About Freeport-McMoRan

Freeport-McMoRan Inc. operates as an international mining company. The company operates large, long-lived, geographically diverse assets with significant proven and probable mineral reserves of copper, gold and molybdenum. The company is one of the world’s largest publicly traded copper producers. The company’s portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; and significant mining operations in North America and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru. The company’s underground mining operations at the Grasberg minerals district in Indonesia continue to perform well, with copper and gold production increasing in each of the past three years, including the achievement of multiple operating records during 2023. Furthermore, projects to expand the company’s domestic smelting and refining capacity in Indonesia are progressing, with construction progress for these projects measured at over 90% as of December 31, 2023. The company is also advancing a series of initiatives across its North America and South America operations to incorporate new applications, technologies and data analytics to the company’s leaching processes. In fourth-quarter 2023, the company achieved its initial run rate target of approximately 200 million pounds of copper per year through these initiatives. In North America, the company operates seven copper mines – Morenci, Bagdad, Safford (including Lone Star), Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico, and two molybdenum mines – Henderson and Climax in Colorado. In addition to copper, certain of the company’s North America copper mines also produce molybdenum concentrate, gold and silver. In South America, the company operates two copper mines – Cerro Verde in Peru and El Abra in Chile. In addition to copper, the Cerro Verde mine produces molybdenum concentrate and silver. In Indonesia, PT-FI operates in the Grasberg minerals district. In addition to copper, the Grasberg minerals district also produces gold and silver. Copper production from three of the company’s mines, the Morenci mine in North America, the Cerro Verde mine in Peru and the Grasberg minerals district in Indonesia, together totaled 76% of the company’s consolidated copper production in 2023. The company’s consolidated subsidiaries are Freeport Minerals Corporation (FMC) and PT Freeport Indonesia (PT-FI). Products and Sales Copper Products The company is one of the world’s leading producers of copper concentrate, cathode and continuous cast copper rod. During 2023, 51% of the company’s mined copper was sold in concentrate, 27% as cathode and 22% as rod from the company’s North America operations. The copper ore from the company’s mines is generally processed either by smelting and refining or by solution extraction and electrowinning (SX/EW) as described below. Copper Concentrate: The company produces copper concentrate at six of its mines in which mined ore is crushed and treated to produce a copper concentrate with copper content of approximately 20% to 30%. In North America, copper concentrate is produced at the Morenci, Bagdad, Sierrita and Chino mines, and a significant portion is shipped to the company’s Miami smelter in Arizona for further processing. Copper concentrate is also produced at the Cerro Verde mine in Peru and the Grasberg minerals district in Indonesia. Copper Cathode. The company produces copper cathode at its electrolytic refinery located in El Paso, Texas, and at nine of the company’s mines. SX/EW cathode is produced from the Morenci, Bagdad, Safford, Sierrita, Miami, Chino and Tyrone mines in North America; and from the Cerro Verde and El Abra mines in South America. For ore subject to the SX/EW process, the ore is placed on stockpiles and copper is extracted from the ore by dissolving it with a weak sulfuric acid solution. The copper content of the solution is increased in two additional SX stages, and then the copper-bearing solution undergoes an EW process to produce cathode that is, on average, 99.99% copper. The company’s copper cathode is used as the raw material input for copper rod, brass mill products and for other uses. Copper cathode is also produced at Atlantic Copper (the company’s wholly owned copper smelting and refining unit in Spain) and PT Smelting. Copper concentrate is smelted (i.e., subjected to extreme heat) to produce copper anode, which weighs between 700 and 900 pounds and has an average copper content of 99.5%. The anode is further treated by electrolytic refining to produce copper cathode, which weighs between 100 and 350 pounds and has an average copper content of 99.99%. Continuous Cast Copper Rod. The company manufactures continuous cast copper rod at its facilities in El Paso, Texas and Miami, Arizona, primarily using copper cathode produced at the company’s North America copper mines. Copper Sales North America. The majority of the copper produced at the company’s North America copper mines and refined in its El Paso, Texas refinery is consumed at the company’s rod plants to produce copper rod, which is then sold to wire and cable manufacturers. The remainder of the company’s North America copper production is sold in the form of copper cathode or copper concentrate under the U.S. dollar-denominated annual contracts. During 2023, the company’s North America mines shipped 3% of their copper concentrate sales volumes to Atlantic Copper for smelting and refining, which