--- ticker: FCX company: Freeport-McMoRan Inc. filing_type: 10-K year_current: 2024 year_prior: 2023 risks_added: 2 risks_removed: 10 risks_modified: 44 risks_unchanged: 29 source: SEC EDGAR url: https://riskdiff.com/fcx/2024-vs-2023/ markdown_url: https://riskdiff.com/fcx/2024-vs-2023/index.md generated: 2026-06-01 --- # Freeport-McMoRan Inc.: 10-K Risk Factor Changes 2024 vs 2023 > Source: U.S. Securities and Exchange Commission (EDGAR) > Generated: 2026-06-01 > All data extracted directly from official filings. No hallucinated content. ## Summary | Status | Count | |--------|-------| | New risks added | 2 | | Risks removed | 10 | | Risks modified | 44 | | Unchanged | 29 | --- ## New in Current Filing: Total FCX - Net equity intereste Note: Amounts may not equal the sum of proven and probable mineral reserves as presented on the previous page because of rounding. In addition, totals may not foot because of rounding. a.Recoveries are net of estimated mill and smelter losses. b.Amounts not shown because of rounding. c.PT-FI has commenced long-term mine development activities for the Kucing Liar deposit. See "Mining Operations - Indonesia" for discussion of Kucing Liar capital investments. d.Consolidated reserves represent estimated quantities after reduction for Morenci's joint venture partner interests (refer to Note 3 for further discussion). e.Net equity interest represents estimated consolidated quantities further reduced for noncontrolling interest ownership (refer to Note 3 for further discussion of our ownership in subsidiaries). 37 37 37 37 37 37 Table of Contents Table of Contents Table of Contents Estimated Recoverable Proven and Probable Mineral Reservesat December 31, 2023 (continued) Recoverable Mineral Reserves CopperGoldMolySilver FCX'sProcessingbillionmillionbillionmillion InterestMethodlbs.ozs.lbs.ozs.North America Morenci72%Mill7.2 - 0.23 - Crushed leach2.9 - - - ROM leach2.2 - - - Bagdad100%Mill15.8 0.2 0.89 55.5 ROM leach0.1 - - - Safford, including Lone Star100%Crushed leach6.5 - - - Sierrita100%Mill9.8 0.1 0.99 41.0 Chino, including Cobre100%Mill2.3 0.3 - 6.0 ROM leach0.2 - - - Tyrone100%ROM leach0.2 - - - Henderson100%Mill - - 0.15 - Climax100%Mill - - 0.43 - 47.1 0.6 2.69 102.5 Recoverable metal in stockpilesa 1.2 - b0.03 0.1 100% operations 48.3 0.6 2.72 102.6 Consolidated 44.7 0.6 2.66 102.6 Net equity interest 44.7 0.6 2.66 102.6 South America Cerro Verde53.56%Mill26.3 - 0.67 106.2 ROM leach0.2 - - - El Abra51%Crushed leach3.0 - - - ROM leach0.2 - - - 29.7 - 0.67 106.2 Recoverable metal in stockpilesa 0.7 - 0.01 0.9 100% operations 30.5 - 0.68 107.1 Consolidated 30.5 - 0.68 107.1 Net equity interest 16.2 - 0.36 57.4 Indonesia Grasberg Block Cave48.76%Mill14.7 11.3 - 48.5 DMLZ48.76%Mill4.9 5.3 - 26.0 Big Gossan48.76%Mill2.2 1.0 - 13.7 Kucing Liarc48.76%Mill7.1 6.3 - 31.4 100% operations 29.0 23.9 - 119.5 Consolidated 29.0 23.9 - 119.5 Net equity interest 14.1 11.6 - 58.3 Total FCX - 100% basis 107.7 24.5 3.40 329.2 Total FCX - Consolidated basisd 104.1 24.5 3.34 329.2 Total FCX - Net equity intereste 75.1 12.2 3.02 218.2 Recoverable metal in stockpilesa b Recoverable metal in stockpilesa Kucing Liarc --- ## New in Current Filing: Total FCX - Net equity interestd Note: Totals may not foot because of rounding. a.Amounts not shown because of rounding. b.PT-FI has commenced long-term mine development activities for the Kucing Liar deposit. See "Mining Operations - Indonesia" for discussion of Kucing Liar capital investments. c.Consolidated reserves represent estimated quantities after reduction for Morenci's joint venture partner interests (refer to Note 3 for further discussion). d.Net equity interest represents estimated consolidated quantities further reduced for noncontrolling interest ownership (refer to Note 3 for further discussion of our ownership in subsidiaries). The reserve table above and the tables on the following pages utilize the abbreviations described below: •g/t - grams per metric ton •Moly - Molybdenum 36 36 36 36 36 36 Table of Contents Table of Contents Table of Contents Estimated Recoverable Proven and Probable Mineral Reservesat December 31, 2023 (continued)Proven and Probable Million Metric TonsAverage Ore GradeRecoveriesa FCX'sProcessingFCX's100%CopperGold MolySilverCopperGoldMolySilver InterestMethodInterestBasis%g/t %g/t%%%%North America Morenci72%Mill922 1,280 0.31 - 0.02 - 82.3 - 43.7 - Crushed leach323 448 0.36 - - - 81.9 - - - ROM leach1,506 2,091 0.13 - - - 37.3 - - - Bagdad100%Mill2,453 2,453 0.35 - b0.02 1.43 84.2 59.1 77.0 49.3 ROM leach20 20 0.27 - - - 43.2 - - - Safford, including Lone Star100%Crushed leach1,038 1,038 0.40 - - - 70.6 - - - Sierrita100%Mill2,398 2,398 0.23 - b0.02 1.08 81.1 59.1 77.7 49.3 Chino, including Cobre100%Mill260 260 0.51 0.05 - 0.92 79.0 77.9 - 78.5 ROM leach86 86 0.24 - - - 34.9 - - - Tyrone100%ROM leach90 90 0.17 - - - 57.7 - - - Henderson100%Mill48 48 - - 0.16 - - - 87.7 - Climax100%Mill149 149 - - 0.15 - - - 88.8 - 9,292 10,362 South America Cerro Verde53.56%Mill2,141 3,998 0.35 - 0.01 1.84 86.0 - 54.4 44.9 ROM leach48 89 0.24 - - - 50.1 - - - El Abra51%Crushed leach282 553 0.48 - - - 52.0 - - - ROM leach55 107 0.24 - - - 31.2 - - - 2,526 4,747 Indonesia Grasberg Block Cave48.76%Mill379 777 1.02 0.68 - 3.26 84.1 66.7 - 59.6 DMLZ48.76%Mill163 333 0.80 0.63 - 3.80 83.9 78.5 - 63.7 Big Gossan48.76%Mill24 49 2.26 0.93 - 13.80 90.6 68.0 - 63.5 Kucing Liarc48.76%Mill188 385 1.05 0.92 - 5.55 79.3 55.2 - 45.6 753 1,544 Total FCX - 100% Basis 16,653 Total FCX - Consolidated basisd15,584 Total FCX - Net equity intereste12,571 --- ## No Match in Current: Gold Products and Sales *This section from the 2023 filing does not have a high-confidence textual match in 2024. It may have been removed, merged, or substantially reworded.* We produce gold almost exclusively from our mines in the Grasberg minerals district. The gold we produce is primarily sold as a component of our copper concentrate or in slimes, which are a product of the smelting and refining process. Gold generally is priced at the average London price for a specified month near the month of shipment. Revenues from gold sold as a component of our copper concentrate are recorded net of treatment charges, royalties, export duties and allowances for unrecoverable metals. Revenues from gold sold in slimes are recorded net of refining charges. 5 5 5 5 5 5 Table of Contents Table of Contents Table of Contents --- ## No Match in Current: Molybdenum Products and Sales *This section from the 2023 filing does not have a high-confidence textual match in 2024. It may have been removed, merged, or substantially reworded.* According to Wood Mackenzie, we are the world's largest producer of molybdenum and molybdenum-based chemicals. In addition to production from the Henderson and Climax molybdenum mines, we produce molybdenum concentrate at certain of the North America copper mines and the Cerro Verde copper mine in Peru. The majority of our molybdenum concentrate is processed in our own conversion facilities. Our molybdenum sales are primarily priced based on the average published Platts Metals Daily price for the month prior to the month of shipment. --- ## No Match in Current: GOVERNMENTAL REGULATIONS *This section from the 2023 filing does not have a high-confidence textual match in 2024. It may have been removed, merged, or substantially reworded.* Our operations are subject to a broad range of laws and regulations imposed by governments and regulatory bodies, both in the U.S. and internationally. These regulations touch all aspects of our operations, including how we extract, process and explore for minerals and how we conduct our business, including regulations governing matters such as mining rights, environmental and reclamation matters, climate change, occupational health and safety and human rights. --- ## No Match in Current: Mining Rights *This section from the 2023 filing does not have a high-confidence textual match in 2024. It may have been removed, merged, or substantially reworded.* We conduct our mining and exploration activities pursuant to concessions granted by, or under contracts with, the host government in the countries where we operate. These countries include, among others, the U.S., Peru, Chile and Indonesia. Mining rights include our license to operate and involve our payment of applicable taxes and royalties to the host governments. The concessions and contracts are subject to the political risks associated with the host countries. For information about mining rights, governmental agreements, licenses to operate, and tax regulations and matters refer to "Mining Operations" below, Item 1A. "Risk Factors" and Notes 3, 11, 12 and 13. --- ## No Match in Current: Environmental and Reclamation Matters *This section from the 2023 filing does not have a high-confidence textual match in 2024. It may have been removed, merged, or substantially reworded.* Our operations are subject to extensive and complex laws and regulations, including environmental laws and regulations governing the generation, storage, treatment, transportation and disposal of hazardous substances; solid waste disposal; air emissions; wastewater discharges; remediation, restoration and reclamation of environmental contamination, including mine closures and reclamation; protection of endangered and threatened species and designation of critical habitats; and other related matters. In addition, we must obtain regulatory permits and approvals to start, continue and expand operations. As a mining company, compliance with environmental, health and safety laws and regulations is an integral and costly part of our business. We conduct our operations in a manner that aims to protect public health and the environment, and we believe our operations are in compliance with applicable laws and regulations in all material respects. At December 31, 2022, we had $1.7 billion recorded in our consolidated balance sheet for environmental obligations and $3.0 billion recorded for asset reclamation obligations. We incurred environmental capital expenditures and other environmental costs (including our joint venture partners' shares) to comply with applicable environmental laws and regulations that affect our operations totaling $0.4 billion in 2022 and $0.3 billion in both 2021 and 2020. For 2023, we expect to incur approximately $0.6 billion of aggregate environmental capital expenditures and other environmental costs. The timing and amounts of estimated payments could change as a result of changes in regulatory requirements, changes in scope and costs of reclamation activities, the settlement of environmental matters and the rate at which actual spending occurs on continuing matters. United States. Laws such as the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (CERCLA) and similar state laws may expose us to joint and several liability for environmental damages caused by our operations, or by previous owners or operators of properties we acquired or are currently operating or at sites where we previously sent materials for processing, recycling or disposal. We have substantial obligations for environmental remediation on mining properties previously owned or operated by FMC and certain of its affiliates. We are required by U.S. federal and state laws and regulations to provide financial assurance sufficient to allow a third party to implement approved closure and reclamation plans for our mining properties if we are unable to do so. Most of our financial assurance obligations are imposed by state laws that vary significantly by jurisdiction, depending on how each state regulates land use and groundwater quality. The U.S. Environmental Protection Agency (EPA) and state agencies may also require financial assurance for investigation and remediation actions that are required under settlements of enforcement actions under CERCLA or similar state laws. Regulations have been considered at various governmental levels to increase financial responsibility requirements both for mine closure and reclamation. In 2019, legislation was enacted in Colorado that eliminates our ability to use 6 6 6 6 6 6 Table of Contents Table of Contents Table of Contents parent company guarantees and requires proof of an end date for water treatment as a condition of permit issuance authorizing mining operations, with some exceptions for existing operations. In 2018, EPA concluded a rulemaking that considered the need for financial responsibility for hardrock mining operations under CERCLA by publishing its determination that it did not intend to require financial responsibility for the hardrock mining industry sector. In 2019, the District of Columbia Circuit upheld the EPA's decision. In connection with the presidential executive order issued on January 20, 2021, EPA will review this final action, though the timing of its review is unknown. During 2022, in connection with a presidential executive order issued on February 24, 2021, the Federal government established an Interagency Working Group (IWG) led by the Department of Interior (DOI) with expertise in mine permitting and environmental law "to identify gaps in statutes and regulations that may need to be updated to ensure new production meets strong environmental standards throughout the lifecycle of the project." During 2022, the IWG received more than 31,600 comments in response to multiple questions in a request for information regarding possible changes to legislation, regulation and policies that affect the mining sector. Financial assurance as well as environmental requirements governing hardrock mining continue to be key topics in comments to DOI. Our 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 regulations may affect the ability of landowners, including us, to obtain federal permits or authorizations needed for expansion of our operations, and may also affect our ability to obtain, retain or deliver water to some operations. New or revised environmental regulatory requirements are frequently proposed, many of which result in substantially increased costs for our business, including those regarding financial assurance discussed above and in Item 1A. "Risk Factors." For example, our Miami, Arizona, smelter processes a significant portion of the copper concentrate produced by our North America copper mines. In 2022, EPA proposed to revise the standards for hazardous air pollutants from primary copper smelters and is now in the process of considering comments and collecting additional data. EPA may issue a new proposal after considering these comments and data, and any proposal could impose additional requirements on our operations. We may be required to modify our systems or install additional equipment to address findings, new requirements or for other reasons, which could result in significant costs, including increased capital expenditures and operating costs, and could adversely impact our business. EPA and state agencies continue to consider regulations for man-made organic compounds that could be present in soil, groundwater and surface water at our existing and former operations. These regulations may include drinking water standards, hazardous waste requirements, and hazardous substance designations for Perfluorooctanesulfonic and Perfluorooctanoic acids. EPA is also considering how to reduce lead exposure in the environment under multiple environmental programs. Certain federal and state health agencies also support more stringent lead cleanup levels. EPA expects to make substantial progress on these proposals in 2023, and changes to EPA's lead cleanup levels could result in material increases to our environmental reserves for ongoing residential property cleanup projects near former smelter sites. On January 18, 2023, the final revised definition of the "waters of the United States" issued by EPA and U.S. Army Corps of Engineers was published. The final rule emphasizes a case-by-case approach to "waters of the United States" for tributaries and may impose significant additional restrictions on land uses in remote and arid areas. Although court decisions can affect the scope of the final rule and legal challenges have already been filed, we will likely need federal authorization under the Clean Water Act to expand some of our operations. For information about environmental laws and regulations, litigation and related costs, and reclamation matters related to our North America operations, refer to "Mining Operations" below, Item 1A. "Risk Factors," Item 3 "Legal Proceedings" and Notes 1 and 12. South America. Peru. In 2005, Peru enacted the General Environmental Law (Law No. 28611), which establishes the main environmental guidelines and principles applicable in Peru. Pursuant to the General Environmental Law, Ministry of Energy and Mines (MINEM) issued national environmental regulations, which have gradually replaced prior guidelines governing governmental agencies environmental competencies. The Environmental Evaluation and Oversight Agency has the authority to inspect mining operations and fine companies that fail to comply with prescribed environmental regulations and their approved environmental assessments. 7 7 7 7 7 7 Table of Contents Table of Contents Table of Contents Cerro Verde is subject to regulation under the Mine Closure Law administered by MINEM. Under the closure regulations, mines must submit a closure plan that includes the reclamation methods, closure cost estimates, methods of control and verification, closure and post-closure plans, and financial assurance. In compliance with the requirement for five-year updates, Cerro Verde is preparing to submit its updated closure plan and cost estimate in February 2023. The Cerro Verde mine has developed and continues to implement detailed, comprehensive mine waste and tailings management programs to meet the applicable Peru waste regulations and our environmental management practices. These programs incorporate commitments included in the Environmental and Social Impact Studies and the Engineer of Record designs, for the specific cases of tailings storage facilities and certain leach pad stockpiles. The site also follows our Tailings Management Policy, which outlines our continued commitment to managing tailings responsibly and addresses the implementation of the Global Industry Standard on Tailings Management for the tailings storage facilities. For information about environmental laws and regulations and reclamation matters related to our Peru operations refer to "Mining Operations" below, Item 1A. "Risk Factors" and Note 12. Chile. El Abra is subject to regulation under the Mine Closure Law administered by the Chile Mining and Geology Agency. In compliance with the requirement for five-year updates, in November 2018, El Abra submitted an updated plan with closure cost estimates based on the existing approved closure plan. Approval of the updated closure plan and cost estimates was received in August 2020, and did not result in a material increase to closure costs. For information about environmental laws and regulations and reclamation matters related to our Chile operations refer to refer to Item 1A. "Risk Factors" and Note 12. Indonesia. PT-FI holds multiple permits from national, provincial, and regency regulatory agencies, including groundwater use permits, effluent and air discharge permits, solid and hazardous waste storage and management permits and protection of forest borrow-to-use permits. Where permits have specific terms, renewal applications are made to the relevant regulatory authority as required, prior to the end of the permit term. In December 2018, Indonesia's Ministry of Environment and Forestry (MOEF) issued a revised environmental permit to PT-FI to address certain operational activities that it alleged were inconsistent with earlier studies. PT-FI and the MOEF also established a new framework known as the Tailings Management Roadmap for continuous improvement in environmental practices at PT-FI's operations, including initiatives that will examine options to potentially increase tailings retention and to evaluate large scale beneficial uses of tailings within Indonesia. The third-party expert nominated by MOEF to perform the framework evaluation submitted its report to the MOEF in June 2021. In 2022, PT-FI continued to work with MOEF on the Tailings Management Roadmap objectives. This included further reduction of non-tailings sediment entering the tailings management area, construction of permeable groins in the estuary portion of the tailings management area to increase sedimentation and reduce erosion, as well as continue pursuing beneficial uses of tailings in infrastructure and other projects. Permitting continues to progress for certain facilities related to the expansion of underground mining production operations as well as for additional protection structures necessary to continue to contain the tailings within the approved lowlands tailings management areas. In 2020, PT-FI initiated a new environmental impact analysis (called an Analisis Mengenai Dampak Lingkungan or AMDAL) in preparation for the proposed activities associated with the transition from Grasberg surface to underground operations. PT-FI continues to work with the MOEF to complete the approval requirements of the AMDAL, which is currently estimated to be received in 2023. PT-FI has completed the initial regulatory review of technical approvals associated with the current AMDAL filing and is now undergoing AMDAL Commission review and public consultations. A detailed mine closure plan and 5-year reclamation plan have been approved by Indonesia regulators as required by Indonesia law. The plans are reviewed annually and revised every five years. Required reclamation bonds are in place. In the future, additional approval will be required for the diversion of the Aghawagon/Otomona River out of the tailings management area at the end of mine life. In 2019, PT-FI completed and received approval on an updated mine closure plan to reflect Grasberg minerals district production operations until 2041. PT-FI has complied with the annual renewal of the financial guarantees corresponding to the closure plan. For information about environmental laws and regulations and reclamation matters related to our Indonesia operations, refer to "Mining Operations" below, Item 1A. "Risk Factors" and Notes 12 and 13. 8 8 8 8 8 8 Table of Contents Table of Contents Table of Contents --- ## No Match in Current: Climate Change *This section from the 2023 filing does not have a high-confidence textual match in 2024. It may have been removed, merged, or substantially reworded.* In many of the jurisdictions in which we operate, governmental bodies are increasingly enacting legislation and regulations in response to the potential impacts of climate change. For example, as a result of the 2015 Paris Agreement, a number of governments, including the U.S., have pledged "Nationally Determined Contributions" to control and reduce greenhouse gas emissions (GHG). Additionally, the pledges made as part of the 2021 Glasgow Climate Pact could result in further policy changes in many of the jurisdictions in which we operate. Further, several states in the U.S., including Colorado and New Mexico, have advanced goals reducing or eliminating fossil fuel-based energy production. Carbon tax legislation also has been adopted in jurisdictions where we operate, including Indonesia, and we expect that such carbon taxes and other carbon pricing mechanisms will increase over time. Further, in March 2021, the SEC proposed new climate-related disclosure rules, which if finalized as expected in 2023, would require new climate-related disclosures in SEC filings and audited financial statements, including certain climate-related metrics and GHG emissions data, information about climate-related targets and goals, transition plans, if any, and attestation requirements. While it is not yet possible to reasonably estimate the nature, extent, timing and cost or other impacts of any future carbon pricing mechanisms, other climate change regulatory programs or future legislative action that may be enacted, we anticipate that we will dedicate more resources and money to comply and remediate in response to legislative or regulatory changes. For information about the potential impacts of climate change and related regulations, refer to Item 1A. "Risk Factors." --- ## No Match in Current: Operating Dataa *This section from the 2023 filing does not have a high-confidence textual match in 2024. It may have been removed, merged, or substantially reworded.* a.Prior to December 21, 2018, PT-FI had an unincorporated joint venture with Rio Tinto; 2018 operating data is net of Rio Tinto's joint venture interest. --- ## No Match in Current: Total FCX - Net equity interestb,e *This section from the 2023 filing does not have a high-confidence textual match in 2024. It may have been removed, merged, or substantially reworded.* a a a a 48.76%b 48.76%b 48.76%b Kucing Liarc 48.76%b --- ## No Match in Current: Total FCX - Net equity interestf *This section from the 2023 filing does not have a high-confidence textual match in 2024. It may have been removed, merged, or substantially reworded.* Recoverable metal in stockpilesb a Recoverable metal in stockpilesb 48.76%c 48.76%c 48.76%c Kucing Liard 48.76%c --- ## No Match in Current: Total FCX - Net equity interestd *This section from the 2023 filing does not have a high-confidence textual match in 2024. It may have been removed, merged, or substantially reworded.* Note: Totals may not foot because of rounding. a.Our net equity interest in all North America copper mines is 100% except for Morenci, which is 72%. b.Rounds to less than 0.1 billion pounds of recoverable copper. c.Consolidated stockpiles represent estimated metal quantities after reduction for Morenci's joint venture partner interests (refer to Note 3 for further discussion). d.Net equity interest represents estimated consolidated metal quantities further reduced for noncontrolling interest ownership (refer to Note 3 for further discussion of our ownership in subsidiaries). 43 43 43 43 43 43 --- ## Modified: Unanticipated litigation or negative developments in pending litigation or other contingencies could have a material adverse effect on our financial condition. **Key changes:** - Reworded sentence: "We are, and may in the future become, involved in various legal proceedings and subject to other contingencies that have arisen or may arise in the ordinary course of our business or are associated with environmental matters, including those described in Note 12, Items 1." - Reworded sentence: "In addition, we may be held responsible for the costs of addressing contamination at the site of current or former activities or at third-party sites, or be held liable to third parties for exposure to hazardous substances should those be identified in the future." - Reworded sentence: "51 51 51 51 51 51 Table of Contents Table of Contents Table of Contents Regardless of the merit of particular claims, defending against litigation or responding to investigations can be expensive, time-consuming, disruptive to our operations and distracting to management." - Reworded sentence: "Further, we are a global business with operations in various jurisdictions." - Reworded sentence: "Our inability to enforce our rights and the enforcement of rights on a prejudicial basis by foreign courts or arbitral panels, including against a sovereign nation, could have an adverse effect on our results of operations and financial position." **Prior (2023):** We are, and may in the future become, involved in various legal proceedings and subject to other contingencies that have arisen or may arise in the ordinary course of our business or are associated with environmental matters, including those described in Note 12 and in Item 3. "Legal Proceedings". We are also involved periodically in other reviews, inquiries, investigations and other proceedings initiated by or involving government agencies, some of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. From time to time we are involved in disputes over the allocation of environmental remediation obligations at "Superfund" and other sites. In addition, we may be held responsible for the costs of addressing contamination at the site of current or former activities or at third party sites, or be held liable to third parties for exposure to hazardous substances should those be identified in the future. The outcome of litigation is inherently uncertain and adverse developments or outcomes can result in significant monetary damages, penalties, other sanctions or injunctive relief against us, limitations on our property rights, or regulatory interpretations that increase our operating costs. Management does not believe, based on currently available information, that the outcome of any individual legal proceeding will have a material adverse effect on our financial condition, although individual or cumulative outcomes could be material to our operating results for a particular period, depending on the nature and magnitude of the outcome and the operating results for the period. Regardless of the merit of particular claims, defending against litigation or responding to investigations can be expensive, time-consuming, disruptive to our operations and distracting to management. In recognition of these considerations, we may enter into agreements or other arrangements to settle litigation and resolve such challenges. There can be no assurance such agreements can be obtained on acceptable terms or that litigation will not occur. 