Freeport-McMoRan (FCX) 8-K Freeport-McMoRan Copper & Gold Inc. Reports

333 North Central Avenue Phoenix, AZ 85004	Financial Contacts:		Media Contact:
	Kathleen L. Quirk (602) 366-8016	David P. Joint (504) 582-4203	Eric E. Kinneberg (602) 366-7994

Freeport-McMoRan Copper & Gold Inc. Reports

Third-Quarter and Nine-Month2011 Results

▪ Net income attributable to common stock for third-quarter2011 was $1.1 billion, $1.10 per share, compared with net income of $1.2 billion, $1.24 per share, for third-quarter2010. Net income attributable to common stock for the first nine months of2011 was $3.9 billion, $4.10 per share, compared with $2.7 billion, $2.94 per share, for the first nine months of2010.

▪ Consolidated sales from mines for third-quarter2011 totaled 947 million pounds of copper, 409 thousand ounces of gold and 19 million pounds of molybdenum, compared with 1.1 billion pounds of copper, 497 thousand ounces of gold and 17 million pounds of molybdenum for third-quarter2010.

▪ Consolidated sales from mines for the year 2011 are expected to approximate 3.8 billion pounds of copper, 1.6 million ounces of gold and 78 million pounds of molybdenum, including 915 million pounds of copper, 305 thousand ounces of gold and 18 million pounds of molybdenum for fourth-quarter2011.

▪ Consolidated unit net cash costs (net of by-product credits) averaged $0.80 per pound of copper for third-quarter2011, compared with $0.82 per pound for third-quarter2010. Based on current 2011 sales volume and cost estimates and assuming average prices of $1,600 per ounce for gold and $14 per pound for molybdenum for fourth-quarter2011, consolidated unit net cash costs (net of by-product credits) are estimated to average $0.95 per pound of copper for the year 2011.

▪ Operating cash flows totaled $1.8 billion for third-quarter2011 and $5.9 billion for the first nine months of2011, compared with $1.3 billion for third-quarter2010 and $4.2 billion for the first nine months of2010. Based on current 2011 sales volume and cost estimates and assuming average prices of $3.25 per pound for copper, $1,600 per ounce for gold and $14 per pound for molybdenum for fourth-quarter2011, operating cash flows are estimated to approximate $7 billion for the year 2011.

▪ Capital expenditures totaled $717 million for third-quarter2011 and $1.7 billion for the first nine months of2011, compared with $350 million for third-quarter2010 and $877 million for the first nine months of2010. Capital expenditures are expected to approximate $2.6 billion for the year 2011, including $1.4 billion for major projects and $1.2 billion for sustaining capital.

▪ At September 30, 2011, total debt approximated $3.5 billion and consolidated cash approximated $5.1 billion. During the first nine months of2011, FCX repaid $1.2 billion in debt and paid common stock dividends totaling $1.2 billion.

Freeport-McMoRan Copper & Gold1

PHOENIX, AZ, October 19, 2011 - Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) reported third-quarter2011 net income attributable to common stock of $1.1 billion, $1.10 per share, compared with $1.2 billion, $1.24 per share, for third-quarter2010. For the first nine months of2011, FCX reported net income attributable to common stock of $3.9 billion, $4.10 per share, compared with $2.7 billion, $2.94 per share, for the first nine months of2010.

James R. Moffett, Chairman of the Board, and Richard C. Adkerson, President and Chief Executive Officer, said, "Our third-quarter 2011 results reflect strong operating performance and favorable markets for our products. While the near-term economic outlook is uncertain and has resulted in a decline in copper prices over the last several weeks, the fundamentals of our business are strong and we have a positive view of the long-term market fundamentals. As we address union labor issues at our mines, our strategy continues to focus on effective execution of our operating plans, aggressive cost management and investing in projects with attractive rates of return to enhance our global portfolio of large-scale, long-lived and high-quality assets."

SUMMARY FINANCIAL AND OPERATING DATA

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Financial Data (in millions, except per share amounts)
Revenuesa	$	5,195		$	5,152		$	16,718		$	13,379
Operating incomeb	$	2,150		$	2,499		$	7,843		$	5,971
Net income attributable to common stock	$	1,053	c	$	1,178		$	3,920	c,d	$	2,724	d
Diluted net income per share of common stock	$	1.10	c	$	1.24	e	$	4.10	c,d	$	2.94	d,e
Diluted weighted-average common shares outstanding	955			947		e	955			947		e
Operating cash flows	$	1,835	f	$	1,336	f	$	5,874	f	$	4,218	f
Capital expenditures	$	717		$	350		$	1,749		$	877
Mining Operating Data
Copper (millions of recoverable pounds)
Production	951			1,042			2,868			2,901
Sales, excluding purchases	947			1,081			2,875			2,955
Average realized price per pound	$	3.60		$	3.50		$	3.94		$	3.33
Site production and delivery costs per poundg	$	1.71		$	1.38		$	1.65		$	1.38
Unit net cash costs per poundg	$	0.80		$	0.82		$	0.84		$	0.87
Gold (thousands of recoverable ounces)
Production	385			492			1,202			1,257
Sales, excluding purchases	409			497			1,245			1,273
Average realized price per ounce	$	1,693		$	1,266		$	1,565		$	1,204
Molybdenum (millions of recoverable pounds)
Production	23			19			65			53
Sales, excluding purchases	19			17			60			50
Average realized price per pound	$	16.34		$	16.06		$	17.57		$	16.43

a. Includes the impact of adjustments to provisionally priced concentrate and cathode sales recognized in prior periods (refer to discussion on page 10).

b. FCX defers recognizing profits on intercompany sales until final sales to third parties occur. Refer to the "Consolidated Statements of Income" on page IV for a summary of net impacts from changes in these deferrals.

c. Includes additional taxes of $50 million, net of noncontrolling interests, ($0.05 per share for the third quarter and first nine months of 2011) associated with Peru's new mining tax and royalty regime. For further discussion refer to the supplemental schedule, "Provision for Income Taxes," on page XXVI, which is available on FCX's website, "www.fcx.com."

d. Includes net losses on early extinguishment of debt totaling $60 million ($0.06 per share) for the first nine months of2011 and $67 million ($0.07 per share) for the first nine months of2010.

e. Amounts have been adjusted to reflect the February 1, 2011, two-for-one stock split.

f. Includes working capital sources (uses) of $256 million for third-quarter2011, $(636) million for third-quarter2010, $(126)

Freeport-McMoRan Copper & Gold2

million for the first nine months of2011 and $(529) million for the first nine months of2010.

g. Reflects per pound weighted-average site production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines, excluding net noncash and other costs. For reconciliations of per pound unit costs by operating division to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedule, “Product Revenues and Production Costs,” beginning on page VII, which is available on FCX's website, “www.fcx.com.”

OPERATIONS

Consolidated.Third-quarter2011 consolidated copper sales of 947 million pounds were slightly higher than the July 2011 estimate of 940 million pounds primarily because of timing of shipments in North America. As anticipated, third-quarter 2011 copper sales were lower than third-quarter 2010 sales primarily because of lower sales in Indonesia and South America, partly offset by higher North America sales.

Third-quarter2011 consolidated gold sales of 409 thousand ounces were slightly below the July 2011 estimate of 415 thousand ounces and lower than third-quarter2010 sales of 497 thousand ounces, primarily reflecting lower Grasberg production.

Third-quarter2011 consolidated molybdenum sales of 19 million pounds were higher than the July 2011 estimate of 18 million pounds and third-quarter2010 sales of 17 million pounds.

During third-quarter 2011, production and sales of copper and gold were adversely affected by labor disruptions at PT Freeport Indonesia (PT-FI). The estimated impact on third-quarter 2011 production, including the eight-day strike in July 2011 and the ongoing strike that commenced on September 15, 2011, totaled approximately 70 million pounds of copper and 100 thousand ounces of gold. Without the impacts of the strike, third-quarter 2011 sales from Grasberg would have exceeded forecasted production and sales because of access to higher grade ore previously scheduled to be mined in future periods. PT-FI has developed revised operating plans to produce and ship concentrates at modified levels with a reduced workforce and sold concentrate from inventory during third-quarter 2011, which partly mitigated the lower production levels.

The union has notified PT-FI that it intends to extend the strike to November 15, 2011. PT-FI continues to seek to end the strike, which has no legal basis, and to conclude negotiations, on a fair and reasonable basis, of the bi-annual renewal of its collective labor agreement. PT-FI's compensation practices are highly competitive in Indonesia, and PT-FI has agreed to accept the recommendations of the government-appointed mediator for a generous increase in wages and other benefits.

Consolidated sales from mines for the year 2011 are expected to approximate 3.8 billion pounds of copper, 1.6 million ounces of gold and 78 million pounds of molybdenum, including 915 million pounds of copper, 305 thousand ounces of gold and 18 million pounds of molybdenum in fourth-quarter2011. Fourth-quarter 2011 sales estimates reflect reduced operations at PT-FI resulting from the current strike conditions. The impact for the year 2011, which is subject to change based on operating rates, mine plans, the extent to which PT-FI can operate using a reduced workforce, and the timing of the resumption of normal operations, is estimated to approximate 100 million pounds of copper and 100 thousand ounces of gold.

Consolidated average unit net cash costs (net of by-product credits) of $0.80 per pound of copper in third-quarter2011 were lower than unit net cash costs of $0.82 per pound in third-quarter2010 as higher gold, molybdenum and silver credits more than offset higher site production and delivery costs. Higher site production and delivery costs primarily reflected lower copper sales volumes in Indonesia and South America and increased mining and milling activities in North America.

Assuming average prices of $1,600 per ounce of gold and $14 per pound of molybdenum for fourth-quarter2011 and achievement of current 2011 sales volume and cost estimates, consolidated unit net cash costs (net of by-product credits) for FCX's copper mining operations are expected to average approximately $0.95 per pound of copper for the year 2011. Quarterly unit net cash costs vary with fluctuations in sales volumes and average realized prices for gold and molybdenum. Fourth-quarter 2011 unit net cash costs are expected to be higher than the average for the year primarily reflecting lower volumes in Indonesia. The impact of price changes on consolidated unit net cash costs would approximate $0.006 per pound for each $50 per ounce change in the average price of gold during fourth-quarter2011 and $0.004 per pound for each $2 per pound change in the average price of molybdenum during fourth-quarter2011.

Freeport-McMoRan Copper & Gold3

North America Copper Mines. FCX operates seven open-pit copper mines in North America - Morenci, Bagdad, Safford, Sierrita and Miami in Arizona, and Tyrone and Chino in New Mexico. All of the North America mining operations are wholly owned, except for Morenci. FCX records its 85 percent joint venture interest in Morenci using the proportionate consolidation method. In addition to copper, the Morenci, Bagdad and Sierrita mines also produce molybdenum concentrates.

Operating and Development Activities. During 2010, FCX initiated plans to increase production at its North America copper mines, which had been curtailed in late 2008 because of weak market conditions. The projects included restarting milling operations and increasing mining rates at Morenci and Chino, and restarting the Miami mine. The project at Morenci is complete with an incremental impact of 125 million pounds of copper per year, and the ramp up of activities at Miami and Chino are continuing. Production at Miami currently approximates 60 million pounds of copper per year. Production at Chino, which is expected to produce approximately 70 million pounds of copper in 2011, is expected to increase to approximately 200 million pounds of copper per year by 2014.

FCX also has a number of opportunities to invest in additional production capacity at several of its North America copper mines. Positive exploration results in recent years indicate the potential for additional sulfide development in North America.

At Morenci, FCX is advancing a feasibility study to expand mining and milling capacity to process additional sulfide ores identified through positive exploratory drilling. This project, which would require significant investment, would increase milling rates from the current level of 50,000 metric tons of ore per day to approximately 115,000 metric tons of ore per day and target incremental annual copper production of approximately 225 million pounds within a three year timeframe. Completion of the feasibility study is expected in early 2012.

Operating Data. Following is summary consolidated operating data for the North America copper mines for the third quarters and first nine months of 2011 and 2010:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Copper (millions of recoverable pounds)
Production	322			259			917			786
Sales, excluding purchases	307			267			914			847
Average realized price per pound	$	4.05		$	3.32		$	4.19		$	3.28
Molybdenum (millions of recoverable pounds)
Productiona	10			7			27			18
Unit net cash costs per pound of copper:
Site production and delivery, excluding adjustments	$	1.86		$	1.62		$	1.80		$	1.46
By-product credits, primarily molybdenum	(0.55		)	(0.36		)	(0.52		)	(0.33		)
Treatment charges	0.11			0.10			0.10			0.09
Unit net cash costsb	$	1.42		$	1.36		$	1.38		$	1.22

a. Reflects molybdenum production from certain of the North America copper mines. Sales of molybdenum are reflected in the Molybdenum division (refer to page 9).

b. For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedule, “Product Revenues and Production Costs,” beginning on page VII, which is available on FCX's website, “www.fcx.com.”

Consolidated copper sales volumes from North America of 307 million pounds in third-quarter2011 were higher than third-quarter2010 sales of 267 million pounds primarily reflecting increased production at the Morenci, Miami and Chino mines.

FCX expects sales from the North America copper mines to approximate 1.2 billion pounds of copper for the year 2011, compared with 1.1 billion pounds of copper in 2010.

As anticipated, average unit net cash costs (net of by-product credits) for the North America copper mines of $1.42 per pound of copper in third-quarter2011 were higher than unit net cash costs of $1.36 per pound in third-

Freeport-McMoRan Copper & Gold4

quarter2010, primarily reflecting increased mining and milling activities and higher input costs. Higher molybdenum credits partly offset the increase in site production and delivery costs.

FCX estimates that average unit net cash costs (net of by-product credits) for the North America copper mines would approximate $1.42 per pound of copper for the year 2011, based on current sales volume and cost estimates and assuming an average molybdenum price of $14 per pound for fourth-quarter2011. North America's average unit net cash costs for 2011 would change by approximately $0.01 per pound for each $2 per pound change in the average price of molybdenum during fourth-quarter2011.