was sold as copper cathode by Atlantic Copper. South America. Production from the company’s South America mines is sold as copper concentrate or copper cathode under the U.S. dollar-denominated, annual and multi-year contracts. During 2023, the company’s South America mines sold 74% of their copper production in concentrate and 26% as cathode. During 2023, 9% of the company’s South America mines’ copper concentrate sales volumes were shipped to Atlantic Copper for smelting and refining, which was sold as copper cathode by Atlantic Copper. Substantially all of the company’s South America copper concentrate and cathode sales contracts provide final copper pricing in a specified future month (generally one to four months from the shipment date) primarily based on quoted LME monthly average settlement copper prices. Revenues from the company’s South America concentrate sales are recorded net of royalties and treatment charges (i.e., fees paid to smelters that are generally negotiated annually). In addition, because a portion of the metals contained in copper concentrate is unrecoverable from the smelting process, revenues from the company’s South America concentrate sales are also recorded net of allowances for unrecoverable metals, which are a negotiated term of the contracts and vary by customer. Indonesia. PT-FI has historically sold its production in the form of copper concentrate, which contains significant quantities of gold and silver, primarily under the U.S. dollar-denominated, long-term contracts. PT-FI also sells a small amount of copper concentrate in the spot market. Beginning in 2023, PT-FI’s commercial arrangement with PT Smelting changed from a concentrate sales agreement to a tolling arrangement. Under this arrangement, PT-FI pays PT Smelting a tolling fee to smelt and refine its concentrate and PT-FI retains title to all products for sale to third parties (i.e., there are no further sales to PT Smelting). During 2023, PT-FI sold 75% of its copper production in concentrate and 25% as cathode. During 2023, PT-FI shipped 10% of its concentrate sales volumes to Atlantic Copper, which was sold as copper cathode by Atlantic Copper. Gold Products and Sales The company produces gold almost exclusively from its mines in the Grasberg minerals district. The gold the company produces is primarily sold as a component of the company’s copper concentrate or in anode slimes, which are a product of the smelting and refining process. Molybdenum Products and Sales The company is the world’s largest producer of molybdenum and molybdenum-based chemicals. In addition to production from the Henderson and Climax molybdenum mines, the company produces molybdenum concentrate at certain of its North America copper mines and its Cerro Verde copper mine in Peru. The majority of the company’s molybdenum concentrate is processed in its own conversion facilities. Governmental Regulations The company’s U.S. mining operations are also subject to regulations under the Endangered Species Act that are intended to protect species listed by the DOI’s Fish & Wildlife Service (FWS) as endangered or threatened, along with critical habitat designated by FWS for these listed species. The company is reviewing EPA’s guidance to understand possible ramifications to completed or ongoing work overseen by either EPA or state agencies. Cerro Verde is subject to regulation under the Mine Closure Law administered by MINEM. El Abra is subject to regulation under the Mine Closure Law administered by the Chile Mining and Geology Agency. The company is subject to extensive U.S. and international regulation of worker health and safety, including the requirements of the U.S. Occupational Safety and Health Act and similar laws of other jurisdictions. For example, in the U.S., the operation of the company’s mines is subject to regulation by the U.S. Mine Safety and Health Administration (MSHA) under the Federal Mine Safety and Health Act of 1977 (Mine Act). MSHA inspects the company’s mines on a regular basis and issues citations and orders when it believes a violation has occurred under the Mine Act. Mining Operations North America In the U.S., most of the land occupied by the company’s copper and molybdenum mines, concentrators, SX/EW facilities, smelter, refinery, rod mills, molybdenum roasters and processing facilities is owned by the company or is located on unpatented mining claims owned by the company. Certain portions of the company’s Bagdad, Sierrita, Miami, Chino, Tyrone, Henderson and Climax operations are located on government-owned land and are operated under a Mine Plan of Operations or other use permit. The company holds various federal and state permits or leases on government land for purposes incidental to mine operations. Morenci The company owns a 72% undivided interest in Morenci, with the remaining 28% owned by Sumitomo Metal Mining Arizona, Inc. (15%) and SMM Morenci, Inc. (13%). Each partner takes in kind its share of Morenci’s production. Morenci is an open-pit copper mining complex. The Morenci mine is a porphyry copper deposit that has oxide, secondary sulfide and primary sulfide mineralization. The predominant oxide copper mineral is chrysocolla. The Morenci operation consists of two concentrators with a milling design capacity of 132,000 metric tons of ore per day, which produce copper and molybdenum concentrate; a 72,500 metric ton-per-day, crushed-ore leach pad and stacking system; a