Exhibit 99.1
Mine Safety and Health Administration (MSHA) Safety Data
FCX's U.S. mining operations are subject to regulations issued by MSHA under the U.S. Federal Mine Safety and Health Act of 1977 (the Mine Act). MSHA inspects our mines on a regular basis and issues various citations and orders when it believes a violation has occurred under the Mine Act. Whenever MSHA issues a citation or order, it also generally proposes a civil penalty, or fine, related to the alleged violation. Citations or orders can be contested and appealed, and as part of that process, are often reduced in severity and amount, and are sometimes dismissed. The number of citations, orders and proposed assessments varies depending on the size and type (underground or surface) of the mine, among other factors.
The following disclosures have been provided pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Act). The U.S. Securities and Exchange Commission (SEC) has not issued final rules for Section 1503(a); therefore, it is possible that any final rules or guidelines adopted by the SEC will require disclosures in future periods to be presented in a different form.
Mine Safety Data. During the three months ended September 30, 2011, we had no mining related fatalities at our U.S. mining operations. In addition, during the three months ended September 30, 2011, none of our U.S. mining operations received written notice from MSHA of a pattern of, or the potential to have a pattern of, violations of mandatory health or safety standards that are of such nature as could have significantly and substantially contributed to the cause and effect of mine health or safety hazards under Section 104(e) of the Mine Act.
Following provides additional information about references used in the tables below to describe the categories of violations, orders or citations issued by MSHA under the Mine Act:
| |
| • | Section 104(a): Citations issued by MSHA under Section 104(a) of the Mine Act for violations of health or safety standards that could significantly and substantially contribute to a serious injury if left unabated. |
| |
| • | Section 104(b): Orders issued under Section 104(b) of the Mine Act, which represent a failure to abate a citation under Section 104(a) within the period prescribed by MSHA. This results in an order of immediate withdrawal from the area of the mine affected by the condition until MSHA determines that the violation has been abated. |
| |
| • | Section 104(d): Citations and orders issued by MSHA under Section 104(d) of the Mine Act for unwarrantable failure to comply with mandatory health or safety standards. These types of violations could significantly and substantially contribute to a serious injury; however, the conditions do not cause imminent danger (refer to discussion of imminent danger orders below). |
| |
| • | Section 110(b)(2): Flagrant violations identified by MSHA under Section 110(b)(2) of the Mine Act. The term flagrant with respect to a violation is defined as “a reckless or repeated failure to make reasonable efforts to eliminate a known violation of a mandatory health or safety standard that substantially and proximately caused, or reasonably could have expected to cause, death or serious bodily injury.” |
| |
| • | Section 107(a): Orders issued by MSHA under Section 107(a) of the Mine Act for situations in which MSHA determined an imminent danger existed. Orders issued under Section 107(a) of the Mine Act require the operator of the mine to cause all persons (except authorized persons) to be withdrawn from the mine until the imminent danger and the conditions that caused such imminent danger cease to exist. |
The following table details the violations, citations and orders issued to us by MSHA during the three months ended September 30, 2011:
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | Three Months Ended September 30, 2011 |
| | | | | Section | | Section | | Section | | Section | | Section | | Proposed |
Mine ID(1) | | Mine or Operation Name | | 104(a) | | 104(b) | | 104(d) | | 110(b)(2) | | 107(a) | | Assessments(2) |
| 0200137 | | Freeport-McMoRan Bagdad Inc. (Bagdad) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| | | Freeport-McMoRan Chino Mines Company (Chino): | | | | | | | | | | | | |
| 2900708 | | Chino Mines Co Mine | | 19 |
| | — |
| | 1 |
| (3) | — |
| | — |
| | — |
|
| 2900762 | | SX-EW | | 16 |
| | 1 |
| | — |
| | — |
| | — |
| | $ | 2,370 |
|
| 2901882 | | Ivanhoe Concentrator | | 16 |
| | — |
| | — |
| | — |
| | — |
| | $ | 10,712 |
|
| 0200112 | | Freeport-McMoRan Miami Inc (Miami) | | 18 |
| | — |
| | — |
| | — |
| | — |
| | $ | 17,887 |
|
| 0200024 | | Freeport-McMoRan Morenci Inc (Morenci) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| 0203131 | | Freeport-McMoRan Safford Inc (Safford) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| 0200144 | | Freeport-McMoRan Sierrita Inc (Sierrita) | | 2 |
| | — |
| | — |
| | — |
| | — |
| | $ | 1,990 |
|
| 2900159 | | Tyrone Mine (Tyrone) | | 19 |
| | — |
| | — |
| | — |
| | — |
| | $ | 7,713 |
|
| 0500790 | | Henderson Operations (Henderson) | | 15 |
| | — |
| | — |
| | — |
| | — |
| | $ | 2,328 |
|
| 0502256 | | Climax Mine (Climax) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| | | Freeport-McMoRan Cobre Mining Company : | | | | | | | | | | | | |
| 2900725 | | Open Pit & Continental Surf Comp | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| 2900731 | | Continental Mill Complex | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| 0201656 | | Copper Queen Branch | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| 0202579 | | Cyprus Tohono Corporation | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| 0203262 | | Twin Buttes Mine | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| 2902395 | | Chieftain 2100 Screening Plant | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| 0203254 | | Warrior 1800 Screening Plant | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| |
| (1) | MSHA assigns an identification number to each mine or operation and may or may not assign separate identification numbers to related facilities. |
| |
| (2) | Amounts represent the total dollar value of proposed assessments received on or before October 31, 2011, for citations or orders issued by MSHA during the three months ended September 30, 2011. FCX is contesting $6,054 of these proposed assessments. Refer to “Pending Legal Actions” below for further discussion of the process by which a citation, order or penalty received from MSHA may be challenged. |
| |
| (3) | During the three months ended September 30, 2011, Chino was issued a 104(d) citation that was subsequently reduced to a 104(a) violation. |
Outstanding Proposed Assessments. At September 30, 2011, the cumulative total of all outstanding proposed assessments was $598,560. These amounts do not necessarily relate to the citations or orders issued by MSHA during the three months ended September 30, 2011, or to the pending legal actions reported below.