South America Mining. FCX operates four copper mines in South America - Cerro Verde in Peru and El Abra, Candelaria and Ojos del Salado in Chile. FCX owns a 53.56 percent interest in Cerro Verde, a 51 percent interest in El Abra, and 80 percent of the Candelaria and Ojos del Salado mining complexes. All operations in South America are consolidated in FCX's financial statements. South America mining includes open-pit and underground mining. In addition to copper, the Cerro Verde mine produces molybdenum concentrates, and the Candelaria and Ojos del Salado mines produce gold and silver.

Operating and Development Activities. During 2011, FCX commenced production from El Abra's newly commissioned stacking and leaching facilities to transition from oxide to sulfide ores. Production from the sulfide ore is expected to approximate 300 million pounds of copper per year, replacing the currently depleting oxide copper production. The aggregate capital investment for this project is expected to total $725 million through 2015, including $580 million for the initial phase of the project expected to be completed by the end of 2011.

FCX is also engaged in pre-feasibility studies for a potential large-scale milling operation at El Abra to process additional sulfide material and to achieve higher recoveries. Positive exploration results at El Abra indicate the potential for a significant sulfide resource. Exploration activities are continuing.

At Cerro Verde, plans for a large-scale concentrator expansion continue to be advanced. The approximate $4 billion project would expand the concentrator facilities from 120,000 metric tons of ore per day to 360,000 metric tons of ore per day and provide incremental annual production of approximately 600 million pounds of copper beginning in 2016. FCX expects to file an environmental impact assessment in fourth-quarter 2011.

Operating Data. Following is summary consolidated operating data for the South America mining operations for the third quarters and first nine months of 2011 and 2010:

	Three Months						Nine Months
	September 30,						September 30,
	2011			2010			2011			2010
Copper (millions of recoverable pounds)
Production	325			356			969			1,007
Sales	322			377			965			995
Average realized price per pound	$	3.45		$	3.55		$	3.82		$	3.36
Gold (thousands of recoverable ounces)
Production	25			29			73			68
Sales	23			30			72			69
Average realized price per ounce	$	1,664		$	1,265		$	1,556		$	1,211
Molybdenum (millions of recoverable pounds)
Productiona	2			2			8			5
Unit net cash costs per pound of copper:
Site production and delivery, excluding adjustments	$	1.38		$	1.16		$	1.31		$	1.19
By-product credits	(0.36		)	(0.21		)	(0.36		)	(0.19		)
Treatment charges	0.13			0.18			0.17			0.15
Unit net cash costsb	$	1.15		$	1.13		$	1.12		$	1.15

a. Reflects molybdenum production from Cerro Verde. Sales of molybdenum are reflected in the Molybdenum division (refer to page 9).

Freeport-McMoRan Copper & Gold5

b. For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedule, “Product Revenues and Production Costs,” beginning on page VII, which is available on FCX's website, “www.fcx.com.”

Copper sales from South America mining of 322 million pounds in third-quarter2011 were lower than third-quarter2010 sales of 377 million pounds primarily reflecting lower production at Candelaria and the timing of shipments.

During third-quarter 2011, Cerro Verde's union workforce commenced a series of strike actions. The most recent strike commenced on September 29, 2011. Cerro Verde is working in good faith to complete negotiations with the workers' union for a new labor agreement. Production of copper and molybdenum has not been materially affected.

FCX expects South America's sales to approximate of 1.3 billion pounds of copper and 100 thousand ounces of gold for the year 2011, similar to 2010 sales of 1.3 billion pounds of copper and 93 thousand ounces of gold.

Average unit net cash costs (net of by-product credits) for South America of $1.15 per pound of copper in third-quarter2011 were higher than unit net cash costs of $1.13 per pound in third-quarter2010. Higher site production and delivery costs primarily reflected lower copper sales volumes, partly offset by higher gold, molybdenum and silver credits.

FCX estimates that average unit net cash costs (net of by-product credits) for South America mining would approximate $1.17 per pound of copper for the year 2011, based on current sales volume and cost estimates and assuming average prices of $1,600 per ounce of gold and $14 per pound of molybdenum during fourth-quarter2011.

Indonesia Mining. Through its 90.64 percent owned and wholly consolidated subsidiary PT-FI, FCX operates the world's largest copper and gold mine in terms of reserves at its Grasberg operations in Papua, Indonesia.

Operating and Development Activities. FCX has several projects in process in the Grasberg minerals district, primarily related to the development of the large-scale, high-grade underground ore bodies located beneath and nearby the Grasberg open pit. In aggregate, these underground ore bodies are expected to ramp up to approximately 240,000 metric tons of ore per day following the currently anticipated transition from the Grasberg open pit in 2016.

The Deep Ore Zone (DOZ) mine, one of the world's largest underground mines, has been expanded to a capacity of 80,000 metric tons of ore per day and a feasibility study for the Deep Mill Level Zone (DMLZ) has been completed. The high-grade Big Gossan mine, which began producing in fourth-quarter2010, is expected to reach full rates of 7,000 metric tons of ore per day by the end of 2012. Substantial progress has been made in developing infrastructure and underground workings that will enable access to the underground ore bodies. Development of the terminal infrastructure and mine access for the Grasberg Block Cave and DMLZ ore bodies is in progress. Over the next five years, estimated aggregate capital spending is expected to average approximately $635 million ($500 million net to PT-FI) per year on underground development activities.

Freeport-McMoRan Copper & Gold6

Operating Data.Following is summary consolidated operating data for the Indonesia mining operations for the third quarters and first nine months of 2011 and 2010:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Copper (millions of recoverable pounds)
Production	233			358			778			913
Sales	253			364			796			919
Average realized price per pound	$	3.29		$	3.60		$	3.82		$	3.36
Gold (thousands of recoverable ounces)
Production	357			462			1,123			1,185
Sales	384			466			1,168			1,200
Average realized price per ounce	$	1,695		$	1,266		$	1,565		$	1,204
Unit net cash costs per pound of copper:
Site production and delivery, excluding adjustments	$	1.98		$	1.43		$	1.91		$	1.52
Gold and silver credits	(2.80		)	(1.67		)	(2.39		)	(1.63		)
Treatment charges	0.18			0.22			0.18			0.23
Royalty on metals	0.16			0.12			0.16			0.12
Unit net cash (credits) costsa	$	(0.48	)	$	0.10		$	(0.14	)	$	0.24

a. For a reconciliation of unit net cash (credits) costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedule, “Product Revenues and Production Costs,” beginning on page VII, which is available on FCX's website, “www.fcx.com.”

At the Grasberg mine, the sequencing of mining areas with varying ore grades causes fluctuations in the timing of ore production resulting in varying quarterly and annual sales of copper and gold. Indonesia's third-quarter2011 copper sales of 253 million pounds and gold sales of 384 thousand ounces were lower than third-quarter2010 copper sales of 364 million pounds and gold sales of 466 thousand ounces primarily because of planned sequencing of mining in a lower ore-grade section of the Grasberg open pit and the impact of labor disruptions during the quarter. The estimated impact from labor disruptions on third-quarter 2011 production, including the eight-day strike in July 2011 and the ongoing strike that commenced on September 15, 2011, totaled approximately 70 million pounds of copper and 100 thousand ounces of gold. PT-FI has developed revised operating plans to produce and ship concentrates at modified levels with a reduced workforce and also sold concentrate from inventory during third-quarter 2011, which partly mitigated the lower production levels.

FCX expects sales from Indonesia to approximate 1.0 billion pounds of copper and 1.45 million ounces of gold for the year 2011, compared with 1.2 billion pounds of copper and 1.8 million ounces of gold for the year 2010. Indonesia's fourth-quarter 2011 sales estimates of 185 million pounds of copper and 280 thousand ounces of gold reflect the impact of labor disruptions and expected mining in a lower ore-grade section of the Grasberg open pit. The impact of labor disruptions for the year 2011, which is subject to change based on operating rates, mine plans, the extent to which we can operate using a reduced workforce, and the timing of resumption of normal operations, is estimated to approximate 100 million pounds of copper and 100 thousand ounces of gold.

Because of the fixed nature of a large portion of Indonesia's costs, unit costs vary from quarter to quarter depending on volumes of copper and gold sold, as well as average realized gold prices during the period. Unit net cash costs (including gold and silver credits) for Indonesia averaged a net credit of $0.48 per pound of copper in third-quarter2011, compared to a net cost of $0.10 per pound in third-quarter2010. The favorable variance was primarily associated with higher gold and silver credits that more than offset increases in site production and delivery costs primarily from lower copper volumes.

FCX estimates Indonesia's average unit net cash costs (net of gold and silver credits) would approximate $0.03 per pound of copper for the year 2011, based on current sales volume and cost estimates and assuming an average gold price of $1,600 per ounce during fourth-quarter2011. Indonesia's unit net cash costs for 2011 would change by approximately $0.025 per pound for each $50 per ounce change in the average price of gold during

Freeport-McMoRan Copper & Gold7

fourth-quarter2011. Fourth-quarter 2011 unit net cash costs are expected to be higher than the average for the year primarily because of lower volumes.

Africa Mining. FCX currently holds an effective 57.75 percent interest in the Tenke Fungurume (Tenke) copper and cobalt mining concessions in the Katanga province of the Democratic Republic of Congo (DRC). In addition to copper, the Tenke mine produces cobalt hydroxide. Tenke's operations are consolidated in FCX's financial statements. FCX's interest in Tenke will be reduced to 56 percent after receiving the required government approval of the modifications to Tenke Fungurume Mining's bylaws that reflect the agreement with the DRC government.

Operating and Development Activities. The milling facilities at Tenke, which were designed to produce at a rate of 8,000 metric tons of ore per day, have performed above capacity, with throughput averaging 12,000 metric tons of ore per day in third-quarter2011 and 10,800 metric tons of ore per day for the first nine months of2011. Mining rates have been increased to enable additional copper production from the initial project capacity of 250 million pounds per year to approximately 290 million pounds per year.

FCX is undertaking a second phase of the project, which would include optimizing the current plant and increasing capacity. As part of the second phase, FCX plans to expand the mill rate to 14,000 metric tons of ore per day and to construct related processing facilities that would target the addition of approximately 150 million pounds of copper per year. The approximate $850 million project, which includes mill upgrades, additional mining equipment, a new tankhouse and sulphuric acid plant expansion, is targeted for completion in 2013.

FCX continues to engage in drilling activities, exploration analyses and metallurgical testing to evaluate the potential of the highly prospective minerals district at Tenke. These analyses are being incorporated in future plans to evaluate opportunities for expansion.

Operating Data.Following is summary consolidated operating data for the Africa mining operations for the third quarters and first nine months of 2011 and 2010:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Copper (millions of recoverable pounds)
Production	71			69			204			195
Sales	65			73			200			194
Average realized price per pounda	$	3.46		$	3.36		$	3.89		$	3.22
Cobalt (millions of contained pounds)
Production	6			5			18			14
Sales	6			6			19			13
Average realized price per pound	$	10.05		$	11.93		$	10.71		$	11.51
Unit net cash costs per pound of copper:
Site production and delivery, excluding adjustments	$	1.55		$	1.44		$	1.57		$	1.37
Cobalt creditsb	(0.51		)	(0.65		)	(0.68		)	(0.54		)
Royalty on metals	0.08			0.07			0.09			0.07
Unit net cash costsc	$	1.12		$	0.86		$	0.98		$	0.90

a. Includes adjustments for point-of-sale transportation costs as negotiated in customer contracts.

b. Net of cobalt downstream processing and freight costs.

c. For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedule, “Product Revenues and Production Costs,” beginning on page VII, which is available on FCX's website, “www.fcx.com.”

Copper sales from Africa of 65 million pounds in third-quarter2011 were lower than third-quarter2010 copper sales of 73 million pounds primarily reflecting the timing of shipments.

FCX expects Africa's sales to approximate 275 million pounds of copper and 25 million pounds of cobalt for the year 2011, compared with 262 million pounds of copper and 20 million pounds of cobalt for the year 2010.

Unit net cash costs (net of cobalt credits) for Africa of $1.12 per pound of copper were higher than unit net

Freeport-McMoRan Copper & Gold8

cash costs of $0.86 per pound in third-quarter2010, primarily reflecting lower cobalt credits and higher site production and delivery costs from increased mining and milling activity and higher input costs.

FCX estimates Africa's average unit net cash costs would approximate $1.03 per pound of copper for the year 2011, based on current sales volume and cost estimates and assuming an average cobalt price of $14 per pound for fourth-quarter2011. Africa's unit net cash costs for 2011 would change by approximately $0.03 per pound for each $2 per pound change in the average price of cobalt during fourth-quarter2011.

Molybdenum. FCX is the world's largest producer of molybdenum. FCX conducts molybdenum mining operations at its wholly owned Henderson underground mine in Colorado, is developing the Climax molybdenum mine and sells molybdenum produced from its North and South America copper mines.

Development Activities.Construction activities at the Climax molybdenum mine are approximately 80 percent complete. FCX plans to commence production during 2012. Production from the Climax molybdenum mine is expected to ramp up to a rate of 20 million pounds per year during 2013 and, depending on market conditions, may be increased to 30 million pounds per year. FCX intends to operate the Climax and Henderson molybdenum mines in a flexible manner to meet market requirements. FCX believes that Climax is one of the most attractive primary molybdenum development projects in the world, with large-scale production capacity, attractive cash costs and future growth options. Estimated remaining costs for the initial phase of the project approximate $135 million.

Operating Data. Following is summary consolidated operating data for the Molybdenum operations for the third quarters and first nine months of 2011 and 2010:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2011		2010		2011		2010
Molybdenum (millions of recoverable pounds)
Productiona	11		10		30		30
Sales, excluding purchasesb	19		17		60		50
Average realized price per pound	$	16.34	$	16.06	$	17.57	$	16.43
Unit net cash cost per pound of molybdenumc	$	6.24	$	5.94	$	6.19	$	5.75

a. Reflects production at the Henderson molybdenum mine.

b. Includes sales of molybdenum produced at the North and South America copper mines.

c. For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX's consolidated financial statements, refer to the supplemental schedule, “Product Revenues and Production Costs,” beginning on page VII, which is available on FCX's website, “www.fcx.com.”

Consolidated molybdenum sales of 19 million pounds in third-quarter2011 were higher than third-quarter2010 sales of 17 million pounds.

For the year 2011, FCX expects molybdenum sales to approximate 78 million pounds (including production of approximately 45 million pounds from the North and South America copper mines), compared with 67 million pounds in 2010 (including production of 32 million pounds from the North and South America copper mines).