low-grade run-of-mine (ROM) leaching system; four SX plants; and three EW tank houses that produce copper cathode. Total EW tank house capacity is approximately 900 million pounds of copper per year. Morenci’s available mining fleet consists of one hundred and forty-one 235-metric-ton haul trucks loaded by 13 electric shovels with bucket sizes ranging from 47 to 57 cubic meters. Morenci’s mining fleet is capable of moving an average of 785,000 metric tons of material per day. Morenci’s production, including the company’s joint venture partners’ share, totaled 0.8 billion pounds of copper and 3 million pounds of molybdenum in 2023. Morenci is located in a desert environment with rainfall averaging 13 inches per year. The highest bench elevation is 1,900 meters above sea level and the ultimate pit bottom is expected to have an elevation of 760 meters above sea level. The Morenci operation encompasses approximately 61,700 acres, comprising 51,300 acres of fee lands and 10,400 acres of unpatented mining claims held on public mineral estate and numerous state or federal permits, easements and rights-of-way. The Morenci operation’s electrical power is supplied by the company’s wholly owned subsidiary, The Morenci Water & Electric Company (MW&E). MW&E sources its generation services through the company’s wholly owned subsidiary, Freeport-McMoRan Copper & Gold Energy Services LLC, through capacity rights at the Luna Energy Facility in Deming, New Mexico, and other power purchase agreements. Bagdad The company’s wholly owned Bagdad mine is an open-pit copper and molybdenum mining complex. Bagdad is located in Yavapai County in west-central Arizona, approximately 60 miles west of Prescott and 100 miles northwest of Phoenix. The Bagdad mine is a porphyry copper deposit containing both sulfide and oxide mineralization. The Bagdad operation consists of a concentrator with a milling design capacity of 77,100 metric tons of ore per day that produces copper and molybdenum concentrate, a SX/EW plant that can produce approximately 9 million pounds per year of copper cathode from solution generated by low-grade stockpile leaching, and a pressure-leach plant to process molybdenum concentrate. The available mining fleet consists of thirty-five 235-metric-ton haul trucks loaded by 8 electric shovels with bucket sizes ranging from 30 to 48 cubic meters, which are capable of moving an average of 236,000 metric tons of material per day. Bagdad’s production totaled 146 million pounds of copper and 10 million pounds of molybdenum in 2023. The company has a potential expansion project to more than double the concentrator capacity of the Bagdad operation. In late 2023, the company completed technical and economic studies, which indicated the opportunity to construct new concentrating facilities to expand capacity from 77,000 metric tons of ore per day to between 165,000 to 185,000 metric tons of ore per day. The company is advancing activities for expanded tailings infrastructure projects required under long-range plans in order to advance the potential construction timeline. Bagdad receives electrical power from Arizona Public Service Company. The Bagdad operation has sufficient water sources to support operations. Safford, including Lone Star The company’s wholly owned Safford mine is an open-pit copper mining complex. Safford is located in Graham County, Arizona. The Safford mine includes three copper deposits that have oxide mineralization overlaying primary copper sulfide mineralization. The predominant oxide copper minerals are chrysocolla and copper-bearing iron oxides with the predominant copper sulfide material being chalcopyrite. The only Safford deposit being mined is Lone Star, which began leaching operations in the second half of 2020 and production from oxide ores averaged 265 million pounds of copper per year over the past three years. The company continues to advance plans to increase volumes to achieve 300 million pounds of copper per year from oxide ores, which reflects a continuing expansion of the initial design capacity of 200 million pounds of copper per year. The company is completing metallurgical testing and mine development planning and expects to commence pre-feasibility studies during 2024 for a potential significant expansion. Safford is a mine-for-leach operation that produces copper cathode. The operation consists of three open pits, of which only Lone Star is being mined, feeding a crushing facility with a design capacity of 103,500 metric tons of ore per day. The crushed ore is delivered to a leach pad by a series of overland and portable conveyors. Leach solutions feed a SX/EW facility with a capacity of 305 million pounds of copper per year. A sulfur burner plant is also in operation at Safford, providing a source of sulfuric acid used in SX/EW operations. The available mining fleet consists of fifty-nine 235-metric-ton haul trucks loaded by 7 electric shovels with bucket sizes ranging from 34 to 47 cubic meters, which are capable of moving an average of 408,000 metric tons of material per day. Safford’s copper production totaled 245 million pounds in 2023. The Safford operation encompasses approximately 78,300 acres, comprising 37,700 acres of fee lands and 40,600 acres of unpatented claims held on public mineral estate. The Safford operation’s electrical power is primarily sourced from Tucson Electric Power Company, Arizona Public Service Company and the Luna