52 52 52 52 52 52 Further, we are a global business with operations in various jurisdictions. In the event of a dispute arising at our foreign operations, we may be subject to the exclusive jurisdiction of foreign courts or arbitral panels, or may not be successful in subjecting foreign persons to the jurisdiction of courts or arbitral panels in the U.S. or in enforcing the judgment of a foreign court or arbitral panel against a sovereign nation. Our inability to enforce our right and the enforcement of rights on a prejudicial basis by foreign courts or arbitral panels, including against a sovereign nation, could have an adverse effect on our results of operations and financial position. **Current (2024):** We are, and may in the future become, involved in various legal proceedings and subject to other contingencies that have arisen or may arise in the ordinary course of our business or are associated with environmental matters, including those described in Note 12, Items 1. and 2. "Business and Properties" and in Item 3. "Legal Proceedings." We are also involved periodically in other reviews, inquiries, investigations and other proceedings initiated by or involving government agencies, some of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. From time to time we are involved in disputes over the allocation of environmental remediation obligations at "Superfund" and other sites. In addition, we may be held responsible for the costs of addressing contamination at the site of current or former activities or at third-party sites, or be held liable to third parties for exposure to hazardous substances should those be identified in the future. For further discussion of our environmental obligations, see the regulatory, environmental and social risks below. The outcome of litigation is inherently uncertain and adverse developments or outcomes can result in significant monetary damages, penalties, other sanctions or injunctive relief against us, limitations on our property rights, or regulatory interpretations that increase our operating costs, some of which may not be covered by insurance. Further, to the extent that societal pressures or political or other factors are involved, it is possible that such liability could be imposed without regard to our causation of or contribution to the asserted damage, or to other mitigating factors. Management does not believe, based on currently available information, that the outcome of any individual legal proceeding will have a material adverse effect on our financial condition, although individual or cumulative outcomes could be material to our operating results for a particular period, depending on the nature and magnitude of the outcome and the operating results for the period. 51 51 51 51 51 51 Table of Contents Table of Contents Table of Contents Regardless of the merit of particular claims, defending against litigation or responding to investigations can be expensive, time-consuming, disruptive to our operations and distracting to management. In recognition of these considerations, we may enter into agreements or other arrangements to settle litigation and resolve such challenges. There can be no assurance such agreements can be obtained on acceptable terms or that litigation will not occur. Further, we are a global business with operations in various jurisdictions. In the event of a dispute arising at our foreign operations, we may be subject to the exclusive jurisdiction of foreign courts or arbitral panels, or may not be successful in subjecting foreign persons to the jurisdiction of courts or arbitral panels in the U.S. or in enforcing the judgment of a foreign court or arbitral panel against a sovereign nation. Our inability to enforce our rights and the enforcement of rights on a prejudicial basis by foreign courts or arbitral panels, including against a sovereign nation, could have an adverse effect on our results of operations and financial position. --- ## Modified: We face increasing, complex and changing regulatory and stakeholder and other third-party expectations relating to our climate and energy transition plans, which may adversely affect our business. Further, we may not be able to timely or successfully transition from fossil fuel sources for our significant energy needs, which may result in reputational damage. **Key changes:** - Reworded sentence: "Energy represented 19% of our copper mine site operating costs in 2023, and is expected to approximate 20% in 2024." - Reworded sentence: "and internationally), including those related to climate change, carbon taxes or greenhouse gas (GHG) emissions, may in the future add significantly to our operating costs, limit or modify our operations, impact the competitiveness of the commodities we produce, and require more resources to comply and remediate in response." - Reworded sentence: ""Business and Properties." 66 66 66 66 66 66 Table of Contents Table of Contents Table of Contents In response to climate change and societal or stakeholder demands for action, we have announced 2030 GHG emissions reduction targets and a 2050 net zero aspiration, each of which will result in additional costs to us, the totality of which we cannot currently estimate with accuracy, and we cannot guarantee that we will be able to achieve any current or future GHG emissions targets or aspirations." - Reworded sentence: "For example, our diesel-fueled haul trucks are a significant contributor to GHG emissions at our North America and South America operations." **Prior (2023):** Our operations require significant energy, much of which is currently from fossil fuel sources and is obtained from third parties under long-term contracts. Energy represented approximately 21% of our copper mine site operating costs in 2022, and is expected to approximate 24% in 2023. The principal sources of energy consumption at our mining operations are: diesel fuel, which powers mine trucks and other transportation equipment; purchased electricity, which powers core facilities and certain on-site metal processing operations; and coal and natural gas, which provides electricity at certain operations. Existing and proposed governmental conventions, laws, rules, regulations, policies and standards as well as existing and proposed voluntary disclosure standards and frameworks (both in the U.S. and internationally), including those related to climate and greenhouse gas (GHG) emissions, may in the future add significantly to our operating costs, limit or modify our operations, impact the competitiveness of the commodities we produce, and require more resources to comply and remediate in response. For additional information on climate change conventions, laws, regulations and standards applicable to FCX, refer to Items 1. and 2. "Business and Properties". If we do not adapt to the expectations of stakeholders regarding a low-carbon future in a timely manner, it may result in reputational damage with key stakeholders, which can impact investor confidence, market value and access to, and cost of, capital. In response to climate change and societal and stakeholder demands for action, we have announced 2030 GHG emissions reduction targets and a 2050 net zero aspiration, which will result in additional costs to us, the totality of which we cannot currently estimate with accuracy, and we cannot guarantee that we will be able to achieve any current or future GHG emissions targets or aspirations. While we strive to transition to more renewable power sources for our mining operations, as a commercial consumer of power, our ability to reduce our GHG emissions associated with our power consumption demand is dependent upon the mix of our suppliers and locally-available renewable energy resources at our various sites. The transition to renewable and other energy sources could, among other things, increase our capital expenditures, operating and energy costs, depending on the scope, magnitude and timing of increased regulation of fossil-fuel based energy production, including GHG emissions, as well as the availability of alternative energy sources. In certain aspects of our operations, our ability to reduce our GHG emissions is directly dependent on the actions of third parties and technological solutions and innovation, and our ability to make significant, rapid changes in our GHG emissions in response to potential future regulations may be limited. For example, our diesel-fueled haul trucks are a significant contributor to GHG emissions at our North America and South America operations, but reduction of emissions from such haul trucks will depend upon the development and availability of commercially viable alternative-fueled mining equipment by our third-party suppliers. At our remote operations in Indonesia, we own and operate a coal-fired power plant, and our ability to transition to commercially viable alternative sources of energy will depend on, among other things, additional studies, technological considerations and permit approvals. **Current (2024):** Our operations require significant energy, much of which is currently from fossil fuel sources and is obtained from third parties under long-term contracts. Energy represented 19% of our copper mine site operating costs in 2023, and is expected to approximate 20% in 2024. The principal sources of energy consumption at our mining operations are: diesel fuel, which powers mine trucks and other transportation equipment; purchased electricity, which powers core facilities and certain on-site metal processing operations; and coal and natural gas, which provides electricity at certain operations. Existing and proposed governmental conventions, laws, rules, regulations, policies and standards as well as existing and proposed voluntary disclosure standards and frameworks (both in the U.S. and internationally), including those related to climate change, carbon taxes or greenhouse gas (GHG) emissions, may in the future add significantly to our operating costs, limit or modify our operations, impact the competitiveness of the commodities we produce, and require more resources to comply and remediate in response. For additional information on climate change conventions, laws, regulations and standards applicable to FCX, refer to Items 1. and 2. "Business and Properties." 66 66 66 66 66 66 Table of Contents Table of Contents Table of Contents In response to climate change and societal or stakeholder demands for action, we have announced 2030 GHG emissions reduction targets and a 2050 net zero aspiration, each of which will result in additional costs to us, the totality of which we cannot currently estimate with accuracy, and we cannot guarantee that we will be able to achieve any current or future GHG emissions targets or aspirations. While we strive to transition to more renewable power sources for our mining operations, as a commercial consumer of power, our ability to reduce our GHG emissions associated with our power consumption demand is dependent upon the mix of our suppliers and locally-available renewable energy resources at our various sites, including our ability to successfully develop renewable energy projects and negotiate power purchase agreements. The transition to renewable and other energy sources could, among other things, increase our capital expenditures, and operating and energy costs, depending on the scope, magnitude and timing of increased regulation of fossil-fuel based energy production, including GHG emissions, as well as the availability of alternative energy sources. In certain aspects of our operations, our ability to reduce our GHG emissions is directly dependent on the actions of third parties and technological solutions and innovation, and our ability to make significant, rapid changes in our GHG emissions in response to potential future regulations may be limited. For example, our diesel-fueled haul trucks are a significant contributor to GHG emissions at our North America and South America operations. We are evaluating options for the electrification of our haul trucks, but reduction of emissions from such haul trucks will depend upon the development and availability of commercially viable alternative-fueled mining equipment by our third-party suppliers. At our remote mining operations in Indonesia, PT-FI owns and operates a coal-fired power plant and is advancing plans to transition its existing energy source from coal to liquefied natural gas by planning investments in a new gas-fired combined cycle facility. Our ability to transition to commercially viable alternative sources of energy across our operations globally will depend on, among other things, additional studies, technological considerations and permit approvals. Even if we do implement new technologies, our stakeholders and other third parties may not be satisfied with our approach to reducing our GHG emissions. For further information, see the risk factor below relating to the increasing scrutiny and evolving expectations from stakeholders and other third parties, including creditors, with respect to our ESG practices, performance and disclosures. --- ## Modified: Our international operations are subject to evolving geopolitical, economic, regulatory and social risks. **Key changes:** - Reworded sentence: "can include: •Delays in obtaining or renewing, or the inability to obtain, maintain or renew, or the renegotiation, cancellation, revocation or forced modification (including the inherent risk of these actions being taken unilaterally by the foreign government or government owned entities) of contracts, leases, licenses, permits, stability agreements or other agreements and/or approvals; •Expropriation or nationalization of property, protectionism, or restrictions on repatriation of earnings or capital; •Changes in and differing interpretations of the host country's laws, regulations and policies (which may be applied retroactively), including, but not limited to, those relating to labor, taxation, royalties, duties, tariffs, licenses, divestment, imports, exports (including restrictions on the export of copper concentrates and anode slimes, copper and/or gold), trade laws and regulations, immigration, currency, human rights and environmental matters (including land use and water use), additional requirements on foreign operations and investment, and/or fines, fees and sanctions, criminal liability and other penalties imposed for failure to comply with the laws and regulations of the U.S." - Reworded sentence: "Accordingly, our activities outside of the U.S." - Reworded sentence: "We have a large number of contracts with local and foreign business partners, including suppliers and contractors, who may take action contrary to or fail to adopt standards, controls and procedures, including health, safety, environment, human rights and community standards that are equivalent to our standards, controls and procedures." - Reworded sentence: "Any breaches could result in safety events that may result in injuries or fatalities; significant criminal or civil fines, penalties, litigation or regulatory action or inquiries or other enforcement actions; shareholder or other stakeholder activism (such as to stop using a certain business partner); civil unrest or other adverse impacts on human rights; termination of contracts; loss of operating licenses or permits; and damage to our reputation, any of which could have a material adverse effect on our cash flows, results of operations and financial condition." **Prior (2023):** We are a U.S.-based mining company with substantial assets located outside of the U.S. Risks of conducting business in countries outside the U.S. can include: •Delays in obtaining or renewing, or the inability to obtain, maintain or renew, or the renegotiation, cancellation, revocation or forced modification (including the inherent risk of these actions being taken unilaterally by government owned entities) of contracts, leases, licenses, permits, stability agreements or other agreements and/or approvals; •Expropriation or nationalization of property, protectionism, or restrictions on repatriation of earnings or capital; •Changes in and differing interpretations of the host country's laws, regulations and policies (which may be applied retroactively), including, but not limited to, those relating to labor, taxation, royalties, duties, tariffs, divestment, imports, exports (including restrictions on the export of copper concentrate and anode slimes, copper and/or gold), trade regulations, immigration, currency, human rights and environmental matters (including land use and water use), additional requirements on foreign operations and investment, and/or fines, fees and sanctions imposed for failure to comply with the laws and regulations of the jurisdictions in which we operate, the risk of any of which may increase with rising "resource nationalism" in countries around the world; •Geopolitical events, social and economic instability, bribery, extortion, corruption, civil unrest, blockades, acts of war, guerrilla activities, insurrection and terrorism, certain of which may result in, among other things, an inability to access our property or transport our commodities; •Risk of loss associated with trespass, illegal artisanal mining, theft, sabotage and vandalism; 53 53 53 53 53 53 •Changes in U.S. trade, tariff, tax, immigration or other policies that may impact relations with foreign countries or result in retaliatory policies; •Increases in training and other costs and challenges relating to requirements by governmental entities to employ nationals of a country in which a particular operation is located; •Foreign exchange controls and fluctuations in foreign currency exchange rates; •Reduced protection for intellectual property rights; and •The risk of having to submit to the jurisdiction of an international court or arbitration panel or having to enforce the judgment of an international court or arbitration panel against a sovereign nation within its own territory. Our insurance does not cover most losses caused by the risks described above. For example, we do not have political risk insurance. Accordingly, our exploration, development and production activities outside of the U.S. may be substantially affected by many external factors beyond our control, some of which could have a material adverse effect on our cash flows, results of operations and financial condition. We are required to comply with a wide range of laws and regulations in the countries where we operate or do business. For example, our international operations must comply with the U.S. Foreign Corrupt Practices Act and similar anti-corruption and anti-bribery laws of the other jurisdictions in which we operate. We operate in jurisdictions that have experienced public and private sector corruption and where significant anti-corruption enforcement activities, prosecutions and settlements have occurred. We have a large number of contracts with local and foreign suppliers and contractors, who may take action contrary to or fail to adopt standards, controls and procedures, including health, safety, environment, human rights and community standards that are equivalent to our standards, controls and procedures. There can be no assurance that our internal control policies and procedures will always protect us from misinterpretation of or noncompliance with applicable laws and internal policies, recklessness, fraudulent behavior, dishonesty or other inappropriate acts committed by our affiliates, employees, agents, suppliers or contractors. As such, our corporate policies and processes may not prevent or detect all potential breaches of law or governance practices. Any breaches could result in safety events that may result in injuries or fatalities, significant criminal or civil fines and penalties, litigation or regulatory action or inquiries, shareholder activism (such as to stop using a certain supplier or contractor), civil unrest or other adverse impacts on human rights, and loss of operating licenses or permits, and may damage our reputation, which could have a material adverse effect on our cash flows, results of operations and financial condition. We conduct international mining operations and exploration activities in Indonesia, Peru and Chile and other foreign jurisdictions. Accordingly, in addition to the usual risks associated with conducting business in countries outside the U.S., our business may be adversely affected by political, economic, social and regional uncertainties in each of these countries. For example, we are involved in several significant tax proceedings and other tax disputes with Indonesia and Peru tax authorities (refer to Note 12 for further discussion of these matters). Other risks specific to certain countries in which we operate are discussed in more detail below. **Current (2024):** We are a U.S.-based mining company with substantial assets located outside of the U.S. Risks of conducting business in countries outside the U.S. can include: •Delays in obtaining or renewing, or the inability to obtain, maintain or renew, or the renegotiation, cancellation, revocation or forced modification (including the inherent risk of these actions being taken unilaterally by the foreign government or government owned entities) of contracts, leases, licenses, permits, stability agreements or other agreements and/or approvals; •Expropriation or nationalization of property, protectionism, or restrictions on repatriation of earnings or capital; •Changes in and differing interpretations of the host country's laws, regulations and policies (which may be applied retroactively), including, but not limited to, those relating to labor, taxation, royalties, duties, tariffs, licenses, divestment, imports, exports (including restrictions on the export of copper concentrates and anode slimes, copper and/or gold), trade laws and regulations, immigration, currency, human rights and environmental matters (including land use and water use), additional requirements on foreign operations and investment, and/or fines, fees and sanctions, criminal liability and other penalties imposed for failure to comply with the laws and regulations of the U.S. and the other jurisdictions in which we operate, the risk of any of which may increase with rising "resource nationalism" in countries around the world; 52 52 52 52 52 52 Table of Contents Table of Contents Table of Contents •Geopolitical events, social and economic instability, bribery, extortion, corruption, civil unrest, blockades, acts of war, guerrilla activities, insurrection and terrorism, certain of which may result in, among other things, an inability to access our property or transport our commodities; •Risk of loss associated with illegal activity, including trespass, illegal artisanal mining, theft (including piracy), sabotage (including of critical infrastructure) and vandalism; •Changes in U.S. trade, tariff, tax, immigration or other policies that may impact relations with foreign countries or result in retaliatory policies; •Increases in training and other costs and challenges relating to requirements by governmental entities to employ nationals of a country in which a particular operation is located; •Foreign exchange controls and fluctuations in foreign currency exchange rates; •Reduced protection for intellectual property rights; and •The risk of having to submit to the jurisdiction of an international court or arbitration panel or having to enforce the judgment of an international court or arbitration panel against a sovereign nation within its own territory. Accordingly, our activities outside of the U.S. may be substantially affected by many external factors beyond our control, some of which could have a material adverse effect on our cash flows, results of operations and financial condition. We are required to comply with a wide range of laws and regulations in the countries where we operate or do business. For example, our international operations must comply with the U.S. Foreign Corrupt Practices Act and similar anti-corruption and anti-bribery laws of the other jurisdictions in which we operate. We operate in jurisdictions that have experienced public and private sector corruption and where significant anti-corruption enforcement activities, prosecutions and settlements have occurred. We have a large number of contracts with local and foreign business partners, including suppliers and contractors, who may take action contrary to or fail to adopt standards, controls and procedures, including health, safety, environment, human rights and community standards that are equivalent to our standards, controls and procedures. There can be no assurance that our internal control policies and procedures will protect us from misinterpretation of or noncompliance with applicable laws and internal policies, recklessness, fraudulent behavior, dishonesty or other inappropriate acts committed by our affiliates, employees or business partners. As such, our corporate policies and processes may not prevent or detect all potential breaches of law or governance practices. Any breaches could result in safety events that may result in injuries or fatalities; significant criminal or civil fines, penalties, litigation or regulatory action or inquiries or other enforcement actions; shareholder or other stakeholder activism (such as to stop using a certain business partner); civil unrest or other adverse impacts on human rights; termination of contracts; loss of operating licenses or permits; and damage to our reputation, any of which could have a material adverse effect on our cash flows, results of operations and financial condition. In addition, our insurance does not cover most losses caused by the risks described above. For example, we do not have political risk insurance. We conduct international mining operations and exploration activities in Indonesia, Peru and Chile as well as other foreign jurisdictions. Accordingly, in addition to the usual risks associated with conducting business in countries outside the U.S., our business may be adversely affected by political, economic, social and regional uncertainties in each of these countries. For example, we are involved in several significant tax proceedings and other tax disputes with Indonesia and Peru tax authorities (refer to Note 12 for further discussion of these matters). Other risks specific to certain countries in which we operate are discussed in more detail below. --- ## Modified: Operational risks **Key changes:** - Reworded sentence: "•Operational risks inherent in mining, including underground mining and the ability to smelt and refine; •Environmental, safety and engineering challenges and risks associated with management of waste rock and tailings; •Environmental challenges associated with our Indonesia mining operations; •Violence, civil and religious strife, and activism; •Availability of significant quantities of secure water supplies for our mining operations, including future expansions or development projects; •Disruptions, damage, failure and implementation and integration risks associated with information and operational technology systems and new technologies; and •Any major public health crisis." **Prior (2023):** •Operational risks inherent in mining, including underground mining; •Environmental, safety and engineering challenges and risks associated with management of waste rock and tailings; •Environmental challenges associated with our Indonesia mining operations; •Violence, civil and religious strife, and activism; •Availability of significant quantities of secure water supplies for our mining operations, including future expansions or development projects; •Any major public health crisis; and •Disruptions, damage, failure and implementation and integration risks associated with information technology systems. **Current (2024):** •Operational risks inherent in mining, including underground mining and the ability to smelt and refine; •Environmental, safety and engineering challenges and risks associated with management of waste rock and tailings; •Environmental challenges associated with our Indonesia mining operations; •Violence, civil and religious strife, and activism; •Availability of significant quantities of secure water supplies for our mining operations, including future expansions or development projects; •Disruptions, damage, failure and implementation and integration risks associated with information and operational technology systems and new technologies; and •Any major public health crisis. --- ## Modified: Our mining operations, including future expansions or developments, depend on the availability of significant quantities of secure water supplies. **Key changes:** - Reworded sentence: "Our mining operations require physical availability and secure legal rights to significant quantities of water, and the increasing pressure on water sources requires us to consider both current and future conditions in our approach." - Reworded sentence: "Most of our North America and South America mining operations are in areas where competition for water supplies is significant, and where climate change may lead to increasing scarcity of water sources in the future." - Reworded sentence: ""Legal Proceedings," in