Freeport-McMoRan (FCX) 10-K 2007 FY Annual report

Exhibit 12.1

FREEPORT-McMoRan COPPER & GOLD INC.

Computation of Ratios of Earnings to Fixed Charges

(In millions, except ratios)

	For the years ended December 31,
	2007			2006			2005			2004			2003
Income from continuing operations before income taxes,
minority interests in net income of consolidated
companies, equity in affiliated companies’ net
earnings and cumulative effect of accounting
change	$	6,111		$	2,819		$	2,028		$	572		$	578
Amortization of previously capitalized interest		17			18			18			18			18
Less: capitalized interest		(147	)		(11	)		(4	)		(3	)		(3	)
Earnings from continuing operations before fixed charges		5,981			2,826			2,042			587			593
Fixed charges:
Interest expense, net of capitalized interest		496			71			124			140			181
Capitalized interest		147			11			4			3			3
Amortization of debt expenses, premiums and discounts		17			5			8			8			16
Interest portion of rental expense		12			1			1			1			1
Total fixed charges		672			88			137			152			201
Adjusted earnings	$	6,653		$	2,914		$	2,179		$	739		$	794
Ratio of earnings to fixed chargesa		9.9			33.1			15.9			4.9			4.0
Preferred stock dividend requirements:
Total fixed charges	$	672		$	88		$	137		$	152		$	201
Preferred stock dividends		340			116			128			103			60
Combined fixed charges and preferred stock dividends	$	1,012		$	204		$	265		$	255		$	261
Ratio of earnings to combined fixed charges and preferred
stock dividendsa		6.6			14.3			8.2			2.9			3.0

a.   For purposes of computing the consolidated ratio of earnings to fixed charges, earnings consist of income from continuing operations before income taxes, minority interests in net income of consolidated subsidiaries, equity in affiliated companies' net earnings and cumulative effect of accounting changes. Minority interests in majority-owned subsidiaries were not deducted from earnings as all such subsidiaries had fixed charges. Fixed charges from continuing operations consist of interest (including capitalized interest) of all indebtedness; amortization of debt discounts, premiums and expenses; and that portion of rental expense that FCX believes to be representative of interest. For purposes of calculating the ratio of earnings to combined fixed charges and preferred stock dividends, the preferred stock dividend requirements were assumed to be equal to the pre-tax earnings that would be required to cover such dividend requirements. The amount of pre-tax earnings required to cover such preferred stock dividends was computed using the effective tax rate for each applicable year.