient water sources to support current operations.

Our wholly owned Safford mine has been in operation since 2007 and is an open-pit copper mining complex located in Graham County, Arizona, 8 miles north of the town of Safford and 170 miles east of Phoenix. The site is accessible by paved county road off U.S. Highway 70.

The Safford mine includes three copper deposits that have oxide mineralization overlaying primary copper sulfide mineralization. The predominant oxide copper minerals are chrysocolla and copper-bearing iron oxides with the predominant copper sulfide material being chalcopyrite. The only Safford deposit currently being mined is the Lone Star copper leach project, which began operations in the second half of 2020 and produced approximately 235 million pounds of copper in 2021. We continue to advance opportunities to increase Lone Star operating rates and are advancing plans to increase volumes to achieve 300 million pounds of copper per year from oxide ores. The oxide project advances the opportunity for development of the large-scale sulfide resources at Lone Star. We are increasing exploration in the area to support metallurgical testing and mine development planning for a potential long-term investment in a concentrator.

The propertySafford is a mine-for-leach project andoperation that produces copper cathode. The operation consists of three open pits, of which one (Lone Star) is currently being mined, feeding a crushing facility with a design capacity of 103,000103,500 metric tons of ore per day. The crushed ore is delivered to a leach padspad by a series of overland and portable conveyors. Leach solutions feed a SX/EW facility with a capacity of 240305 million pounds of copper per year. A sulfur burner plant is also in operation at Safford, providing a cost-effective source of sulphuricsulfuric acid used in SX/EW operations. The available mining fleet consists of thirty-five 235-metric tonforty-two 235-metric-ton haul trucks loaded by six electric shovels with bucket sizes ranging from 34 to 47 cubic meters, which are capable of moving an average of 358,000 metric tons of material per day.

Safford’s copper production totaled 265 million pounds in 2021, 161 million pounds in 2020 and 110 million pounds in 2019, 123 million pounds in 2018 and 150 million pounds in 2017.2019.

Safford is located in a desert environment with rainfall averaging 10 inches per year. The highest bench elevation is 1,783 meters above sea level and the ultimate pit bottom is expected to have an elevation of 823 meters above sea level. The Safford operation encompasses approximately 94,70078,300 acres, comprising 37,20037,700 acres of fee lands and 57,50040,600 acres of unpatented claims held on public mineral estate.

The Safford operation’s electrical power is primarily sourced from Tucson Electric Power Company, Arizona Public Service Company and the Luna Energy facility. Although we believe the Safford operation has sufficient water sources to support current operations, as well as the Lone Star project, we are a party to litigation that may impact our water right claims or rights to continued use of currently available water supplies, which could adversely affect our water supply for the Safford operation. Refer to “Governmental Regulations” above, Item 1A. “Risk Factors” and Item 3. “Legal Proceedings” for further discussion.

Our wholly owned Sierrita mine has been in operation since 1959 and is an open-pit copper and molybdenum mining complex located in Pima County, Arizona, approximately 20 miles southwest of Tucson and 7 miles west of the town of Green Valley and Interstate Highway 19. The site is accessible by a paved highway and by rail.

The Sierrita mine is a porphyry copper deposit that has oxide, secondary sulfide and primary sulfide mineralization. The predominant oxide copper minerals are malachite, azurite and chrysocolla. Chalcocite is the most important secondary copper sulfide mineral, and chalcopyrite and molybdenite are the dominant primary sulfides.

The Sierrita operation includes a concentrator with a milling design capacity of 100,000 metric ton-per-day concentratortons of ore per day that produces copper and molybdenum concentrate. Sierrita also produces copper from a ROM oxide-leaching system. Cathode copper is plated at the Twin Buttes EW facility, which has a design capacity of approximately 50 million pounds of copper per year. The Sierrita operation also has molybdenum facilities consisting of a leaching circuit, two molybdenum roasters and a packaging facility. The molybdenum facilities process molybdenum concentrate produced by Sierrita, from our other mines and from third-party sources. The available mining fleet consists of twenty-two 235-metric tontwenty-four 235-metric-ton haul trucks loaded by three electric shovels with bucket sizes ranging from 34 to 56 cubic meters, which are capable of moving an average of 175,000 metric tons of material per day.

Sierrita’s production totaled 160189 million pounds of copper and 1621 million pounds of molybdenum in 2019, 1522021, 178 million pounds of copper and 1617 million pounds of molybdenum in 2018,2020, and 160 million pounds of copper and 1516 million pounds of molybdenum in 2017.2019.

Sierrita is located in a desert environment with rainfall averaging 14.5 inches per year. The highest bench elevation is 1,300 meters above sea level and the ultimate pit bottom is expected to be 410 meters above sea level. The Sierrita operation, including the adjacent Twin Buttes site, encompasses approximately 46,70047,600 acres, comprising 38,30038,700 acres of fee lands including split estate lands and 8,4008,900 acres of unpatented mining claims held on public mineral estate.