Arizona, where our operations use both surface water and groundwater, we are a participant in an active adjudication in which Arizona courts have been attempting, for 50 years, to quantify and prioritize surface water claims for the Gila River watershed, one of the state's largest river systems." - Reworded sentence: "Ongoing El Niño weather patterns have contributed to ongoing drought conditions in the area and water shortages at our Cerro Verde operation are possible, which could impact our operations." - Reworded sentence: "Although each of our mining operations currently has access to sufficient water sources to support current operational demands, as discussed above, the availability of additional supplies for potential future expansions or development will require additional investments and will take time to develop, if available." **Prior (2023):** We recognize that access to clean, safe and reliable water supplies is vital to the health and livelihood of our host communities. Our mining operations require physical availability and secure legal rights to significant quantities of water, and the increasing pressure on water resources requires us to consider both current and future conditions in our approach. We aim to balance our operational water requirements with those of the local communities, environment and ecosystems. Most of our North America and South America mining operations are in areas where competition for water supplies is significant, and where climate change may lead to increasing scarcity of water resources in the future. Continuous production at our mines and any future expansions or developments are dependent on many factors, including our ability to maintain our water rights and claims, and the continuing physical availability of the water supplies. Current and long-term water risks include those that arise from our operations and events that we do not control (such as extreme weather and other physical risks associated with climate change). For further discussion of the potential physical impacts of climate change, see the related risk factor below. As discussed in Item 3. "Legal Proceedings," in Arizona, where our operations use both surface water and groundwater, we are a participant in an active adjudication in which Arizona courts have been attempting, for over 45 years, to quantify and prioritize surface water claims for the Gila River watershed, one of the state's largest river systems. If we are not able to satisfactorily resolve the issues being addressed in the adjudications, water uses could be diminished or curtailed, and our operations at Morenci, Safford and Sierrita could be adversely affected unless we are able to acquire alternative resources. Water for our Cerro Verde operation in Peru comes from renewable sources through a series of storage reservoirs on the Rio Chili watershed that collects water primarily from seasonal precipitation and from wastewater collected from the city of Arequipa and treated at a wastewater treatment plant constructed by us. As a result of occasional drought conditions, temporary supply shortages that could affect our Cerro Verde operation are possible. Water for our El Abra mining operation in Chile comes from the continued pumping of groundwater from the Salar de Ascotán aquifer. In 2010, El Abra obtained regulatory approval for the continued pumping of groundwater from the Salar de Ascotán aquifer for its sulfide processing plant, which began operations in 2011. Our current permit will expire in 2029. The agreement to pump from this aquifer is subject to continued monitoring through 2029 of the aquifer water levels and select flora species to ensure that environmentally sensitive areas are not impacted by our pumping. If impact occurs, reductions in pumping are required to restore water levels, which could have an adverse effect on production from El Abra. For further discussion, see the risk factor above relating to the geopolitical, economic and social risks associated with our international operations. Although we typically have sufficient water for our Indonesia operations, the area receives considerable rainfall that makes us susceptible to periodic floods and mudslides, the nature and magnitude of which cannot be predicted. For further discussion of the overburden and related environmental challenges, including as a result of flooding in Indonesia, see the related risk factor above. Although each of our mining operations currently has access to sufficient water supplies to support current operational demands, as discussed above, the availability of additional supplies for potential future expansions or development will require additional investments and will take time to develop, if available. While we are taking actions to acquire additional back-up water supplies, such supplies may not be available at acceptable cost, or at all, so that the loss of a water right or currently available water supply could force us to curtail operations or force premature closures, and the ability to obtain future water supplies could prevent future expansions or developments, thereby increasing and/or accelerating costs or foregoing profitable operations. **Current (2024):** We recognize that access to clean, safe and reliable water supplies is vital to the health and livelihood of our host communities. Our mining operations require physical availability and secure legal rights to significant quantities of water, and the increasing pressure on water sources requires us to consider both current and future conditions in our approach. We aim to balance our operational water requirements with those of the local communities, environment and ecosystems. Most of our North America and South America mining operations are in areas where competition for water supplies is significant, and where climate change may lead to increasing scarcity of water sources in the future. Continuous production at our mines and any future expansions or developments are 59 59 59 59 59 59 Table of Contents Table of Contents Table of Contents dependent on many factors, including our ability to maintain our water rights and claims, and the continuing physical availability of the water supplies. Current and long-term water risks include those that arise from our operations and events that we do not control (such as extreme weather and other physical risks associated with climate change). For further discussion of the potential physical impacts of climate change, see the related risk factor below. As discussed in Item 3. "Legal Proceedings," in Arizona, where our operations use both surface water and groundwater, we are a participant in an active adjudication in which Arizona courts have been attempting, for 50 years, to quantify and prioritize surface water claims for the Gila River watershed, one of the state's largest river systems. If we are not able to satisfactorily resolve the issues being addressed in the adjudications, our water uses could be diminished or curtailed, and our operations and any future expansions at Morenci, Safford (including Lone Star) and Sierrita could be adversely affected unless we are able to acquire alternative water sources. Water for our Cerro Verde operation in Peru comes from renewable sources through a series of storage reservoirs on the Rio Chili watershed that collects water primarily from seasonal precipitation and from wastewater collected from the city of Arequipa and treated at a wastewater treatment plant constructed by us. Ongoing El Niño weather patterns have contributed to ongoing drought conditions in the area and water shortages at our Cerro Verde operation are possible, which could impact our operations. Water for our El Abra mining operation in Chile currently comes from the continued pumping of groundwater from the Salar de Ascotán aquifer. The agreement to pump from this aquifer is subject to continued monitoring through 2029 of the aquifer water levels and select flora species to ensure that environmentally sensitive areas are not impacted by our pumping, which if impacted could cause reductions in pumping to restore water levels and could have an adverse effect on production from El Abra. Our permit for pumping of groundwater will expire in 2029 and any renewal may be challenging. We are 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. In parallel, as part of the permitting process for the potential expansion, we are planning for a potential submission of an environmental impact statement during 2025, subject to ongoing stakeholder engagement and economic evaluations. There can be no assurance that we will be able to execute such water infrastructure plans or obtain a new permit, which could have an adverse impact on our operations. For further discussion, see the risk factor above relating to the geopolitical, economic and social risks associated with our international operations. Although we typically have sufficient water for our Indonesia operations, the area receives considerable rainfall that makes us susceptible to periodic floods and mudslides, the nature and magnitude of which cannot be predicted. For further discussion of the overburden and related environmental challenges, including as a result of flooding in Indonesia, see the related risk factor above. Although each of our mining operations currently has access to sufficient water sources to support current operational demands, as discussed above, the availability of additional supplies for potential future expansions or development will require additional investments and will take time to develop, if available. While we are taking actions to acquire additional back-up water supplies, such supplies may not be available at acceptable cost, or at all. As such, the loss of a water right or currently available water supply could force us to curtail operations or force premature closures, and the ability to obtain future water supplies could prevent future expansions or developments, thereby increasing and/or accelerating costs or foregoing profitable operations. --- ## Modified: Smelting Facilities and Other Mining Properties **Key changes:** - Reworded sentence: "Manyar Smelter and Precious Metal Refinery." - Reworded sentence: "Atlantic Copper's anode production from its smelter totaled 261,900 metric tons of copper in 2023, 215,000 metric tons in 2022 and 278,600 metric tons in 2021." - Reworded sentence: "Atlantic Copper is developing an e-material recycling project as a result of the significant and continued growth in electronic waste material." - Reworded sentence: "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." - Reworded sentence: "Beginning in 2023, PT-FI's commercial arrangement with PT Smelting changed from a copper concentrate sales agreement to a tolling arrangement." **Prior (2023):** Greenfield Smelter and Precious Metal Refinery. PT-FI is actively engaged in the construction of a greenfield smelter in Gresik, Indonesia. The greenfield smelter will be owned and operated by PT-FI and have a capacity to process approximately 1.7 million metric tons of copper concentrate per year. The smelter construction is advancing and is expected to be completed during 2024. Construction of a precious metal refinery to process gold and silver from the greenfield smelter and PT Smelting at an estimated capital cost of $400 million is in progress with commissioning also expected during 2024. Atlantic Copper. Our 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 215,000 metric tons of copper in 2022, 278,600 metric tons in 2021 and 275,900 metric tons in 2020. Copper cathode production from its refinery totaled 218,400 metric tons of copper in 2022, 277,000 metric tons in 2021 and 275,000 metric tons in 2020. 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. Following is the allocation of Atlantic Copper's concentrate purchases from unaffiliated third parties and our copper mining operations for the years ended December 31: 202220212020Third parties65 %66 %79 %Indonesia mining18 9 4 South America mining10 7 7 North America copper mines7 18 10 100 %100 %100 % 25 25 25 25 25 25 Table of Contents Table of Contents Table of Contents 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 in 2025, would include an addition of a smelting furnace and associated equipment to recover copper, gold, silver, palladium, tin, nickel and platinum from e-materials. Atlantic Copper estimates that the initial project capital will approximate $325 million. 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 concentrate per year, which is expected to be completed by the end of 2023. PT-FI is funding the cost of the expansion with a loan that is expected to convert to equity, increasing its ownership in PT Smelting from 39.5% to a majority ownership once the expansion is complete. Refer to Note 3 for further discussion. Prior to 2023, PT-FI's contract with PT Smelting provided for PT-FI to supply 100% of the copper concentrate requirements (subject to a minimum or maximum treatment charge rate) necessary for PT Smelting to produce 205,000 metric tons of copper annually on a priority basis. PT-FI could also then sell copper concentrate to PT Smelting at market rates for quantities in excess of 205,000 metric tons of copper annually. Beginning in 2023, PT-FI's commercial arrangement with PT Smelting converted to a tolling arrangement. Under the arrangement, PT-FI pays PT Smelting a tolling fee to smelt and refine its concentrate and will retain title to all products for sale to third parties. This arrangement is not expected to result in a significant change in PT-FI's economics but will impact the timing of PT-FI's sales during 2023. We estimate that approximately 90 million pounds of copper and 120 thousand ounces of gold from PT-FI's first-quarter 2023 production will remain in inventory until final sale later in 2023. PT Smelting received a one-year extension of its anode slimes export license, which currently expires November 3, 2023. Refer to Item 1A. "Risk Factors" for further discussion of risks associated with PT Smelting's export of anode slimes. PT Smelting's anode production from its smelter totaled 316,700 metric tons of copper in 2022, 280,400 metric tons in 2021 and 276,900 metric tons in 2020. Copper cathode production from its refinery totaled 268,400 metric tons of copper in 2022, 256,900 metric tons in 2021 and 273,000 metric tons in 2020. PT Smelting's maintenance turnarounds (which range from two weeks to a month to complete) typically are expected to occur approximately every two years, with short-term maintenance turnarounds in the interim. PT Smelting completed a 30-day maintenance turnaround during December 2020 and an 18-day maintenance turnaround in October 2022. PT Smelting has a planned 75-day shutdown scheduled for mid-2023 associated with its expansion project with a 7-day shutdown in fourth-quarter 2023 to complete final tie-in of the expansion project. Miami Smelter. We own and operate a smelter at our Miami mining operation in Arizona. The smelter has been operating for over 100 years and has been upgraded numerous times during that period to implement new technologies, improve production and comply with air quality requirements. The Miami smelter processes copper concentrate primarily from our North America copper mines. Concentrate processed through the smelter totaled 781,000 metric tons in 2022, 674,000 metric tons in 2021 and 764,000 metric tons in 2020, and copper anode production from the smelter totaled 202,000 metric tons in 2022, 194,000 metric tons in 2021 and 211,000 metric tons in 2020. 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 our North America leaching operations. Major maintenance turnarounds are anticipated to occur approximately every two or three years for the Miami smelter. We performed a major maintenance turnaround during 2021. The next major maintenance turnaround is scheduled for the last half of 2024. 26 26 26 26 26 26 Table of Contents Table of Contents Table of Contents Rod & Refining Operations. Our 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. We refine our copper anode production from our Miami smelter at our 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 we produce at our Miami smelter. Copper cathode production from the El Paso refinery totaled 208,900 metric tons in 2022, 187,300 metric tons in 2021 and 212,600 metric tons in 2020. Our El Paso refinery also produces nickel carbonate, copper telluride and autoclaved slimes material containing gold, silver, platinum and palladium. Molybdenum Conversion Facilities. We process molybdenum concentrate at our 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. We operate molybdenum roasters in Sierrita, Arizona; Fort Madison, Iowa; and Rotterdam, the Netherlands, and we operate a molybdenum pressure-leach plant in Bagdad, Arizona. We also produce ferromolybdenum for customers worldwide at our conversion plant located in Stowmarket, United Kingdom. Other North America Copper Mines. We have 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. **Current (2024):** 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. Construction of the smelter has an estimated cost of $3.0 billion, including $2.8 billion for a construction contract (excluding capitalized interest, owner's costs and commissioning) and $0.2 billion for investment in a desalination plant. 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. Current cost estimates total $665 million, reflecting updated costs for construction, materials, labor and engineering. Atlantic Copper. Our 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, 215,000 metric tons in 2022 and 278,600 metric tons in 2021. Copper cathode production from its refinery totaled 260,300 metric tons of copper in 2023, 218,400 metric tons in 2022 and 277,000 metric tons in 2021. During 2023, Atlantic Copper purchased 40% of its concentrate from our 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. Atlantic Copper estimates that the initial project capital will approximate $345 million. 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. In December 2023, the project was successfully completed on time and within budget. The project was funded by PT-FI with borrowings that are expected to convert to equity in 2024, increasing PT-FI's ownership in PT Smelting to approximately 65%. Refer to Note 3 for further discussion. 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). Refer to MD&A and Note 3 for further discussion. PT Smelting's anode production from its smelter totaled 251,300 metric tons of copper in 2023, 316,700 metric tons in 2022 and 280,400 metric tons in 2021. Copper cathode production from its refinery totaled 212,000 metric tons of copper in 2023, 268,400 metric tons in 2022 and 256,900 metric tons in 2021. 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 25 25 25 25 25 25 Table of Contents Table of Contents Table of Contents 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. We own and operate a smelter at our Miami mining operation in Arizona. The smelter has been operating for over 100 years and has been upgraded numerous times during that period to implement new technologies, improve production and comply with air quality requirements. The Miami smelter processes copper concentrate primarily from our North America copper mines. Concentrate processed through the smelter totaled 810,900 metric tons in 2023, 781,000 metric tons in 2022 and 674,000 metric tons in 2021, and copper anode production from the smelter totaled 222,000 metric tons in 2023, 202,000 metric tons in 2022 and 194,000 metric tons in 2021. 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 our North America leaching operations. Major maintenance turnarounds are anticipated to occur approximately every three years for the Miami smelter. We performed a major maintenance turnaround during 2021. The next major maintenance turnaround is scheduled for mid-year 2025. Rod & Refining Operations. Our 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. We refine our copper anode production from our Miami smelter at our 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 we produce at our Miami smelter. Copper cathode production from the El Paso refinery totaled 217,800 metric tons in 2023, 208,900 metric tons in 2022 and 187,300 metric tons in 2021. Our El Paso refinery also produces nickel carbonate, copper telluride and autoclaved slimes material containing gold, silver, platinum and palladium. Molybdenum Conversion Facilities. We process molybdenum concentrate at our 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. We operate molybdenum roasters in Sierrita, Arizona; Fort Madison, Iowa; and Rotterdam, the Netherlands, and we operate a molybdenum pressure-leach plant in Bagdad, Arizona. We also produce ferromolybdenum for customers worldwide at our conversion plant located in Stowmarket, United Kingdom. Other North America Copper Mines. We have 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. --- ## Modified: Fluctuations in the price and availability of consumables and components for key machines and equipment we purchase, and constraints on supply and logistics could affect our profitability and operating plans. Further, significant delays or increases in costs affecting transportation services may affect our business. **Key changes:** - Reworded sentence: "Consumables and components for key machines and equipment we purchase are subject to price volatility caused by global economic factors that are beyond our control, including, but not limited to, supply chain disruptions, labor shortages, wage pressures, inflation and economic slowdown or recession, as well as fuel and energy costs (for example, the price of diesel), the impact of natural disasters, major public health crises, geopolitical conflicts, and foreign currency exchange rate fluctuations, and other matters that have or could impact the global economy." - Reworded sentence: "Since 2022, we have experienced price increases on, and volatility in, certain consumables, including diesel fuel, ammonium nitrate and sulfuric acid, and certain components, which has negatively impacted our operating results." - Reworded sentence: "We have also experienced longer lead times on delivery of certain consumables, including fuel, lubricants, ammonium nitrate and acid." **Prior (2023):** Consumables and components for key machines and equipment we purchase are subject to price volatility caused by global economic factors that are beyond our control, including, but not limited to, supply chain disruptions, labor shortages, wage pressures, rising inflation and potential economic slowdown or recession, as well as fuel and energy costs (for example, the price of diesel), the impact of natural disasters, public health crises (such as COVID-19), geopolitical conflicts (such as the conflict in Ukraine), and foreign currency exchange rate fluctuations, and other matters that have or could impact the global economy. Prices and availability of consumables used in our operations, such as natural gas, diesel, coal, ammonium nitrate, chemical reagents (including sulfuric acid), and steel-related products, and components impact the costs of production at our operations and the costs of development projects. These prices fluctuate and can be volatile. In 2022, we experienced price increases on certain consumables, including diesel fuel and coal, ammonium nitrate and sulfuric acid, grinding media and certain components. The cost increases have negatively impacted our operating results and further increases could have a material adverse effect on our results of operations and could result in material changes to our operating plans. Additional increases may occur in 2023 because of macroeconomic conditions discussed above, and such increases may be material. 50 50 50 50 50 50 Ensuring continuity of supply of such consumables to our operations is critical to our business. We also rely on the availability of components from suppliers for key machines and equipment, which may be impacted by competition demands as well as the availability of input materials in the creation of such equipment. A supplier's failure to supply consumables or components in a timely manner or to meet our quality, quantity, cost requirements or our technical specifications, or our inability to obtain alternative sources of consumables or components on a timely basis or on terms acceptable to us, could adversely affect our operations. In 2022, we experienced longer lead times and logistical constraints on delivery of certain consumables, including fuel, lubricants, ammonium nitrate, cobalt sulfate, acid mist suppressant and acid. While these delays and logistical constraints did not significantly impact our results in 2022, these issues may continue in 2023 and such logistical constraints and delays may become material. Further, delays and logistical constraints may occur as a result of violence, civil and religious strife, and activism, as described in the related risk factor below. Our business depends on the inbound transportation of consumables and components we use and the outbound transportation of the commodities we produce by truck, rail and ocean freight. There continue to be global shipping and logistics challenges, which began during the COVID-19 pandemic. Any significant increase in the cost of the transportation of consumables or components, as a result of increases in fuel or labor costs, higher demand for logistics services, or otherwise, would adversely affect our results of operations. Additionally, if the transportation service providers fail to deliver consumables or components used in our operations to us or the commodities we produce to our customers in a timely manner or at all, such failure could adversely impact our ability to meet our production schedules, delay our projects and capital initiatives, negatively affect our customer relationships and have a material adverse effect on our financial position and results of operations. **Current (2024):** Consumables and components for key machines and equipment we purchase are subject to price volatility caused by global economic factors that are beyond our control, including, but not limited to, supply chain disruptions, labor shortages, wage pressures, inflation and economic slowdown or recession, as well as fuel and energy costs (for example, the price of diesel), the impact of natural disasters, major public health crises, geopolitical conflicts, and foreign currency exchange rate fluctuations, and other matters that have or could impact the global economy. Prices of consumables used in our operations, such as natural gas, diesel, coal, other sources of energy, ammonium nitrate, chemical reagents (including sulfuric acid), and steel-related products, and components impact the costs of production at our operations and the costs of development projects. These prices fluctuate and can be volatile. Since 2022, we have experienced price increases on, and volatility in, certain consumables, including diesel fuel, ammonium nitrate and sulfuric acid, and certain components, which has negatively impacted our operating results. We also experienced increased costs for equipment, parts and other operating supplies and services. Further increases could have a material adverse effect on our results of operations and could result in material changes to our operating plans or development projects. 