Unit net cash costs at the Henderson mine of $6.24 per pound of molybdenum in third-quarter2011 were higher than unit net cash costs of $5.94 per pound in third-quarter2010, primarily reflecting higher input costs, including labor and materials.

Based on current sales volume and cost estimates, FCX expects average unit net cash costs for the Henderson mine to approximate $6.50 per pound of molybdenum for the year 2011.

Freeport-McMoRan Copper & Gold9

EXPLORATION ACTIVITIES

FCX is conducting exploration activities near its existing mines with a focus on opportunities to expand reserves that will support the development of additional future production capacity in the large minerals districts where it currently operates. Favorable exploration results indicate opportunities for significant future potential reserve additions in North and South America and in the Tenke Fungurume minerals district. The drilling data in North America continue to indicate the potential for expanded sulfide production.

Exploration spending for the year 2011 is expected to approximate $250 million, compared with $113 million in 2010. Exploration activities will continue to focus primarily on the potential for future reserve additions in FCX's existing minerals districts.

PROVISIONAL PRICING AND OTHER

For the first nine months of2011, 55 percent of FCX's mined copper was sold in concentrate, 22 percent as rod from North America operations and 23 percent as cathode. Under the long-established structure of sales agreements prevalent in the industry, substantially all of FCX's copper concentrate and cathode sales are provisionally priced at the time of shipment. The provisional prices are finalized in a contractually specified future month (generally one to four months from the shipment date) primarily based on quoted London Metal Exchange (LME) monthly average spot prices. Because a significant portion of FCX's concentrate and cathode sales in any quarterly period usually remain subject to final pricing, the quarter-end forward price is a major determinant of recorded revenues and the average recorded copper price for the period. LME spot copper prices averaged $4.07 per pound during third-quarter2011, compared to FCX's recorded average price of $3.60 per pound.

At June 30, 2011, FCX had provisionally priced copper sales at its copper mining operations, primarily South America and Indonesia, totaling 435 million pounds (net of intercompany sales and noncontrolling interests) recorded at an average of $4.27 per pound. Lower prices during third-quarter2011 resulted in adjustments to these provisionally priced copper sales and unfavorably impacted third-quarter2011 consolidated revenues by $213 million ($100 million to net income attributable to common stock or $0.11 per share), compared with adjustments to the June 30, 2010, provisionally priced copper sales that favorably impacted third-quarter2010 consolidated revenues by $191 million ($85 million to net income attributable to common stock or $0.09 per share). Adjustments to the December 31, 2010, provisionally priced copper sales unfavorably impacted consolidated revenues by $12 million ($5 million to net income attributable to common stock or $0.01 per share) for the first nine months of2011, compared with adjustments to the December 31, 2009, provisionally priced copper sales that unfavorably impacted consolidated revenues by $23 million ($9 million to net income attributable to common stock or $0.01 per share) for the first nine months of2010.

At September 30, 2011, FCX had provisionally priced copper sales at its copper mining operations, primarily South America and Indonesia, totaling 406 million pounds of copper (net of intercompany sales and noncontrolling interests) recorded at an average of $3.18 per pound, subject to final pricing over the next several months. FCX estimates that each $0.05 change in the price realized from the September 30, 2011, provisional price recorded would have an approximate $13 million effect on its 2011 net income attributable to common stock. The LME spot copper price on October 18, 2011, was $3.30 per pound.

FCX defers recognizing profits on its sales from its Indonesia and South America mining operations to Atlantic Copper and on 25 percent of Indonesia's mining sales to PT Smelting (PT-FI's 25 percent-owned Indonesian smelting unit) until final sales to third parties occur. FCX's net deferred profits on its Indonesia and South America concentrate inventories at Atlantic Copper and PT Smelting to be recognized in future periods' net income attributable to common stock totaled $101 million at September 30, 2011. Quarterly variations in ore grades, the timing of intercompany shipments and changes in product prices will result in variability in FCX's net deferred profits and quarterly earnings.

Freeport-McMoRan Copper & Gold10

CASH FLOWS

FCX generated operating cash flows of $1.8 billion for third-quarter2011 and $5.9 billion for the first nine months of2011. These amounts are net of working capital sources (uses) of $256 million for the third quarter and $(126) million for the nine-month period.

Based on current 2011 sales volume and cost estimates and assuming average prices of $3.25 per pound of copper, $1,600 per ounce of gold and $14 per pound of molybdenum for fourth-quarter2011, FCX's consolidated operating cash flows are estimated to approximate $7 billion for the year 2011. The impact of price changes during fourth-quarter 2011 on operating cash flows would approximate $75 million for each $0.10 per pound change in the average price of copper, $10 million for each $50 per ounce change in the average price of gold and $10 million for each $2 per pound change in the average price of molybdenum.

Capital expenditures, including capitalized interest, totaled $717 million for third-quarter2011 and $1.7 billion for the first nine months of2011. FCX's capital expenditures are currently estimated to approximate $2.6 billion for the year 2011, including $1.4 billion for major projects and $1.2 billion for sustaining capital. Major projects for 2011 primarily include underground development activities at Grasberg, construction activities at the Climax molybdenum mine and completion of the initial phase of the sulfide ore project at El Abra. FCX is also considering additional investments at several of its sites. Capital spending plans will continue to be reviewed and adjusted in response to changes in market conditions and other factors.

CASH AND DEBT

At September 30, 2011, FCX had consolidated cash of $5.1 billion. Net of noncontrolling interests' share, taxes and other costs, cash available to the parent company totaled $4.2 billion as shown below (in billions):

	September 30,
	2011
Cash at domestic companiesa	$	2.5
Cash at international operations	2.6
Total consolidated cash and cash equivalents	5.1
Less: Noncontrolling interests' share	(0.8		)
Cash, net of noncontrolling interests' share	4.3
Less: Withholding taxes and other	(0.1		)
Net cash available	$	4.2

a. Includes cash at FCX's parent company and North America operations.

At September 30, 2011, FCX had $3.5 billion in debt. FCX had no borrowings and $44 million of letters of credit issued under its revolving credit facility resulting in total availability of approximately $1.5 billion at September 30, 2011. Since January 1, 2009, FCX has repaid $3.8 billion in debt resulting in estimated annual interest savings of approximately $260 million based on current interest rates.

FCX does not have significant debt maturities in the near term (a total of $4 million through 2016); however, FCX may consider opportunities to prepay debt in advance of scheduled maturities. FCX has $3.0 billion in debt that is redeemable in whole or in part, at its option, at make-whole redemption prices prior to April 2012, and afterwards at stated redemption prices.

FINANCIAL POLICY

FCX has a long-standing tradition of seeking to build shareholder value through investing in projects with attractive rates of return and returning cash to shareholders through common stock dividends and share purchases. In addition to FCX's current annual common stock dividend of $1.00 per share ($0.25 per share quarterly), on June 1, 2011, FCX paid a supplemental common stock dividend of $0.50 per share. For the first nine months of2011, FCX has paid common stock dividends of $1.2 billion, which includes $474 million for the supplemental dividend paid on June 1, 2011. FCX intends to continue to maintain a strong financial position, invest aggressively in attractive growth projects and provide cash returns to shareholders. The Board will continue to review FCX's financial policy on an ongoing basis.

Freeport-McMoRan Copper & Gold11

WEBCAST INFORMATION

A conference call with securities analysts to discuss FCX's third-quarter2011 results is scheduled for today at 10:00 a.m. Eastern Time. The conference call will be broadcast on the Internet along with slides. Interested parties may listen to the conference call live and view the slides by accessing “www.fcx.com.” A replay of the webcast will be available through Friday, November 18, 2011.

-----------------------------------------------------------------------------------------------------------

FCX is a leading international mining company with headquarters in Phoenix, Arizona. FCX operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum. FCX has a dynamic portfolio of operating, expansion and growth projects in the copper industry and is the world's largest producer of molybdenum.

The company's portfolio of assets includes the Grasberg minerals district, the world's largest copper and gold mine in terms of recoverable reserves; significant mining operations in the Americas, including the large-scale Morenci and Safford minerals districts in North America and the Cerro Verde and El Abra operations in South America; and the Tenke Fungurume minerals district in the DRC. Additional information about FCX is available on FCX's website at “www.fcx.com.”

Cautionary Statement and Regulation G Disclosure:This press release contains forward-looking statements in which FCX discusses its potential future performance. Forward-looking statements are all statements other than statements of historical facts, such as those statements regarding projected ore grades and milling rates, projected production and sales volumes, projected unit net cash costs, projected operating cash flows, projected capital expenditures, exploration efforts and results, mine production and development plans, the impact of deferred intercompany profits on earnings, liquidity, other financial commitments and tax rates, the impact of copper, gold, molybdenum and cobalt price changes, potential prepayments of debt, future dividend payments and potential share purchases. The words “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” “intends,” “likely,” “will,” “should,” “to be,” and any similar expressions are intended to identify those assertions as forward-looking statements. The declaration of dividends is at the discretion of FCX's Board of Directors (the Board) and will depend on FCX's financial results, cash requirements, future prospects, and other factors deemed relevant by the Board.

FCX cautions readers that forward-looking statements are not guarantees of future performance and its actual results may differ materially from those anticipated, projected or assumed in the forward-looking statements. Important factors that can cause FCX's actual results to differ materially from those anticipated in the forward-looking statements include commodity prices, mine sequencing, production rates, industry risks, regulatory changes, political risks, the potential effects of violence in Indonesia, the resolution of administrative disputes in the Democratic Republic of Congo, weather- and climate-related risks, labor relations, including the resolution of labor negotiations and strikes in Indonesia and Peru, environmental risks, litigation results, currency translation risks and other factors described in more detail under the heading “Risk Factors” in FCX's Annual Report on Form 10-K for the year ended December 31, 2010, filed with the U.S. Securities and Exchange Commission (SEC) as updated by our subsequent filings with the SEC.

Investors are cautioned that many of the assumptions on which our forward-looking statements are based are likely to change after our forward-looking statements are made, including for example commodity prices, which we cannot control, and production volumes and costs, some aspects of which we may or may not be able to control. Further, we may make changes to our business plans that could or will affect our results. We caution investors that we do not intend to update our forward-looking statements notwithstanding any changes in our assumptions, changes in our business plans, our actual experience or other changes, and we undertake no obligation to update any forward-looking statements more frequently than quarterly.

This press release also contains certain financial measures such as unit net cash (credits) costs per pound of copper and per pound of molybdenum. As required by SEC Regulation G, reconciliations of these measures to amounts reported in FCX's consolidated financial statements are in the supplemental schedule, “Product Revenues and Production Costs,” beginning on page VII, which is available on FCX's website, “www.fcx.com.”

# # #

Freeport-McMoRan Copper & Gold12

FREEPORT-McMoRan COPPER & GOLD INC.
SELECTED OPERATING DATA
	Three Months Ended September 30,
	Production				Sales
COPPER (millions of recoverable pounds)	2011		2010		2011			2010
(FCX's net interest in %)
North America
Morenci (85%)	134	a	109	a	129		a	111		a
Bagdad (100%)	48		47		48			49
Safford (100%)	36		29		34			33
Sierrita (100%)	46		39		44			39
Miami (100%)	17		4		15			4
Tyrone (100%)	19		21		19			21
Chino (100%)	22		9		18			9
Other (100%)	—		1		—			1
Total North America	322		259		307			267
South America
Cerro Verde (53.56%)	157		165		161			179
El Abra (51%)	72		76		73			77
Candelaria/Ojos del Salado (80%)	96		115		88			121
Total South America	325		356		322			377
Indonesia
Grasberg (90.64%)b	233		358		253			364
Africa
Tenke Fungurume (57.75%)	71		69		65			73
Consolidated	951		1,042		947			1,081
Less noncontrolling interests	180		199		179			210
Net	771		843		768			871
Consolidated sales from mines					947			1,081
Purchased copper					51			78
Total copper sales, including purchases					998			1,159
Average realized price per pound					$	3.60		$	3.50
GOLD (thousands of recoverable ounces)
(FCX's net interest in %)
North America (100%)	3		1		2			1
South America (80%)	25		29		23			30
Indonesia (90.64%)b	357		462		384			466
Consolidated	385		492		409			497
Less noncontrolling interests	38		49		41			49
Net	347		443		368			448
Consolidated sales from mines					409			497
Purchased gold					1			1
Total gold sales, including purchases					410			498
Average realized price per ounce					$	1,693		$	1,266
MOLYBDENUM (millions of recoverable pounds)
(FCX's net interest in %)
Henderson (100%)	11		10		N/A			N/A
North America (100%)	10	a	7		N/A			N/A
Cerro Verde (53.56%)	2		2		N/A			N/A
Consolidated	23		19		19			17
Less noncontrolling interests	1		1		1			1
Net	22		18		18			16
Consolidated sales from mines					19			17
Purchased molybdenum					—			—
Total molybdenum sales, including purchases					19			17
Average realized price per pound					$	16.34		$	16.06
COBALT (millions of contained pounds)
(FCX's net interest in %)
Consolidated - Tenke Fungurume (57.75%)	6		5		6			6
Less noncontrolling interests	3		2		2			2
Net	3		3		4			4
Average realized price per pound					$	10.05		$	11.93
a. Amounts are net of Morenci's 15 percent joint venture partner's interest.
b. Amounts are net of Grasberg's joint venture partner's interest, which varies in accordance with the terms of the joint venture agreement.