Energy facility. Sierrita The company’s wholly owned Sierrita mine is an open-pit copper and molybdenum mining complex. Sierrita is located in Pima County, Arizona. The Sierrita mine is a porphyry copper deposit that has oxide, secondary sulfide and primary sulfide mineralization. The Sierrita operation includes a concentrator with a milling design capacity of 100,000 metric tons of ore per day that produces copper and molybdenum concentrate. Sierrita also produces copper from a ROM oxide-leaching system. Cathode copper is plated at the Twin Buttes EW facility, which has a design capacity of approximately 50 million pounds of copper per year. The Sierrita operation also has molybdenum facilities consisting of a leaching circuit, two molybdenum roasters and a packaging facility. The molybdenum facilities process molybdenum concentrate produced by Sierrita, from the company’s other mines and from third-party sources. The available mining fleet consists of twenty-four 235-metric-ton haul trucks loaded by 4 electric shovels with bucket sizes ranging from 34 to 56 cubic meters, which are capable of moving an average of 200,000 metric tons of material per day. Sierrita’s production totaled 185 million pounds of copper and 18 million pounds of molybdenum in 2023. The Sierrita operation, including the adjacent Twin Buttes site, encompasses approximately 47,700 acres, comprising 38,700 acres of fee lands, including split estate lands and 9,000 acres of unpatented mining claims held on public mineral estate. Sierrita receives electrical power through long-term contracts with the Tucson Electric Power Company. Miami The company’s wholly owned Miami mine is an open-pit copper mining complex located in Gila County, Arizona. The Miami mine is a porphyry copper deposit that has leachable oxide and secondary sulfide mineralization. The design capacity of the SX/EW plant is 200 million pounds of copper per year. Miami’s copper production totaled 12 million pounds in 2023. The Miami operation encompasses approximately 14,800 acres, comprising 10,400 acres of fee lands and 4,400 acres of unpatented mining claims held on public mineral estate. Miami receives electrical power through long-term contracts with the Salt River Project and natural gas through long-term contracts with El Paso Natural Gas as the transporter. The Miami operation has sufficient water sources to support operations. Chino and Tyrone Chino. The company’s wholly owned Chino mine is an open-pit copper mining complex. Chino is located in Grant County, New Mexico. The Chino mine is a porphyry copper deposit with adjacent copper skarn deposits. The Chino operation consists of a concentrator with a milling design capacity of 36,000 metric tons of ore per day that produces copper concentrate, and a 150 million pound-per-year SX/EW plant that produces copper cathode from solution generated by ROM leaching. The available mining fleet consists of nineteen 240-metric-ton haul trucks loaded by 3 electric shovels with bucket sizes ranging from 31 to 48 cubic meters, which are capable of moving an average of 180,000 metric tons of material per day. Chino has been operating at approximately 50% of capacity, with copper production totaling 141 million pounds in 2023. The Chino operation encompasses approximately 127,800 acres, comprising 110,000 acres of fee lands and 17,800 acres of unpatented mining claims held on public mineral estate. Chino receives electrical power from the Luna Energy facility and from the open market. The Chino operation has sufficient water sources to support current operations. Tyrone. The company’s wholly owned Tyrone mine is an open-pit copper mining complex. Tyrone is located in Grant County, New Mexico. The Tyrone mine is a porphyry copper deposit. Tyrone’s copper production totaled 51 million pounds in 2023. The Tyrone operation encompasses approximately 80,700 acres, comprising 67,700 acres of fee lands and 13,000 acres of unpatented mining claims held on public mineral estate. Tyrone receives electrical power from the Luna Energy facility and from the open market. The Tyrone operation has sufficient water sources to support operations. Climax and Henderson Climax. The company’s wholly owned Climax mine is an open-pit molybdenum mine that is located 13 miles northeast of Leadville, Colorado. The Climax ore body is a porphyry molybdenum deposit, with molybdenite as the primary sulfide mineral. The Climax mine includes a 25,000 metric tons of ore per day mill facility. Climax has the capacity to produce approximately 30 million pounds of molybdenum per year. The available mining fleet consists of eleven 177-metric-ton haul trucks loaded by 2 hydraulic shovels with bucket sizes of 34 cubic meters, which are capable of moving an average of 90,000 metric tons of material per day. Climax has been operating at approximately 75% of capacity with molybdenum production totaling 17 million pounds in 2023. The Climax mine is located in a mountainous region. The Climax operation encompasses approximately 15,100 acres, comprising 14,300 of privately owned land and 800 acres of federal claims. Climax operations receive electrical power through long-term contracts with Xcel Energy and natural gas supply with United Energy Trading (with Xcel as the transporter). The Climax operation has sufficient water sources to support operations. Henderson. The company’s wholly owned Henderson molybdenum mining complex is located 