49 49 49 49 49 49 Table of Contents Table of Contents Table of Contents Ensuring continuity of supply of such consumables to our operations is critical to our business. We also rely on the availability of components from suppliers for key machines and equipment, which may be impacted by competition demands as well as the availability of input materials in the creation of such equipment. A supplier's failure to supply consumables or components in a timely manner or to meet our quality, quantity, cost requirements or our technical specifications, or our inability to obtain alternative sources of consumables or components on a timely basis or on terms acceptable to us, could adversely affect our operations. We have also experienced longer lead times on delivery of certain consumables, including fuel, lubricants, ammonium nitrate and acid. While these delays did not significantly impact our results in 2022 or 2023, these delays may continue and could become material. Further, delays and logistical constraints may occur as a result of weather-related impacts or violence, civil and religious strife, and activism at or near our operations or those of our suppliers, as described in the related risk factor below. Our business depends on timely inbound transportation of consumables and components we use and outbound transportation of the commodities we produce by truck, rail and ocean freight. Any significant increase in the cost of or significant delays in the transportation of consumables or components used in our operations or the commodities we produce, as a result of increases in fuel or labor costs, higher demand for logistics services, weather-related impacts (such as low water levels along shipping routes) or otherwise, could adversely affect our results of operations. Additionally, if transportation service providers fail to deliver consumables or components used in our operations to us or the commodities we produce to our customers in a timely manner or at all, such failure could adversely impact our ability to meet our production schedules, delay our projects and capital initiatives, negatively affect our customer relationships and have a material adverse effect on our financial position and results of operations. --- ## Modified: Inclusion and Diversity **Key changes:** - Reworded sentence: "As of December 31, 2023, the vast majority of our employees are from the countries where we operate." - Added sentence: "We are also committed to providing equal pay for equal work regardless of gender, race, ethnicity or any other characteristic protected by applicable law." - Added sentence: "We periodically conduct internal compensation reviews to identify and address, as appropriate, possible pay gaps, which cannot be explained through performance, distribution of jobs, experience, time in role and other legitimate business-related factors." - Reworded sentence: "To help incentivize continued progress by our executive team, workforce performance metrics to support safety and inclusion and diversity priorities, among other things, have also been integrated into executive compensation, contributing to the sustainability component of our performance-based annual incentive program." - Added sentence: "29 29 29 29 29 29 Table of Contents Table of Contents Table of Contents" **Prior (2023):** We are committed to fostering a culture that is safety focused, respectful, inclusive and representative of the communities where we operate. As a global organization that operates in diverse parts of the world, inclusion and diversity is a company priority, and we believe an inclusive and diverse workforce with a broad range of experience, knowledge, background, culture and heritage drives innovation, enhances operational performance and improves relationships with stakeholders. We are often the largest employer in our local communities and hiring locally is a commitment we make to the host communities surrounding our operations and to our host countries. As of December 31, 2022, the vast majority of our employees are from the countries where we operate. We retain expatriate expertise for managerial and technical roles when we determine it is not available in local communities. To further these efforts, expatriates receive cultural training upon their arrival to a new location. We aim to tailor our approach to inclusion and diversity across our global business and we seek to design programs and initiatives with standardized processes and priorities while being adaptable to site-specific or situational circumstances. We strive for, promote and foster a workplace where everyone feels a sense of belonging, is treated with respect and their opinions are valued. We believe an inclusive environment gives our people the confidence to speak up, share ideas that drive innovation and achieve operational excellence. We believe our inclusive environment is the foundation of our high-performance culture and is paramount to the long-term sustainable success of our business. In addition to our Inclusion and Diversity Policy, our inclusion and diversity principles align with our core values of safety, respect, integrity, excellence and commitment, and are incorporated into our Principles of Business Conduct and other related policies. We have dedicated human resources team members to focus on inclusion and diversity initiatives and a cross-functional inclusion and diversity leadership team to help guide the strategy and direction of our inclusion and diversity programs. To help incentivize continued progress by our executive team on our priorities, inclusion and diversity has also been integrated into executive compensation, contributing to the sustainability component of our performance-based annual incentive program. Additional information regarding our activities related to our people, including our workforce diversity data, can be found in our 2021 Annual Report on Sustainability and our 2021 EEO-1 Disclosure Supplement on our website. The Annual Report on Sustainability is updated annually. None of the information on, or accessible through, our website is part of this Form 10-K or is incorporated by reference herein. Refer to Item 1A. "Risk Factors" for further information on human capital matters. **Current (2024):** We are committed to fostering a culture that is safety focused, respectful, inclusive and representative of the communities where we operate. As a global organization that operates in diverse parts of the world, inclusion and diversity is a company priority, and we believe an inclusive and diverse workforce with a broad range of experience, knowledge, background, culture and heritage drives innovation, enhances operational performance and improves relationships with stakeholders. We are often the largest employer in our local communities and hiring locally is a commitment we make to the host communities surrounding our operations and to our host countries. As of December 31, 2023, the vast majority of our employees are from the countries where we operate. We retain expatriate expertise for managerial and technical roles when we determine the required expertise is not available in local communities. Expatriates receive cultural training upon their arrival to a new location. We aim to tailor our approach to inclusion and diversity across our global business and we seek to design programs and initiatives with standardized processes and priorities while being adaptable to site-specific or situational circumstances. We strive for, promote and foster a workplace where everyone feels a sense of belonging, is treated with respect and their opinions are valued. We believe an inclusive environment gives our people the confidence to speak up, share ideas that drive innovation and achieve operational excellence. We believe our inclusive environment is the foundation of our high-performance culture and is paramount to the long-term sustainable success of our business. We are also committed to providing equal pay for equal work regardless of gender, race, ethnicity or any other characteristic protected by applicable law. We periodically conduct internal compensation reviews to identify and address, as appropriate, possible pay gaps, which cannot be explained through performance, distribution of jobs, experience, time in role and other legitimate business-related factors. In addition to our Inclusion and Diversity Policy, our inclusion and diversity principles align with our core values of safety, respect, integrity, excellence and commitment, and are incorporated into our Principles of Business Conduct and other related policies. We have dedicated human resources team members to focus on inclusion and diversity initiatives and a cross-functional inclusion and diversity leadership team to help guide the strategy and direction of our inclusion and diversity programs. To help incentivize continued progress by our executive team, workforce performance metrics to support safety and inclusion and diversity priorities, among other things, have also been integrated into executive compensation, contributing to the sustainability component of our performance-based annual incentive program. Additional information regarding our activities related to our people, including our workforce diversity data (such as our U.S. Employee EEO-1 report data), can be found in our Annual Report on Sustainability, which is available on our website and is updated annually. Refer to Item 1A. "Risk Factors" for further information on human capital matters. 29 29 29 29 29 29 Table of Contents Table of Contents Table of Contents --- ## Modified: SELECTED OPERATING DATA **Key changes:** - Reworded sentence: "Years Ended December 31, 20232022202120202019CONSOLIDATED MINING Copper (millions of recoverable pounds) Production 4,212 4,210 3,843 3,206 3,247 Sales, excluding purchases4,086 4,213 3,807 3,202 3,292 Average realized price per pound$3.85 $3.90 $4.33 $2.95 $2.73 Gold (thousands of recoverable ounces) Production 1,993 1,811 1,381 857 882 Sales, excluding purchases1,713 1,823 1,360 855 991 Average realized price per ounce$1,972 $1,787 $1,796 $1,832 $1,415 Molybdenum (millions of recoverable pounds) Production 82 85 85 76 90 Sales, excluding purchases81 75 82 80 90 Average realized price per pound$24.64 $18.71 $15.56 $10.20 $12.61 NORTH AMERICA COPPER MINESOperating Data, Net of Joint Venture Interestsa Copper (millions of recoverable pounds) Production 1,350 1,467 1,460 1,418 1,457 Sales, excluding purchases1,361 1,469 1,436 1,422 1,442 Average realized price per pound$3.93 $4.08 $4.30 $2.82 $2.74 Molybdenum (millions of recoverable pounds) Production 30 29 34 33 32 100% Operating Data Leach operations Leach ore placed in stockpiles (metric tons per day)692,000 676,400 665,900 714,300 750,900 Average copper ore grade (%)0.23 0.29 0.29 0.27 0.23 Copper production (millions of recoverable pounds)941 1,019 1,056 1,047 993 Mill operations Ore milled (metric tons per day)308,500 294,200 269,500 279,700 326,100 Average ore grade (%): Copper0.32 0.37 0.38 0.35 0.34 Molybdenum0.02 0.02 0.03 0.02 0.02 Copper recovery rate (%)81.8 81.8 81.2 84.1 87.0 Copper production (millions of recoverable pounds)633 695 649 647 748 SOUTH AMERICA MINING Copper (millions of recoverable pounds) Production 1,202 1,176 1,047 979 1,183 Sales1,200 1,162 1,055 976 1,183 Average realized price per pound$3.82 $3.80 $4.34 $3.05 $2.71 Molybdenum (millions of recoverable pounds) Production 22 23 21 19 29 Leach operations Leach ore placed in stockpiles (metric tons per day)191,200 163,000 163,900 160,300 205,900 Average copper ore grade (%)0.35 0.35 0.32 0.35 0.37 Copper production (millions of recoverable pounds)317 302 256 241 268 Mill operations Ore milled (metric tons per day)417,400 409,200 380,300 331,600 393,100 Average ore grade (%): Copper0.34 0.32 0.31 0.34 0.36 Molybdenum0.01 0.01 0.01 0.01 0.02 Copper recovery rate (%)81.3 85.3 87.3 84.3 83.5 Copper production (millions of recoverable pounds)885 874 791 738 916" **Prior (2023):** Years Ended December 31, 20222021202020192018CONSOLIDATED MINING Copper (millions of recoverable pounds) Production 4,210 3,843 3,206 3,247 3,813 Sales, excluding purchases4,213 3,807 3,202 3,292 3,811 Average realized price per pound$3.90 $4.33 $2.95 $2.73 $2.91 Gold (thousands of recoverable ounces) Production 1,811 1,381 857 882 2,439 Sales, excluding purchases1,823 1,360 855 991 2,389 Average realized price per ounce$1,787 $1,796 $1,832 $1,415 $1,254 Molybdenum (millions of recoverable pounds) Production 85 85 76 90 95 Sales, excluding purchases75 82 80 90 94 Average realized price per pound$18.71 $15.56 $10.20 $12.61 $12.50 NORTH AMERICA COPPER MINESOperating Data, Net of Joint Venture Interestsa Copper (millions of recoverable pounds) Production 1,467 1,460 1,418 1,457 1,404 Sales, excluding purchases1,469 1,436 1,422 1,442 1,428 Average realized price per pound$4.08 $4.30 $2.82 $2.74 $2.96 Molybdenum (millions of recoverable pounds) Production 29 34 33 32 32 100% Operating Data Leach operations Leach ore placed in stockpiles (metric tons per day)676,400 665,900 714,300 750,900 681,400 Average copper ore grade (%)0.29 0.29 0.27 0.23 0.24 Copper production (millions of recoverable pounds)1,019 1,056 1,047 993 951 Mill operations Ore milled (metric tons per day)294,200 269,500 279,700 326,100 301,000 Average ore grade (%): Copper0.37 0.38 0.35 0.34 0.35 Molybdenum0.02 0.03 0.02 0.02 0.02 Copper recovery rate (%)81.8 81.2 84.1 87.0 87.8 Copper production (millions of recoverable pounds)695 649 647 748 719 SOUTH AMERICA MINING Copper (millions of recoverable pounds) Production 1,176 1,047 979 1,183 1,249 Sales1,162 1,055 976 1,183 1,253 Average realized price per pound$3.80 $4.34 $3.05 $2.71 $2.87 Molybdenum (millions of recoverable pounds) Production 23 21 19 29 28 Leach operations Leach ore placed in stockpiles (metric tons per day)163,000 163,900 160,300 205,900 195,200 Average copper ore grade (%)0.35 0.32 0.35 0.37 0.33 Copper production (millions of recoverable pounds)302 256 241 268 287 Mill operations Ore milled (metric tons per day)409,200 380,300 331,600 393,100 387,600 Average ore grade (%): Copper0.32 0.31 0.34 0.36 0.38 Molybdenum0.01 0.01 0.01 0.02 0.01 Copper recovery rate (%)85.3 87.3 84.3 83.5 84.3 Copper production (millions of recoverable pounds)874 791 738 916 962 **Current (2024):** Years Ended December 31, 20232022202120202019CONSOLIDATED MINING Copper (millions of recoverable pounds) Production 4,212 4,210 3,843 3,206 3,247 Sales, excluding purchases4,086 4,213 3,807 3,202 3,292 Average realized price per pound$3.85 $3.90 $4.33 $2.95 $2.73 Gold (thousands of recoverable ounces) Production 1,993 1,811 1,381 857 882 Sales, excluding purchases1,713 1,823 1,360 855 991 Average realized price per ounce$1,972 $1,787 $1,796 $1,832 $1,415 Molybdenum (millions of recoverable pounds) Production 82 85 85 76 90 Sales, excluding purchases81 75 82 80 90 Average realized price per pound$24.64 $18.71 $15.56 $10.20 $12.61 NORTH AMERICA COPPER MINESOperating Data, Net of Joint Venture Interestsa Copper (millions of recoverable pounds) Production 1,350 1,467 1,460 1,418 1,457 Sales, excluding purchases1,361 1,469 1,436 1,422 1,442 Average realized price per pound$3.93 $4.08 $4.30 $2.82 $2.74 Molybdenum (millions of recoverable pounds) Production 30 29 34 33 32 100% Operating Data Leach operations Leach ore placed in stockpiles (metric tons per day)692,000 676,400 665,900 714,300 750,900 Average copper ore grade (%)0.23 0.29 0.29 0.27 0.23 Copper production (millions of recoverable pounds)941 1,019 1,056 1,047 993 Mill operations Ore milled (metric tons per day)308,500 294,200 269,500 279,700 326,100 Average ore grade (%): Copper0.32 0.37 0.38 0.35 0.34 Molybdenum0.02 0.02 0.03 0.02 0.02 Copper recovery rate (%)81.8 81.8 81.2 84.1 87.0 Copper production (millions of recoverable pounds)633 695 649 647 748 SOUTH AMERICA MINING Copper (millions of recoverable pounds) Production 1,202 1,176 1,047 979 1,183 Sales1,200 1,162 1,055 976 1,183 Average realized price per pound$3.82 $3.80 $4.34 $3.05 $2.71 Molybdenum (millions of recoverable pounds) Production 22 23 21 19 29 Leach operations Leach ore placed in stockpiles (metric tons per day)191,200 163,000 163,900 160,300 205,900 Average copper ore grade (%)0.35 0.35 0.32 0.35 0.37 Copper production (millions of recoverable pounds)317 302 256 241 268 Mill operations Ore milled (metric tons per day)417,400 409,200 380,300 331,600 393,100 Average ore grade (%): Copper0.34 0.32 0.31 0.34 0.36 Molybdenum0.01 0.01 0.01 0.01 0.02 Copper recovery rate (%)81.3 85.3 87.3 84.3 83.5 Copper production (millions of recoverable pounds)885 874 791 738 916 --- ## Modified: Our management of waste rock and tailings are subject to significant environmental, safety and engineering challenges and risks that could adversely affect our business. **Key changes:** - Reworded sentence: "The waste rock (including overburden) and tailings produced in our mining operations represent our largest volume of mine waste material." - Reworded sentence: "Our tailings impoundments in arid areas must have effective programs to suppress fugitive 56 56 56 56 56 56 Table of Contents Table of Contents Table of Contents dust emissions to meet regulatory requirements, which vary depending on location, and to limit potential impacts of dust emissions from our operations on surrounding communities and the environment." - Reworded sentence: "As of January 31, 2024, subsidiaries of our company currently operate 15 active tailings storage facilities (13 in the U.S." - Reworded sentence: "We also manage 35 tailings storage facilities in the U.S." - Reworded sentence: "Some of our tailings storage facilities are located in areas where a failure has the potential to impact individual dwellings and a limited number of our impoundments are in areas where a failure has the potential to impact nearby communities or mining infrastructure." **Prior (2023):** The waste rock (including overburden) and tailings produced in our mining operations represent our largest volume of waste material. Managing the volume of waste rock and tailings presents significant environmental, safety and engineering challenges and risks primarily relating to structural stability, geochemistry, water quality and dust generation. Management of this waste is regulated in the jurisdictions where we operate and our programs are designed to comply with applicable national, state and local laws, permits and approved environmental impact studies. We maintain large leach pads and tailings impoundments containing viscous material. Tailings impoundments include large embankments that must be engineered, constructed and monitored to ensure structural stability and avoid structural collapse. Our tailings impoundments in arid areas must have effective programs to suppress fugitive dust emissions, and we must effectively monitor, prevent and treat acid rock drainage at all of our operations. In Indonesia, we use a river transport system for tailings management, which presents other risks discussed in more detail in the risk factor below relating to the environmental challenges at our Indonesia mining operations. As of January 31, 2023, subsidiaries of our company currently operate 15 active tailings storage facilities (13 in the U.S. and 2 in Peru), of which 10 have an upstream design and 5 have a centerline design. We also manage 48 tailings storage facilities in the U.S. that are inactive or closed (41 with an upstream design, 5 with a centerline design and 2 with a downstream design) and another 9 with an upstream design that are deemed "safely closed" according to the definition in the Tailings Standard. In 2022, we produced approximately 331 million metric tons of tailings. The failure of tailings storage facilities and other embankments at any of our mining operations could cause severe, and in some cases catastrophic, property and environmental damage and loss of life, as well as adverse effects on our business and reputation. Some of our tailings storage facilities are located in areas where a failure has the potential to impact individual dwellings and a limited number of impoundments are in areas where a failure has the potential to impact nearby communities or mining infrastructure. There can be no assurance that a severe or catastrophic failure of any of our facilities will not occur in the future. For additional information regarding the company's tailings management and stewardship program, including the Tailings Standard, refer to Items 1. and 2. "Business and Properties" herein. In addition, as part of our commitment to enhancing our resilience to climate change risks as well as our commitment to implement the Tailings Standard, we will be required to consider uncertainties as a result of climate change, incorporate that assessment into the relevant knowledge base for our tailings facilities, use this knowledge base to enhance the resilience of our approach to the impacts of climate change using an adaptive management approach, incorporate that knowledge into facility operations, and take measures to mitigate both environmental impact and potential failure risks at our active and inactive tailings facilities, including those arising from climate change. These obligations will likely require future changes at our tailings facilities, which could increase our operational expenses or require further capital investments. For further discussion of potential physical impacts of climate change see the related risk factor below. Based on observations from tailings failures at unaffiliated mines, in addition to fatalities and severe personal, property and environmental damages, these events could result in limited or restricted access to mine sites, suspension of operations, decrease in mineral reserves, legal liability, government investigations, additional regulations and restrictions on mining operations in response to any such failure, increased monitoring costs and production costs, increased insurance costs or inability to obtain insurance, increased costs and/or limited access to capital, remediation costs, inability to comply with any additional safety requirements or obtain necessary certifications, evacuation or relocation of communities or other emergency action, and other impacts, which could have a material adverse effect on our operations and financial position. **Current (2024):** The waste rock (including overburden) and tailings produced in our mining operations represent our largest volume of mine waste material. Managing the volume of waste rock and tailings presents significant environmental, safety and engineering challenges and risks primarily relating to structural stability, geochemistry, water quality and dust generation. Management of this waste is regulated in the jurisdictions where we operate and our programs are designed to comply with applicable national, state and local laws, permits and approved environmental impact studies. We maintain large leach pads and tailings impoundments containing viscous material. Tailings impoundments include large embankments that must be engineered, constructed and monitored to ensure structural stability and avoid structural collapse. Our tailings impoundments in arid areas must have effective programs to suppress fugitive 56 56 56 56 56 56 Table of Contents Table of Contents Table of Contents dust emissions to meet regulatory requirements, which vary depending on location, and to limit potential impacts of dust emissions from our operations on surrounding communities and the environment. Additionally, we must effectively monitor, prevent and treat acid rock drainage at all of our operations. In Indonesia, we use a river transport system for tailings management, which presents other risks discussed in more detail in the risk factor below relating to the environmental challenges at our Indonesia mining operations. As of January 31, 2024, subsidiaries of our company currently operate 15 active tailings storage facilities (13 in the U.S. and 2 in Peru), of which 10 have an upstream design and 5 have a centerline design. We also manage 35 tailings storage facilities in the U.S. that are inactive or closed (31 with an upstream design, 2 with a centerline design and 2 with a downstream design) and another 22 that are deemed "safely closed" according to the definition in the Tailings Standard (19 with an upstream design and 3 with a centerline design). In 2023, we produced approximately 341 million metric tons of tailings, including tailings produced by PT-FI. The failure of tailings storage facilities and other embankments at any of our mining operations could cause severe, and in some cases catastrophic, property and environmental damage and loss of life, as well as adverse effects on our business and reputation. Some of our tailings storage facilities are located in areas where a failure has the potential to impact individual dwellings and a limited number of our impoundments are in areas where a failure has the potential to impact nearby communities or mining infrastructure. There can be no assurance that a severe or catastrophic failure of any of our facilities will not occur in the future. For additional information regarding the company's tailings management and stewardship program, including our tailings management system, which incorporates the requirements of the Tailings Standard, refer to Items 1. and 2. "Business and Properties." Based on observations from tailings failures at unaffiliated mines and our risk assessment process, which assesses a range of potential risks to our tailings storage facilities, in addition to fatalities and severe personal, property and environmental damages, these events could result in limited or restricted access to mine sites, suspension of operations, decrease in mineral reserves, legal liability, government investigations, additional regulations and restrictions on mining operations in response to any such failure, increased monitoring costs and production costs, increased insurance costs or costs associated with insufficiency of or inability to obtain insurance, increased costs and/or limited access to capital, remediation costs, inability to comply with any additional safety requirements or obtain necessary certifications, evacuation or relocation of communities or other emergency action, and other impacts, which could have a material adverse effect on our operations and financial position. --- ## Modified: Development projects are inherently risky and may require more capital and have lower economic returns than anticipated, and the development of our underground mines are also subject to other unique risks. **Key changes:** - Reworded sentence: "There are many risks and uncertainties inherent in all development projects including, but not limited to, unexpected or difficult geological formations or conditions and environmental challenges, potential delays (including the ability and timeframe to obtain permits, or because of weather, social or political unrest or any major public health crisis), cost overruns, availability of economic sources and reliable access to water, power and infrastructure, lower levels of production during ramp-up periods, shortages of materials or labor, construction defects, equipment breakdowns and injuries to persons and property, social acceptance of such projects by communities and Indigenous Peoples, partner alignment and efficient and profitable operation of mature properties." - Reworded sentence: ""Business and Properties" and MD&A for further discussion of PT-FI's development of the Kucing Liar deposit in the Grasberg minerals district and our other development projects." **Prior (2023):** Mine development projects typically require a number of years and significant expenditures during the development phase before production is possible. There are many risks and uncertainties inherent in all development projects including, but not limited to, unexpected or difficult geological formations or conditions, potential delays (including the ability and timeframe to obtain permits, or because of weather, social or political unrest and major public health crisis), cost overruns, availability of economic sources and reliable access to water, power and infrastructure, lower levels of production during ramp-up periods, shortages of material or labor, construction defects, equipment breakdowns and injuries to persons and property. 