I

FREEPORT-McMoRan COPPER & GOLD INC.
SELECTED OPERATING DATA (continued)
	Nine Months Ended September 30,
	Production				Sales
COPPER (millions of recoverable pounds)	2011		2010		2011			2010
(FCX's net interest in %)
North America
Morenci (85%)	391	a	321	a	389		a	336		a
Bagdad (100%)	145		148		152			161
Safford (100%)	101		108		102			125
Sierrita (100%)	131		111		129			120
Miami (100%)	46		10		40			11
Tyrone (100%)	56		61		60			65
Chino (100%)	45		25		40			27
Other (100%)	2		2		2			2
Total North America	917		786		914			847
South America
Cerro Verde (53.56%)	502		496		503			485
El Abra (51%)	186		244		183			238
Candelaria/Ojos del Salado (80%)	281		267		279			272
Total South America	969		1,007		965			995
Indonesia
Grasberg (90.64%)b	778		913		796			919
Africa
Tenke Fungurume (57.75%)	204		195		200			194
Consolidated	2,868		2,901		2,875			2,955
Less noncontrolling interests	540		571		538			564
Net	2,328		2,330		2,337			2,391
Consolidated sales from mines					2,875			2,955
Purchased copper					185			143
Total copper sales, including purchases					3,060			3,098
Average realized price per pound					$	3.94		$	3.33
GOLD (thousands of recoverable ounces)
(FCX's net interest in %)
North America (100%)	6		4		5			4
South America (80%)	73		68		72			69
Indonesia (90.64%)b	1,123		1,185		1,168			1,200
Consolidated	1,202		1,257		1,245			1,273
Less noncontrolling interests	119		124		124			126
Net	1,083		1,133		1,121			1,147
Consolidated sales from mines					1,245			1,273
Purchased gold					1			1
Total gold sales, including purchases					1,246			1,274
Average realized price per ounce					$	1,565		$	1,204
MOLYBDENUM (millions of recoverable pounds)
(FCX's net interest in %)
Henderson (100%)	30		30		N/A			N/A
North America (100%)	27	a	18		N/A			N/A
Cerro Verde (53.56%)	8		5		N/A			N/A
Consolidated	65		53		60			50
Less noncontrolling interests	4		2		3			2
Net	61		51		57			48
Consolidated sales from mines					60			50
Purchased molybdenum					—			2
Total molybdenum sales, including purchases					60			52
Average realized price per pound					$	17.57		$	16.43
COBALT (millions of contained pounds)
(FCX's net interest in %)
Consolidated - Tenke Fungurume (57.75%)	18		14		19			13
Less noncontrolling interests	8		6		8			5
Net	10		8		11			8
Average realized price per pound					$	10.71		$	11.51
a. Amounts are net of Morenci's 15 percent joint venture partner's interest.
b. Amounts are net of Grasberg's joint venture partner's interest, which varies in accordance with the terms of the joint venture agreement.

II

FREEPORT-McMoRan COPPER & GOLD INC.
SELECTED OPERATING DATA (continued)
	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2011	2010	2011	2010
100% North America Copper Mines
Solution Extraction/Electrowinning (SX/EW) Operations
Leach ore placed in stockpiles (metric tons per day)	872,200	653,400	841,700	634,000
Average copper ore grade (percent)	0.25	0.22	0.25	0.24
Copper production (millions of recoverable pounds)	199	179	582	563
Mill Operations
Ore milled (metric tons per day)	225,800	190,500	220,100	183,000
Average ore grades (percent):
Copper	0.38	0.32	0.37	0.31
Molybdenum	0.03	0.03	0.03	0.02
Copper recovery rate (percent)	84.5	82.6	83.5	83.0
Production (millions of recoverable pounds):
Copper	146	100	404	280
Molybdenum	10	7	27	18
100% South America Mining
SX/EW Operations
Leach ore placed in stockpiles (metric tons per day)	244,100	281,000	249,500	261,500
Average copper ore grade (percent)	0.54	0.39	0.48	0.42
Copper production (millions of recoverable pounds)	111	122	314	385
Mill Operations
Ore milled (metric tons per day)	185,700	193,800	192,300	187,100
Average ore grades:
Copper (percent)	0.66	0.69	0.66	0.64
Gold (grams per metric ton)	0.12	0.11	0.12	0.10
Molybdenum (percent)	0.02	0.02	0.02	0.02
Copper recovery rate (percent)	89.1	90.7	90.0	90.0
Production (recoverable):
Copper (millions of pounds)	214	234	655	622
Gold (thousands of ounces)	25	29	73	68
Molybdenum (millions of pounds)	2	2	8	5
100% Indonesia Mining
Ore milled (metric tons per day)	152,200	228,900	197,900	228,800
Average ore grades:
Copper (percent)	0.90	0.92	0.80	0.84
Gold (grams per metric ton)	1.14	0.92	0.92	0.81
Recovery rates (percent):
Copper	89.8	89.1	88.2	88.8
Gold	82.4	83.6	81.3	80.6
Production (recoverable):
Copper (millions of pounds)	237	362	803	975
Gold (thousands of ounces)	408	513	1,261	1,298
100% Africa Mining
Ore milled (metric tons per day)	12,000	11,800	10,800	10,100
Average ore grades (percent):
Copper	3.21	3.20	3.42	3.55
Cobalt	0.41	0.39	0.40	0.40
Copper recovery rate (percent)	91.4	90.5	92.0	91.0
Production (millions of pounds):
Copper (recoverable)	71	69	204	195
Cobalt (contained)	6	5	18	14
100% Henderson Molybdenum Mine
Ore milled (metric tons per day)	24,500	23,000	23,300	23,000
Average molybdenum ore grade (percent)	0.24	0.25	0.24	0.25
Molybdenum production (millions of recoverable pounds)	11	10	30	30

III

FREEPORT-McMoRan COPPER & GOLD INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2011				2010				2011				2010
	(In Millions, Except Per Share Amounts)
Revenues	$	5,195		a	$	5,152		a	$	16,718		a	$	13,379		a
Cost of sales:
Production and delivery	2,570				2,266				7,504				6,234
Depreciation, depletion and amortization	257				268				756				788
Total cost of sales	2,827				2,534				8,260				7,022
Selling, general and administrative expenses	102				81				323				277
Exploration and research expenses	78				35				194				104
Environmental obligations and shutdown costs	38				3				98				5
Total costs and expenses	3,045				2,653				8,875				7,408
Operating income	2,150			b	2,499			b	7,843			b	5,971			b
Interest expense, net	(78		)	c	(103		)	c	(250		)	c	(370		)	c
Losses on early extinguishment of debt	—				—				(68		)		(77		)
Other income (expense), net	28				(19		)		40				2
Income before income taxes and equity in
affiliated companies' net earnings	2,100				2,377				7,565				5,526
Provision for income taxes	(808		)		(845		)		(2,698		)		(1,956		)
Equity in affiliated companies' net earnings	2				1				14				10
Net income	1,294				1,533				4,881				3,580
Net income attributable to noncontrolling interests	(241		)		(355		)		(961		)		(793		)
Preferred dividends	—			d	—			d	—			d	(63		)
Net income attributable to FCX common stockholders	$	1,053		a,b	$	1,178		a,b	$	3,920		a,b	$	2,724		a,b
Net income per share attributable to FCX common stockholders:
Basic	$	1.11			$	1.25		e	$	4.14			$	3.01		e
Diluted	$	1.10			$	1.24		e	$	4.10			$	2.94		e
Weighted-average common shares outstanding:
Basic	948				941			e	947				906			e
Diluted	955				947			e	955				947			e
Dividends declared per share of common stock	$	0.25			$	0.15		e	$	1.25			$	0.375		e

a. Includes favorable (unfavorable) adjustments to provisionally priced copper sales recognized in prior periods totaling $(213) million ($(100) million to net income attributable to common stockholders) in third-quarter 2011, $191 million ($85 million to net income attributable to common stockholders) in third-quarter 2010, $(12) million ($(5) million to net income attributable to common stockholders) for the first nine months of 2011 and $(23) million ($(9) million to net income attributable to common stockholders) for the first nine months of 2010.

b. FCX defers recognizing profits on intercompany sales until final sales to third parties occur. Changes in these deferrals attributable to variability in intercompany volumes resulted in net increases (reductions) of $167 million ($84 million to net income attributable to common stockholders) in third-quarter 2011, $(57) million ($(38) million to net income attributable to common stockholders) in third-quarter 2010, $168 million ($82 million to net income attributable to common stockholders) for the first nine months of 2011 and $(122) million ($(66) million to net income attributable to common stockholders) for the first nine months of 2010.

c. Consolidated interest expense, excluding capitalized interest, totaled $105 million in third-quarter 2011, $126 million in third-quarter 2010, $325 million for the first nine months of 2011 and $409 million for the first nine months of 2010. Lower interest expense in the 2011 periods primarily reflects the impact of debt repayments during 2010 and the first nine months of 2011.

d. During 2010, FCX's 6³/₄% Mandatorily Convertible Preferred Stock automatically converted into shares of FCX common stock; as a result, FCX no longer has requirements to pay preferred dividends.

e. Amounts have been adjusted to reflect the February 1, 2011, two-for-one stock split.

IV

FREEPORT-McMoRan COPPER & GOLD INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
	September 30,			December 31,
	2011			2010
	(In Millions)
ASSETS
Current assets:
Cash and cash equivalents	$	5,128		$	3,738
Trade accounts receivable	1,139			2,132
Other accounts receivable	307			293
Inventories:
Product	1,231			1,409
Materials and supplies, net	1,323			1,169
Mill and leach stockpiles	1,167			856
Other current assets	413			254
Total current assets	10,708			9,851
Property, plant, equipment and development costs, net	17,966			16,785
Long-term mill and leach stockpiles	1,599			1,425
Intangible assets, net	321			328
Other assets	1,114			997
Total assets	$	31,708		$	29,386
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	2,580		$	2,441
Dividends payable	240			240
Current portion of reclamation and environmental obligations	201			207
Accrued income taxes	110			648
Rio Tinto's share of joint venture cash flows	46			132
Current portion of debt	4			95
Total current liabilities	3,181			3,763
Long-term debt, less current portion	3,531			4,660
Deferred income taxes	3,365			2,873
Reclamation and environmental obligations, less current portion	2,139			2,071
Other liabilities	1,441			1,459
Total liabilities	13,657			14,826
Equity:
FCX stockholders' equity:
Common stock	107			107
Capital in excess of par value	18,974			18,751
Retained earnings (deficit)	144			(2,590		)
Accumulated other comprehensive loss	(314		)	(323		)
Common stock held in treasury	(3,554		)	(3,441		)
Total FCX stockholders' equity	15,357			12,504
Noncontrolling interests	2,694			2,056
Total equity	18,051			14,560
Total liabilities and equity	$	31,708		$	29,386

V

FREEPORT-McMoRan COPPER & GOLD INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
	Nine Months Ended
	September 30,
	2011			2010
	(In Millions)
Cash flow from operating activities:
Net income	$	4,881		$	3,580
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	756			788
Stock-based compensation	92			93
Charges for reclamation and environmental obligations, including accretion	144			117
Payments of reclamation and environmental obligations	(131		)	(139		)
Losses on early extinguishment of debt	68			77
Deferred income taxes	419			252
Increase in long-term mill and leach stockpiles	(174		)	(73		)
Changes in other assets and liabilities	(34		)	16
Other, net	(21		)	36
(Increases) decreases in working capital:
Accounts receivable	1,034			(391		)
Inventories	(266		)	(189		)
Other current assets	(152		)	(13		)
Accounts payable and accrued liabilities	(101		)	156
Accrued income and other taxes	(641		)	(92		)
Net cash provided by operating activities	5,874			4,218
Cash flow from investing activities:
Capital expenditures:
North America copper mines	(342		)	(140		)
South America	(431		)	(283		)
Indonesia	(463		)	(311		)
Africa	(89		)	(59		)
Molybdenum	(317		)	(34		)
Other	(107		)	(50		)
Other, net	24			20
Net cash used in investing activities	(1,725		)	(857		)
Cash flow from financing activities:
Proceeds from debt	37			52
Repayments of debt	(1,303		)	(1,678		)
Cash dividends and distributions paid:
Common stock	(1,186		)	(272		)
Preferred stock	—			(95		)
Noncontrolling interests	(350		)	(330		)
Contributions from noncontrolling interests	27			24
Net proceeds from (payments for) stock-based awards	2			(3		)
Excess tax benefit from stock-based awards	23			5
Other, net	(9		)	—
Net cash used in financing activities	(2,759		)	(2,297		)
Net increase in cash and cash equivalents	1,390			1,064
Cash and cash equivalents at beginning of year	3,738			2,656
Cash and cash equivalents at end of period	$	5,128		$	3,720

VI

.FREEPORT-McMoRan COPPER & GOLD INC.

PRODUCT REVENUES AND PRODUCTION COSTS

PRODUCT REVENUES AND UNIT NET CASH COSTS

Unit net cash costs per pound of copper and molybdenum are measures intended to provide investors with information about the cash-generating capacity of FCX's mining operations expressed on a basis relating to the primary metal product for the respective operations. FCX uses this measure for the same purpose and for monitoring operating performance by its mining operations. This information differs from measures of performance determined in accordance with U.S. generally accepted accounting principles (GAAP) and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. This measure is presented by other metals mining companies, although FCX's measures may not be comparable to similarly titled measures reported by other companies.

FCX presents gross profit per pound of copper in the following tables using both a “by-product” method and a “co-product” method. FCX uses the by-product method in its presentation of gross profit per pound of copper because (i) the majority of its revenues are copper revenues, (ii) it mines ore, which contains copper, gold, molybdenum and other metals, (iii) it is not possible to specifically assign all of FCX's costs to revenues from the copper, gold, molybdenum and other metals it produces, (iv) it is the method used to compare mining operations in certain industry publications and (v) it is the method used by FCX's management and Board of Directors to monitor operations. In the co-product method presentations, shared costs are allocated to the different products based on their relative revenue values, which will vary to the extent FCX's metals sales volumes and realized prices change.

FCX shows revenue adjustments for prior period open sales as separate line items. Because these adjustments do not result from current period sales, FCX has reflected these separately from revenues on current period sales. Noncash and other costs consist of items such as stock-based compensation costs, write-offs of equipment and/or unusual charges. They are removed from site production and delivery costs in the calculation of unit net cash costs. As discussed above, gold, molybdenum and other metal revenues at copper mines are reflected as credits against site production and delivery costs in the by-product method. Following are presentations under both the by-product and co-product methods together with reconciliations to amounts reported in FCX's consolidated financial statements.