Sierrita receives electrical power through long-term contracts with the Tucson Electric Power Company. Although we believe the Sierrita operation has sufficient water sources to support current operations, we are a party to litigation that may impact our water rights claims or rights to continued use of currently available water supplies, which could adversely affect our water supply for the Sierrita operation. Refer to “Governmental Regulations” above, Item 1A. “Risk Factors” and Item 3. “Legal Proceedings” for further discussion.

Our wholly owned Miami mine is an open-pit copper mining complex located in Gila County, Arizona, 90 miles east of Phoenix and 6 miles west of the city of Globe on U.S. Highway 60. The site is accessible by a paved highway and by rail.

The Miami mine is a porphyry copper deposit that has leachable oxide and secondary sulfide mineralization. The predominant oxide copper minerals are chrysocolla, copper-bearing clays, malachite and azurite. Chalcocite and covellite are the most important secondary copper sulfide minerals.

Miami’s copper production totaled 12 million pounds in 2021, 17 million pounds in 2020 and 15 million pounds in 2019, 16 million pounds in 2018 and 19 million pounds in 2017.2019.

Miami is located in a desert environment with rainfall averaging 18 inches per year. The highest bench elevation is 1,390 meters above sea level and mining advanced the pit bottom to an elevation of 810 meters above sea level. Subsequent sloughing of material into the pit has filled it back to an elevation estimated to be 900 meters above sea level. The Miami operation encompasses approximately 14,700 acres, comprising 10,400 acres of fee lands and 4,300 acres of unpatented mining claims held on public mineral estate.

Our wholly owned Chino mine, which has been in operation since 1910, is an open-pit copper mining complex located in Grant County, New Mexico, approximately 15 miles east of the town of Silver City off of State Highway 180. The mine is accessible by paved roads and by rail. Chino has been in operation since 1910.

The Chino mine is a porphyry copper deposit with adjacent copper skarn deposits. There is leachable oxide, secondary sulfide and millable primary sulfide mineralization. The predominant oxide copper mineral is chrysocolla. Chalcocite is the most important secondary copper sulfide mineral, and chalcopyrite and molybdenite the dominant primary sulfides.

The Chino operation consists of a concentrator with a milling design capacity of 36,000 metric ton-per-day concentratortons of ore per day that produces copper and molybdenum concentrate, and a 150 million pound-per-year SX/EW plant that produces copper cathode from solution generated by ROM leaching. The available mining fleet consists of thirty-five 240-metric tontwenty-five 240-metric-ton haul trucks loaded by fourthree electric shovels with bucket sizes ranging from 31 to 48 cubic meters, which are capable of moving an average of 235,000180,000 metric tons of material per day.

Chino is located in a desert environment with rainfall averaging 16 inches per year. The highest bench elevation is 2,250 meters above sea level and the ultimate pit bottom is expected to be 1,4601,508 meters above sea level. The Chino operation encompasses approximately 117,300122,800 acres, comprising 103,900109,000 acres of fee lands and 13,40013,800 acres of unpatented mining claims held on public mineral estate.

Our wholly owned Tyrone mine is an open-pit copper mining complex whichand has been in operation since 1967. It is located in Grant County, New Mexico, 10 miles south of Silver City, New Mexico, along State Highway 90. The site is accessible by paved road and by rail.

The Tyrone mine is a porphyry copper deposit. Mineralization is predominantly secondary sulfide consisting of chalcocite, with leachable oxide mineralization consisting of chrysocolla.

Copper processing facilities consist of a SX/EW operation with a maximum capacity of approximately 100 million pounds of copper cathode per year. The available mining fleet consists of seven 240-metric tonnine 240-metric-ton haul trucks loaded by one electric shovel with a bucket size of 47 cubic meters, which is capable of moving an average of 68,000108,000 metric tons of material per day. Tyrone’s net property, plant, equipment and mine development costs at December 31, 2021, totaled $90 million.

Tyrone is located in a desert environment with rainfall averaging 16 inches per year. The highest bench elevation is 2,0002,070 meters above sea level and the ultimate pit bottom is expected to have an elevation of 1,475 meters above sea level. The Tyrone operation encompasses approximately 31,10080,700 acres, comprising 19,70067,700 acres of fee lands and 11,40013,000 acres of unpatented mining claims held on public mineral estate.

Our wholly owned Henderson molybdenum mine has been in operation since 1976 and is located 42 miles west of Denver, Colorado, off U.S. Highway 40. Nearby communities include the towns of Empire, Georgetown and Idaho Springs. The Henderson mill site is located 15 miles west of the mine and is accessible from Colorado State Highway 9. The Henderson mine and mill are connected by a 10-mile conveyor tunnel under the Continental Divide and an additional five-mile surface conveyor. The tunnel portal is located five miles east of the mill.

The Henderson mine is a porphyry molybdenum deposit, with molybdenite as the primary sulfide mineral.