63 63 63 63 63 63 All of our copper and gold production in Indonesia comes from underground mining in the Grasberg minerals district. The operation and development of our underground mines is also subject to other unique risks including, but not limited to, underground fires or floods, ventilating harmful gases, fall-of-ground accidents, and seismic activity resulting from unexpected or difficult geological formations or conditions. For example, we experience mining induced seismic activity from time to time in the Grasberg minerals district. While we anticipate taking all measures that we deem reasonable and prudent in connection with the development of our underground mines to safely manage production, there can be no assurance that these risks will not cause schedule delays, revised mine plans, injuries to persons and property, or increased capital costs, any of which may have a material adverse impact on our cash flows, results of operations and financial condition. Additionally, although we devote significant time and resources to our project planning, approval and review processes, many of our development projects are highly complex and rely on factors that are outside of our control, which may cause the actual time and capital required to complete a development project to exceed our estimates. **Current (2024):** Mine development projects typically require a number of years and significant expenditures during the development phase before production is possible. There are many risks and uncertainties inherent in all development projects including, but not limited to, unexpected or difficult geological formations or conditions and environmental challenges, potential delays (including the ability and timeframe to obtain permits, or because of weather, social or political unrest or any major public health crisis), cost overruns, availability of economic sources and reliable access to water, power and infrastructure, lower levels of production during ramp-up periods, shortages of materials or labor, construction defects, equipment breakdowns and injuries to persons and property, social acceptance of such projects by communities and Indigenous Peoples, partner alignment and efficient and profitable operation of mature properties. Creating and maintaining an inventory of projects depends on many factors and although we devote significant time and resources to our project planning, approval and review processes, many of our development projects are highly complex and rely on factors that are outside of our control, which may cause the actual time and capital required to complete a development project and operating costs after completion to exceed our estimates, especially in periods of high inflation. All of our copper and gold production in Indonesia comes from underground mining in the Grasberg minerals district. The development of our underground mines is also subject to other unique risks including, but not limited to, underground fires or floods, ventilating harmful gases, fall-of-ground accidents, and seismic activity resulting from unexpected or difficult geological formations or conditions, which we experience from time to time in the Grasberg minerals district. While we anticipate taking all measures that we deem reasonable and prudent in connection with the development of our underground mines to safely manage production, there can be no assurance that these risks will not cause schedule delays, revised mine plans, injuries to persons and property, or increased capital costs, any of which may have a material adverse impact on our cash flows, results of operations and financial condition. Refer to Items 1. and 2. "Business and Properties" and MD&A for further discussion of PT-FI's development of the Kucing Liar deposit in the Grasberg minerals district and our other development projects. --- ## Modified: Health and Safety **Key changes:** - Reworded sentence: "Our highest priority is the health, safety and well-being of our employees and contractors." - Reworded sentence: "For example, in the U.S., the operation of our mines is subject to regulation by the U.S." - Reworded sentence: "Additionally, in the U.S., various state agencies have concurrent jurisdiction arising under state law that regulate worker health and safety in both our industrial facilities and mines." - Reworded sentence: "Refer to Exhibit 95.1 to this Form 10-K for additional information regarding certain orders and citations issued by MSHA for our operations during the year ended December 31, 2023." **Prior (2023):** Management believes that safety and health considerations are integral to, and compatible with, all other functions in the organization and that proper safety and health management will enhance production and reduce costs. As a result, we consider the safety and health of our workforce as one of our highest priorities. We are subject to extensive regulation of worker health and safety, including the requirements of the U.S. Occupational Safety and Health Act and similar laws of other jurisdictions. In the U.S., the operation of our 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 our mines on a regular basis and issues citations and orders when it believes a violation has occurred under the Mine Act. Additionally, in the U.S. various state agencies have concurrent jurisdiction arising under state law that regulate worker health and safety in both our industrial facilities and mines. If regulatory inspections result in an alleged violation, we may be subject to fines and penalties and, in instances of alleged significant violations, our mining operations or industrial facilities could be subject to temporary or extended closures. Refer to Exhibit 95.1 to this Form 10-K for additional information regarding certain orders and citations issued by MSHA for our operations during the year ended December 31, 2022. For information about health and safety, refer to "Human Capital" below and Item 4. "Mine Safety Disclosures." **Current (2024):** Our highest priority is the health, safety and well-being of our employees and contractors. We also work to promote our safety-first values with our suppliers and in the communities where we operate. We believe health and safety considerations are integral to, and fundamental for, all other functions in our organization, and we understand the health and safety of our workforce is critical to our operational efficiency and long-term success. We are 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 our 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 our mines on a regular basis and issues citations and orders when it believes a violation has occurred under the Mine Act. Additionally, in the U.S., various state agencies have concurrent jurisdiction arising under state law that regulate worker health and safety in both our industrial facilities and mines. If regulatory inspections result in an alleged violation, we may be subject to fines and penalties and, in instances of alleged significant violations, our mining operations or industrial facilities could be subject to temporary or extended closures. Refer to Exhibit 95.1 to this Form 10-K for additional information regarding certain orders and citations issued by MSHA for our operations during the year ended December 31, 2023. For information about health and safety, refer to "Human Capital" below and Item 4. "Mine Safety Disclosures." --- ## Modified: Our success depends on our ability to recruit, retain, develop and advance qualified personnel. **Key changes:** - Reworded sentence: "Our business depends on our ability to recruit, retain, develop and advance a qualified, inclusive and diverse workforce at all levels, including sufficient personnel to develop, implement and operate new technologies." - Reworded sentence: "Since 2021, we have experienced an increasingly competitive labor market and labor shortages at our North America operations." **Prior (2023):** Our success is dependent on the contributions of our highly skilled and experienced workforce. Our business depends on our ability to recruit, retain, develop and advance a qualified, inclusive and diverse workforce at all levels. Our ability to recruit qualified personnel is affected by the available pool of workers with the training and skills necessary to fill the available positions, the impact on the labor supply because of general economic conditions and our ability to offer competitive compensation and benefit packages. Beginning in 2021 and during 2022, we experienced an increasingly competitive labor market and labor shortages at our North America operations. As a result of this labor shortage, we hired more contract workers in 2022, which increased our costs. If we fail to recruit, retain, develop and advance qualified, inclusive and diverse personnel necessary for the efficient operation of our business, this could result in decreased profitability, productivity and efficiency, safety performance challenges, and the delay of current and potential development projects, any of which may have a material adverse effect on our performance. **Current (2024):** Our success is dependent on the contributions of our highly skilled and experienced workforce. Our business depends on our ability to recruit, retain, develop and advance a qualified, inclusive and diverse workforce at all levels, including sufficient personnel to develop, implement and operate new technologies. Our ability to recruit qualified personnel is affected by the available pool of workers with the training and skills necessary to fill the available positions, the impact on the labor supply because of general economic conditions and our ability to offer competitive compensation and benefit packages. Since 2021, we have experienced an increasingly competitive labor market and labor shortages at our North America operations. The tight labor market, hiring more contract workers, and increased competition from other employers in North America continue to represent strategic challenges that are increasing our costs, reducing efficiency, impacting production and our ability to further expand current mining rates and will impact the timing of future developments in North America. If we fail to recruit, retain, develop and advance qualified, inclusive and diverse personnel necessary for the efficient operation of our business, we could continue to face labor challenges, which may result in, but are not limited to, decreased profitability, further decreases to productivity and efficiency, ongoing safety performance challenges, and the further delay of current and potential development projects, any of which may have a material adverse effect on our performance. --- ## Modified: Mill and Leach Stockpiles **Key changes:** - Reworded sentence: "41 41 41 41 41 41 Table of Contents Table of Contents Table of Contents Expected copper recoveries for leach stockpiles are determined using small-scale laboratory tests, small- to large-scale column testing (which simulates the production process), historical trends and other factors, including mineralogy of the ore and rock type." - Reworded sentence: "Processes and copper recoveries for mill and leach stockpiles are monitored regularly, and recovery estimates are adjusted annually based on new information and as related technology and processing methods change." **Prior (2023):** Mill and leach stockpiles generally contain lower grade ores that have been extracted from an ore body and are available for metal recovery. Mill stockpiles contain sulfide ores and recovery of metal is through milling, concentrating, smelting and refining or, alternatively, by concentrate leaching. Leach stockpiles contain oxide ores and certain secondary sulfide ores and recovery of metal is through exposure to acidic solutions that dissolve contained copper and deliver it in solution to extraction processing facilities. Because it is impracticable to determine copper contained in mill and leach stockpiles by physical count, reasonable estimation methods are employed. The quantity of material delivered to mill and leach stockpiles is based on surveyed volumes of mined material and daily production records. Sampling and assaying of blasthole cuttings determine the estimated copper grades of material delivered to mill and leach stockpiles. Expected copper recoveries for mill stockpiles are determined by metallurgical testing. The recoverable copper in mill stockpiles, once entered into the production process, can be produced into copper concentrate almost immediately. Expected copper recoveries for leach stockpiles are determined using small-scale laboratory tests, small- to large-scale column testing (which simulates the production process), historical trends and other factors, including 42 42 42 42 42 42 mineralogy of the ore and rock type. Total copper recovery in leach stockpiles can vary significantly from a low percentage to more than 90% depending on several variables, including processing methodology, processing variables, mineralogy and particle size of the rock. For newly placed material on active stockpiles, as much as 80% of total copper recovery may be extracted during the first year, and the remaining copper may be recovered over many years. Processes and recoveries are monitored regularly, and recovery estimates are adjusted periodically as additional information becomes available and as related technology changes. Following are our stockpiles and the estimated recoverable copper contained within those stockpiles as of December 31, 2022: RecoverableFCX'sMillion Metric TonsAverageRecoveriesCopperInterestFCX's Interest100% BasisOre Grade (%) (%)(billion lbs.)Mill stockpilesCerro Verde53.56 %37 69 0.27 64.2 0.3 North America copper minesa5 5 0.45 90.0 - b42 74 0.3 Leach stockpilesMorenci72 %5,330 7,408 0.24 1.3 0.5 Bagdad100 %505 505 0.25 1.0 - bSafford, including Lone Star100 %414 414 0.43 6.1 0.2 Sierrita100 %650 650 0.15 8.2 0.2 Miami100 %498 498 0.39 1.8 0.1 Chino, including Cobre100 %1,782 1,782 0.25 2.6 0.3 Tyrone100 %1,208 1,208 0.28 1.6 0.1 Cerro Verde53.56 %314 587 0.44 4.6 0.3 El Abra51 %456 893 0.43 2.7 0.2 11,158 13,947 1.9 Total FCX - 100% basis2.2 Total FCX - Consolidated basisc2.1 Total FCX - Net equity interestd1.7 100% Basis North America copper minesa b b **Current (2024):** Mill and leach stockpiles generally contain lower grade ores that have been extracted from an ore body and are available for metal recovery. Mill stockpiles contain sulfide ores and recovery of metal is through milling, concentrating, smelting and refining or, alternatively, by concentrate leaching. Leach stockpiles contain oxide ores and certain secondary sulfide ores and recovery of metal is through exposure to acidic solutions that dissolve contained copper and deliver it in solution to extraction processing facilities. Because it is impracticable to determine copper contained in mill and leach stockpiles by physical count, reasonable estimation methods are employed. The quantity of material delivered to mill and leach stockpiles is based on surveyed volumes of mined material and daily production records. Sampling and assaying of blasthole cuttings determine the estimated copper grades of material delivered to mill and leach stockpiles. Expected copper recoveries for mill stockpiles are determined by metallurgical testing. The recoverable copper in mill stockpiles, once entered into the production process, can be produced into copper concentrate almost immediately. 41 41 41 41 41 41 Table of Contents Table of Contents Table of Contents Expected copper recoveries for leach stockpiles are determined using small-scale laboratory tests, small- to large-scale column testing (which simulates the production process), historical trends and other factors, including mineralogy of the ore and rock type. Total copper recovery in leach stockpiles can vary significantly from a low percentage to more than 90% depending on several variables, including processing methodology, processing variables, mineralogy and particle size of the rock. For newly placed material on active stockpiles, as much as 80% of total copper recovery may be extracted during the first year, and the remaining copper may be recovered over many years. Processes and copper recoveries for mill and leach stockpiles are monitored regularly, and recovery estimates are adjusted annually based on new information and as related technology and processing methods change. Based on the 2023 annual review of mill and leach stockpiles, our estimated recoverable copper in certain leach stockpiles increased by 73 million pounds (net of joint venture interests), primarily associated with Morenci leach stockpiles. Following are our stockpiles and the estimated recoverable copper contained within those stockpiles as of December 31, 2023: RecoverableFCX'sMillion Metric TonsAverageRecoveriesCopperInterestFCX's Interest100% BasisOre Grade (%) (%)(billion lbs.)Mill stockpilesCerro Verde53.56 %32 59 0.27 65.9 0.2 North America copper minesa5 5 0.45 82.6 - b37 64 0.3 Leach stockpilesMorenci72 %5,456 7,584 0.24 0.8 0.3 Bagdad100 %506 506 0.25 0.9 - bSafford, including Lone Star100 %451 451 0.43 5.2 0.2 Sierrita100 %650 650 0.15 7.9 0.2 Miami100 %498 498 0.39 1.6 0.1 Chino, including Cobre100 %1,794 1,794 0.25 2.2 0.2 Tyrone100 %1,213 1,213 0.28 1.2 0.1 Cerro Verde53.56 %315 588 0.44 4.4 0.3 El Abra51 %476 934 0.42 2.8 0.2 11,359 14,217 1.6 Total FCX - 100% basis1.9 Total FCX - Consolidated basisc1.8 Total FCX - Net equity interestd1.5 100% Basis North America copper minesa b b --- ## Modified: The physical impacts of climate change may adversely affect our mining operations, workforce, communities, biodiversity and ecosystems, supply chains and customers, which may result in increased costs. **Key changes:** - Reworded sentence: "We recognize that as the climate changes, our operations, workforce, communities, biodiversity and ecosystems, supply chains and customers may be exposed to changes in the frequency, intensity and/or duration of intense storms, drought, flooding (including from sea level rise at our coastal operations), wildfire, and other extreme weather events and patterns (such as extreme heat)." - Reworded sentence: "For additional information regarding risks relating to availability of water and operational risks inherent in mining, see related risk factors above." **Prior (2023):** We recognize that as the climate changes, our operations, workforce, communities, supply chains and customers may be exposed to changes in the frequency, intensity and/or duration of intense storms, drought, flooding (including from sea level rise at our coastal operations), wildfire, and other extreme weather events and patterns (such as extreme heat). Such potential physical impacts of climate change on our operations are highly uncertain, and would vary by operation based on particular geographic circumstances. At many of our mine sites, climate change is projected to impact local precipitation regimes, resulting in shorter-duration, higher-intensity storm events, and the potential for less precipitation overall. We could face increased operational costs associated with managing additional volumes of storm water during more intense future events, including supply disruption, delays, damage to or inaccessibility of our facilities and increased pricing of consumables and components we purchase. In addition, the potential for overall decreases in precipitation could affect the availability of water needed for our operations, leading to increased operating costs, or in extreme cases, disruptions to our mining operations. For additional information regarding risks relating to availability of water, see related risk factor above. 67 67 67 67 67 67 **Current (2024):** We recognize that as the climate changes, our operations, workforce, communities, biodiversity and ecosystems, supply chains and customers may be exposed to changes in the frequency, intensity and/or duration of intense storms, drought, flooding (including from sea level rise at our coastal operations), wildfire, and other extreme weather events and patterns (such as extreme heat). Such potential physical impacts of climate change on our operations are highly uncertain and would vary by operation based on particular geographic circumstances. For example, at many of our mine sites, climate change is projected to impact local precipitation regimes, resulting in shorter-duration, higher-intensity storm events, and the potential for less precipitation overall. We could face increased operational costs associated with managing additional volumes of storm water during more intense future events, including supply disruption, delays, damage to or inaccessibility of our facilities and increased pricing of consumables and components we purchase. In addition, the potential for overall decreases in precipitation could affect the availability of water needed for our operations, leading to increased operating costs, or in extreme cases, disruptions to our mining operations. For additional information regarding risks relating to availability of water and operational risks inherent in mining, see related risk factors above. --- ## Modified: Tailings Management **Key changes:** - Reworded sentence: "Our tailings management and stewardship program, which involves qualified external Engineers of Record and periodic oversight by Independent Tailings Review Boards and our Tailings Stewardship Team, conform with the tailings governance framework on preventing catastrophic failure of tailings storage facilities adopted by the ICMM." - Reworded sentence: ""Risk Factors" for further discussion of the risks associated with our tailings management." **Prior (2023):** We dedicate substantial financial resources and internal and external technical resources to pursue the safe management of our tailings facilities and to reduce or eliminate the number of and potential consequences of credible failure modes. Our tailings management and stewardship program, which involves qualified external Engineers of Record and periodic oversight by independent tailings Technical Review Boards and our Tailings Stewardship Team, complies with the tailings governance framework on preventing catastrophic failure of tailings storage facilities adopted by the ICMM. In August 2020, the co-conveners of the Global Tailings Review, which included ICMM, published the Global Industry Standard on Tailings Management (the Tailings Standard). The Tailings Standard includes 77 requirements across 6 key areas, including the design, construction, operation and monitoring of tailings facilities, management and governance, emergency response and long-term recovery, and public disclosure. As a member of ICMM, we are committed to implementation of the Tailings Standard by August 2023 for our tailings storage facilities with "Extreme" or "Very High" potential consequences of credible failure modes (as defined in the Tailings Standard) and by August 2025 for our remaining facilities. We believe we have the financial capacity to meet current estimated lifecycle costs, including estimated closure, post-closure and reclamation obligations associated with our tailings storage facilities. We continue to enhance our existing practices to strengthen the design, operation and closure of tailings storage facilities in an effort to reduce the risk of severe or catastrophic failure of those facilities. Refer to Item 1A. "Risk Factors" for further discussion. **Current (2024):** We dedicate substantial financial resources and internal and external technical resources to pursue the safe management of our tailings facilities and to reduce or eliminate the number of and potential consequences of credible failure modes. Our tailings management and stewardship program, which involves qualified external Engineers of Record and periodic oversight by Independent Tailings Review Boards and our Tailings Stewardship Team, conform with the tailings governance framework on preventing catastrophic failure of tailings storage facilities adopted by the ICMM. Further, our Tailings Management Policy outlines our continued commitment to managing our tailings responsibly and effectively across our sites globally. As an ICMM member and in accordance with our commitment in our Tailings Management Policy, we also have implemented the Global Industry Standard on Tailings Management (the Tailings Standard) for all tailings storage facilities with "Extreme" or "Very High" potential consequences based on "credible failure modes" and are committed to implementing the Tailings Standard by August 2025 for all other tailing storage facilities that have not been deemed "Safely Closed" (each as defined in the Tailings Standard). We believe we have the financial capacity to meet current estimated lifecycle costs, including estimated closure, post-closure and reclamation obligations associated with our tailings storage facilities. We continue to enhance our existing practices to strengthen the design, operation and closure of tailings storage facilities in an effort to reduce the risk of severe or catastrophic failure of those facilities. Refer to Item 1A. "Risk Factors" for further discussion of the risks associated with our tailings management. --- ## Modified: Our mining operations are subject to operational risks that could adversely affect our business, including the ability to smelt and refine, and our underground mining operations have higher risks than a surface mine. **Key changes:** - Reworded sentence: "These operational risks, which could materially adversely affect our business, operating results and cash flows, include earthquakes, rainstorms, floods, wildfires and other natural disasters; environmental hazards, including discharge of metals, concentrates, pollutants or hazardous chemicals; surface or underground fires; equipment failures; accidents, including in connection with mining equipment, milling equipment or conveyor systems, transportation of chemicals, explosives or other materials and in the transportation of employees and other individuals to and from sites (including where these services are provided by third parties such as vehicle and aircraft transport); wall failures and rock slides in our open-pit mines, and structural collapses of our underground mines or tailings impoundments; underground water and ore management; lower than expected ore grades or recovery rates; and seismic activity resulting from unexpected or difficult geological formations or conditions (whether in mineral or gaseous form)." - Reworded sentence: "There can be no assurance that unanticipated geotechnical and hydrological conditions may not occur, nor whether these conditions may lead to events such as landslides and pit wall failures, or that such events will be detected in advance." - Reworded sentence: "For example, in late 2022, significant rainfall events impacted production at Morenci." - Reworded sentence: "We also experience mining induced seismic activity, including landslides, from time to time in the Grasberg minerals district in addition to severe weather." - Reworded sentence: "In February 2023, PT-FI's operations were temporarily disrupted because of significant rainfall and landslides, which restricted access to infrastructure near its milling operations." **Prior (2023):** We have assets in a variety of geographic locations, all of which exist in and around broader communities and environments. Maintaining the operational integrity and performance of our assets is crucial to protect our people, the environment and communities in which we operate. Our mines are very large in scale and, by their nature are subject to significant operational risks, some of which are outside of our control, and many of which are not covered fully, or in some cases even partially, by insurance. These operational risks, which could materially and adversely affect our business, operating results and cash flows, include earthquakes, rainstorms, floods, wildfires and other natural disasters; environmental hazards, including discharge of metals, concentrates, pollutants or hazardous chemicals; surface or underground fires; equipment failures; accidents, including in connection with mining equipment, milling equipment or conveyor systems, transportation of chemicals, explosives or other materials and in the transportation of employees and other individuals to and from sites (including where these services are provided by third parties such as vehicle and aircraft transport); wall failures and rock slides in our open-pit mines, and structural collapses of our underground mines or tailings impoundments; underground water and ore management; 56 56 56 56 56 56 lower than expected ore grades or recovery rates; and seismic activity resulting from unexpected or difficult geological formations or conditions (whether in mineral or gaseous form). For a discussion of risks specific to our tailings management, see the risk factor below relating to our management of waste rock and tailings. We are facing continued geotechnical challenges because of the older age of some of our open-pit mines and a trend toward mining deeper pits and more complex deposits. There can be no assurance that unanticipated geotechnical and hydrological conditions may or may not occur, nor whether these conditions may lead to events such as landslides and pit wall failures, in the future or that such events will be detected in advance. Geotechnical instabilities can be difficult to predict and are often affected by risks and hazards outside of our control, such as seismic activity or severe weather, which may lead to floods, mudslides, pit-wall instability and possibly even slippage of material. In early 2019, our El Abra operation in Chile experienced heavy rainfall and electrical storms. As a result, our operating results for 2019 were impacted by a suspension of El Abra's crushed leach stacking operations for approximately 35 days. We cannot predict whether similar events will occur in the future or the extent to which any such event would affect this, or any of our other operations. Our business is dependent upon our workforce being able to safely perform their jobs, including the potential for physical injuries or illness. Underground mining operations can be particularly dangerous, and in May 2013, a tragic accident, which resulted in 28 fatalities and 10 injuries, occurred at the Grasberg minerals district when the rock structure above the ceiling of an underground training facility collapsed. There can be no assurance that similar events will not occur in the future. We experience mining induced seismic activity, including landslides, from time to time in the Grasberg minerals district. The mine site is also in an active seismic area and has experienced earth tremors from time to time. In addition to the usual risks encountered in the mining industry, our Indonesia mining operations involve additional risks given their location in steep mountainous terrain in a remote area of Indonesia. These conditions have required us to overcome special engineering difficulties and develop extensive infrastructure facilities. The area also receives extreme rainfall, which has led to periodic floods and mudslides. Since February 11, 2023, PT-FI's operations have been temporarily disrupted because of significant rainfall and landslides, which restricted access to infrastructure near its milling operations. Recovery activities are in progress to clear debris from the affected areas and PT-FI is in the process of gradually resuming operations. Operations are expected to be fully restored by the end of February 2023. As a result of this disruption, we expect our first-quarter 2023 sales volumes to be lower than previously expected. If PT-FI is not able to resume operations as currently expected or on our anticipated timeline, our results of operations may be further impacted. We cannot predict whether additional occurrences of seismic activity, extreme rainfall or other unexpected geological activity will occur that could cause material schedule delays or additional revisions to PT-FI's mine plans, which could adversely affect our cash flows, results of operations and financial condition. We maintain insurance at amounts we believe to be reasonable to cover some of these risks and hazards; however, our insurance may not sufficiently cover losses from certain natural or operating disasters. There can be no assurance that such insurance will continue to be available, maintained, or that it will be available at economically feasible premiums. We may elect to not purchase insurance for certain risks because of the high premium costs associated with insuring such risk or for various other reasons. We do not have coverage for certain environmental losses and other risks. The lack of, or insufficiency of, insurance coverage could adversely affect our cash flows and overall profitability. The occurrence of one or more of these events in connection with our exploration activities and development of and production from mining operations may result in the death of, or personal injury to, our employees, other personnel or third parties, the loss of mining equipment, damage to or destruction of mineral properties or production facilities, significant repair costs, monetary losses, deferral or unanticipated fluctuations in production, extensive community disruption (including short- and long-term health and safety risks), loss of licenses, permits or necessary approvals to operate, loss of workforce confidence, loss of infrastructure and services, disruption to essential supplies or delivery of our products, environmental damage and potential legal liabilities, all of which may adversely affect our reputation, business, prospects, results of operations and financial position. Further, the impacts of any serious incidents that occur may also be amplified if we fail to respond timely or in an appropriate manner. 