VII

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
North America Copper Mines Product Revenues and Production Costs and Unit Net Cash Costs
Three Months Ended September 30, 2011
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Molybdenuma			Otherb		Total
Revenues, excluding adjustments	$	1,240		$	1,240		$	146		$	40	$	1,426
Site production and delivery, before net noncash
and other costs shown below	569			506			64			15		585
By-product creditsa	(170		)	—			—			—		—
Treatment charges	36			34			—			2		36
Net cash costs	435			540			64			17		621
Depreciation, depletion and amortization	64			59			4			1		64
Noncash and other costs, net	12			12			—			—		12
Total costs	511			611			68			18		697
Revenue adjustments	(11		)	(11		)	—			—		(11		)
Idle facility and other non-inventoriable costs	(19		)	(19		)	—			—		(19		)
Gross profit	$	699		$	599		$	78		$	22	$	699
Copper sales (millions of recoverable pounds)	307			307
Molybdenum sales (millions of recoverable pounds)c							10
Gross profit per pound of copper and molybdenum:
Revenues, excluding adjustments	$	4.05		$	4.05		$	15.22
Site production and delivery, before net noncash
and other costs shown below	1.86			1.65			6.68
By-product creditsa	(0.55		)	—			—
Treatment charges	0.11			0.11			—
Unit net cash costs	1.42			1.76			6.68
Depreciation, depletion and amortization	0.21			0.19			0.34
Noncash and other costs, net	0.04			0.04			0.02
Total unit costs	1.67			1.99			7.04
Revenue adjustments	(0.04		)	(0.04		)	—
Idle facility and other non-inventoriable costs	(0.06		)	(0.06		)	(0.04		)
Gross profit per pound	$	2.28		$	1.96		$	8.14
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	1,426		$	585		$	64
Treatment charges	N/A			36			N/A
Net noncash and other costs	N/A			12			N/A
Revenue adjustments	(11		)	N/A			N/A
Idle facility and other non-inventoriable costs	N/A			19			N/A
Eliminations and other	4			12			3
North America copper mines	1,419			664			67
South America mining	1,053			478			64
Indonesia mining	1,362			503			62
Africa mining	276			142			32
Molybdenum	332			260			14
Rod & Refining	1,396			1,390			2
Atlantic Copper Smelting & Refining	837			826			11
Corporate, other & eliminations	(1,480		)	(1,693		)	5
As reported in FCX's consolidated financial statements	$	5,195		$	2,570		$	257
a. Molybdenum credits and revenues reflect volumes produced at market-based pricing and also include tolling revenues at Sierrita.
b. Includes gold and silver product revenues and production costs.
c. Reflects molybdenum produced by the North America copper mines.

VIII

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
North America Copper Mines Product Revenues and Production Costs and Unit Net Cash Costs
Three Months Ended September 30, 2010
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Molybdenuma			Otherb		Total
Revenues, excluding adjustments	$	881		$	881		$	96		$	13	$	990
Site production and delivery, before net noncash
and other costs shown below	429			384			52			7		443
By-product creditsa	(95		)	—			—			—		—
Treatment charges	27			26			—			1		27
Net cash costs	361			410			52			8		470
Depreciation, depletion and amortization	63			59			3			1		63
Noncash and other costs, net	30			31			(1		)	—		30
Total costs	454			500			54			9		563
Revenue adjustments	—			—			—			—		—
Idle facility and other non-inventoriable costs	(26		)	(25		)	(1		)	—		(26		)
Gross profit	$	401		$	356		$	41		$	4	$	401
Copper sales (millions of recoverable pounds)	266			266
Molybdenum sales (millions of recoverable pounds)c							7
Gross profit per pound of copper and molybdenum:
Revenues, excluding adjustments	$	3.32		$	3.32		$	15.10
Site production and delivery, before net noncash
and other costs shown below	1.62			1.45			8.18
By-product creditsa	(0.36		)	—			—
Treatment charges	0.10			0.10			—
Unit net cash costs	1.36			1.55			8.18
Depreciation, depletion and amortization	0.24			0.22			0.51
Noncash and other costs, net	0.11			0.11			(0.12		)
Total unit costs	1.71			1.88			8.57
Revenue adjustments	—			—			—
Idle facility and other non-inventoriable costs	(0.10		)	(0.10		)	(0.04		)
Gross profit per pound	$	1.51		$	1.34		$	6.49
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	990		$	443		$	63
Treatment charges	N/A			27			N/A
Net noncash and other costs	N/A			30			N/A
Revenue adjustments	—			N/A			N/A
Idle facility and other non-inventoriable costs	N/A			26			N/A
Eliminations and other	8			10			4
North America copper mines	998			536			67
South America mining	1,465			462			66
Indonesia mining	1,874			528			72
Africa mining	307			141			34
Molybdenum	293			199			13
Rod & Refining	1,181			1,172			2
Atlantic Copper Smelting & Refining	595			590			9
Corporate, other & eliminations	(1,561		)	(1,362		)	5
As reported in FCX's consolidated financial statements	$	5,152		$	2,266		$	268
a. Molybdenum credits and revenues reflect volumes produced at market-based pricing and also include tolling revenues at Sierrita.
b. Includes gold and silver product revenues and production costs.
c. Reflects molybdenum produced by the North America copper mines.

IX

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
North America Copper Mines Product Revenues and Production Costs and Unit Net Cash Costs
Nine Months Ended September 30, 2011
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Molybdenuma			Otherb		Total
Revenues, excluding adjustments	$	3,820		$	3,820		$	429		$	84	$	4,333
Site production and delivery, before net noncash
and other costs shown below	1,637			1,466			178			33		1,677
By-product creditsa	(473		)	—			—			—		—
Treatment charges	97			93			—			4		97
Net cash costs	1,261			1,559			178			37		1,774
Depreciation, depletion and amortization	185			173			10			2		185
Noncash and other costs, net	70			68			1			1		70
Total costs	1,516			1,800			189			40		2,029
Revenue adjustments	(1		)	(1		)	—			—		(1		)
Idle facility and other non-inventoriable costs	(47		)	(46		)	(1		)	—		(47		)
Gross profit	$	2,256		$	1,973		$	239		$	44	$	2,256
Copper sales (millions of recoverable pounds)	912			912
Molybdenum sales (millions of recoverable pounds)c							27
Gross profit per pound of copper and molybdenum:
Revenues, excluding adjustments	$	4.19		$	4.19		$	16.30
Site production and delivery, before net noncash
and other costs shown below	1.80			1.61			6.77
By-product creditsa	(0.52		)	—			—
Treatment charges	0.10			0.10			—
Unit net cash costs	1.38			1.71			6.77
Depreciation, depletion and amortization	0.20			0.19			0.38
Noncash and other costs, net	0.08			0.07			0.05
Total unit costs	1.66			1.97			7.20
Revenue adjustments	—			—			—
Idle facility and other non-inventoriable costs	(0.05		)	(0.05		)	(0.02		)
Gross profit per pound	$	2.48		$	2.17		$	9.08
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	4,333		$	1,677		$	185
Treatment charges	N/A			97			N/A
Net noncash and other costs	N/A			70			N/A
Revenue adjustments	(1		)	N/A			N/A
Idle facility and other non-inventoriable costs	N/A			47			N/A
Eliminations and other	7			32			11
North America copper mines	4,339			1,923			196
South America mining	3,903			1,330			187
Indonesia mining	4,656			1,547			179
Africa mining	963			422			98
Molybdenum	1,119			786			44
Rod & Refining	4,310			4,292			6
Atlantic Copper Smelting & Refining	2,252			2,274			30
Corporate, other & eliminations	(4,824		)	(5,070		)	16
As reported in FCX's consolidated financial statements	$	16,718		$	7,504		$	756
a. Molybdenum credits and revenues reflect volumes produced at market-based pricing and also include tolling revenues at Sierrita.
b. Includes gold and silver product revenues and production costs.
c. Reflects molybdenum produced by the North America copper mines.

X

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
North America Copper Mines Product Revenues and Production Costs and Unit Net Cash Costs
Nine Months Ended September 30, 2010
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Molybdenuma			Otherb		Total
Revenues, excluding adjustments	$	2,771		$	2,771		$	277		$	44	$	3,092
Site production and delivery, before net noncash
and other costs shown below	1,231			1,109			144			21		1,274
By-product creditsa	(278		)	—			—			—		—
Treatment charges	75			73			—			2		75
Net cash costs	1,028			1,182			144			23		1,349
Depreciation, depletion and amortization	207			195			10			2		207
Noncash and other costs, net	107			107			—			—		107
Total costs	1,342			1,484			154			25		1,663
Revenue adjustments	(2		)	(2		)	—			—		(2		)
Idle facility and other non-inventoriable costs	(65		)	(64		)	(1		)	—		(65		)
Gross profit	$	1,362		$	1,221		$	122		$	19	$	1,362
Copper sales (millions of recoverable pounds)	845			845
Molybdenum sales (millions of recoverable pounds)c							18
Gross profit per pound of copper and molybdenum:
Revenues, excluding adjustments	$	3.28		$	3.28		$	15.49
Site production and delivery, before net noncash
and other costs shown below	1.46			1.31			8.06
By-product creditsa	(0.33		)	—			—
Treatment charges	0.09			0.09			—
Unit net cash costs	1.22			1.40			8.06
Depreciation, depletion and amortization	0.24			0.23			0.59
Noncash and other costs, net	0.13			0.12			(0.01		)
Total unit costs	1.59			1.75			8.64
Revenue adjustments	—			—			—
Idle facility and other non-inventoriable costs	(0.08		)	(0.08		)	(0.02		)
Gross profit per pound	$	1.61		$	1.45		$	6.83
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	3,092		$	1,274		$	207
Treatment charges	N/A			75			N/A
Net noncash and other costs	N/A			107			N/A
Revenue adjustments	(2		)	N/A			N/A
Idle facility and other non-inventoriable costs	N/A			65			N/A
Eliminations and other	26			36			13
North America copper mines	3,116			1,557			220
South America mining	3,383			1,227			186
Indonesia mining	4,260			1,430			192
Africa mining	763			347			94
Molybdenum	893			574			38
Rod & Refining	3,383			3,360			6
Atlantic Copper Smelting & Refining	1,844			1,823			28
Corporate, other & eliminations	(4,263		)	(4,084		)	24
As reported in FCX's consolidated financial statements	$	13,379		$	6,234		$	788
a. Molybdenum credits and revenues reflect volumes produced at market-based pricing and also include tolling revenues at Sierrita.
b. Includes gold and silver product revenues and production costs.
c. Reflects molybdenum produced by the North America copper mines.

XI

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
South America Mining Product Revenues and Production Costs and Unit Net Cash Costs
Three Months Ended September 30, 2011
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Other				Total
Revenues, excluding adjustments	$	1,112		$	1,112		$	124		a	$	1,236
Site production and delivery, before net noncash
and other costs shown below	445			402			50				452
By-product credits	(117		)	—			—				—
Treatment charges	43			43			—				43
Net cash costs	371			445			50				495
Depreciation, depletion and amortization	64			60			4				64
Noncash and other costs, net	5			4			1				5
Total costs	440			509			55				564
Revenue adjustments, primarily for pricing
on prior period open sales	(147		)	(147		)	—				(147		)
Other non-inventoriable costs	(22		)	(18		)	(4		)		(22		)
Gross profit	$	503		$	438		$	65			$	503
Copper sales (millions of recoverable pounds)	322			322
Gross profit per pound of copper:
Revenues, excluding adjustments	$	3.45		$	3.45
Site production and delivery, before net noncash
and other costs shown below	1.38			1.25
By-product credits	(0.36		)	—
Treatment charges	0.13			0.13
Unit net cash costs	1.15			1.38
Depreciation, depletion and amortization	0.20			0.19
Noncash and other costs, net	0.02			0.01
Total unit costs	1.37			1.58
Revenue adjustments, primarily for pricing
on prior period open sales	(0.45		)	(0.45		)
Other non-inventoriable costs	(0.07		)	(0.06		)
Gross profit per pound	$	1.56		$	1.36
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	1,236		$	452		$	64
Treatment charges	(43		)	N/A			N/A
Net noncash and other costs	N/A			5			N/A
Revenue adjustments, primarily for pricing
on prior period open sales	(147		)	N/A			N/A
Other non-inventoriable costs	N/A			22			N/A
Eliminations and other	7			(1		)	—
South America mining	1,053			478			64
North America copper mines	1,419			664			67
Indonesia mining	1,362			503			62
Africa mining	276			142			32
Molybdenum	332			260			14
Rod & Refining	1,396			1,390			2
Atlantic Copper Smelting & Refining	837			826			11
Corporate, other & eliminations	(1,480		)	(1,693		)	5
As reported in FCX's consolidated financial statements	$	5,195		$	2,570		$	257

a. Includes gold sales of 23 thousand ounces ($1,664 per ounce average realized price) and silver sales of 834 thousand ounces ($40.75 per ounce average realized price); also includes molybdenum sales of 2 million pounds ($13.53 per pound average realized price), which reflects molybdenum produced by Cerro Verde at market-based pricing.

XII

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
South America Mining Product Revenues and Production Costs and Unit Net Cash Costs
Three Months Ended September 30, 2010
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Other				Total
Revenues, excluding adjustments	$	1,341		$	1,341		$	85		a	$	1,426
Site production and delivery, before net noncash
and other costs shown below	439			413			30				443
By-product credits	(81		)	—			—				—
Treatment charges	68			68			—				68
Net cash costs	426			481			30				511
Depreciation, depletion and amortization	65			62			3				65
Noncash and other costs, net	7			7			—				7
Total costs	498			550			33				583
Revenue adjustments, primarily for pricing
on prior period open sales	106			106			—				106
Other non-inventoriable costs	(16		)	(15		)	(1		)		(16		)
Gross profit	$	933		$	882		$	51			$	933
Copper sales (millions of recoverable pounds)	377			377
Gross profit per pound of copper:
Revenues, excluding adjustments	$	3.55		$	3.55
Site production and delivery, before net noncash
and other costs shown below	1.16			1.09
By-product credits	(0.21		)	—
Treatment charges	0.18			0.18
Unit net cash costs	1.13			1.27
Depreciation, depletion and amortization	0.17			0.17
Noncash and other costs, net	0.02			0.02
Total unit costs	1.32			1.46
Revenue adjustments, primarily for pricing
on prior period open sales	0.28			0.28
Other non-inventoriable costs	(0.04		)	(0.03		)
Gross profit per pound	$	2.47		$	2.34
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	1,426		$	443		$	65
Treatment charges	(68		)	N/A			N/A
Net noncash and other costs	N/A			7			N/A
Revenue adjustments, primarily for pricing
on prior period open sales	106			N/A			N/A
Other non-inventoriable costs	N/A			16			N/A
Eliminations and other	1			(4		)	1
South America mining	1,465			462			66
North America copper mines	998			536			67
Indonesia mining	1,874			528			72
Africa mining	307			141			34
Molybdenum	293			199			13
Rod & Refining	1,181			1,172			2
Atlantic Copper Smelting & Refining	595			590			9
Corporate, other & eliminations	(1,561		)	(1,362		)	5
As reported in FCX's consolidated financial statements	$	5,152		$	2,266		$	268

a. Includes gold sales of 30 thousand ounces ($1,265 per ounce average realized price) and silver sales of 883 thousand ounces ($18.98 per ounce average realized price); also includes molybdenum sales of 2 million pounds ($13.84 per pound average realized price), which reflects molybdenum produced by Cerro Verde at market-based pricing.