The Henderson operation consists of a large block-cave underground mining complex feeding a concentrator with a currentdesign capacity of approximately 32,000 metric tons per day. Henderson has the capacity to produce approximately 1815 million pounds of molybdenum per year. The majority of the molybdenum concentrate produced is shipped to our Fort Madison, Iowa, processing facility. The available underground mining equipment fleet consists of fourteen 9-metric tonfifteen 9-metric-ton load-haul-dump (LHD) units and seven 73-metric ton73-metric-ton haul trucks, which deliver ore to a gyratory crusher feeding a series of three overland conveyors to the mill stockpiles.

Henderson’s molybdenum production totaled 12 million pounds in 2019, 142021, 10 million pounds in 20182020 and 12 million pounds in 2017.2019.

The Henderson mine is located in a mountainous region with the main access shaft at 3,180 meters above sea level. The main production levels are currently at elevations of 2,200 and 2,350 meters above sea level. This region experiences significant snowfall during the winter months.

The Henderson mine and mill operations encompass approximately 16,70017,200 acres, comprising 13,10013,000 acres of fee lands, 3,5504,200 acres of unpatented mining claims held on public mineral estate and a 50-acre easement with the U.S. Forest Service for the surface portion of the conveyor corridor.

The Climax ore body is a porphyry molybdenum deposit, with molybdenite as the primary sulfide mineral.

The Climax open-pit mine includes a 25,000 metric ton-per-daytons of ore per day mill facility. Climax has the capacity to produce approximately 30 million pounds of molybdenum per year. The available mining fleet consists of eleven 177-metric ton177-metric-ton haul trucks loaded by two hydraulic shovels with bucket sizes of 34 cubic meters, which are capable of moving an average of 90,000 metric tons of material per day.

In April 2020, because of the decline in market prices of molybdenum, we revised our near-term operating plans, which included a reduction in production of molybdenum by approximately 50 percent at Climax. During the third quarter of 2021, Climax returned to pre-April 2020 production levels. We may increase operating rates at the Climax mine if necessary to satisfy increasing market demand for molybdenum. Molybdenum production from Climax totaled 18 million pounds in 2021, 14 million pounds in 2020 and 17 million pounds in 2019, 21 million pounds in 2018 and 20 million pounds in 2017.2019.

The Climax mine is located in a mountainous region. The highest bench elevation is approximately 4,050 meters above sea level and the ultimate pit bottom is expected to have an elevation of approximately 3,100 meters above sea level. This region experiences significant snowfall during the winter months.

The Climax operation encompasses approximately 15,100 acres, comprising 14,300 of fee lands.privately owned land and 800 acres of federal claims.

At our operations in South America, mine properties and facilities are controlled through mining claims or concessions under the general mining laws of the relevant country. The claims or concessions are owned or controlled by the operating companies in which we or our subsidiaries have a controlling ownership interest. Roads, power lines and aqueducts are controlled by easements.

We have a 53.56 percent ownership interest in Cerro Verde, with the remaining 46.44 percent held by SMM Cerro Verde Netherlands B.V. (21.0 percent), Compañia de Minas Buenaventura S.A.A. (19.58 percent) and other stockholders whose shares are publicly traded on the Lima Stock Exchange (5.86 percent).

Cerro Verde is an open-pit copper and molybdenum mining complex that has been in operation since 1976 and is located 20 miles southwest of Arequipa, Peru. Prior to being acquired in 1994 by a predecessor of Phelps Dodge, the mine was previously operated by the Peru government. The property is located at latitude 16.53 degrees south

and longitude 71.58 degrees west using the WGS 84 coordinate system. The site is accessible by paved highway. Cerro Verde’s copper cathode and concentrate production that is not sold locally is transported approximately 70 miles by truck and by rail to the Port of Matarani for shipment to international markets. Molybdenum concentrate is transported by truck to either the Ports of Callao or Matarani for shipment.

The Cerro Verde mine is a porphyry copper deposit that has oxide, secondary sulfide and primary sulfide mineralization. The predominant oxide copper minerals are brochantite, chrysocolla, malachite and copper “pitch.” Chalcocite and covellite are the most important secondary copper sulfide minerals. Chalcopyrite and molybdenite are the dominant primary sulfides.

Cerro Verde’s operation consists of an open-pit copper mine,two concentrating facilities with a 409,500total milling design capacity of 360,000 metric ton-per-day concentrating facility,tons of ore per day and SX/EW leaching facilities. Leach copper production is derived from a 39,000 metric ton-per-day39,000-metric-ton-per-day crushed leach facility and a 100,000 metric ton-per-day100,000-metric-ton-per-day ROM leach system. This SX/EW leaching operation has a capacity of approximately 200 million pounds of copper per year.