42 miles west of Denver, Colorado. The Henderson mine is a porphyry molybdenum deposit, with molybdenite as the primary sulfide mineral. The Henderson operation consists of a block-cave underground mining complex feeding a concentrator with a design capacity of approximately 32,000 metric tons per day. Henderson has the capacity to produce approximately 15 million pounds of molybdenum per year. The majority of the molybdenum concentrate produced is shipped to the company’s Fort Madison, Iowa, processing facility. The available underground mining equipment fleet consists of fifteen 9-metric-ton load-haul-dump (LHD) units and seven 73-metric-ton haul trucks, which deliver ore to a gyratory crusher feeding a series of 3 overland conveyors to the mill stockpiles. Henderson’s molybdenum production totaled 13 million pounds in 2023. The Henderson mine and mill operations encompass approximately 17,200 acres, comprising 13,000 acres of fee lands, 4,200 acres of unpatented mining claims held on public mineral estate and a 50-acre easement with the U.S. Forest Service for the surface portion of the conveyor corridor. Henderson operations receive electrical power through long-term contracts with Xcel Energy and natural gas supply with United Energy Trading (with Xcel Energy as the transporter). The Henderson operation has sufficient water sources to support operations. South America At the company’s operations in South America, mine properties and facilities are controlled through mining claims or concessions under the general mining laws of the relevant country. The claims or concessions are owned or controlled by the operating companies in which the company or its subsidiaries have a controlling ownership interest. Cerro Verde The company has a 53.56% ownership interest in Cerro Verde, with the remaining 46.44% held by SMM Cerro Verde Netherlands B.V. (21.0%), Compañia de Minas Buenaventura S.A.A. (19.58%) and other stockholders whose Cerro Verde shares are publicly traded on the Lima Stock Exchange (5.86%). Cerro Verde is an open-pit copper and molybdenum mining complex. Cerro Verde is located 20 miles southwest of Arequipa, Peru. The Cerro Verde mine is a porphyry copper deposit that has oxide, secondary sulfide and primary sulfide mineralization. Cerro Verde’s operation includes 2 concentrating facilities with an annual average permitted milling capacity of 409,500 metric tons of ore per day. In 2023, Cerro Verde’s 2 concentrators were able to achieve a combined average milling rate of 417,400 metric tons of ore per day in 2023. Cerro Verde also operates SX/EW leaching facilities, which have a production capacity of approximately 200 million pounds of copper per year. In 2023, Cerro Verde began to dismantle its crushed leach facility (which had a capacity of 39,000 metric tons of ore per day) as a result of pit expansion but continues to utilize its 100,000-metric-ton-per-day ROM leach system. The available fleet consists of fifty-four 300-metric-ton haul trucks (1 of which is on standby), ninety-three 250-metric-ton haul trucks (10 of which are on standby) and 7 leased 380-metric-ton haul trucks loaded by 13 electric shovels with bucket sizes ranging from 33 to 57 cubic meters. This fleet is capable of moving an average of approximately 1,000,000 metric tons of material per day. Cerro Verde’s production totaled 1.0 billion pounds of copper and 22 million pounds of molybdenum in 2023. Cerro Verde has a mining concession covering approximately 175,000 acres, including 62,000 acres of surface rights and access to 14,600 acres granted through an easement from the Peru National Assets Office, plus 151 acres of owned property, and 1,151 acres of rights-of-way outside the mining concession area leased from both government agencies and private parties. Cerro Verde receives electrical power, including hydro-generated power, under long-term contracts with ElectroPeru and Engie Energia Peru S.A. During 2023, Cerro Verde entered into a new power purchase agreement that is expected to transition its electric power to fully renewable energy sources in 2026. Water for the company’s Cerro Verde processing operations comes from renewable sources through a series of storage reservoirs on the Río Chili watershed that collect water primarily from seasonal precipitation and from wastewater collected from the city of Arequipa and treated at a wastewater treatment plant operated by Cerro Verde. The Cerro Verde operation has sufficient water sources to support current operations, but the company is closely monitoring ongoing El Niño weather patterns. El Abra The company has a 51% ownership interest in El Abra, and the remaining 49% interest is held by the state-owned copper enterprise Corporación Nacional del Cobre de Chile. El Abra is an open-pit copper mining complex. El Abra is located 47 miles north of Calama in Chile’s El Loa province of the northern Chilean region of Antofagasta. The El Abra mine is a porphyry copper deposit that has sulfide and oxide mineralization. The El Abra operation consists of a SX/EW facility with a capacity of 500 million pounds of copper cathode per year from a 125,000-metric-ton-per-day crushed leach circuit and a ROM leaching operation. The available fleet consists of twenty-three 242-metric-ton haul trucks loaded by 4 electric shovels with buckets ranging in size from 29 to 41 cubic meters, which are capable of moving 217,000 metric tons of material per day. El