XIII

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
South America Mining Product Revenues and Production Costs and Unit Net Cash Costs
Nine Months Ended September 30, 2011
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Other				Total
Revenues, excluding adjustments	$	3,688		$	3,688		$	372		a	$	4,060
Site production and delivery, before net noncash
and other costs shown below	1,268			1,159			128				1,287
By-product credits	(353		)	—			—				—
Treatment charges	164			164			—				164
Net cash costs	1,079			1,323			128				1,451
Depreciation, depletion and amortization	187			175			12				187
Noncash and other costs, net	15			14			1				15
Total costs	1,281			1,512			141				1,653
Revenue adjustments, primarily for pricing
on prior period open sales	14			(6		)	20				14
Other non-inventoriable costs	(53		)	(46		)	(7		)		(53		)
Gross profit	$	2,368		$	2,124		$	244			$	2,368
Copper sales (millions of recoverable pounds)	965			965
Gross profit per pound of copper:
Revenues, excluding adjustments	$	3.82		$	3.82
Site production and delivery, before net noncash
and other costs shown below	1.31			1.20
By-product credits	(0.36		)	—
Treatment charges	0.17			0.17
Unit net cash costs	1.12			1.37
Depreciation, depletion and amortization	0.19			0.18
Noncash and other costs, net	0.02			0.02
Total unit costs	1.33			1.57
Revenue adjustments, primarily for pricing
on prior period open sales	0.01			(0.01		)
Other non-inventoriable costs	(0.05		)	(0.04		)
Gross profit per pound	$	2.45		$	2.20
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	4,060		$	1,287		$	187
Treatment charges	(164		)	N/A			N/A
Net noncash and other costs	N/A			15			N/A
Revenue adjustments, primarily for pricing
on prior period open sales	14			N/A			N/A
Other non-inventoriable costs	N/A			53			N/A
Eliminations and other	(7		)	(25		)	—
South America mining	3,903			1,330			187
North America copper mines	4,339			1,923			196
Indonesia mining	4,656			1,547			179
Africa mining	963			422			98
Molybdenum	1,119			786			44
Rod & Refining	4,310			4,292			6
Atlantic Copper Smelting & Refining	2,252			2,274			30
Corporate, other & eliminations	(4,824		)	(5,070		)	16
As reported in FCX's consolidated financial statements	$	16,718		$	7,504		$	756

a. Includes gold sales of 72 thousand ounces ($1,556 per ounce average realized price) and silver sales of 2.3 million ounces ($38.70 per ounce average realized price); also includes molybdenum sales of 8 million pounds ($14.59 per pound average realized price), which reflects molybdenum produced by Cerro Verde at market-based pricing.

XIV

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
South America Mining Product Revenues and Production Costs and Unit Net Cash Costs
Nine Months Ended September 30, 2010
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Other				Total
Revenues, excluding adjustments	$	3,343		$	3,343		$	201		a	$	3,544
Site production and delivery, before net noncash
and other costs shown below	1,185			1,118			79				1,197
By-product credits	(189		)	—			—				—
Treatment charges	148			148			—				148
Net cash costs	1,144			1,266			79				1,345
Depreciation, depletion and amortization	184			176			8				184
Noncash and other costs, net	14			13			1				14
Total costs	1,342			1,455			88				1,543
Revenue adjustments, primarily for pricing
on prior period open sales	(15		)	(15		)	—				(15		)
Other non-inventoriable costs	(30		)	(27		)	(3		)		(30		)
Gross profit	$	1,956		$	1,846		$	110			$	1,956
Copper sales (millions of recoverable pounds)	995			995
Gross profit per pound of copper:
Revenues, excluding adjustments	$	3.36		$	3.36
Site production and delivery, before net noncash
and other costs shown below	1.19			1.12
By-product credits	(0.19		)	—
Treatment charges	0.15			0.15
Unit net cash costs	1.15			1.27
Depreciation, depletion and amortization	0.19			0.18
Noncash and other costs, net	0.01			0.01
Total unit costs	1.35			1.46
Revenue adjustments, primarily for pricing
on prior period open sales	(0.01		)	(0.01		)
Other non-inventoriable costs	(0.03		)	(0.03		)
Gross profit per pound	$	1.97		$	1.86
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	3,544		$	1,197		$	184
Treatment charges	(148		)	N/A			N/A
Net noncash and other costs	N/A			14			N/A
Revenue adjustments, primarily for pricing
on prior period open sales	(15		)	N/A			N/A
Other non-inventoriable costs	N/A			30			N/A
Eliminations and other	2			(14		)	2
South America mining	3,383			1,227			186
North America copper mines	3,116			1,557			220
Indonesia mining	4,260			1,430			192
Africa mining	763			347			94
Molybdenum	893			574			38
Rod & Refining	3,383			3,360			6
Atlantic Copper Smelting & Refining	1,844			1,823			28
Corporate, other & eliminations	(4,263		)	(4,084		)	24
As reported in FCX's consolidated financial statements	$	13,379		$	6,234		$	788

a. Includes gold sales of 69 thousand ounces ($1,211 per ounce average realized price) and silver sales of 2.0 million ounces ($18.26 per ounce average realized price); also includes molybdenum sales of 5 million pounds ($13.10 per pound average realized price), which reflects molybdenum produced by Cerro Verde at market-based pricing.

XV

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Indonesia Mining Product Revenues and Production Costs and Unit Net Cash Costs
Three Months Ended September 30, 2011
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Gold		Silver			Total
Revenues, excluding adjustments	$	831		$	831		$	650	$	27	a	$	1,508
Site production and delivery, before net noncash
and other costs shown below	499			275			215		9			499
Gold and silver credits	(707		)	—			—		—			—
Treatment charges	47			26			20		1			47
Royalty on metals	41			23			17		1			41
Net cash (credits) costs	(120		)	324			252		11			587
Depreciation and amortization	62			34			27		1			62
Noncash and other costs, net	4			2			2		—			4
Total (credits) costs	(54		)	360			281		12			653
Revenue adjustments, primarily for pricing on
prior period open sales	(88		)	(88		)	28		2			(58		)
Gross profit	$	797		$	383		$	397	$	17		$	797
Copper sales (millions of recoverable pounds)	253			253
Gold sales (thousands of recoverable ounces)							384
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments	$	3.29		$	3.29		$	1,695
Site production and delivery, before net noncash
and other costs shown below	1.98			1.09			561
Gold and silver credits	(2.80		)	—			—
Treatment charges	0.18			0.10			53
Royalty on metals	0.16			0.09			46
Unit net cash (credits) costs	(0.48		)	1.28			660
Depreciation and amortization	0.25			0.13			69
Noncash and other costs, net	0.01			0.01			4
Total unit (credits) costs	(0.22		)	1.42			733
Revenue adjustments, primarily for pricing on
prior period open sales	(0.35		)	(0.35		)	74
Gross profit per pound/ounce	$	3.16		$	1.52		$	1,036
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	1,508		$	499		$	62
Treatment charges	(47		)	N/A			N/A
Royalty on metals	(41		)	N/A			N/A
Net noncash and other costs	N/A			4			N/A
Revenue adjustments, primarily for pricing on
prior period open sales	(58		)	N/A			N/A
Indonesia mining	1,362			503			62
North America copper mines	1,419			664			67
South America mining	1,053			478			64
Africa mining	276			142			32
Molybdenum	332			260			14
Rod & Refining	1,396			1,390			2
Atlantic Copper Smelting & Refining	837			826			11
Corporate, other & eliminations	(1,480		)	(1,693		)	5
As reported in FCX's consolidated financial statements	$	5,195		$	2,570		$	257

a. Includes silver sales of 807 thousand ounces ($34.05 per ounce average realized price).

XVI

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Indonesia Mining Product Revenues and Production Costs and Unit Net Cash Costs
Three Months Ended September 30, 2010
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Gold			Silver			Total
Revenues, excluding adjustments	$	1,310		$	1,310		$	590		$	22	a	$	1,922
Site production and delivery, before net noncash
and other costs shown below	522			356			160			6			522
Gold and silver credits	(609		)	—			—			—			—
Treatment charges	79			54			24			1			79
Royalty on metals	45			31			14			—			45
Net cash costs	37			441			198			7			646
Depreciation and amortization	72			49			22			1			72
Noncash and other costs, net	6			4			2			—			6
Total costs	115			494			222			8			724
Revenue adjustments, primarily for pricing on
prior period open sales	79			79			(5		)	2			76
Gross profit	$	1,274		$	895		$	363		$	16		$	1,274
Copper sales (millions of recoverable pounds)	364			364
Gold sales (thousands of recoverable ounces)							466
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments	$	3.60		$	3.60		$	1,266
Site production and delivery, before net noncash
and other costs shown below	1.43			0.98			344
Gold and silver credits	(1.67		)	—			—
Treatment charges	0.22			0.15			53
Royalty on metals	0.12			0.08			29
Unit net cash costs	0.10			1.21			426
Depreciation and amortization	0.20			0.14			48
Noncash and other costs, net	0.02			0.01			4
Total unit costs	0.32			1.36			478
Revenue adjustments, primarily for pricing on
prior period open sales	0.22			0.22			(10		)
Gross profit per pound/ounce	$	3.50		$	2.46		$	778
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	1,922		$	522		$	72
Treatment charges	(79		)	N/A			N/A
Royalty on metals	(45		)	N/A			N/A
Net noncash and other costs	N/A			6			N/A
Revenue adjustments, primarily for pricing on
prior period open sales	76			N/A			N/A
Indonesia mining	1,874			528			72
North America copper mines	998			536			67
South America mining	1,465			462			66
Africa mining	307			141			34
Molybdenum	293			199			13
Rod & Refining	1,181			1,172			2
Atlantic Copper Smelting & Refining	595			590			9
Corporate, other & eliminations	(1,561		)	(1,362		)	5
As reported in FCX's consolidated financial statements	$	5,152		$	2,266		$	268

a. Includes silver sales of 1.1 million ounces ($20.93 per ounce average realized price).

XVII

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Indonesia Mining Product Revenues and Production Costs and Unit Net Cash Costs
Nine Months Ended September 30, 2011
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Gold			Silver				Total
Revenues, excluding adjustments	$	3,040		$	3,040		$	1,829		$	92		a	$	4,961
Site production and delivery, before net noncash
and other costs shown below	1,521			932			561			28				1,521
Gold and silver credits	(1,903		)	—			—			—				—
Treatment charges	145			89			53			3				145
Royalty on metals	130			79			48			3				130
Net cash (credits) costs	(107		)	1,100			662			34				1,796
Depreciation and amortization	179			110			66			3				179
Noncash and other costs, net	26			16			10			—				26
Total costs	98			1,226			738			37				2,001
Revenue adjustments, primarily for pricing on
prior period open sales	(12		)	(12		)	(17		)	(1		)		(30		)
Gross profit	$	2,930		$	1,802		$	1,074		$	54			$	2,930
Copper sales (millions of recoverable pounds)	796			796
Gold sales (thousands of recoverable ounces)							1168
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments	$	3.82		$	3.82		$	1,565
Site production and delivery, before net noncash
and other costs shown below	1.91			1.17			480
Gold and silver credits	(2.39		)	—			—
Treatment charges	0.18			0.11			46
Royalty on metals	0.16			0.10			41
Unit net cash (credits) costs	(0.14		)	1.38			567
Depreciation and amortization	0.23			0.14			56
Noncash and other costs, net	0.04			0.02			8
Total unit costs	0.13			1.54			631
Revenue adjustments, primarily for pricing on
prior period open sales	(0.01		)	(0.01		)	(15		)
Gross profit per pound/ounce	$	3.68		$	2.27		$	919
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	4,961		$	1,521		$	179
Treatment charges	(145		)	N/A			N/A
Royalty on metals	(130		)	N/A			N/A
Net noncash and other costs	N/A			26			N/A
Revenue adjustments, primarily for pricing on
prior period open sales	(30		)	N/A			N/A
Indonesia mining	4,656			1,547			179
North America copper mines	4,339			1,923			196
South America mining	3,903			1,330			187
Africa mining	963			422			98
Molybdenum	1,119			786			44
Rod & Refining	4,310			4,292			6
Atlantic Copper Smelting & Refining	2,252			2,274			30
Corporate, other & eliminations	(4,824		)	(5,070		)	16
As reported in FCX's consolidated financial statements	$	16,718		$	7,504		$	756

a. Includes silver sales of 2.5 million ounces ($36.44 per ounce average realized price).