The available fleet consists of forty-five 290-metric tonfifty-four 300-metric-ton haul trucks and ninety-three 230-metric ton245-metric-ton haul trucks (21 of which are currently on standby) and three 363-metric-ton leased haul trucks loaded by twelvethirteen electric shovels with bucket sizes ranging in size from 33 to 57 cubic meters and two hydraulic shovels with a bucket size of 21 cubic meters.meters (both of which are currently on standby). This fleet is capable of moving an average of approximately 1,050,000970,000 metric tons of material per day.

Cerro Verde’s production totaled 0.9 billion pounds of copper and 21 million pounds of molybdenum in 2021, 0.8 billion pounds of copper and 19 million pounds of molybdenum in 2020, and 1.0 billion pounds of copper and 29 million pounds of molybdenum in 2019, 1.0 billion pounds of copper and 28 million pounds of molybdenum in 2018, and 1.1 billion pounds of copper and 27 million pounds of molybdenum in 2017.2019.

Cerro Verde is located in a desert environment with rainfall averaging 1.5 inches per year and is in an active seismic zone. The highest bench elevation is 2,7502,810 meters above sea level and the ultimate pit bottom is expected to be 1,5531,523 meters above sea level. The Peru general mining law and Cerro Verde’s mining stability agreement grant the surface rights of mining concessions located on government land. Government land obtained after 1997 must be leased or purchased. Cerro Verde has a mining concession covering approximately 182,000178,000 acres, including 62,000 acres of surface rights and access to 14,600 acres granted through an easement from the Peru National Assets Office, plus 145150 acres of owned property, and 1,151 acres of rights-of-way outside the mining concession area.area leased from both government agencies and private parties.

Cerro Verde currently receives electrical power, including hydro-generated power, under long-term contracts with Kallpa Generación SA, ElectroPeru and Engie Energia Peru S.A.

Water for our Cerro Verde processing operations comes from renewable sources through a series of storage reservoirs on the Rio Chili watershed that collect water primarily from seasonal precipitation.precipitation and from wastewater collected from the city of Arequipa and treated at a wastewater treatment plant. We believe the Cerro Verde operation has sufficient water resources to support current operations. For further discussion of risks associated with the availability of water, seeRefer to “Governmental Regulations” above and Item 1A. “Risk Factors.”Factors” for further discussion.

We ownhave a 51 percent ownership interest in El Abra, and the remaining 49 percent interest is held by the state-owned copper enterprise Corporación Nacional del Cobre de Chile (CODELCO).Chile.

El Abra is an open-pit copper mining complex that has been in operation since 1996 and is located 47 miles north of Calama in Chile’s El Loa province, Region II. The site is accessible by paved highway and by rail.

The El Abra mine is a porphyry copper deposit that has sulfide and oxide mineralization. The predominant primary sulfide copper minerals are bornite and chalcopyrite. There is a minor amount of secondary sulfide mineralization

The El Abra operation consists of an open-pit copper mine and a SX/EW facility with a capacity of 500 million pounds of copper cathode per year from a 125,000 metric ton-per-day125,000-metric-ton-per-day crushed leach circuit and a similar-sized ROM leaching operation. The available fleet consists of twenty-three 242-metric ton242-metric-ton haul trucks loaded by four electric shovels with buckets ranging in size from 29 to 41 cubic meters, which are capable of moving an average of 216,000217,000 metric tons of material per day.

El Abra’s copper production totaled 160 million pounds in 2021, 159 million pounds in 2020 and 180 million pounds in 2019, 200 million pounds in 2018 and 173 million pounds in 2017.2019.

We continue to evaluate a large-scale expansion at El Abra to process additional sulfide material and to achieve higher copper recoveries. El Abra’sAbra's large sulfide resource could potentially support a major mill project similar to the facilities constructed at Cerro Verde.Verde in 2015. Technical and economic studies continue to be advancedevaluated to determine the optimal scope and timing for the project.sulfide project, and we are engaging stakeholders and preparing data required for submission of a robust permit application. We are monitoring potential changes in regulatory and fiscal matters in Chile and will defer major investment decisions pending clarity on these matters.

El Abra is located in a desert environment with rainfall averaging less than one inch per year and is in an active seismic zone. The highest bench elevation is 4,1954,225 meters above sea level and the ultimate pit bottom is expected to be 3,385 meters above sea level. El Abra controls a total of approximately 180,000183,600 acres of mining claims covering the ore deposit, stockpiles, process plant, and water wellfield and pipeline. In addition, El Abra has land surface rights for the road between the processing plant and the mine, the water wellfield, power transmission lines and for the water pipeline from the Salar de Ascotán aquifer.

El Abra currently receives electrical power under a long-term contract with Engie Energia Chile S.A. Water for our El Abra processing operations comes from the continued pumping of groundwater from the Salar de Ascotán aquifer pursuant to regulatory approval. We believe El Abra has sufficient water rights and regulatory approvals to support current operations. For a discussion of risks associated with the availability of water, referRefer to “Governmental Regulations” above and Item 1A. “Risk Factors.”Factors” for further discussion.