Abra’s copper production totaled 217 million pounds in 2023. The company has identified a large sulfide resource that would support a potential major mill project similar to the large-scale concentrator at Cerro Verde. The company is evaluating water infrastructure alternatives to provide options to extend existing operations and support a future expansion, while continuing to monitor Chile’s regulatory and fiscal matters, as well as trends in capital costs for similar projects. El Abra controls a total of approximately 183,900 acres of mining claims covering the ore deposit, stockpiles, process plant, and water wellfield and pipeline. In addition, El Abra has land surface rights for the road between the processing plant and the mine, the water wellfield, power transmission lines and for the water pipeline from the Salar de Ascotán aquifer. El Abra receives electrical power under a long-term contract with Engie Energia Chile S.A. Water for the company’s El Abra processing operations comes from the continued pumping of groundwater from the Salar de Ascotán aquifer pursuant to regulatory approval. El Abra has sufficient water sources to support operations, although the company is evaluating options for water infrastructure alternatives to provide options to extend existing operations and support a future expansion. Indonesia The company has a 48.76% share ownership in PT-FI and the remaining 51.24% share ownership is collectively held by PT Mineral Industri Indonesia (MIND ID), an Indonesia state-owned enterprise, and PT Indonesia Papua Metal Dan Mineral (formerly known as PT Indocopper Investama), which is expected to be owned by MIND ID and the provincial/regional government in Central Papua, Indonesia. IUPK. Concurrent with closing the 2018 Transaction, the Indonesia government granted PT-FI a special mining license (IUPK) to replace its former Contract of Work, enabling PT-FI to conduct operations in the Grasberg minerals district through 2041. Under the terms of the IUPK, PT-FI has been granted an extension of mining rights through 2031, with rights to extend mining rights through 2041, subject to PT-FI completing the construction of additional domestic smelting and refining capacity in Indonesia and fulfilling its defined fiscal obligations to the Indonesia government. The IUPK, and related documentation, contains legal and fiscal terms and is legally enforceable through 2041. In addition, the company, as a foreign investor, has rights to resolve investment disputes with the Indonesia government through international arbitration. Indonesia Smelting and Refining Capacity. In connection with PT-FI’s 2018 agreement with the Indonesia government to secure the extension of its long-term mining rights, PT-FI agreed to expand its domestic smelting and refining capacity. As of December 31, 2023, progress of the Manyar smelter and precious metals refinery (PMR) (collectively, the Indonesia smelter projects) was measured at over 90%. Grasberg Minerals District. PT-FI operates in the remote highlands of the Sudirman Mountain Range in the province of Central Papua, Indonesia, which is on the western half of the island of New Guinea. The operating area is accessible by coastal portsite facilities on the Arafura Sea and by the Timika airport. In December 2023, PT-FI completed the installation of new milling facilities, which will enable PT-FI to further leverage the success of the underground mines and provide sustained large-scale production volumes. PT-FI is also advancing a mill recovery project with the installation of a new copper cleaner circuit that is expected to be completed in the second half of 2024 to provide incremental production of approximately 60 million pounds of copper and 40 thousand ounces of gold per year. The company’s principal source of power for its Indonesia operations is a coal-fired power plant. Diesel generators supply peaking and backup electrical power generating capacity. In 2023, PT-FI commissioned a dual-fuel power plant to support increased power requirements and diversify its energy sources. PT-FI is advancing plans to transition its existing energy source from coal to liquefied natural gas, which is expected to meaningfully reduce PT-FI’s Scope 1 GHG emissions at the Grasberg minerals district. The project includes investments in a new gas-fired combined cycle facility. A combination of naturally occurring mountain streams and water derived from the company’s underground operations provides water for its operations. The company’s Indonesia operations are in an active seismic zone and experience average annual rainfall of approximately 200 inches. Grasberg Block Cave Underground Mine The Grasberg Block Cave ore body is the same ore body historically mined from the surface in the Grasberg open pit. Undercutting, drawbell construction and ore extraction activities in the Grasberg Block Cave underground mine continue to track expectations. As of December 31, 2023, the Grasberg Block Cave underground mine had 425 open drawbells. Ore milled from the Grasberg Block Cave underground mine averaged 117,300 metric tons per day in 2023. The Grasberg Block Cave fleet consists of approximately 870 pieces of mobile equipment. The primary mining equipment directly associated with production and development includes an available fleet of 98 LHD units and 22 haul trucks. Each production LHD unit typically carries approximately 11 metric tons of ore and