57 57 57 57 57 57 **Current (2024):** We have assets in a variety of geographic locations, all of which exist in and around broader communities and environments. Maintaining the operational integrity and performance of our assets is crucial to protect our people, the environment and communities in which we operate. Our mines are very large in scale and, by their nature are subject to significant operational risks, some of which are outside of our control, and many of which are not covered fully, or in some cases even partially, by insurance. These operational risks, which could materially adversely affect our business, operating results and cash flows, include earthquakes, rainstorms, floods, wildfires and other natural disasters; environmental hazards, including discharge of metals, concentrates, pollutants or hazardous chemicals; surface or underground fires; equipment failures; accidents, including in connection with mining equipment, milling equipment or conveyor systems, transportation of chemicals, explosives or other materials and in the transportation of employees and other individuals to and from sites (including where these services are provided by third parties such as vehicle and aircraft transport); wall failures and rock slides in our open-pit mines, and structural collapses of our underground mines or tailings impoundments; underground water and ore management; lower than expected ore grades or recovery rates; and seismic activity resulting from unexpected or difficult geological formations or conditions (whether in mineral or gaseous form). For a discussion of risks specific to our tailings management, see the risk factors below relating to our management of waste rock and tailings, including our river transport system for tailings management in Indonesia. We are facing continued geotechnical challenges because of the older age of some of our open-pit mines and a trend toward mining deeper pits and more complex deposits. There can be no assurance that unanticipated geotechnical and hydrological conditions may not occur, nor whether these conditions may lead to events such as landslides and pit wall failures, or that such events will be detected in advance. Geotechnical instabilities can be difficult to predict and are often affected by risks and hazards outside of our control, such as seismic activity or severe weather, which may lead to floods, mudslides, pit-wall instability and possibly even slippage of material. For example, in late 2022, significant rainfall events impacted production at Morenci. Further, in early 2019, our El Abra 55 55 55 55 55 55 Table of Contents Table of Contents Table of Contents operation experienced heavy rainfall and electrical storms. As a result, our operating results for 2019 were impacted by a suspension of El Abra's crushed leach stacking operations for approximately 35 days. We also experience mining induced seismic activity, including landslides, from time to time in the Grasberg minerals district in addition to severe weather. The mine site is in an active seismic area and has experienced earth tremors from time to time. In addition to the usual risks encountered in the mining industry, our Indonesia mining operations involve additional risks given their location in steep mountainous terrain in a remote area of Indonesia. These conditions have required us to overcome special engineering difficulties and develop extensive infrastructure facilities. The area also receives extreme rainfall, which has led to periodic floods and mudslides. In February 2023, PT-FI's operations were temporarily disrupted because of significant rainfall and landslides, which restricted access to infrastructure near its milling operations. We cannot predict whether similar weather-related or seismic events will occur in the future or the extent to which any such event would affect these, or any of our other operations. Our business is dependent upon our workforce being able to safely perform their jobs. The occurrence of one or more of these events in connection with our exploration activities and development of and production from mining operations may result in the death of, or personal injury or illness to, our employees, other personnel or third parties, the loss of mining equipment, damage to or destruction of mineral properties or production facilities, significant repair costs, monetary losses, deferral or unanticipated fluctuations in production, extensive community disruption (including short- and long-term health and safety risks), loss of licenses, permits or necessary approvals to operate, loss of workforce confidence, loss of infrastructure and services, disruption to essential supplies or delivery of our products, environmental damage and potential legal liabilities, any of which may adversely affect our reputation, business, prospects, results of operations and financial position. Further, the impacts of any serious incidents that occur may also be amplified if we fail to respond timely or in an appropriate manner. Underground mining operations have unique risks that can be particularly dangerous, such as those associated with supporting the underground openings. In May 2013, the rock structure above the ceiling of an underground training facility at the Grasberg minerals district collapsed, which resulted in 28 fatalities and 10 injuries. While we have implemented preventative measures, we cannot guarantee that any incidents will not occur in the future. In addition, we could also be subject to operational risks at our smelters and refineries once PT-FI is fully dependent on its ability to smelt and refine domestically all its concentrates and slimes produced by its mining operations at the PT Smelting and the Indonesia smelter projects. Any delay, loss of access or limited availability and capacity related to these smelting and refinery facilities, including equipment failures, unanticipated or extended shutdowns, inability to sell certain by-products, lack of capacity to store certain by-products, severe weather, social or political unrest or any major public health crisis, any of which may not be recognized by the Indonesia government as a force majeure event, may significantly impact our ability to export and sell our copper and gold products, even if alternative refineries or smelters outside of Indonesia are available, and could adversely impact our revenues and results of operations. We maintain insurance at amounts we believe to be reasonable to cover some of these risks and hazards; however, our insurance may not sufficiently cover losses from certain of these risks and hazards. There can be no assurance that such insurance will continue to be available, maintained or available at economically feasible premiums, that the proceeds of such insurance will be paid in a timely manner or that we will be adequately compensated for losses actually incurred, if at all. We may elect to not purchase insurance for certain risks because of the high premium costs associated with insuring such risk or for various other reasons. We do not have coverage for certain environmental losses and other risks, including the legal liabilities associated with these risks. The lack of, or insufficiency of, insurance coverage could adversely affect our cash flows and overall profitability. --- ## Modified: PT-FI will not mine all of the ore reserves in the Grasberg minerals district before the initial term of its IUPK expires in 2031. PT-FI's IUPK may not be extended through 2041 if PT-FI fails to abide by its terms and conditions and applicable laws and regulations. **Key changes:** - Reworded sentence: "Under the terms of PT-FI's IUPK, PT-FI has been granted mining rights through 2031, with rights to extend its mining rights through 2041, subject to, among other things, PT-FI's completion of construction of additional domestic smelting and refining capacity." - Reworded sentence: "Prior to the end of 2031, we expect to mine 43% of aggregate proven and probable recoverable mineral reserves at December 31, 2023, representing approximately half of our net equity share of recoverable copper and gold reserves." **Prior (2023):** On December 21, 2018, PT-FI was granted an IUPK to replace its former COW, enabling PT-FI to conduct operations in the Grasberg minerals district through 2041. Under the terms of the IUPK, PT-FI has been granted mining rights through 2031, with rights to extend its mining rights through 2041, subject to, among other things, PT-FI's completion of construction of additional domestic smelting capacity totaling 2 million dry metric tons of 55 55 55 55 55 55 concentrate per year by the end of 2023 (an extension of which has been requested because of COVID-19 mitigation measures, subject to the approval of the Indonesia government), and fulfilling its defined fiscal obligations to the Indonesia government. Refer to Note 13 for a summary of the IUPK's key fiscal terms. The expansion of PT Smelting is expected to be complete by the end of 2023 and the construction of the greenfield smelter is expected to be completed during 2024, which is subject to, among other things, no additional COVID-19 related disruptions. The IUPK also requires PT-FI to pay duties on concentrate exports of 2.5% now that development progress for additional smelting capacity in Indonesia has exceeded 30%, which may be eliminated upon receiving verification and approval from the Indonesia government that development progress for additional smelting capacity in Indonesia has exceeded 50%. Refer to Note 12 for further discussion of the administrative fine paid by PT-FI to the Indonesia government for failing to achieve physical development progress on the greenfield smelter. The current capital cost estimate for the greenfield smelter and related precious metal refinery approximates $3 billion (excluding capitalized interest, owner's costs and commissioning). Capital expenditures for the Indonesia smelter projects are being funded with proceeds from PT-FI's senior notes and its available revolving credit facility. PT-FI's ability to raise and service any additional sources of capital, if needed, would be a function of macroeconomic conditions, and future market prices as well as PT-FI's operational performance, cash flows and debt position, among other factors. Additional financing may not be available if and when needed or, if available, the terms of such financing may not be favorable to PT-FI. See the risk factor below regarding increasing scrutiny and evolving expectations from stakeholders, including creditors, with respect to our ESG practices, performance and disclosures. Our proven and probable mineral reserves in Indonesia reflect estimates of minerals that can be recovered through the end of 2041, and PT-FI's current long-term mine plan and planned operations are based on the assumption that PT-FI will abide by the terms and conditions of the IUPK and will be granted the 10-year extension from 2031 through 2041. As a result, PT-FI will not mine all of these mineral reserves during the initial term of the IUPK. Prior to the end of 2031, we expect to mine 46% of aggregate proven and probable recoverable mineral reserves at December 31, 2022, representing approximately half of our net equity share of recoverable copper and gold reserves. If PT-FI does not complete the construction of additional domestic smelting capacity totaling 2 million metric tons of concentrate per year by the end of 2023 (an extension of which has been requested because of COVID-19 mitigation measures, subject to the approval of the Indonesia government), or fulfill its defined fiscal obligations to the Indonesia government as set forth in the IUPK, the IUPK may not be extended from 2031 through 2041, and PT-FI would be unable to mine all of its proven and probable mineral reserves in the Grasberg minerals district, which would adversely affect our business, results of operations and financial position. PT-FI and the Indonesia government have begun preliminary discussions regarding the extension of PT-FI's IUPK beyond 2041. We cannot predict whether PT-FI will be successful in the extension of its IUPK beyond 2041. **Current (2024):** Under the terms of PT-FI's IUPK, PT-FI has been granted mining rights through 2031, with rights to extend its mining rights through 2041, subject to, among other things, PT-FI's completion of construction of additional domestic smelting and refining capacity. Refer to Note 13 for a summary of the IUPK's key fiscal terms and development of additional smelting and refining capacity. Our proven and probable mineral reserves in Indonesia reflect estimates of minerals that can be recovered through the end of 2041, and PT-FI's current long-term mine plan and planned operations are based on the assumption that PT-FI will abide by the terms and conditions of the IUPK and will be granted the 10-year extension from 2031 through 2041. As a result, PT-FI will not mine all of these mineral reserves during the initial term of the IUPK. Prior to the end of 2031, we expect to mine 43% of aggregate proven and probable recoverable mineral reserves at December 31, 2023, representing approximately half of our net equity share of recoverable copper and gold reserves. If PT-FI does not complete the construction of additional domestic smelting and refining capacity, or fulfill its defined fiscal obligations to the Indonesia government as set forth in the IUPK, the IUPK may not be extended from 2031 through 2041, and PT-FI would be unable to mine all of its proven and probable mineral reserves in the Grasberg minerals district, which could adversely affect our business, results of operations and financial position. PT-FI and the Indonesia government continue to engage in discussions regarding the extension of PT-FI's IUPK beyond 2041. Given the long-term nature of planning for mining investments, the Indonesia government is updating regulations that would enable PT-FI to apply for an extension of its IUPK beyond 2041. We cannot predict whether the regulations will be updated or that PT-FI will be successful in applying for the extension of its IUPK beyond 2041. --- ## Modified: SOURCES AND AVAILABILITY OF ENERGY, NATURAL RESOURCES AND RAW MATERIALS **Key changes:** - Reworded sentence: "Energy represented 19% of our copper mine site operating costs in 2023, including purchases of approximately 250 million gallons of diesel fuel; approximately 8,650 gigawatt hours of electricity at our North America and South America copper mining operations (we generate all of our power at our Indonesia mining operation); approximately 700 thousand metric tons of coal for our coal power plant in Indonesia; and approximately 2 million MMBtu (million British thermal units) of natural gas at certain of our North America mines." - Added sentence: "For further discussion of risks associated with various input costs, refer to Item 1A." **Prior (2023):** Our copper mining operations require significant amounts of energy, principally diesel, electricity, coal and natural gas, most of which is obtained from third parties under long-term contracts. Historically, copper prices have been correlated to various input costs, including energy and other commodity-related consumables. During 2022, prices 27 27 27 27 27 27 Table of Contents Table of Contents Table of Contents for a number of commodity-related consumables increased at a time when copper prices declined. While a number of commodity-related consumables have retreated from the highs of 2022, most cost elements remain high relative to long-term correlations. For a further discussion of risks associated with various input costs, refer to Item 1A. "Risk Factors." Energy represented approximately 21% of our copper mine site operating costs in 2022, including purchases of approximately 230 million gallons of diesel fuel; approximately 8,400 gigawatt hours of electricity at our North America and South America copper mining operations (we generate all of our power at our Indonesia mining operation); approximately 820 thousand metric tons of coal for our coal power plant in Indonesia; and approximately 1 million MMBtu (million British thermal units) of natural gas at certain of our North America mines. Based on current cost estimates, energy is expected to approximate 24% of our copper mine site operating costs in 2023. Our mining operations also require significant quantities of water for mining, ore processing and related support facilities. The loss of water rights for any of our mines, in whole or in part, or shortages of water to which we have rights, could require us to curtail or shut down mining operations. For a further discussion of risks and legal proceedings associated with the availability of water, refer to "Governmental Regulations" above, Item 1A. "Risk Factors" and Item 3. "Legal Proceedings." Sulfuric acid is used in the SX/EW process and is produced as a by-product of the smelting process at our smelters and from our sulfur burners at the Safford mine. Sulfuric acid needs in excess of the sulfuric acid produced by our operations are purchased from third parties. **Current (2024):** Our copper mining operations require significant amounts of energy, principally diesel, electricity, coal and natural gas, most of which is obtained from third parties under long-term contracts. Energy represented 19% of our copper mine site operating costs in 2023, including purchases of approximately 250 million gallons of diesel fuel; approximately 8,650 gigawatt hours of electricity at our North America and South America copper mining operations (we generate all of our power at our Indonesia mining operation); approximately 700 thousand metric tons of coal for our coal power plant in Indonesia; and approximately 2 million MMBtu (million British thermal units) of natural gas at certain of our North America mines. Based on current cost estimates, energy is expected to approximate 20% of our copper mine site operating costs in 2024. Our mining operations also require significant quantities of water for mining, ore processing and related support facilities. The loss of water rights for any of our mines, in whole or in part, or shortages of water to which we have rights, could require us to curtail or shut down mining operations. For a further discussion of risks and legal proceedings associated with the availability of water, refer to "Governmental Regulations" above, Item 1A. "Risk Factors" and Item 3. "Legal Proceedings." Sulfuric acid is used in the SX/EW process and is produced as a by-product of the smelting process at our smelters and from our sulfur burners at the Safford mine. Sulfuric acid needs in excess of the sulfuric acid produced by our operations are purchased from third parties. For further discussion of risks associated with various input costs, refer to Item 1A. "Risk Factors." --- ## Modified: Violence, civil and religious strife, and activism could result in loss of life and disrupt our operations. **Key changes:** - Reworded sentence: "Indonesia Indonesia has long faced separatist movements and civil and religious strife in a number of provinces." - Reworded sentence: "Social, economic and political instability in Central Papua could materially adversely affect us if it results in damage to our property or interruption of our Indonesia operations." - Added sentence: "Once the PMR is commissioned, we expect to be exposed to security risks relating to loss and theft of refined precious metals." - Added sentence: "Any such loss or theft could lead to financial loss or a failure to satisfy our customers, which could have an adverse impact on our reputation and business." - Reworded sentence: "If other disruptive incidents occur, they could adversely affect our results of operations and financial condition." **Prior (2023):** Indonesia has long faced separatist movements and civil and religious strife in a number of provinces. Several separatist groups have sought increased political independence for the province of Central Papua, where our Grasberg minerals district is located. In Central Papua, there have been attacks on civilians by separatists and conflicts between separatists and the Indonesia military and police. In addition, illegal artisanal miners have clashed with police who have attempted to move them away from our facilities. Social, economic and political instability in Central Papua could materially and adversely affect us if it results in damage to our property or interruption of our Indonesia operations. Starting in 2009, shooting incidents have occurred within the PT-FI project area, including along the road leading to our mining and milling operations, and there have been 22 fatalities and more than 75 injuries to our employees, contractor employees, government security personnel and civilians. There were several shooting incidents in the first half of 2020, including an incident near a PT-FI office building where one employee was killed and two others injured. In January 2021, a helicopter contracted to PT-FI was fired upon and struck by a single gunshot in an area adjacent to the project area. In 2022, outside of the PT-FI operational area but within the province of Central Papua, there were at least 30 incidents of separatist violence, resulting in 29 fatalities. Separatist security incidents, including shootings, continue to occur in Central Papua. PT-FI actively monitors security conditions and the occurrence of incidents both within the project area and regionally. The safety of our workforce is a critical concern, and PT-FI continues to work with the Indonesia government to enhance security and address security-related issues within the PT-FI project area and in nearby areas. Although we have implemented measures and safeguards consistent with both international standards and our own internal standards relating to the use of force and respect for human rights, the implementation of these measures and safeguards does not guarantee that personnel, national police or other security forces will uphold these standards in every instance. We continue to limit the use of the road leading to PT-FI's mining and milling operations to secured convoys, including transport of personnel by armored vehicles in designated areas. We cannot predict whether additional incidents will occur that could result in loss of life, or disruption or suspension of PT-FI's operations. If other disruptive incidents occur, they could adversely affect our results of operations and financial condition in ways that we cannot predict at this time. South America countries have historically experienced uneven periods of economic growth, as well as recession, periods of high inflation and general economic and political instability. Since 2019, both Peru and Chile have experienced significant civil unrest unrelated to our operations. For example, in 2022, an unaffiliated copper producer in southern Peru repeatedly curtailed or suspended operations because of repeated and sustained community protests on the government-designated concentrate transport route along public roads, which have constrained such producer and at times other local producers from shipping their products. Such protests are ongoing. Other operations in the region have encountered significant issues with trespassers, illegal artisanal miners, and civil demonstrations that impact their current operations, expansion projects, logistical supply and product transport. Such protests have occasionally been accompanied by acts of violence and property damage, and continue intermittently in the region. Although such civil unrest has not significantly impacted our results, similar events in the future could cause our South America operations to be materially impacted, in which case, we may not be able to meet our production and sales targets. Political uncertainty has created potential instability in the regulatory environment in Peru. In December 2022, Peru's congress impeached President Castillo, who was subsequently taken into custody by Peruvian authorities, and Vice President Boluarte was sworn in as president. Following these events, there have been widespread and sometimes violent political protests, including attacks on civil infrastructure and businesses, which have resulted in delays in the transport of supplies, products and people at our Cerro Verde mine. Other mining operations in the region have temporarily halted mining activities as a result of the civil unrest. A national state of emergency has been declared, and military forces deployed to augment national police, which have resulted in civilian and police fatalities. Although there has been a limited impact on Cerro Verde's operations, the situation in Peru remains uncertain, and a prolonged disruption of logistics and supply chains could impact future operations. In Chile, despite the overwhelming electoral approval of a proposal to rewrite the constitution in a 2020 referendum, the product of the constitutional assembly was rejected by over 60% of voters in 2022. While support for constitutional reform remains strong, uncertainty in the resolution of constitutional reform may contribute to incidents of social unrest. We cannot predict whether similar or more significant incidents of civil unrest or political instability will occur in the future in Peru or Chile. 