XVIII

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Indonesia Mining Product Revenues and Production Costs and Unit Net Cash Costs
Nine Months Ended September 30, 2010
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Gold		Silver			Total
Revenues, excluding adjustments	$	3,085		$	3,085		$	1,445	$	59	a	$	4,589
Site production and delivery, before net noncash
and other costs shown below	1,400			941			441		18			1,400
Gold and silver credits	(1,505		)	—			—		—			—
Treatment charges	213			144			67		2			213
Royalty on metals	109			73			34		2			109
Net cash costs	217			1,158			542		22			1,722
Depreciation and amortization	192			129			60		3			192
Noncash and other costs, net	30			20			10		—			30
Total costs	439			1,307			612		25			1,944
Revenue adjustments, primarily for pricing on
prior period open sales	(8		)	(8		)	1		—			(7		)
Gross profit	$	2,638		$	1,770		$	834	$	34		$	2,638
Copper sales (millions of recoverable pounds)	919			919
Gold sales (thousands of recoverable ounces)							1,200
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments	$	3.36		$	3.36		$	1,204
Site production and delivery, before net noncash
and other costs shown below	1.52			1.02			367
Gold and silver credits	(1.63		)	—			—
Treatment charges	0.23			0.16			56
Royalty on metals	0.12			0.08			29
Unit net cash costs	0.24			1.26			452
Depreciation and amortization	0.21			0.14			50
Noncash and other costs, net	0.03			0.03			8
Total unit costs	0.48			1.43			510
Revenue adjustments, primarily for pricing on
prior period open sales	(0.01		)	(0.01		)	1
Gross profit per pound/ounce	$	2.87		$	1.92		$	695
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	4,589		$	1,400		$	192
Treatment charges	(213		)	N/A			N/A
Royalty on metals	(109		)	N/A			N/A
Net noncash and other costs	N/A			30			N/A
Revenue adjustments, primarily for pricing on
prior period open sales	(7		)	N/A			N/A
Indonesia mining	4,260			1,430			192
North America copper mines	3,116			1,557			220
South America mining	3,383			1,227			186
Africa mining	763			347			94
Molybdenum	893			574			38
Rod & Refining	3,383			3,360			6
Atlantic Copper Smelting & Refining	1,844			1,823			28
Corporate, other & eliminations	(4,263		)	(4,084		)	24
As reported in FCX's consolidated financial statements	$	13,379		$	6,234		$	788

a. Includes silver sales of 3.2 million ounces ($18.90 per ounce average realized price).

XIX

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Africa Mining Product Revenues and Production Costs and Unit Net Cash Costs
Three Months Ended September 30, 2011
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Cobalt			Total
Revenues, excluding adjustmentsa	$	226		$	226		$	56		$	282
Site production and delivery, before net noncash
and other costs shown below	101			92			31			123
Cobalt creditsb	(34		)	—			—			—
Royalty on metals	5			4			1			5
Net cash costs	72			96			32			128
Depreciation, depletion and amortization	32			27			5			32
Noncash and other costs, net	16			13			3			16
Total costs	120			136			40			176
Revenue adjustments, primarily for pricing
on prior period open sales	(1		)	(1		)	—			(1		)
Other non-inventoriable costs	(3		)	(2		)	(1		)	(3		)
Gross profit	$	102		$	87		$	15		$	102
Copper sales (millions of recoverable pounds)	65			65
Cobalt sales (millions of contained pounds)							6
Gross profit per pound of copper/cobalt:
Revenues, excluding adjustmentsa	$	3.46		$	3.46		$	10.05
Site production and delivery, before net noncash
and other costs shown below	1.55			1.40			5.71
Cobalt creditsb	(0.51		)	—			—
Royalty on metals	0.08			0.06			0.15
Unit net cash costs	1.12			1.46			5.86
Depreciation, depletion and amortization	0.48			0.41			0.88
Noncash and other costs, net	0.24			0.20			0.44
Total unit costs	1.84			2.07			7.18
Revenue adjustments, primarily for pricing
on prior period open sales	(0.01		)	(0.01		)	(0.10		)
Other non-inventoriable costs	(0.05		)	(0.05		)	(0.09		)
Gross profit per pound	$	1.56		$	1.33		$	2.68
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	282		$	123		$	32
Royalty on metals	(5		)	N/A			N/A
Net noncash and other costs	N/A			16			N/A
Revenue adjustments, primarily for pricing
on prior period open sales	(1		)	N/A			N/A
Other non-inventoriable costs	N/A			3			N/A
Africa mining	276			142			32
North America copper mines	1,419			664			67
South America mining	1,053			478			64
Indonesia mining	1,362			503			62
Molybdenum	332			260			14
Rod & Refining	1,396			1,390			2
Atlantic Copper Smelting & Refining	837			826			11
Corporate, other & eliminations	(1,480		)	(1,693		)	5
As reported in FCX's consolidated financial statements	$	5,195		$	2,570		$	257
a. Includes adjustments for point-of-sale transportation costs as negotiated in customer contracts.
b. Net of cobalt downstream processing and freight costs.

XX

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Africa Mining Product Revenues and Production Costs and Unit Net Cash Costs
Three Months Ended September 30, 2010
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Cobalt			Total
Revenues, excluding adjustmentsa	$	244		$	244		$	72		$	316
Site production and delivery, before net noncash
and other costs shown below	104			87			36			123
Cobalt creditsb	(48		)	—			—			—
Royalty on metals	6			5			1			6
Net cash costs	62			92			37			129
Depreciation, depletion and amortization	34			28			6			34
Noncash and other costs, net	14			12			2			14
Total costs	110			132			45			177
Revenue adjustments, primarily for pricing
on prior period open sales	2			2			(5		)	(3		)
Other non-inventoriable costs	(3		)	(2		)	(1		)	(3		)
Gross profit	$	133		$	112		$	21		$	133
Copper sales (millions of recoverable pounds)	73			73
Cobalt sales (millions of contained pounds)							6
Gross profit per pound of copper/cobalt:
Revenues, excluding adjustmentsa	$	3.36		$	3.36		$	11.93
Site production and delivery, before net noncash
and other costs shown below	1.44			1.19			6.05
Cobalt creditsb	(0.65		)	—			—
Royalty on metals	0.07			0.06			0.19
Unit net cash costs	0.86			1.25			6.24
Depreciation, depletion and amortization	0.46			0.39			0.89
Noncash and other costs, net	0.20			0.16			0.37
Total unit costs	1.52			1.80			7.50
Revenue adjustments, primarily for pricing
on prior period open sales	0.03			0.03			(0.89		)
Other non-inventoriable costs	(0.04		)	(0.04		)	(0.09		)
Gross profit per pound	$	1.83		$	1.55		$	3.45
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	316		$	123		$	34
Royalty on metals	(6		)	N/A			N/A
Net noncash and other costs	N/A			14			N/A
Revenue adjustments, primarily for pricing
on prior period open sales	(3		)	N/A			N/A
Other non-inventoriable costs	N/A			3			N/A
Eliminations and other	—			1			—
Africa mining	307			141			34
North America copper mines	998			536			67
South America mining	1,465			462			66
Indonesia mining	1,874			528			72
Molybdenum	293			199			13
Rod & Refining	1,181			1,172			2
Atlantic Copper Smelting & Refining	595			590			9
Corporate, other & eliminations	(1,561		)	(1,362		)	5
As reported in FCX's consolidated financial statements	$	5,152		$	2,266		$	268
a. Includes adjustments for point-of-sale transportation costs as negotiated in customer contracts.
b. Net of cobalt downstream processing and freight costs.

XXI

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Africa Mining Product Revenues and Production Costs and Unit Net Cash Costs
Nine Months Ended September 30, 2011
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Cobalt			Total
Revenues, excluding adjustmentsa	$	779		$	779		$	201		$	980
Site production and delivery, before net noncash
and other costs shown below	313			275			105			380
Cobalt creditsb	(136		)	—			—			—
Royalty on metals	18			14			4			18
Net cash costs	195			289			109			398
Depreciation, depletion and amortization	98			83			15			98
Noncash and other costs, net	32			27			5			32
Total costs	325			399			129			528
Revenue adjustments, primarily for pricing
on prior period open sales	(1		)	(1		)	2			1
Other non-inventoriable costs	(10		)	(8		)	(2		)	(10		)
Gross profit	$	443		$	371		$	72		$	443
Copper sales (millions of recoverable pounds)	200			200
Cobalt sales (millions of contained pounds)							19
Gross profit per pound of copper/cobalt:
Revenues, excluding adjustmentsa	$	3.89		$	3.89		$	10.71
Site production and delivery, before net noncash
and other costs shown below	1.57			1.37			5.62
Cobalt creditsb	(0.68		)	—			—
Royalty on metals	0.09			0.07			0.18
Unit net cash costs	0.98			1.44			5.80
Depreciation, depletion and amortization	0.49			0.41			0.82
Noncash and other costs, net	0.16			0.14			0.27
Total unit costs	1.63			1.99			6.89
Revenue adjustments, primarily for pricing
on prior period open sales	(0.01		)	(0.01		)	0.12
Other non-inventoriable costs	(0.04		)	(0.04		)	(0.09		)
Gross profit per pound	$	2.21		$	1.85		$	3.85
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	980		$	380		$	98
Royalty on metals	(18		)	N/A			N/A
Net noncash and other costs	N/A			32			N/A
Revenue adjustments, primarily for pricing
on prior period open sales	1			N/A			N/A
Other non-inventoriable costs	N/A			10			N/A
Africa mining	963			422			98
North America copper mines	4,339			1,923			196
South America mining	3,903			1,330			187
Indonesia mining	4,656			1,547			179
Molybdenum	1,119			786			44
Rod & Refining	4,310			4,292			6
Atlantic Copper Smelting & Refining	2,252			2,274			30
Corporate, other & eliminations	(4,824		)	(5,070		)	16
As reported in FCX's consolidated financial statements	$	16,718		$	7,504		$	756
a. Includes adjustments for point-of-sale transportation costs as negotiated in customer contracts.
b. Net of cobalt downstream processing and freight costs.

XXII

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Africa Mining Product Revenues and Production Costs and Unit Net Cash Costs
Nine Months Ended September 30, 2010
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Cobalt			Total
Revenues, excluding adjustmentsa	$	623		$	623		$	150		$	773
Site production and delivery, before net noncash
and other costs shown below	264			238			76			314
Cobalt creditsb	(104		)	—			—			—
Royalty on metals	14			11			3			14
Net cash costs	174			249			79			328
Depreciation, depletion and amortization	94			78			16			94
Noncash and other costs, net	18			15			3			18
Total costs	286			342			98			440
Revenue adjustments, primarily for pricing
on prior period open sales	—			—			4			4
Other non-inventoriable costs	(15		)	(12		)	(3		)	(15		)
Gross profit	$	322		$	269		$	53		$	322
Copper sales (millions of recoverable pounds)	194			194
Cobalt sales (millions of contained pounds)							13
Gross profit per pound of copper/cobalt:
Revenues, excluding adjustmentsa	$	3.22		$	3.22		$	11.51
Site production and delivery, before net noncash
and other costs shown below	1.37			1.23			5.88
Cobalt creditsb	(0.54		)	—			—
Royalty on metals	0.07			0.06			0.19
Unit net cash costs	0.90			1.29			6.07
Depreciation, depletion and amortization	0.49			0.40			1.24
Noncash and other costs, net	0.09			0.07			0.22
Total unit costs	1.48			1.76			7.53
Revenue adjustments, primarily for pricing
on prior period open sales	—			—			0.28
Other non-inventoriable costs	(0.08		)	(0.07		)	(0.21		)
Gross profit per pound	$	1.66		$	1.39		$	4.05
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	773		$	314		$	94
Royalty on metals	(14		)	N/A			N/A
Net noncash and other costs	N/A			18			N/A
Revenue adjustments, primarily for pricing
on prior period open sales	4			N/A			N/A
Other non-inventoriable costs	N/A			15			N/A
Africa mining	763			347			94
North America copper mines	3,116			1,557			220
South America mining	3,383			1,227			186
Indonesia mining	4,260			1,430			192
Molybdenum	893			574			38
Rod & Refining	3,383			3,360			6
Atlantic Copper Smelting & Refining	1,844			1,823			28
Corporate, other & eliminations	(4,263		)	(4,084		)	24
As reported in FCX's consolidated financial statements	$	13,379		$	6,234		$	788
a. Includes adjustments for point-of-sale transportation costs as negotiated in customer contracts.
b. Net of cobalt downstream processing and freight costs.

XXIII

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Henderson Molybdenum Mine Product Revenues and Production Costs and Unit Net Cash Costs
	Three Months Ended September 30,
(In Millions)	2011			2010
Revenues, excluding adjustments	$	163		$	162
Site production and delivery, before net noncash
and other costs shown below	55			51
Treatment charges and other	11			12
Net cash costs	66			63
Depreciation, depletion and amortization	10			9
Noncash and other costs, net	—			—
Total costs	76			72
Gross profita	$	87		$	90
Molybdenum sales (millions of recoverable pounds)	11			10
Gross profit per pound of molybdenum:
Revenues, excluding adjustments	$	15.38		$	15.42
Site production and delivery, before net noncash
and other costs shown below	5.21			4.87
Treatment charges and other	1.03			1.07
Unit net cash costs	6.24			5.94
Depreciation, depletion and amortization	0.94			0.83
Noncash and other costs, net	0.03			0.03
Total unit costs	7.21			6.80
Gross profit per pound	$	8.17		$	8.62
Reconciliation to Amounts Reported
(In Millions)							Depreciation,
				Production			Depletion and
Three Months Ended September 30, 2011	Revenues			and Delivery			Amortization
Totals presented above	$	163		$	55		$	10
Treatment charges and other	(11		)	N/A			N/A
Net noncash and other costs	N/A			—			N/A
Henderson mine	152			55			10
Other molybdenum operations and eliminationsb	180			205			4
Molybdenum	332			260			14
North America copper mines	1,419			664			67
South America mining	1,053			478			64
Indonesia mining	1,362			503			62
Africa mining	276			142			32
Rod & Refining	1,396			1,390			2
Atlantic Copper Smelting & Refining	837			826			11
Corporate, other & eliminations	(1,480		)	(1,693		)	5
As reported in FCX's consolidated financial statements	$	5,195		$	2,570		$	257
Three Months Ended September 30, 2010
Totals presented above	$	162		$	51		$	9
Treatment charges and other	(12		)	N/A			N/A
Net noncash and other costs	N/A			—			N/A
Henderson mine	150			51			9
Other molybdenum operations and eliminationsb	143			148			4
Molybdenum	293			199			13
North America copper mines	998			536			67
South America mining	1,465			462			66
Indonesia mining	1,874			528			72
Africa mining	307			141			34
Rod & Refining	1,181			1,172			2
Atlantic Copper Smelting & Refining	595			590			9
Corporate, other & eliminations	(1,561		)	(1,362		)	5
As reported in FCX's consolidated financial statements	$	5,152		$	2,266		$	268
a. Gross profit reflects sales of Henderson products based on volumes produced at market-based pricing. On a consolidated basis, the Molybdenum division includes profits on sales as they are made to third parties and realizations based on actual contract terms. As a result, the actual gross profit realized will differ from the amounts reported in this table.
b. Primarily includes amounts associated with the molybdenum sales company, which includes sales of molybdenum produced at the North and South America copper mines.