transfers ore into the rail haulage system. The Grasberg Block Cave has a rail haulage system operating with 13 locomotives and 143 ore wagons that haul the ore to 3 gyratory crushers located underground via an automated rail system. Each ore wagon typically carries 35 metric tons. The crushed ore is conveyed to surface stockpiles for processing. DMLZ Underground Mine The DMLZ ore body lies below the Deep Ore Zone (DOZ) underground mine at the 2,590-meter elevation and represents the downward continuation of mineralization in the Ertsberg East Skarn system and neighboring Ertsberg porphyry. Hydraulic fracturing operations have been effective in managing rock stresses and pre-conditioning the cave following mining-induced seismic activity experienced from time to time. As of December 31, 2023, the DMLZ underground mine had 132 open drawbells. Ore milled from the DMLZ underground mine averaged 75,900 metric tons per day in 2023. The DMLZ fleet consists of 425 pieces of mobile equipment, which includes 60 LHD units and 33 haul trucks used in production and development activities. Each production LHD unit typically carries approximately 9 metric tons of ore and transfers ore into the truck haulage system. The haul trucks have a capacity of 55 to 60 metric tons and load ore from chutes fed by the LHDs and transfer it to one of two gyratory crushers. The crushed ore is conveyed to surface stockpiles for processing. Big Gossan Underground Mine The Big Gossan ore body lies underground and adjacent to the current mill site. Ore milled from the Big Gossan underground mine averaged 7,900 metric tons per day in 2023. The Big Gossan fleet consists of 79 pieces of mobile equipment, which include 10 LHD units and 8 haul trucks used in development and production activities. Kucing Liar Underground Mine Long-term mine development activities are ongoing for PT-FI’s Kucing Liar deposit in the Grasberg minerals district, which is expected to produce over 7 billion pounds of copper and 6 million ounces of gold between 2029 and the end of 2041. An extension of PT-FI’s operating rights beyond 2041 would extend the life of the project. Pre-production development activities commenced in 2022 and are expected to continue over an approximate 10-year timeframe. Capital investments are estimated to average approximately $400 million per year over this period. At full operating rates of approximately 90,000 metric tons of ore per day, annual production from Kucing Liar is expected to approximate 560 million pounds of copper and 520 thousand ounces of gold, providing PT-FI with sustained long-term and large-scale production. Kucing Liar will benefit from substantial shared infrastructure and PT-FI’s experience and long-term success in block-cave mining. DOZ Underground Mine PT-FI began production from the DOZ ore body in 1989 and the ore body was depleted at the end of 2021. Grasberg Open Pit PT-FI began open-pit mining of the Grasberg ore body in 1990 and the final phase was mined during 2019. In aggregate, the Grasberg open pit produced over 27 billion pounds of copper and 46 million ounces of gold in the 30-year period from 1990 through 2019. Description of Indonesia Ore Bodies. The company’s Indonesia ore bodies are located within and around two main igneous intrusions, the Grasberg monzodiorite and the Ertsberg diorite. The host rocks of these ore bodies include both carbonate and clastic rocks that form the ridge crests and upper flanks of the Sudirman Range, and the igneous rocks of monzonitic to dioritic composition that intrude them. The igneous-hosted ore bodies (the Grasberg Block Cave and portions of the DMLZ) occur as vein stockworks and disseminations of copper sulfides, dominated by chalcopyrite and, to a lesser extent, bornite. The sedimentary-rock hosted ore bodies (portions of the DMLZ and Kucing Liar and all of the Big Gossan) occur as ‘magnetite-rich, calcium/magnesian skarn’ replacements, whose location and orientation are strongly influenced by major faults and by the chemistry of the carbonate rocks along the margins of the intrusions. Smelting Facilities and Other Mining Properties Manyar Smelter and Precious Metal Refinery. PT-FI is actively engaged in the construction of the Manyar smelter in Gresik, Indonesia. Construction progress of the Manyar smelter (with a capacity to process approximately 1.7 million metric tons of copper concentrate per year) is advancing on schedule with a target of May 2024 for mechanical completion, which will be followed by a ramp-up period through December 2024. The PMR is being constructed to process gold and silver from the Manyar smelter and PT Smelting. Construction is in progress with commissioning expected during 2024. Atlantic Copper. The company’s wholly owned Atlantic Copper smelter and refinery is located on land concessions from the Huelva, Spain, port authorities, which are scheduled to expire in 2038. The design capacity of the smelter is approximately 300,000 metric tons of copper per year, and the refinery has a capacity of 286,000 metric tons of copper per year. Atlantic Copper’s anode production from its smelter totaled 261,900 metric tons of copper in 2023. Copper cathode production from its refinery totaled 260,300 metric tons of copper in 2023. During 2023, Atlantic Copper purchased 40% of its concentrate from the company’s copper mining operations (20% from PT-FI, 17% from South America mining and 3% from the North America copper