60 60 60 60 60 60 **Current (2024):** Indonesia Indonesia has long faced separatist movements and civil and religious strife in a number of provinces. Several separatist groups have sought increased political independence for the province of Central Papua, where our Grasberg minerals district is located. In Central Papua, there have been attacks on civilians by separatists and conflicts between separatists and the Indonesia military and police. In addition, illegal artisanal miners have clashed with police who have attempted to move them away from our facilities. Social, economic and political instability in Central Papua could materially adversely affect us if it results in damage to our property or interruption of our Indonesia operations. Shooting incidents have occurred within the PT-FI project area, including along the road leading to our mining and milling operations, which in some instances have involved fatalities or injuries to our employees, contractor employees, government security personnel and civilians. We incurred no fatalities or injuries relating to shootings within the PT-FI project area since April 2020, and we have had no shootings associated with the PT-FI project area 58 58 58 58 58 58 Table of Contents Table of Contents Table of Contents since January 2021. During the first half of 2020, there were several shooting incidents, including an incident near a PT-FI office building where one employee was killed and two others injured. In January 2021, a helicopter contracted by PT-FI was fired upon and struck by a single gunshot in an area adjacent to the project area. In 2023, outside of the PT-FI operational area but within the province of Central Papua, there were at least 40 incidents of separatist violence, resulting in 20 fatalities. Separatist security incidents, including shootings, attacks on civil infrastructure and arson, continue to occur in Central Papua and other areas near the PT-FI project area. PT-FI actively monitors security conditions and the occurrence of incidents both within the project area and regionally. The safety of our workforce is a critical concern, and PT-FI continues to work with the Indonesia government to enhance security and address security-related issues within the PT-FI project area and in nearby areas. Although we have implemented measures and safeguards consistent with both international standards and our own internal standards relating to the use of force and respect for human rights, the implementation of these measures and safeguards does not guarantee that personnel, national police or other security forces will uphold these standards in every instance. We continue to limit the use of the road leading to PT-FI's mining and milling operations to secured convoys, including transport of personnel by armored vehicles in designated areas. Once the PMR is commissioned, we expect to be exposed to security risks relating to loss and theft of refined precious metals. Any such loss or theft could lead to financial loss or a failure to satisfy our customers, which could have an adverse impact on our reputation and business. We cannot predict whether additional incidents will occur that could result in loss of life, or disruption or suspension of PT-FI's operations. If other disruptive incidents occur, they could adversely affect our results of operations and financial condition. South America South America countries have historically experienced uneven periods of economic growth, as well as recession, periods of high inflation and general economic and political instability. In Peru, political uncertainty has created instability in the regulatory environment. Beginning in December 2022 and continuing in 2023, heightened tensions, protests and social unrest emerged in Peru following a change in the country's political leadership, which temporarily resulted in delays in the transport of supplies, products and people at our Cerro Verde mine. During first-quarter 2023, Cerro Verde also operated at reduced rates from time-to-time until it resumed normal operations in March 2023. Other mining operations in the region temporarily halted mining activities as a result of the civil unrest. While demonstrations and road blockages subsided in 2023, the potential for civil unrest and disruption of commerce and supply chains continues. Other operations in the region have encountered significant issues with trespassers, illegal artisanal miners and civil demonstrations that impact their current operations, expansion projects, logistical supply and product transport. Such protests have occasionally been accompanied by acts of violence and property damage and continue intermittently in the region. In Chile, despite the overwhelming electoral approval of a proposal to rewrite the constitution in a 2020 referendum, the product of the constitutional assembly was rejected by a majority of voters in 2022 and 2023. Uncertainty in the resolution of constitutional reform may contribute to incidents of social unrest. We cannot predict whether similar or more significant incidents of civil unrest or political instability will occur in the future in Peru or Chile. Although such civil unrest has not significantly impacted our results, similar events in the future could cause our South America operations to be materially impacted, in which case, we may not be able to meet our production and sales targets. --- ## Modified: Our Indonesia mining operations are susceptible to difficult and costly environmental challenges, and future changes in Indonesia environmental laws could increase our costs. **Key changes:** - Reworded sentence: "Our primary challenge is to dispose of the large volume of tailings." - Reworded sentence: "Levees have been constructed along both sides of the lowlands tailings management area to act as containment structures to laterally contain the footprint of the tailings deposition within the approved tailings management area." - Reworded sentence: "In addition, the Grasberg overburden stockpiles experienced erosion over time, caused by the large amounts of rainfall, with the eroded stockpile material eventually entering into the lowlands tailings management area." - Reworded sentence: "Under certain conditions, a failure may necessitate evacuation or relocation of communities or other emergency action, financial assistance to the communities impacted, and remediation costs to repair and compensate for the social, cultural and economic impacts associated with such failure." **Prior (2023):** Mining operations on the scale of our Indonesia operations involve significant environmental risks and challenges. Our primary challenge is to dispose of the large amount of tailings. In 2022, PT-FI produced approximately 67 million metric tons of tailings. Our tailings management plan, which has been approved by the Indonesia government, uses an unnavigable river in the highlands to transport the tailings from the mill to an engineered tailings management area in the lowlands. Levees have been constructed along both sides of the lowlands tailings 58 58 58 58 58 58 management area to act as containment structures to laterally contain the footprint of the tailings deposition within the approved tailings management area. Another major environmental challenge at PT-FI is managing overburden, which is rock that was required to be moved aside in the open pit mining process to reach the ore in the Grasberg open pit. In the presence of air, water and naturally occurring bacteria, some overburden can generate acid rock drainage, or acidic water containing dissolved metals that, if not properly managed, can adversely affect the environment. In addition, the Grasberg overburden stockpiles have experienced erosion over time, caused by the large amounts of rainfall, with the eroded stockpile material eventually entering into the lowlands tailings management area. This eroded overburden affects the volume as well as the physical and chemical characteristics of the sediment material deposited in the lowlands tailings management area, which can result in environmental impacts. PT-FI's current tailings deposition management plan as well as robust environmental monitoring programs take into account the presence of this overburden in the lowlands tailings management area. As part of its ongoing management and monitoring program, PT-FI expanded the scope of its monitoring and analyses used to assess possible impacts to the environment and human health from overburden erosion and tailings, including conducting and updating a human health risk assessment. During 2022, PT-FI continued routine assessment of surface waters, groundwaters, sediments and soils, dust and terrestrial and aquatic tissues. Furthermore, PT-FI has been assisting local health authorities with an extensive regency-wide community health survey, which is providing further data on community health issues, including any potential impacts from operations. The ongoing community health work will assist in determining what additional monitoring and mitigation efforts may be required in the future. In the past, the Indonesia government has raised questions with respect to our tailings and overburden management plans, including a suggestion that we implement a tailings pipeline and dam rather than the river transport system for tailings management. Our Indonesia mining operations are remotely located in steep mountainous terrain and in an active seismic area, which also experiences extreme weather events; such that, the pipeline infrastructure required to convey the volume of material is not feasible, and would be more prone to failure, and could therefore involve significant potentially adverse environmental issues. Based on our own studies and others conducted by third parties, we believe that our controlled riverine transport system is the best site-specific option for tailings management at the Indonesia site. Overtopping or failure of any tailings containment structures (levees or protection structures) induced by extreme weather events such as floods, a major seismic event or naturally-occurring weak ground under the structures, are potential risks. The potential impacts from any such occurrence could vary significantly depending upon the specific location of the failure. Unanticipated structural failure of these structures in certain areas in the future could result in flooding of the nearby communities and related loss of lives and/or severe personal, property and environmental damages. Under certain conditions, a failure may necessitate evacuation or relocation of communities or other emergency action, financial assistance to the communities impacted, and remediation costs to repair and compensate for the social, cultural and economic impacts. In addition, in the southern portion of the approved tailings management area, tailings have the potential to create depositional impacts outside of the approved boundary unless the protection structures (as proposed by PT-FI) are extended. An extension of these protection structures is planned and is currently awaiting permitting, which continues to progress. If the permitting for these protection structures is not received in a timely manner, or not received at all, there is a risk that the tailings in the lower portion of the tailings management area could create depositional impacts outside of our approved footprint and potentially impact the environment and communities. Refer to Items 1. and 2. "Business and Properties" for further discussion of our environmental obligations in Indonesia. Managing these environmental challenges at our Indonesia operations could result in reputational harm and increased costs that could be significant. There can be no assurance that future environmental changes affecting the mining industry in Indonesia will not be introduced or unexpectedly altered or repealed, or that new interpretations of existing Indonesia environmental laws and regulations will not be issued, which could have a significant impact on PT-FI. 59 59 59 59 59 59 **Current (2024):** Mining operations on the scale of our Indonesia operations involve significant environmental risks and challenges. Our primary challenge is to dispose of the large volume of tailings. In 2023, PT-FI produced approximately 69 million metric tons of tailings. Our tailings management plan, which has been approved by the Indonesia government, uses an unnavigable river in the highlands to transport the tailings from the mill to an engineered tailings management area in the lowlands. Levees have been constructed along both sides of the lowlands tailings management area to act as containment structures to laterally contain the footprint of the tailings deposition within the approved tailings management area. Another major environmental challenge at PT-FI is managing overburden, which is rock that was required to be moved aside in the open pit mining process to reach the ore in the Grasberg open pit. In the presence of air, water and naturally occurring bacteria, some overburden can generate acid rock drainage, or acidic water containing dissolved metals that, if not properly managed, can adversely affect the environment. In addition, the Grasberg overburden stockpiles experienced erosion over time, caused by the large amounts of rainfall, with the eroded stockpile material eventually entering into the lowlands tailings management area. This eroded overburden affects the volume as well as the physical and chemical characteristics of the sediment material deposited in the lowlands tailings management area, which can, if not properly managed, result in environmental impacts. The underlying overburden erosion and run-off are being managed and controlled through an extensive re-sloping and water management project, and PT-FI has not experienced similar erosion issues since 2018. However, PT-FI continues to monitor for potential impacts resulting from past erosion or the possibility of erosion recurrence. PT-FI's current tailings deposition management plan and environmental monitoring program consider the presence of this overburden in the lowlands tailings management area. PT-FI has expanded the scope of its ongoing management and monitoring, which assesses possible impacts to the environment and human health from overburden erosion and tailings. During 2023, PT-FI continued its routine assessments of surface waters, groundwaters, sediments and soils, dust and terrestrial and aquatic tissues. As part of the expanded scope, in 2022 57 57 57 57 57 57 Table of Contents Table of Contents Table of Contents and 2023, PT-FI also assisted the Mimika local health authority with an extensive regency-wide community health survey, which provided further data on a broad range of community health issues. The local health authority then prioritized those items having the greatest expected impact on public health. There were no impacts attributable to PT-FI's operations (inclusive of tailings and overburden erosion) that were determined to be a priority focus following the results of the local health authority's assessment. In response to the health survey results, PT-FI and the local health authority have agreed to collaborate on public health challenges. Future testing and community health surveys may be used to assess the effectiveness of the local health authority's priority programs and educational efforts. In the past, the Indonesia government, stakeholders and other third parties have raised questions with respect to our tailings and overburden management plans, including a suggestion that we implement a tailings pipeline and dam rather than the river transport system for tailings management. Our Indonesia mining operations are remotely located in steep mountainous terrain and in an active seismic area, which also experiences extreme weather events; such that, the pipeline infrastructure required to convey the volume of material is not feasible. Based on our own studies and others conducted by third parties, we believe that our controlled riverine transport system is the best site-specific option for tailings management at the Grasberg minerals district. Overtopping or failure of any of the PT-FI tailings containment structures (levees or protection structures) induced by extreme weather events such as floods, a major seismic event or naturally-occurring weak ground under the structures, are potential risks. The potential impacts from any such occurrence could vary significantly depending upon the specific location of the failure. Unanticipated structural failure of these structures in certain areas in the future could result in flooding of the nearby communities and related loss of lives and/or severe personal, property and environmental damages. Under certain conditions, a failure may necessitate evacuation or relocation of communities or other emergency action, financial assistance to the communities impacted, and remediation costs to repair and compensate for the social, cultural and economic impacts associated with such failure. In addition, in the southern (estuary) portion of the approved tailings management area, mathematical modeling of certain sediment transport scenarios indicate tailings have the potential to be deposited outside of the approved lateral levees in adjacent mangroves. PT-FI has proposed additional extensions to the existing levees to the Indonesia regulators and is further evaluating the potential benefits and impacts. Indonesia regulators have further proposed a different strategy involving efforts to increase sediment retention through various methods as well as increase beneficial use of tailings. If the additional retention efforts are not successful, or if the permitting for these proposed protection structures is not reconsidered, any such depositional impacts outside of our existing approved footprint could impact the environment and communities. Refer to Items 1. and 2. "Business and Properties" for further discussion of our environmental obligations in Indonesia. Managing these environmental challenges at our Indonesia operations could result in reputational harm and increased costs that could be significant. There can be no assurance that future environmental changes affecting the mining industry in Indonesia will not be introduced or unexpectedly altered or repealed, or that new interpretations of existing Indonesia environmental laws and regulations will not be issued, which could have a significant impact on PT-FI. --- ## Modified: Total FCX - Net equity interestf **Key changes:** - Reworded sentence: "In addition, amounts for "Measured + Indicated" and "Total Mineral Reserves" may not equal the sum of measured, indicated and inferred (as presented on the prior page) because of rounding." - Reworded sentence: "f.Net equity interest represents estimated consolidated mineral resources further reduced for noncontrolling interest ownership (refer to Note 3 for further discussion of our ownership in subsidiaries)." **Prior (2023):** Recoverable metal in stockpilesb a Recoverable metal in stockpilesb 48.76%c 48.76%c 48.76%c Kucing Liard 48.76%c **Current (2024):** Note: Totals may not foot because of rounding. In addition, amounts for "Measured + Indicated" and "Total Mineral Reserves" may not equal the sum of measured, indicated and inferred (as presented on the prior page) because of rounding. a.Mineral resources are exclusive of mineral reserves. b.Estimated recoveries are consistent with those for mineral reserves but would require additional work to substantiate. c.All sites report a % equivalent copper grade except for Climax and Henderson, which report a % molybdenum grade. Our underground mines report a breakeven cutoff grade, and our open-pit mines report an internal cutoff grade. d.Amounts not shown because of rounding. e.Consolidated basis represents estimated mineral resources after reduction for Morenci's joint venture partner interests (refer to Note 3 for further discussion). f.Net equity interest represents estimated consolidated mineral resources further reduced for noncontrolling interest ownership (refer to Note 3 for further discussion of our ownership in subsidiaries). 45 45 45 45 45 45 Table of Contents Table of Contents Table of Contents The table below summarizes changes in estimated contained copper, gold and molybdenum in mineral resources between December 31, 2022 and 2023, for our material properties: Estimated Contained Mineral Resources at 100% BasisCopper(billion lbs.)Gold(million ozs.)Molybdenum(billion lbs.)MorenciCerro VerdeGrasberg minerals districtGrasberg minerals districtMorenciCerro VerdeMineral resources as of December 31, 202232.0 25.5 48.7 58.9 1.96 0.85 Adjustmentsa(1.7)(2.5)(0.5)(0.4)(0.24)(0.07)Mineral resources as of December 31, 202330.3 23.0 48.2 58.4 1.72 0.78 Year-over-year percentage change(5)%(10)%(1)%(1)%(12)%(8)% Adjustmentsa Adjustmentsa Estimated Contained Mineral Resources at Net Equity BasisCopper(billion lbs.)Gold(million ozs.)Molybdenum(billion lbs.)MorenciCerro VerdeGrasberg minerals districtGrasberg minerals districtMorenciCerro Verde72%53.56%48.76%48.76%72%53.56%Mineral resources as of December 31, 202223.0 13.7 23.7 28.7 1.41 0.45 Adjustmentsa(1.2)(1.4)(0.2)(0.2)(0.17)(0.04)Mineral resources as of December 31, 202321.8 12.3 23.5 28.5 1.24 0.42 Year-over-year percentage change(5)%(10)%(1)%(1)%(12)%(7)% Adjustmentsa Adjustmentsa Note: Totals may not foot because of rounding a.Adjustments are primarily the result of higher cost assumptions. Morenci adjustments were partially offset by transferring material from reserves to resources in revised mine designs. --- ## Modified: Employee Engagement, Training and Development **Key changes:** - Added sentence: "We continued to face challenges in 2023 with an increasingly competitive and tight labor market, particularly in North America, and we remain committed to assessing our recruitment and training and development programs to adapt to the changing labor market and our employee needs." - Reworded sentence: "We focus on recruiting and retaining talented people by offering quality employment with competitive compensation and benefits, which support our efforts in the tight labor markets." - Reworded sentence: "To support the advancement of our employees, we offer training and development programs encouraging advancement from within and continue to promote strong and experienced management talent." - Added sentence: "We expect our talent management processes and corresponding training and development programs will continue to mature and evolve in line with our commitment to continuous improvement." **Prior (2023):** In addition to the health, safety and well-being of our global workforce, we have prioritized retaining a flexible, highly engaged and agile workforce. A key to our success is the ability to recruit, retain, develop and advance talented employees with diverse perspectives. We are committed to ongoing training and development of our workforce. We focus on recruiting and retaining talented people by offering quality employment with competitive compensation and benefits as well as opportunities for professional development and growth. Strategic talent reviews and succession planning occur regularly and across all business areas. To support the advancement of our employees, we offer training and development programs encouraging advancement from within and continue to promote strong and experienced management 29 29 29 29 29 29 talent. We leverage both formal and informal programs to identify, foster and retain top talent at both the corporate and operations levels. **Current (2024):** In addition to the health, safety and well-being of our global workforce, we have prioritized retaining a flexible, highly engaged and agile workforce. A key to our success is the ability to recruit, retain, develop and advance talented employees with diverse perspectives. We continued to face challenges in 2023 with an increasingly competitive and tight labor market, particularly in North America, and we remain committed to assessing our recruitment and training and development programs to adapt to the changing labor market and our employee needs. We are committed to ongoing training and development of our workforce. We focus on recruiting and retaining talented people by offering quality employment with competitive compensation and benefits, which support our efforts in the tight labor markets. We also offer opportunities for professional development and advancement. Strategic talent reviews and succession planning occur regularly and across all business areas. To support the advancement of our employees, we offer training and development programs encouraging advancement from within and continue to promote strong and experienced management talent. We leverage both formal and informal programs to identify, foster and retain top talent at both the corporate and operations levels. We expect our talent management processes and corresponding training and development programs will continue to mature and evolve in line with our commitment to continuous improvement. --- ## Modified: The Copper Mark **Key changes:** - Reworded sentence: "We demonstrate our responsible production performance through the Copper Mark, a comprehensive assurance framework developed specifically for the copper industry, and recently extended to other metals including molybdenum." - Reworded sentence: "As a member company, we are required to implement the 10 Mining Principles which define good ESG practices, and associated position statements, while also meeting 39 performance expectations and producing an externally verified sustainability report utilizing the Global Reporting Initiative Sustainability Reporting Standards subject to the ICMM Assurance & Validation Procedure." **Prior (2023):** We are committed to maintaining the validation of all of our copper producing sites with the Copper Mark, a comprehensive assurance framework designed to demonstrate the copper industry's responsible production practices. To achieve the Copper Mark, each site is required to complete an external assurance process to assess conformance with 32 environmental, social and governance (ESG) requirements. In February 2023, PT-FI was awarded the Copper Mark and we have now achieved the Copper Mark at all 12 of our eligible copper producing sites globally. In fourth-quarter 2022, the Copper Mark announced an extension of its framework to include molybdenum producers, among other metal producers. In February 2023, our Climax and Henderson molybdenum mines were awarded the Molybdenum Mark, making FCX the first molybdenum miner to achieve this distinction. Our four copper mines that produce by-product molybdenum (Bagdad, Cerro Verde, Morenci and Sierrita) have also been awarded the Molybdenum Mark. ICMM We are a founding member of the International Council on Mining & Metals (ICMM), an organization dedicated to a safe, fair and sustainable mining and metals industry, aiming continuously to strengthen ESG performance across the global mining and metals industry. As a member company, we are required to implement the 10 Mining Principles which define good ESG practices, and associated position statements, while also meeting 39 performance expectations and producing an externally verified sustainability report in accordance with the Global Reporting Initiative Sustainability Reporting Standards subject to the ICMM Assurance & Validation Procedure. **Current (2024):** We demonstrate our responsible production performance through the Copper Mark, a comprehensive assurance framework developed specifically for the copper industry, and recently extended to other metals including molybdenum. To achieve the Copper Mark, each site is required to complete an independent external assurance process to assess conformance with 33 environmental, social and governance (ESG) criteria. Awarded sites must be revalidated every three years. We have achieved the Copper Mark and/or Molybdenum Mark, as applicable, at all of our sites globally. ICMM We are a founding member of the International Council on Mining & Metals (ICMM), an organization dedicated to a safe, fair and sustainable mining and metals industry, aiming continuously to strengthen ESG performance across the global mining and metals industry. As a member company, we are required to implement the 10 Mining Principles which define good ESG practices, and associated position statements, while also meeting 39 performance expectations and producing an externally verified sustainability report utilizing the Global Reporting Initiative Sustainability Reporting Standards subject to the ICMM Assurance & Validation Procedure. --- ## Modified: MINING DEVELOPMENT PROJECTS AND EXPLORATION ACTIVITIES **Key changes:** - Reworded sentence: "In 2023, capital expenditures totaled $4.8 billion (including $1.8 billion for major mining projects - primarily for underground development activities in the Grasberg minerals district - and $1.7 billion for Indonesia smelter projects)." - Reworded sentence: "Additionally, full development of PT-FI's underground mineral reserves at the Grasberg minerals district is expected to require approximately $6 billion (most will be incurred over the next 11 years) of capital expenditures at our processing facilities to optimize the handling of underground ore from the Grasberg Block Cave, DMLZ and Kucing Liar deposits." - Removed sentence: "Exploration spending associated with mining operations totaled $105 million in 2022 (primarily to advance Lone Star and other opportunities at our North America copper mines), $50 million in 2021 and $34 million in 2020." **Prior (2023):** Capital expenditures totaled $3.5 billion (including $1.7 billion for major mining projects and $0.8 billion for Indonesia smelter projects) in 2022, $2.1 billion (including $1.25 billion for major mining projects and $0.2 billion for Indonesia smelter projects) in 2021 and $2.0 billion (including $1.2 billion for major mining projects and $0.1 billion for Indonesia smelter projects) in 2020. Capital expenditures for major mining projects were primarily associated with underground development activities in the Grasberg minerals district, and also included expenditures associated with the Lone Star copper leach project at our Safford mine in 2021 and 2020. We have several projects and potential opportunities to expand production volumes, extend mine lives and develop large-scale underground ore bodies. As further discussed in MD&A, our near-term major development projects will focus on the underground development activities in the Grasberg minerals district. Considering the long-term nature and large size of our development projects, actual costs and timing could vary from estimates. Additionally, in response to market conditions, the timing of our expenditures will continue to be reviewed. We continue to review our mine development and processing plans to maximize the value of our mineral reserves. Additionally, full development of PT-FI's underground mineral reserves at the Grasberg minerals district is expected to require approximately $3 billion (most of which will be incurred over an approximate 12-year period) of capital expenditures at our processing facilities to optimize the handling of underground ore from the Grasberg Block Cave, DMLZ and Kucing Liar deposits. Increases in power loads at these processing facilities and the underground mines are expected to require additional power generation with capital expenditures approximating $0.6 billion for new dual-fuel power generation, upgrades to existing transmission lines, and refurbishment of the existing three coal units. Our mining exploration activities are primarily associated with our existing mines, focusing on opportunities to expand mineral reserves and resources to support development of additional future production capacity. Exploration results continue to indicate opportunities for significant future potential reserve additions at our existing properties in North America and South America. Exploration spending associated with mining operations