XXIV

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Henderson Molybdenum Mine Product Revenues and Production Costs and Unit Net Cash Costs
	Nine Months Ended September 30,
(In Millions)	2011			2010
Revenues, excluding adjustments	$	499		$	478
Site production and delivery, before net noncash
and other costs shown below	158			141
Treatment charges and other	28			33
Net cash costs	186			174
Depreciation, depletion and amortization	27			25
Noncash and other costs, net	1			1
Total costs	214			200
Gross profita	$	285		$	278
Molybdenum sales (millions of recoverable pounds)	30			30
Gross profit per pound of molybdenum:
Revenues, excluding adjustments	$	16.66		$	15.84
Site production and delivery, before net noncash
and other costs shown below	5.26			4.67
Treatment charges and other	0.93			1.08
Unit net cash costs	6.19			5.75
Depreciation, depletion and amortization	0.90			0.83
Noncash and other costs, net	0.04			0.03
Total unit costs	7.13			6.61
Gross profit per pound	$	9.53		$	9.23
Reconciliation to Amounts Reported
(In Millions)							Depreciation,
				Production			Depletion and
Nine Months Ended September 30, 2011	Revenues			and Delivery			Amortization
Totals presented above	$	499		$	158		$	27
Treatment charges and other	(28		)	N/A			N/A
Net noncash and other costs	N/A			1			N/A
Henderson mine	471			159			27
Other molybdenum operations and eliminationsb	648			627			17
Molybdenum	1,119			786			44
North America copper mines	4,339			1,923			196
South America mining	3,903			1,330			187
Indonesia mining	4,656			1,547			179
Africa mining	963			422			98
Rod & Refining	4,310			4,292			6
Atlantic Copper Smelting & Refining	2,252			2,274			30
Corporate, other & eliminations	(4,824		)	(5,070		)	16
As reported in FCX's consolidated financial statements	$	16,718		$	7,504		$	756
Nine Months Ended September 30, 2010
Totals presented above	$	478		$	141		$	25
Treatment charges and other	(33		)	N/A			N/A
Net noncash and other costs	N/A			1			N/A
Henderson mine	445			142			25
Other molybdenum operations and eliminationsb	448			432			13
Molybdenum	893			574			38
North America copper mines	3,116			1,557			220
South America mining	3,383			1,227			186
Indonesia mining	4,260			1,430			192
Africa mining	763			347			94
Rod & Refining	3,383			3,360			6
Atlantic Copper Smelting & Refining	1,844			1,823			28
Corporate, other & eliminations	(4,263		)	(4,084		)	24
As reported in FCX's consolidated financial statements	$	13,379		$	6,234		$	788
a. Gross profit reflects sales of Henderson products based on volumes produced at market-based pricing. On a consolidated basis, the Molybdenum division includes profits on sales as they are made to third parties and realizations based on actual contract terms. As a result, the actual gross profit realized will differ from the amounts reported in this table.
b. Primarily includes amounts associated with the molybdenum sales company, which includes sales of molybdenum produced at the North and South America copper mines.

XXV

FREEPORT-McMoRan COPPER & GOLD INC.

PROVISION FOR INCOME TAXES

Following are summaries of the approximate amounts in the calculation of FCX's consolidated provision for income taxes for the third quarters and first nine months of 2011 and 2010 (in millions, except percentages):

	Three Months Ended September 30,
	2011								2010
					Income Tax								Income Tax
			Effective		(Provision)				Income			Effective	(Provision)
	Incomea		Tax Rate		Benefit				(Loss)a			Tax Rate	Benefit
U.S.	$	530	31%		$	(163	)		$	319		23%	$	(73	)
South America	499		40%		(202		)	b	904			33%	(298		)
Indonesia	765		45%		(342		)		1,220			41%	(499		)
Africa	53		38%		(20		)		109			30%	(32		)
Eliminations and other	253		N/A		(88		)		(175		)	N/A	67
Annualized rate adjustmentc	N/A		N/A		7				N/A			N/A	(10		)
Consolidated FCX	$	2,100	38%		$	(808	)		$	2,377		36%	$	(845	)
	Nine Months Ended September 30,
	2011								2010
					Income Tax								Income Tax
			Effective		(Provision)				Income			Effective	(Provision)
	Incomea		Tax Rate		Benefit				(Loss)a			Tax Rate	Benefit
U.S.	$	1,772	24%		$	(421	)		$	905		23%	$	(205	)
South America	2,326		36%		(829		)	b	1,926			33%	(629		)
Indonesia	2,870		43%		(1,241		)		2,569			42%	(1,069		)
Africa	293		34%		(100		)		251			30%	(75		)
Eliminations and other	304		N/A		(127		)		(125		)	N/A	43
Annualized rate adjustmentc	N/A		N/A		20				N/A			N/A	(21		)
Consolidated FCX	$	7,565	36%	d	$	(2,698	)		$	5,526		35%	$	(1,956	)

a. Represents income by geographic location before income taxes and equity in affiliated companies' net earnings.

b. On September 29, 2011, Peru enacted a new mining tax and royalty regime. Under the new regime, companies that do not have stability agreements will be subject to a revised royalty and a special mining tax. Cerro Verde operates under a stability agreement and therefore is not subject to the revised royalty and special mining tax until its stability agreement expires on December 31, 2013. The Peruvian government has also created a special mining burden that companies with tax stability agreements can elect to pay. The special mining burden is based on a sliding scale of 4 to 13 percent, with a maximum effective tax rate of 8.79 percent. Cerro Verde has elected to pay this special mining burden during the remaining term of its stability agreement. As a result of the new mining tax and royalty regime and the election to pay the special mining burden, Cerro Verde recognized additional current and deferred tax expense of $57 million ($50 million net of noncontrolling interests) in third-quarter 2011. The deferred portion of this accrual relates primarily to the assets recorded in connection with the 2007 acquisition of Phelps Dodge.

c. In accordance with applicable accounting rules, FCX adjusts its interim provision for income taxes equal to its estimated annualized tax rate.

d. FCX's consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which it operates. Accordingly, variations in the relative proportions of jurisdictional income result in fluctuations to FCX's consolidated effective income tax rate. Assuming average prices of $3.25 per pound for copper, $1,600 per ounce for gold and $14 per pound for molybdenum for the fourth quarter of 2011 and achievement of current 2011 sales volume and cost estimates, FCX estimates its annual consolidated effective tax rate will approximate 36 percent.

XXVI

FREEPORT-McMoRan COPPER & GOLD INC.

BUSINESS SEGMENTS

FCX has organized its operations into five primary divisions - North America copper mines, South America mining, Indonesia mining, Africa mining and Molybdenum operations. Notwithstanding this structure, FCX internally reports information on a mine-by-mine basis. Therefore, FCX concluded that its operating segments include individual mines. Operating segments that meet certain thresholds are reportable segments, which are separately disclosed in the following table.

Intersegment Sales. Intersegment sales between FCX's operations are based on similar arms-length transactions with third parties at the time of the sale. Intersegment sales may not be reflective of the actual prices ultimately realized because of a variety of factors, including additional processing, timing of sales to unaffiliated customers and transportation premiums.

Allocations. FCX allocates certain operating costs, expenses and capital expenditures to the operating divisions and individual segments. However, not all costs and expenses applicable to a mine or operation are allocated. All U.S. federal and state income taxes are recorded and managed at the corporate level, whereas foreign income taxes are recorded and managed at the applicable country. In addition, most exploration and research activities are managed at the corporate level, and those costs along with some selling, general and administrative costs are not allocated to the operating divisions or segments. Accordingly, the following segment information reflects management determinations that may not be indicative of what the actual financial performance of each operating division or segment would be if it was an independent entity.

XXVII

FREEPORT-McMoRan COPPER & GOLD INC.

BUSINESS SEGMENTS (continued)

(In Millions)	North America Copper Mines								South America							Indonesia			Africa
																									Atlantic
																									Copper			Corporate,
			Other						Cerro		Other										Molyb-		Rod &		Smelting			Other &			FCX
	Morenci		Mines			Total			Verde		Mines			Total		Grasberg			Tenke		denum		Refining		& Refining			Eliminations			Total
Three Months Ended September 30, 2011
Revenues:
Unaffiliated customers	$	78	$	44		$	122		$	396	$	570		$	966	$	1,275	a	$	275	$	332	$	1,389	$	834		$	2		$	5,195
Intersegment	450		847			1,297			105		(18		)	87		87			1		—		7		3			(1,482		)	—
Production and delivery	252		412			664			196		282			478		503			142		260		1,390		826			(1,693		)	2,570
Depreciation, depletion and amortization	27		40			67			32		32			64		62			32		14		2		11			5			257
Selling, general and administrative expenses	—		1			1			1		1			2		29			1		3		—		5			61			102
Exploration and research expenses	3		—			3			—		—			—		—			—		1		—		—			74			78
Environmental obligations and shutdown costs	1		(15		)	(14		)	—		—			—		—			—		—		—		—			52			38
Operating income (loss)	245		453			698			272		237			509		768			101		54		4		(5		)	21			2,150
Interest expense, net	—		1			1			—		—			—		7			2		—		—		4			64			78
Provision for income taxes	—		—			—			154		48			202		342			20		—		—		—			244			808
Total assets at September 30, 2011	1,981		4,966			6,947			4,886		3,475			8,361		5,437			3,791		2,342		323		955			3,552			31,708
Capital expenditures	21		117			138			64		110			174		162			49		155		2		5			32			717
Three Months Ended September 30, 2010
Revenues:
Unaffiliated customers	$	10	$	15		$	25		$	606	$	696		$	1,302	$	1,458	a	$	307	$	293	$	1,174	$	592		$	1		$	5,152
Intersegment	364		609			973			84		79			163		416			—		—		7		3			(1,562		)	—
Production and delivery	185		351			536			194		268			462		528			141		199		1,172		590			(1,362		)	2,266
Depreciation, depletion and amortization	33		34			67			42		24			66		72			34		13		2		9			5			268
Selling, general and administrative expenses	—		—			—			—		—			—		25			—		2		—		4			50			81
Exploration and research expenses	—		—			—			—		—			—		—			—		1		—		—			34			35
Environmental obligations and shutdown costs	—		—			—			—		—			—		—			—		—		1		—			2			3
Operating income (loss)	156		239			395			454		483			937		1,249			132		78		6		(8		)	(290		)	2,499
Interest expense, net	1		2			3			—		—			—		—			2		—		—		2			96			103
Provision for income taxes	—		—			—			147		151			298		499			32		—		—		—			16			845
Total assets at September 30, 2010	1,919		4,271			6,190			4,308		3,245			7,553		5,712			3,540		1,837		335		1,201			1,583			27,951
Capital expenditures	13		46			59			32		97			129		116			9		22		2		4			9			350

a. Includes PT Freeport Indonesia's sales to PT Smelting totaling $665 million in third-quarter 2011 and $603 million in third-quarter 2010.

XXVIII

FREEPORT-McMoRan COPPER & GOLD INC.

BUSINESS SEGMENTS (continued)

(In Millions)	North America Copper Mines								South America						Indonesia			Africa
																								Atlantic
																								Copper			Corporate,
			Other						Cerro		Other									Molyb-		Rod &		Smelting			Other &			FCX
	Morenci		Mines			Total			Verde		Mines		Total		Grasberg			Tenke		denum		Refining		& Refining			Eliminations			Total
Nine Months Ended September 30, 2011
Revenues:
Unaffiliated customers	$	371	$	154		$	525		$	1,662	$	1,803	$	3,465	$	4,112	a	$	959	$	1,119	$	4,291	$	2,241		$	6		$	16,718
Intersegment	1,274		2,540			3,814			303		135		438		544			4		—		19		11			(4,830		)	—
Production and delivery	719		1,204			1,923			569		761		1,330		1,547			422		786		4,292		2,274			(5,070		)	7,504
Depreciation, depletion and amortization	85		111			196			102		85		187		179			98		44		6		30			16			756
Selling, general and administrative expenses	1		2			3			3		2		5		100			6		11		—		18			180			323
Exploration and research expenses	4		—			4			—		—		—		—			—		3		—		—			187			194
Environmental obligations and shutdown costs	4		(15		)	(11		)	—		—		—		—			—		—		1		—			108			98
Operating income (loss)	832		1,392			2,224			1,291		1,090		2,381		2,830			437		275		11		(70		)	(245		)	7,843
Interest expense, net	2		4			6			1		—		1		9			5		—		—		12			217			250
Provision for income taxes	—		—			—			476		353		829		1,241			100		—		—		—			528			2,698
Capital expenditures	69		273			342			120		311		431		463			89		317		7		29			71			1,749
Nine Months Ended September 30, 2010
Revenues:
Unaffiliated customers	$	20	$	31		$	51		$	1,338	$	1,646	$	2,984	$	3,490	a	$	763	$	893	$	3,363	$	1,830		$	5		$	13,379
Intersegment	1,107		1,958			3,065			275		124		399		770			—		—		20		14			(4,268		)	—
Production and delivery	509		1,048			1,557			513		714		1,227		1,430			347		574		3,360		1,823			(4,084		)	6,234
Depreciation, depletion and amortization	110		110			220			109		77		186		192			94		38		6		28			24			788
Selling, general and administrative expenses	—		—			—			—		—		—		77			—		8		—		14			178			277
Exploration and research expenses	—		—			—			—		—		—		—			—		2		—		—			102			104
Environmental obligations and shutdown costs	—		—			—			—		—		—		—			—		—		1		—			4			5
Operating income (loss)	508		831			1,339			991		979		1,970		2,561			322		271		16		(21		)	(487		)	5,971
Interest expense, net	3		8			11			—		—		—		—			4		—		—		7			348			370
Provision for income taxes	—		—			—			320		309		629		1,069			75		—		—		—			183			1,956
Capital expenditures	28		112			140			63		220		283		311			59		34		4		16			30			877

a. Includes PT Freeport Indonesia's sales to PT Smelting totaling $2.0 billion for the first nine months of 2011 and $1.5 billion for the first nine months of 2010.

XXIX