On September 12, 2019,In March 2021, PT-FI received approval from the Indonesia government to increasea one-year extension of its export quota from approximately 180,000 dry metric tons (DMT) of concentrate to approximately 680,000 DMT for the current export period, which expireslicense through March 8, 2020.15, 2022. Export licenses are valid for a one year periods,period, subject to review and approval by the Indonesia government every six months, depending on greenfield smelter constructiondevelopment progress.

After mining the final phase of the Grasberg open pit during 2019, theThe Grasberg minerals district includes the following underground mines that are being operated or in advanced development;operated; the Grasberg Block Cave, the Deep Mill Level Zone (DMLZ), and Big GossanGossan. During 2021, we began development of the Kucing Liar underground ore body and the Deep Ore Zone (DOZ).

Our principal source of power for all of our Indonesia operations is a coal-fired power plant that we built in 1998. Diesel generators supply peaking and backup electrical power generating capacity.capacity; however, beginning in 2022, our new dual-fuel power plant is expected eventually to provide up to approximately 40 percent of PT-FI’s power needs. A combination of naturally occurring mountain streams and water derived from our underground operations provides water for our operations. Our Indonesia operations are in an active seismic zone and experience average annual rainfall of approximately 200 inches.

The Grasberg Block Cave ore body is the same ore body historically mined from the surface in the Grasberg open pit. Undercutting, drawbell construction and ore extraction activities in the Grasberg Block Cave underground mine continue to track expectations. Monitoring data on cave propagation in the Grasberg Block Cave underground mine is providing confidence in growing production rates over time. As existing drawpoints mature and additional drawpoints are added, cave expansion is expected to accelerate production rates to an average of 30,000over 105,000 metric tons of ore per day in 2020, over 60,000 metric tons of ore per day in 20212022 and 130,000122,000 metric tons of ore per day in 2023 from five production blocks spanning 335,000 square meters. As of December 31, 2021, the Grasberg Block Cave underground mine had 336 open drawbells.

Ore milled from the Grasberg Block Cave underground mine averaged 70,600 metric tons per day in 2021, 30,800 metric tons per day in 2020 and 8,600 metric tons per day in 2019, 4,000 metric tons per day in 2018 and 3,600 metric tons per day in 2017.2019. Production at the Grasberg Block Cave underground mine is expected to continue through 2041.

The Grasberg Block Cave fleet consists of approximately 460580 pieces of mobile equipment. The primary mining equipment directly associated with production and development includes an available fleet of 5288 LHD units and 3533 haul trucks. Each production LHD unit typically carries approximately 11 metric tons of ore and transfertransfers ore into 55 to 60 metric ton capacity haul trucks. In addition, the rail haulage system. The Grasberg Block Cave has a rail haulage system currently operating with 310 locomotives and 27120 ore wagons that haul the ore to the first 2 of the 3 planned gyratory crushers located underground via an automated rail system. Each ore wagon typically carries 30 metric tons.

The DMLZ ore body lies below the DOZ underground mine at the 2,590-meter elevation and represents the downward continuation of mineralization in the Ertsberg East Skarn system and neighboring Ertsberg porphyry.

The DMLZ has continued its ramp-up of production. Hydraulic fracturing operations have been effective in managing rock stresses and pre-conditioning the cave following mining-induced seismic activity experienced in 2017 and 2018. Ore extraction continuesfrom time to exceed expectations, averaging 14,900 metric tons of ore per day in fourth-quarter 2019 and reached approximately 16,000 metric tons of ore per day at year-end 2019.time. Ongoing hydraulic fracturing operations combined with continued undercutting and drawbell openings in the two currently active production blocks are expected to expand the cave, supporting higher production rates that are expected to average 29,000 metric tons of ore per day in 2020, approach 60,000 metric tons of ore per day in 2021 and 80,000approximately 68,000 metric tons of ore per day in 2022 and 69,000 metric tons of ore per day in 2023 from three production blocks. As of December 31, 2021, the DMLZ underground mine had 174 open drawbells.

Ore milled from the DMLZ underground mine averaged 9,800 metric tons of ore per day in 2019, and 3,20058,000 metric tons per day in both 20182021, 28,600 metric tons per day in 2020 and 2017.9,800 metric tons per day in 2019. Production at the DMLZ underground mine is expected to continue through 2041.

The DMLZ fleet consists of over 290390 pieces of mobile equipment, which includes 2263 LHD units and 934 haul trucks used in production and development activities. Each production LHD unit typically carries approximately 11 metric tons of ore and transfers ore into the truck haulage system. The haul trucks have a capacity of 55 to 60 metric tons and load ore from chutes fed by the LHDs and transfer it to one of two gyratory crushers. The crushed ore is conveyed to surface stockpiles for processing.