mines) and 60% from third parties. Atlantic Copper completed a 78-day major maintenance turnaround in 2022. Atlantic Copper’s major maintenance turnarounds typically occur approximately every eight years, with shorter-term maintenance turnarounds in the interim. Atlantic Copper is developing an e-material recycling project as a result of the significant and continued growth in electronic waste material. Atlantic Copper’s existing smelting and refining facilities provide synergies to recycle this type of material, and the project, which is expected to commence operations in 2025, would include an addition of a smelting furnace and associated equipment to recover copper, gold, silver, palladium, tin, nickel and platinum from electronic materials. PT Smelting. PT Smelting, an Indonesia company, owns a copper smelter and refinery in Gresik, Indonesia. On April 30, 2021, PT-FI acquired an additional 14.5% of the outstanding common stock of PT Smelting, increasing its ownership interest to 39.5%. Mitsubishi Materials Corporation (MMC) owns the remaining 60.5% and serves as the operator of PT Smelting. In November 2021, PT-FI completed agreements with MMC to implement the expansion of PT Smelting’s capacity by 30% to 1.3 million metric tons of copper concentrate per year. Beginning in 2023, PT-FI’s commercial arrangement with PT Smelting changed from a copper concentrate sales agreement to a tolling arrangement. Under the arrangement, PT-FI pays PT Smelting a tolling fee (which PT-FI records as production costs in the consolidated statements of income) to smelt and refine its copper concentrate and PT-FI retains title to all products for sale to unaffiliated third parties (i.e., there are no further sales to PT Smelting). PT Smelting’s anode production from its smelter totaled 251,300 metric tons of copper in 2023. Copper cathode production from its refinery totaled 212,000 metric tons of copper in 2023. PT Smelting’s major scheduled maintenance turnarounds (which approximate 30 days to complete) are expected to occur every two years, with short-term maintenance turnarounds in the interim. PT Smelting completed an 18-day maintenance turnaround during October 2022, a 72-day shutdown in July 2023 associated with its expansion project and a 7-day shutdown in November 2023 to complete final tie-in of the expansion project. The next maintenance turnaround is scheduled for mid-year 2025. Miami Smelter. The company owns and operates a smelter at its Miami mining operation in Arizona. The Miami smelter processes copper concentrate primarily from the company’s North America copper mines. Concentrate processed through the smelter totaled 810,900 metric tons in 2023 and copper anode production from the smelter totaled 222,000 metric tons in 2023. In addition, because sulfuric acid is a by-product of smelting concentrate, the Miami smelter is also the most significant source of sulfuric acid for the company’s North America leaching operations. Major maintenance turnarounds are anticipated to occur approximately every three years for the Miami smelter. The company performed a major maintenance turnaround during 2021. The next major maintenance turnaround is scheduled for mid-year 2025. Rod & Refining Operations. The company’s Rod & Refining operations consist of conversion facilities located in North America, including a refinery in El Paso, Texas, and rod mills in El Paso, Texas and Miami, Arizona. The company refines its copper anode production from its Miami smelter at the company’s El Paso refinery. The El Paso refinery has the potential to operate at an annual production capacity of approximately 410,000 metric tons of copper cathode, which is sufficient to refine all of the copper anode The company produces at its Miami smelter. Copper cathode production from the El Paso refinery totaled 217,800 metric tons in 2023. The company’s El Paso refinery also produces nickel carbonate, copper telluride and autoclaved slimes material containing gold, silver, platinum and palladium. Molybdenum Conversion Facilities. The company processes molybdenum concentrate at its conversion plants in the U.S. and Europe into such products as technical-grade molybdic oxide, ferromolybdenum, pure molybdic oxide, ammonium molybdates and molybdenum disulfide. The company operates molybdenum roasters in Sierrita, Arizona; Fort Madison, Iowa; and Rotterdam, the Netherlands; and the company operates a molybdenum pressure-leach plant in Bagdad, Arizona. The company also produces ferromolybdenum for customers worldwide at its conversion plant located in Stowmarket, the United Kingdom. Other North America Copper Mines. The company has five non-operating copper mines – Ajo, Bisbee, Tohono, Twin Buttes and Christmas, which are located in Arizona – that have been on care and maintenance status for several years and would require new or updated environmental studies, new permits, and additional capital investment, which could be significant, to return them to operating status. Mining Development Projects and Exploration Activities The company has several projects and potential opportunities to expand production volumes, extend mine lives and develop large-scale underground ore bodies. History The company was founded in 1987. It was incorporated under the laws of the state of Delaware in 1987. The company was formerly known as Freeport-McMoRan Copper & Gold Inc. and changed its name to Freeport-McMoRan Inc. in 2014.