Pending Legal Actions. The Federal Mine Safety and Health Review Commission (the Commission) is an independent adjudicative agency established by the Mine Act that provides administrative trial and appellate review of legal disputes arising under the Mine Act. These cases may involve, among other questions, challenges by operators to citations, orders and penalties they have received from MSHA, or complaints of discrimination by miners under Section 105 of the Mine Act. The following provides additional information of the types of proceedings that may be brought before the Commission:
| |
| • | Contest Proceedings - A contest proceeding may be filed with the Commission by an operator to challenge the issuance of a citation or order issued by MSHA. |
| |
| • | Civil Penalty Proceedings - A civil penalty proceeding may be filed with the Commission by an operator to challenge a civil penalty MSHA has proposed for a violation contained in a citation or order. |
| |
| • | Discrimination Proceedings - A discrimination proceeding involves a miner's allegation that he or she has suffered adverse employment action because he or she engaged in activity protected under the Mine Act, such as making a safety complaint. |
| |
| • | Temporary Reinstatement Proceedings - A temporary reinstatement proceeding involves cases in which a miner has filed a complaint with MSHA stating that he or she has suffered discrimination and the miner has lost his or her position. |
| |
| • | Compensation Proceedings - A compensation proceeding may be filed with the Commission by miners entitled to compensation when a mine is closed by certain closure orders issued by MSHA. The purpose of the |
proceeding is to determine the amount of compensation, if any, due to miners idled by the orders.
At September 30, 2011, we had 68 pending legal actions before the Commission that related to matters instituted during the three months ended September 30, 2011. The following table provides further information of these pending legal actions, all of which were initiated by us, and all of which are contest or civil penalty proceedings. These matters, which were instituted during the three months ended September 30, 2011, do not necessarily relate to the violations, citations, orders or proposed assessments issued by MSHA during the three months ended September 30, 2011, that have been presented in the table included in "Mine Safety Data."
|
| | | | | | |
| | | | | Date | | Mine Act |
Mine ID(1) | | Mine or Operation Name | | Instituted(2) | | Section(3) |
| 200137 | | Freeport-McMoRan Bagdad Inc | | 8/17/2011 | | 104(a) |
| 200137 | | Freeport-McMoRan Bagdad Inc | | 8/17/2011 | | 104(a) |
| 200137 | | Freeport-McMoRan Bagdad Inc | | 8/17/2011 | | 104(a) |
| 200137 | | Freeport-McMoRan Bagdad Inc | | 8/17/2011 | | 104(a) |
| 2900762 | | Freeport-McMoRan Chino Mines Company | | 8/31/2011 | | 104(a) |
| 2900762 | | Freeport-McMoRan Chino Mines Company | | 8/31/2011 | | 104(a) |
| 2900762 | | Freeport-McMoRan Chino Mines Company | | 8/31/2011 | | 104(a) |
| 2900762 | | Freeport-McMoRan Chino Mines Company | | 8/31/2011 | | 104(a) |
| 2900762 | | Freeport-McMoRan Chino Mines Company | | 8/31/2011 | | 104(a) |
| 2900762 | | Freeport-McMoRan Chino Mines Company | | 8/31/2011 | | 104(a) |
| 2900762 | | Freeport-McMoRan Chino Mines Company | | 8/31/2011 | | 104(a) |
| 2900762 | | Freeport-McMoRan Chino Mines Company | | 8/31/2011 | | 104(a) |
| 200112 | | Freeport McMoRan Miami Inc | | 9/23/2011 | | 104(a) |
| 200112 | | Freeport McMoRan Miami Inc | | 9/23/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
|
| | | | | | |
| | | | | Date | | Mine Act |
Mine ID(1) | | Mine or Operation Name | | Instituted(2) | | Section(3) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/4/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/11/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/11/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/11/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/11/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/11/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/11/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/11/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/11/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/11/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/11/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/11/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/11/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/17/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/17/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/17/2011 | | 104(a) |
| 200144 | | Freeport-McMoRan Sierrita Inc | | 8/17/2011 | | 104(a) |
| |
| (1) | MSHA assigns an identification number to each mine or operation and may or may not assign separate identification numbers to related facilities. |
| |
| (2) | Represents the date a docket number was assigned to the proceeding. |
| |
| (3) | Represents the category of violation, order or citation underlying the pending legal action. Refer to “Mine Safety Data” above for further discussion of these references, which describe the categories of violations, orders or citations issued by MSHA under the Mine Act. |