The Big Gossan ore body lies underground and adjacent to the current mill site. It is a tabular, near vertical ore body with approximate dimensions of 1,200 meters along strike and 800 meters down dip with varying thicknesses from 20 meters to 120 meters. The mine utilizes a blasthole stoping method with delayed paste backfill. Stopes of varying sizes are mined and the ore dropped down passes to a truck haulage level. Trucks are chute loaded and transport the ore to a jaw crusher. The crushed ore is then hoisted vertically via a two-skip production shaft to a level where it is loaded onto a conveyor belt. The belt carries the ore to one of the main underground conveyors where the ore is transferred and conveyed to the surface stockpiles for processing.

Ore milled from the Big Gossan underground mine averaged approximately 7,500 metric tons per day in 2021, 7,000 metric tons per day in 2020 and 6,100 metric tons per day in 2019, 3,800 metric tons per day in 2018 and 600 metric tons per day in 2017.2019. Production at the Big Gossan underground mine is expected to continue through 2041.

The Big Gossan fleet consists of over 8890 pieces of mobile equipment, which includes 1214 LHD units and 910 haul trucks used in development and production activities.

The DOZ ore body lies vertically below the now depleted Intermediate Ore Zone. PT-FI began production from the DOZ ore body in 1989 using open-stope mining methods, but suspended production in 1991 in favor of production fromand the Grasberg open pit. Production resumed in 2000 using the block-cave method and isore body was depleted at the 3,110-meter elevation level.

PT-FI began open-pit mining of the Grasberg ore body in 2018 and 31,200 metric tons per day in 2017. Production at the DOZ underground mine is expected to continue through 2022.

The copper mineralization in these skarn deposits is dominated by chalcopyrite, but higher bornite concentrations are common. Moreover, gold occurs in significant concentrations in all of the district’s ore bodies, though rarely visible to the naked eye. These gold concentrations usually occur as inclusions within the copper sulfide minerals, though, in some deposits, these concentrations can also be strongly associated with pyrite.

The following diagram indicates the relative elevations (in meters) of our reported Indonesia ore bodies.

The following map, which encompasses an area of 42 square kilometers, (16 square miles), indicates the relative positions and sizes of our reported Indonesia ore bodies and their locations.

The design capacity of the smelter is approximately 300,000 metric tons of copper per year, and the refinery has a capacity of 286,000 metric tons of copper per year. Atlantic Copper produced 272,000Copper’s anode production from its smelter totaled 278,600 metric tons of copper anodein 2021, 275,900 metric tons in 2020 and 272,000 metric tons in 2019. Copper cathode production from its smelterrefinery totaled 277,000 metric tons of copper in 2021, 275,000 metric tons in 2020 and 268,300 metric tons of copper cathode from its refinery in 2019; 295,300 metric tons of copper anode from its smelter and 283,100 metric tons of copper cathode from its refinery in 2018; and 283,100 metric tons of copper anode from its smelter and 271,400 metric tons of copper cathode from its refinery in 2017.2019.

Following is a summarythe allocation of Atlantic Copper’s concentrate purchases from unaffiliated third parties and our copper mining operations for the years ended December 31:

Atlantic Copper’s major maintenance turnarounds typically occur approximately every eight years, with shorter-term maintenance turnarounds in the interim. Atlantic Copper last completed a 79-day major maintenance turnaround in 2013 a 16-day maintenance turnaround in 2015, a 27-day maintenance turnaround in 2017 and most recently completed a 16-day maintenance turnaround in 2019. The next major maintenance turnaround is scheduled for 2021.the first half of 2022.

In November 2021, PT-FI completed agreements with Mitsubishi Materials Corporation RtM Japan Ltd. (9.5 percent) and JX Nippon Mining & Metals Corporation (5 percent).to implement the expansion of PT Smelting’s capacity by 30 percent to 1.3 million metric tons of concentrate per year, which is expected to be completed by the end of 2023 in connection with PT-FI’s commitment to develop additional smelting capacity in Indonesia. Refer to Note 2 for discussion of PT-FI’s loan to PT Smelting.

PT-FI’s contract with PT Smelting requiresprovides for PT-FI to supply 100 percent of the copper concentrate requirements (at market rates subject(subject to a minimum or maximum treatment charge rate) necessary for PT Smelting to produce 205,000 metric tons of copper annually on a priority basis. PT-FI may also sell copper concentrate to PT Smelting at market rates for quantities in excess of 205,000 metric tons of copper annually. PT-FI supplied 90100 percent of PT Smelting’s concentrate requirements in both 2019 and 2018 and 932021, 74 percent in 2017.2020 and 90 percent in 2019.

In early 2017, the Indonesia government issued new regulations to address exports of unrefined metals, including copper concentrate and anode slimes, and other matters related to the mining sector. These regulations permit the export of anode slimes, which is necessary for PT Smelting to continue operating. As a result of labor disturbances and a delay in the renewal of its export license for anode slimes, PT Smelting’s operations were shut down from mid-January 2017 until early March 2017. In March 2019,December 2021, PT Smelting received a one-yeartwelve-month extension of its anode slimes export license, which currently expires March 11, 2020.December 9, 2022, subject to review and approval by the Indonesia government every six months. Refer to Item 1A. “Risk Factors” for further discussion.

PT Smelting produced 246,100Smelting’s anode production from its smelter totaled 280,400 metric tons of copper anodein 2021, 276,900 metric tons in 2020 and 246,100 metric tons in 2019. Copper cathode production from its smelterrefinery totaled 256,900 metric tons of copper in 2021, 273,000 metric tons in 2020 and 241,200 metric tons of copper cathode from its refinery in 2019; 258,800 metric tons of copper anode from its smelter and 257,600 metric tons of copper cathode from its refinery in 2018; and 245,800 metric tons of copper anode from its smelter and 247,800 metric tons of copper cathode from its refinery in 2017.2019.

PT Smelting’s maintenance turnarounds (which range from two weeks to a month to complete) typically are expected to occur approximately every two years, with short-term maintenance turnarounds in the interim. PT Smelting completed a 30-day maintenance turnaround during 2018,December 2020, and the next major turnaround is scheduled to start in November 2020.for the second half of 2022. In addition, PT Smelting has a planned 75-day shutdown scheduled for the first half of 2023 associated with its expansion project.

The Miami smelter processes copper concentrate primarily from our North America copper mines. Concentrate processed through the smelter totaled 674,000 metric tons in 2021, 764,000 metric tons in 2020 and 641,000 metric tons in 2019, 729,900 metric tons in 2018 and 612,600 metric tons in 2017.2019. In addition, because sulphuricsulfuric acid is a by-product of smelting concentrate, the Miami smelter is also the most significant source of sulphuricsulfuric acid for our North America leaching operations.

Capital expenditures totaled $2.1 billion (including $1.25 billion for mining operations totaledmajor projects and $0.2 billion for Indonesia smelter projects) in 2021, $2.0 billion (including $1.2 billion for major projects and $0.1 billion for Indonesia smelter projects) in 2020 and $2.65 billion (including $1.5 billion for major projects) in 2019, $2.0 billion (including $1.2 billion for major projects) in 2018 and $1.4 billion (including $0.9 billion for major projects) in 2017.2019. Capital expenditures for major projects during 20192021, 2020 and 20182019 were primarily associated with underground development activities in the Grasberg minerals district and development of the Lone Star copper leach project. Capital expenditures for major projects during 2017 were primarily associated with the Cerro Verde expansion project and underground development activitiesat our Safford mine, which was completed in the Grasberg minerals district.second half of 2020. Refer to MD&A for projected capital expenditures for the year 2020.2022.

We have several projects and potential opportunities to expand production volumes, extend mine lives and develop large-scale underground ore bodies. As further discussed in MD&A, our near-term major development projects primarily includewill focus on the underground development activities in the Grasberg minerals district and development of the Lone Star copper leach project, which is nearing completion.district. Considering the long-term nature and large size of our development projects, actual costs and timing could vary from estimates. Additionally, in response to market conditions, the timing of our expenditures will continue to be reviewed. We continue to review our mine development and processing plans to maximize the value of our mineral reserves.

PT-FI has also committed to construct a new smelter in Indonesia by December 21, 2023. Refer to MD&A for a discussionAdditionally, full development of the smelter project.

Our mining exploration activities are generallyprimarily associated with our existing mines, focusing on opportunities to expand mineral reserves and mineral resources to support development of additional future production capacity. Exploration results continue to indicate opportunities for significant future potential reserve additions at our existing properties in North America and South America. Exploration spending associated with mining operations totaled $50 million in 2021, $34 million in 2020 and $77 million in 2019, $78 million in 2018 and $72 million in 2017. Refer to MD&A for projected exploration expenditures for the year 2020.2019.

Refer to Item 1A. “Risk Factors” for further discussion of risks associated with mine development projects and exploration activities, and PT-FI’s IUPK.

Our copper mining operations require significant amounts of energy, principally diesel, electricity, coal and natural gas, most of which is obtained from third parties under long-term contracts. Energy represented approximately 2021 percent of our copper mine site operating costs in 2019,2021, including purchases of approximately 230220 million gallons of diesel fuel; 8,200approximately 8,000 gigawatt hours of electricity at our North America and South America copper mining operations (we generate all of our power at our Indonesia mining operation); 675approximately 750 thousand metric tons of coal for our coal power plant in Indonesia; and approximately 1 million MMBtu (million British thermal units) of natural gas at certain of our North America mines. Based on current cost estimates, energy willis expected to approximate 2025 percent of our copper mine site operating costs in 2020.2022.

Our mining operations also require significant quantities of water for mining, ore processing and related support facilities. The loss of water rights for any of our mines, in whole or in part, or shortages of water to which we have rights, could require us to curtail or shut down mining operations. For a further discussion of risks and legal proceedings associated with the availability of water, refer to “Governmental Regulations” above, Item 1A. “Risk Factors” and Item 3. “Legal Proceedings.”

SulphuricSulfuric acid is used in the SX/EW process and is produced as a by-product of the smelting process at our smelters and from our sulfur burners at the Safford mine. SulphuricSulfuric acid needs in excess of the sulphuricsulfuric acid produced by our operations are purchased from third parties.

We are committed to promoting the health, safety and Human Rightswell-being of our workforce and striving to further strengthen our commitment to promoting an inclusive, diverse and agile workplace. We believe our global workforce is the foundation of our success. Our Board of Directors (Board) oversees our policies and implementation programs that govern our approach to management of our human capital, with the Board’s Corporate Responsibility Committee having oversight of health and safety matters and the Board’s Compensation Committee having oversight of other human capital matters, including those relating to workforce recruitment, retention and development, pay equity and inclusion and diversity.

We have adopted policies that govern our working relationships with the communities where we operate and that are designed to guide our practices and programs in a manner that respects human rights and the culture of the local people impacted by our operations.

We continue to make significant expenditures on community development, health, education, training and cultural programs, which include:

In December 2000, we endorsed the joint U.S. State Department-British Foreign Office Voluntary Principles on Human Rights and Security (Voluntary Principles). We participated in developing these Voluntary Principles with other major natural resource companies and international human rights organizations and they are incorporated into our human rights policy. The Voluntary Principles provide guidelines for our security programs, including interaction with host-government security personnel, private security contractors and our internal security employees.

Our human rights policy, most recently updated in August 2017,December 2020, reflects our full commitment to implementing the United Nations Guiding Principles on Business and Human Rights. We have embarked on a program to plan and conduct site-level human rights impact assessments (HRIA) at our global operations.

HRIAs help us to embed human rights considerations into our business practices, including site-level sustainable development risk registers. We completed a HRIA at our Cerro Verde operation in Peru in 2017 and at our New Mexico mining operations in 2018. During 2021, we substantially completed a HRIA at our El Abra operations in Chile and began a comprehensive HRIA for all of our Arizona sites including Morenci, Bagdad, Safford, Sierrita and Miami, which we expect to complete in the first half of 2022. We also participate in a multi-industry human rights working group to gain insight from peer companies.companies and experts in the field to learn how best practices are evolving.

We believe that our social and economic development programs are responsive to the issues raised by the local communities near our areas of operation and help us maintain good relations with the surrounding communities and avoid disruptions of mining operations. As part of our ongoing commitment to sustainableour community development,stakeholders, we have made and expect to continue making investments in certain social programs, including in-kind support and administration, across our global operations from time to time. Over the last three years, these investments have averaged $136$124 million per year. Nevertheless, social and political instability in the areas of our operations may adversely impact our mining operations. Refer to Item 1A. “Risk Factors” for further discussion.

Cerro Verde reached an agreement with the Regional Government of Arequipa, the National Government, the local water utility company and other local institutions to allow it to finance, engineer and construct a wastewater treatment plant for the city of Arequipa, which was completed in 2015. The wastewater treatment plant supplements existing water supplies to support Cerro Verde’s concentrator expansion and also improves the local water quality, enhances agriculture products grown in the area and reduces the risk of waterborne illnesses. In addition to these projects, Cerro Verde annually makes significant community development investments in the Arequipa region.

Cerro Verde, like all businesses and residents of Peru, relies on the Peru government for the maintenance of public order, upholding the rule of law and the protection of personnel and property. The Peru government is responsible for employing police personnel and directing their operations. Cerro Verde has limited public security forces in support of its operation, with the arrangement defined through a memorandum of understanding with the Peru National Police. Cerro Verde’s share of support costs for government-provided security approximated $1 million in each of the years 2019, 20182021, 2020 and 2017.2019.

In addition to the Partnership Fund, PT-FI has made and expects to continue making annual investments in public health, education, community infrastructure and local economic development.

PT-FI, like all businesses and residents of Indonesia, relies on the Indonesia government for the maintenance of public order, upholding the rule of law and protection of personnel and property. The Grasberg minerals district has been designated by the Indonesia government as one of Indonesia’s vital national assets. This designation results in the police, and to a lesser extent, the military, playing a significant role in protecting the area of our operations. The Indonesia government is responsible for employing police and military personnel and directing their operations.

From the outset of PT-FI’s operations, the Indonesia government has looked to PT-FI to provide logistical and infrastructure support and assistance for these necessary services because of the limited resources of the Indonesia government and the remote location of and lack of development in Papua. PT-FI’s financial support of the Indonesia government security institutions assigned to PT-FI’s operations area represents a prudent response to PT-FI’s requirements and commitments to protect its workforce and property and better ensuring that personnel are properly fed and lodged and have the logistical resources to patrol PT-FI’s roads and secure its area of operations. In addition, the provision of such support is consistent with our philosophy of responsible corporate citizenship, and reflects our commitment to pursue practices that protect and respect human rights.

Refer to Item 1A. “Risk Factors” for further discussion of security risks in Indonesia.