totaled $105 million in 2022 (primarily to advance Lone Star and other opportunities at our North America copper mines), $50 million in 2021 and $34 million in 2020. Refer to Item 1A. "Risk Factors" for further discussion of risks associated with mine development projects and exploration activities, and PT-FI's IUPK. **Current (2024):** In 2023, capital expenditures totaled $4.8 billion (including $1.8 billion for major mining projects - primarily for underground development activities in the Grasberg minerals district - and $1.7 billion for Indonesia smelter projects). We have several projects and potential opportunities to expand production volumes, extend mine lives and develop large-scale underground ore bodies. As further discussed in MD&A, our near-term major development projects will focus on the underground development activities in the Grasberg minerals district. Considering the long-term nature and large size of our development projects, actual costs and timing could vary from estimates. Additionally, in response to market conditions, the timing of our expenditures will continue to be reviewed. We continue to review our mine development and processing plans to maximize the value of our mineral reserves. Additionally, full development of PT-FI's underground mineral reserves at the Grasberg minerals district is expected to require approximately $6 billion (most will be incurred over the next 11 years) of capital expenditures at our processing facilities to optimize the handling of underground ore from the Grasberg Block Cave, DMLZ and Kucing Liar deposits. Increases in power loads at these processing facilities and the underground mines are expected to require additional power generation and as such, PT-FI is planning investments in a new gas-fired combined cycle facility. Capital expenditures for the new power generation facilities, to be incurred over the next four years, 26 26 26 26 26 26 Table of Contents Table of Contents Table of Contents approximate $1 billion which represents an incremental cost of $0.4 billion compared to previously planned investments to refurbish the existing coal units. Refer to "Mining Operations" for further discussion. In 2023, exploration spending associated with our mining operations totaled $112 million. Our mining exploration activities are primarily associated with our existing mines, focusing on opportunities to expand mineral reserves and resources to support development of additional future production capacity. Exploration results continue to indicate opportunities for significant future potential reserve additions at our existing properties in North America and South America. Refer to Item 1A. "Risk Factors" for further discussion of risks associated with mine development projects and exploration activities, and PT-FI's IUPK. --- ## Modified: SELECTED OPERATING DATA (Continued) **Key changes:** - Reworded sentence: "Years Ended December 31, 20232022 202120202019INDONESIA MININGCopper (millions of recoverable pounds) Production 1,660 1,567 1,336 809 607 Sales1,525 1,582 1,316 804 667 Average realized price per pound$3.81 $3.80 $4.34 $3.08 $2.72 Gold (thousands of recoverable ounces) Production 1,978 1,798 1,370 848 863 Sales1,697 1,811 1,349 842 973 Average realized price per ounce$1,972 $1,787 $1,796 $1,832 $1,416 Mill operations Ore milled (metric tons per day)198,300 192,600 151,600 87,700 110,100 Average ore grade: Copper (%)1.22 1.19 1.30 1.32 0.84 Gold (grams per metric ton)1.12 1.05 1.04 1.10 0.93 Recovery rates (%): Copper89.7 90.0 89.8 91.9 88.4 Gold77.9 77.7 77.0 78.1 75.0 MOLYBDENUM MINESOre milled (metric tons per day)27,900 26,100 21,800 20,700 30,100 Average molybdenum ore grade (%)0.15 0.18 0.19 0.17 0.14 Molybdenum production (millions of recoverable pounds)30 33 30 24 29" **Prior (2023):** Years Ended December 31, 20222021 202020192018INDONESIA MININGOperating Dataa Copper (millions of recoverable pounds) Production 1,567 1,336 809 607 1,160 Sales1,582 1,316 804 667 1,130 Average realized price per pound$3.80 $4.34 $3.08 $2.72 $2.89 Gold (thousands of recoverable ounces) Production 1,798 1,370 848 863 2,416 Sales1,811 1,349 842 973 2,366 Average realized price per ounce$1,787 $1,796 $1,832 $1,416 $1,254 100% Operating Data Ore milled (metric tons per day)192,600 151,600 87,700 110,100 178,100 Average ore grade: Copper (%)1.19 1.30 1.32 0.84 0.98 Gold (grams per metric ton)1.05 1.04 1.10 0.93 1.58 Recovery rates (%): Copper90.0 89.8 91.9 88.4 91.8 Gold77.7 77.0 78.1 75.0 84.7 Production: Copper (millions of recoverable pounds)1,567 1,336 809 607 1,227 Gold (thousands of recoverable ounces)1,798 1,370 848 863 2,697 MOLYBDENUM MINESOre milled (metric tons per day)26,100 21,800 20,700 30,100 27,900 Average molybdenum ore grade (%)0.18 0.19 0.17 0.14 0.18 Molybdenum production (millions of recoverable pounds)33 30 24 29 35 **Current (2024):** Years Ended December 31, 20232022 202120202019INDONESIA MININGCopper (millions of recoverable pounds) Production 1,660 1,567 1,336 809 607 Sales1,525 1,582 1,316 804 667 Average realized price per pound$3.81 $3.80 $4.34 $3.08 $2.72 Gold (thousands of recoverable ounces) Production 1,978 1,798 1,370 848 863 Sales1,697 1,811 1,349 842 973 Average realized price per ounce$1,972 $1,787 $1,796 $1,832 $1,416 Mill operations Ore milled (metric tons per day)198,300 192,600 151,600 87,700 110,100 Average ore grade: Copper (%)1.22 1.19 1.30 1.32 0.84 Gold (grams per metric ton)1.12 1.05 1.04 1.10 0.93 Recovery rates (%): Copper89.7 90.0 89.8 91.9 88.4 Gold77.9 77.7 77.0 78.1 75.0 MOLYBDENUM MINESOre milled (metric tons per day)27,900 26,100 21,800 20,700 30,100 Average molybdenum ore grade (%)0.15 0.18 0.19 0.17 0.14 Molybdenum production (millions of recoverable pounds)30 33 30 24 29 --- ## Modified: Major public health crises may have an adverse impact on our business. **Key changes:** - Reworded sentence: "Pandemics, epidemics, widespread illness or other major public health crises could negatively impact the global economy and adversely affect our operations and business, including our ability to conduct business, demand for the commodities we produce and our profit margins." - Removed sentence: "There can be no assurance that our actions in response would be effective in containing and mitigating the risk of spread or a major outbreak of any public health crisis (including COVID-19) at our operating sites." **Prior (2023):** Pandemics, epidemics, widespread illness or other health crises, such as the COVID-19 pandemic (including any new variants), that interfere with the ability of our employees, suppliers, customers, financing sources or others to conduct business have and could adversely affect the global economy and our operations and business, including demand for the commodities we produce and our profit margins. For further information, see the risk factor above regarding fluctuations in market prices of the commodities we produce and the risk factor below regarding the prices and availability of the consumables and components we purchase and constraints on supply and logistics. 61 61 61 61 61 61 Actions taken by governmental authorities and third parties to contain and mitigate the risk of spread of any major public health crisis, including COVID-19, may negatively impact our business, including a disruption of or change to our operating plans. For example, in mid-March 2020, we had to temporarily transition our Cerro Verde mine to care and maintenance status and adjust operations to prioritize critical activities in response to a decree issued by the Peru government relating to COVID-19. Our business and results of operations could be adversely affected if significant portions of our workforce are unable to work effectively, including because of illness, quarantines, government actions or other restrictions, or if workplace entry and travel are restricted resulting in the delay of key personnel or external consultants accessing our sites. There can be no assurance that our actions in response would be effective in containing and mitigating the risk of spread or a major outbreak of any public health crisis (including COVID-19) at our operating sites. A major health crisis at any of our operating sites, and particularly at PT-FI's remote operating site, could disrupt or change our operating plans, which may have a material adverse effect on our business and results of operations. **Current (2024):** Pandemics, epidemics, widespread illness or other major public health crises could negatively impact the global economy and adversely affect our operations and business, including our ability to conduct business, demand for the commodities we produce and our profit margins. Actions taken by governmental authorities and third parties to contain and mitigate the risk of spread of any major public health crisis may negatively impact our business, including a disruption of or change to our operating plans. For example, in March 2020, we had to temporarily transition our Cerro Verde mine to care and maintenance status and adjust operations to prioritize critical activities in response to a decree issued by the Peru government relating to COVID-19. Our business and results of operations could be adversely affected if significant portions of our workforce are unable to work effectively, including because of illness, quarantines, government actions or other restrictions, or if workplace entry and travel are restricted resulting in the delay of key personnel or external consultants accessing our sites. A major health crisis at any of our operating sites, and particularly at PT-FI's remote operating site, could disrupt or change our operating plans, which may have a material adverse effect on our business and results of operations. --- ## Modified: MINING PRODUCTION AND SALES DATA **Key changes:** - Reworded sentence: "Years Ended December 31,ProductionSalesCOPPER (millions of recoverable pounds)202320222021202320222021(FCX's net interest in %) North America Morenci (72%)a575 636 631 578 639 632 Safford (100%)245 285 265 250 281 252 Sierrita (100%)185 184 189 183 186 187 Bagdad (100%)146 165 184 148 169 185 Chino (100%)141 130 124 143 127 114 Tyrone (100%)51 59 55 53 59 53 Miami (100%)12 11 12 12 11 13 Other (100%)(5)(3) - (6)(3) - Total North America1,350 1,467 1,460 1,361 1,469 1,436 South America Cerro Verde (53.56%)985 974 887 988 964 888 El Abra (51%)217 202 160 212 198 167 Total South America1,202 1,176 1,047 1,200 1,162 1,055 Indonesia Grasberg minerals district (48.76%)b1,660 1,567 1,336 1,525 1,582 1,316 Consolidated4,212 4,210 3,843 4,086 c4,213 c3,807 cLess noncontrolling interests1,414 845 741 1,344 840 741 Net2,798 3,365 3,102 2,742 3,373 3,066 Average realized price per pound$3.85 $3.90 $4.33 GOLD (thousands of recoverable ounces) (FCX's net interest in %)North America (100%)15 13 11 16 12 11 Indonesia (48.76%)b1,978 1,798 1,370 1,697 1,811 1,349 Consolidated1,993 1,811 1,381 1,713 1,823 1,360 Less noncontrolling interests952 337 257 808 339 252 Net1,041 1,474 1,124 905 1,484 1,108 Average realized price per ounce$1,972 $1,787 $1,796 MOLYBDENUM (millions of recoverable pounds) (FCX's net interest in %)Climax (100%)17 21 18 N/AN/AN/AHenderson (100%)13 12 12 N/AN/AN/ANorth America copper mines (100%)a30 29 34 N/AN/AN/ACerro Verde (53.56%)22 23 21 N/AN/AN/AConsolidated82 85 85 81 75 82 Less noncontrolling interest10 11 10 10 10 9 Net72 74 75 71 65 73 Average realized price per pound$24.64 $18.71 $15.56 COPPER (millions of recoverable pounds) Morenci (72%)a Grasberg minerals district (48.76%)b c c c GOLD (thousands of recoverable ounces) Indonesia (48.76%)b MOLYBDENUM (millions of recoverable pounds) North America copper mines (100%)a COPPER (millions of recoverable pounds) Morenci (72%)a Grasberg minerals district (48.76%)b c c c GOLD (thousands of recoverable ounces) Indonesia (48.76%)b MOLYBDENUM (millions of recoverable pounds) North America copper mines (100%)a a.Amounts are net of Morenci's joint venture partners' undivided interest." **Prior (2023):** Years Ended December 31,ProductionSalesCOPPER (millions of recoverable pounds)202220212020202220212020(FCX's net interest in %) North America Morenci (72%)a636 631 707 639 632 711 Safford (100%)285 265 161 281 252 150 Sierrita (100%)184 189 178 186 187 177 Bagdad (100%)165 184 216 169 185 213 Chino (100%)130 124 92 127 114 108 Tyrone (100%)59 55 45 59 53 45 Miami (100%)11 12 17 11 13 16 Other (100%)(3) - 2 (3) - 2 Total North America1,467 1,460 1,418 1,469 1,436 1,422 South America Cerro Verde (53.56%)974 887 820 964 888 825 El Abra (51%)202 160 159 198 167 151 Total South America1,176 1,047 979 1,162 1,055 976 Indonesia Grasberg minerals district (48.76%)b1,567 1,336 809 1,582 1,316 804 Consolidated4,210 3,843 3,206 4,213 c3,807 c3,202 cLess noncontrolling interests845 741 610 840 741 608 Net3,365 3,102 2,596 3,373 3,066 2,594 Average realized price per pound$3.90 $4.33 $2.95 GOLD (thousands of recoverable ounces) (FCX's net interest in %)North America (100%)13 11 9 12 11 13 Indonesia (48.76%)b1,798 1,370 848 1,811 1,349 842 Consolidated1,811 1,381 857 1,823 1,360 855 Less noncontrolling interests337 257 159 339 252 158 Net1,474 1,124 698 1,484 1,108 697 Average realized price per ounce$1,787 $1,796 $1,832 MOLYBDENUM (millions of recoverable pounds) (FCX's net interest in %)Climax (100%)21 18 14 N/AN/AN/AHenderson (100%)12 12 10 N/AN/AN/ANorth America copper mines (100%)a29 34 33 N/AN/AN/ACerro Verde (53.56%)23 21 19 N/AN/AN/AConsolidated85 85 76 75 82 80 Less noncontrolling interest11 10 9 10 9 10 Net74 75 67 65 73 70 Average realized price per pound$18.71 $15.56 $10.20 COPPER (millions of recoverable pounds) Morenci (72%)a Grasberg minerals district (48.76%)b c c c GOLD (thousands of recoverable ounces) Indonesia (48.76%)b MOLYBDENUM (millions of recoverable pounds) North America copper mines (100%)a COPPER (millions of recoverable pounds) Morenci (72%)a Grasberg minerals district (48.76%)b c c c GOLD (thousands of recoverable ounces) Indonesia (48.76%)b MOLYBDENUM (millions of recoverable pounds) North America copper mines (100%)a a.Amounts are net of Morenci's joint venture partners' undivided interest. b.Our economic interest in PT-FI approximated 81% through 2022, and is 48.76% thereafter (refer to Note 3 for further discussion). c.Consolidated sales volumes exclude purchased copper of 124 million pounds in 2022, 173 million pounds in 2021 and 290 million pounds in 2020. 33 33 33 33 33 33 **Current (2024):** Years Ended December 31,ProductionSalesCOPPER (millions of recoverable pounds)202320222021202320222021(FCX's net interest in %) North America Morenci (72%)a575 636 631 578 639 632 Safford (100%)245 285 265 250 281 252 Sierrita (100%)185 184 189 183 186 187 Bagdad (100%)146 165 184 148 169 185 Chino (100%)141 130 124 143 127 114 Tyrone (100%)51 59 55 53 59 53 Miami (100%)12 11 12 12 11 13 Other (100%)(5)(3) - (6)(3) - Total North America1,350 1,467 1,460 1,361 1,469 1,436 South America Cerro Verde (53.56%)985 974 887 988 964 888 El Abra (51%)217 202 160 212 198 167 Total South America1,202 1,176 1,047 1,200 1,162 1,055 Indonesia Grasberg minerals district (48.76%)b1,660 1,567 1,336 1,525 1,582 1,316 Consolidated4,212 4,210 3,843 4,086 c4,213 c3,807 cLess noncontrolling interests1,414 845 741 1,344 840 741 Net2,798 3,365 3,102 2,742 3,373 3,066 Average realized price per pound$3.85 $3.90 $4.33 GOLD (thousands of recoverable ounces) (FCX's net interest in %)North America (100%)15 13 11 16 12 11 Indonesia (48.76%)b1,978 1,798 1,370 1,697 1,811 1,349 Consolidated1,993 1,811 1,381 1,713 1,823 1,360 Less noncontrolling interests952 337 257 808 339 252 Net1,041 1,474 1,124 905 1,484 1,108 Average realized price per ounce$1,972 $1,787 $1,796 MOLYBDENUM (millions of recoverable pounds) (FCX's net interest in %)Climax (100%)17 21 18 N/AN/AN/AHenderson (100%)13 12 12 N/AN/AN/ANorth America copper mines (100%)a30 29 34 N/AN/AN/ACerro Verde (53.56%)22 23 21 N/AN/AN/AConsolidated82 85 85 81 75 82 Less noncontrolling interest10 11 10 10 10 9 Net72 74 75 71 65 73 Average realized price per pound$24.64 $18.71 $15.56 COPPER (millions of recoverable pounds) Morenci (72%)a Grasberg minerals district (48.76%)b c c c GOLD (thousands of recoverable ounces) Indonesia (48.76%)b MOLYBDENUM (millions of recoverable pounds) North America copper mines (100%)a COPPER (millions of recoverable pounds) Morenci (72%)a Grasberg minerals district (48.76%)b c c c GOLD (thousands of recoverable ounces) Indonesia (48.76%)b MOLYBDENUM (millions of recoverable pounds) North America copper mines (100%)a a.Amounts are net of Morenci's joint venture partners' undivided interest. b.Our economic interest in PT-FI is 48.76% and prior to 2023, it approximated 81% (refer to Note 3 for further discussion). c.Consolidated sales volumes exclude purchased copper of 103 million pounds in 2023, 124 million pounds in 2022 and 173 million pounds in 2021. 32 32 32 32 32 32 Table of Contents Table of Contents Table of Contents --- ## Modified: Risk Factor Summary **Key changes:** - Reworded sentence: "You should carefully consider the risks described below and the information included in other sections of this annual report on Form 10-K, including, but not limited to, Items 1." - Reworded sentence: "If any of the following risks occur, they may have a material adverse impact on our business, financial performance, stock price, results of operations, operating flexibility, reputation, costs or liabilities and you could lose part or all of your investment." **Prior (2023):** Investing in our securities involves a high degree of risk and uncertainties. Below is a summary of the risk factors that may have a material adverse impact on our business, financial performance, stock price, results of operations, operating flexibility, reputation, costs or liabilities. In addition to this summary and the more detailed description of each risk factor that immediately follows this summary, you should carefully consider the information included in other sections of this annual report on Form 10-K, including but not limited to Items 1. and 2. "Business and Properties," Items 7. and 7A. "Management's Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk" (MD&A) and Item 3. "Legal Proceedings" prior to investing in our securities. However, the risk factors described herein are not all of the risks we may face. Other risks not presently known to us or that we currently believe are immaterial may materially affect our business if they occur and the trading price of our securities could decline, and you may lose part or all of your investment. Moreover, new risks emerge from time to time. Further, our business may also be affected by general risks that apply to all companies operating in the United States (U.S.) and globally, which have not been included. **Current (2024):** Investing in our securities involves a high degree of risk and uncertainties. You should carefully consider the risks described below and the information included in other sections of this annual report on Form 10-K, including, but not limited to, Items 1. and 2. "Business and Properties," Item 1C. "Cybersecurity," Items 7. and 7A. "Management's Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk" (MD&A) and Item 3. "Legal Proceedings" prior to investing in our securities. If any of the following risks occur, they may have a material adverse impact on our business, financial performance, stock price, results of operations, operating flexibility, reputation, costs or liabilities and you could lose part or all of your investment. The summary and risks that follow are organized under headings as determined to be most applicable, but such risks also may be relevant to other headings. Moreover, the risk factors described herein are not all of the risks we may face and there may be other risks not presently known to us or that we currently believe are immaterial or general risks that apply to all companies operating in the United States (U.S.) and globally, which may emerge or become material. --- ## Modified: Because our mining operations in Indonesia are a significant operating asset, our business may be adversely affected by political, economic, regulatory and social uncertainties in Indonesia. **Key changes:** - Reworded sentence: "Maintaining a good working relationship with the Indonesia government, PT Mineral Industri Indonesia (MIND ID), an Indonesia state-owned enterprise and shareholder in PT-FI, and the local population, is important because of the significance of our Indonesia operations to our business, and because our mining operations there are among Indonesia's most significant business enterprises." - Reworded sentence: "The mining industry is subject to extensive regulation within Indonesia, and there have been major developments in laws and regulations applicable to mining concession holders, some of which have conflicted with PT-FI's contractual rights and may conflict with PT-FI's contractual rights in the future." - Reworded sentence: "In addition, in early 2017, the Indonesia government issued new regulations to address exports of unrefined metals, including copper concentrates and anode slimes, and other matters related to the mining sector." - Reworded sentence: "In 2024, Indonesia is holding national legislative elections, including the presidential election." **Prior (2023):** Maintaining a good working relationship with the Indonesia government, PT Indonesia Asahan Aluminium (Persero) (PT Inalum, also known as MIND ID), an Indonesia state-owned enterprise and shareholder in PT-FI and the local population, is important because of the significance of our Indonesia operations to our business, and because our mining operations there are among Indonesia's most significant business enterprises. Partially because of the Grasberg minerals district's significance to Indonesia's economy, the environmentally sensitive area where it is located, and the number of people employed, our Indonesia operations have been the subject of political debates and criticism in the Indonesia press, and have been the target of protests and occasional violence. Improper management of our working relationship with the Indonesia government, MIND ID or the local population could lead to a disruption of operations and/or impact our reputation in Indonesia and in the region where we operate, which could adversely affect our business. The mining industry is subject to extensive regulation within Indonesia, and there have been major developments in laws and regulations applicable to mining concession holders, some of which have conflicted with PT-FI's contractual rights in the past. In particular, the enactment of Law No. 4 of 2009 on Coal and Mineral Mining on January 12, 2009 (the Mining Law) replaced the previous regulatory framework which allowed concession holders, 54 54 54 54 54 54 including PT-FI, to conduct mining activities in Indonesia under a contract of work system. Notwithstanding provisions in PT-FI's former Contract of Work (COW) prohibiting it from doing so, the Indonesia government sought to modify PT-FI's former COW to address provisions contained in the Mining Law and implementing regulations adopted thereunder, some of which were not required under or conflicted with PT-FI's former COW. In early 2017, the Indonesia government issued new regulations to address exports of unrefined metals, including copper concentrate and anode slimes, and other matters related to the mining sector. Copper concentrate sales to PT Smelting (PT-FI's 39.5% owned copper smelter and refinery located in Gresik, Indonesia) totaled over 10% of our consolidated revenues for each of the years ended December 31, 2022, 2021 and 2020. PT-FI's export license for copper concentrate is valid for one-year periods, subject to review by the Indonesia government every six months, depending on greenfield smelter construction progress. PT-FI's current export license remains valid through March 19, 2023. Refer to Note 12 for further discussion of the administrative fine paid by PT-FI to the Indonesia government in March 2022 for failing to achieve physical development progress on the greenfield smelter. The 2017 regulations also permit the export of anode slimes, which is necessary for PT Smelting to continue operating. PT Smelting's export license for anode slimes expires on November 3, 2023. As discussed in Note 3, beginning in January 2023, PT-FI's commercial arrangement with PT Smelting converted to a tolling arrangement, under which PT-FI pays PT Smelting a tolling fee to smelt and refine its concentrate and will retain title to all products for sales to third parties. Notwithstanding PT-FI's rights to export copper concentrate through 2023 under its IUPK (subject to force majeure considerations), its current copper concentrate export license and PT Smelting's current anode slimes export license, PT-FI may not be able to obtain administrative approval for such exports if the Indonesia government bans exports of copper concentrate and anode slimes prior to completion of the greenfield smelter and precious metals refinery (PMR). Recent press reports have indicated that the Indonesia government is considering a ban of copper concentrate exports effective in June 2023 under regulations that were issued in 2020 and 2021. In addition, PT Smelting exports may also be restricted (contrary to the expiration date of PT Smelting's current export license noted above). If such limitations on exports were to be instituted prior to PT-FI's greenfield smelter and PMR becoming operational (currently expected in 2024), PT-FI would be required to reduce production levels or be subject to additional costs. Further, even if the Indonesia government does not ban exports of copper concentrate or anode slimes, we cannot predict when and if PT-FI's copper concentrate export license and PT Smelting's anode slimes export license may be renewed. PT-FI's sales of copper concentrate and anode slimes could be interrupted if the export licenses are not timely renewed or if PT-FI or PT Smelting is unable to operate because of other operational or financial constraints, which would adversely impact our revenues and operations. There can be no assurance that future regulatory changes affecting the mining industry in Indonesia will not be introduced or unexpectedly repealed, or that new interpretations of existing laws and regulations will not be issued, which could adversely affect our business, financial condition and results of operations. In 2022, the Indonesia government divided the Indonesia portion of the island of New Guinea from two provinces into a total of six provinces, which has resulted in public protest and civil unrest. For further discussion of violence, civil and religious strife, and activism affecting our operations in Indonesia, see the related risk factor below. Further, we cannot predict the impact of splitting provinces on local and regional regulations, permits and other governmental administrative functions, which could have an adverse impact on our business. In 2024, Indonesia will hold national legislative elections. The presidential election will be held in February 2024. Political considerations leading up to these elections could affect, among other things, the country's policies pertaining to foreign investment, permitting and export restrictions, which could adversely affect our Indonesia mining operations. **Current (2024):** Maintaining a good working relationship with the Indonesia government, PT Mineral Industri Indonesia (MIND ID), an Indonesia state-owned enterprise and shareholder in PT-FI, and the local population, is important because of the significance of our Indonesia operations to our business, and because our mining operations there are among Indonesia's most significant business enterprises. Partially because of the Grasberg minerals district's significance to Indonesia's economy, the environmentally sensitive area where it is located, and the number of local people employed, our Indonesia operations have been the subject of political debates and criticism in the Indonesia press, 53 53 53 53 53 53 Table of Contents Table of Contents Table of Contents and have been the target of protests and occasional violence. Improper management of our working relationship with the Indonesia government, MIND ID or the local population could lead to a disruption of operations and/or impact our reputation in Indonesia and in the region where we operate, which could adversely affect our business. The mining industry is subject to extensive regulation within Indonesia, and there have been major developments in laws and regulations applicable to mining concession holders, some of which have conflicted with PT-FI's contractual rights and may conflict with PT-FI's contractual rights in the future. The enactment of Law No. 4 of 2009 on Coal and Mineral Mining on January 12, 2009 (the Mining Law) replaced the previous regulatory framework which allowed concession holders, including PT-FI, to conduct mining activities in Indonesia under a contract of work system. Notwithstanding provisions in PT-FI's former Contract of Work (COW) prohibiting it from doing so, the Indonesia government sought to modify PT-FI's former COW to address provisions contained in the Mining Law and implementing regulations adopted thereunder, some of which were not required under or conflicted with PT-FI's former COW. In addition, in early 2017, the Indonesia government issued new regulations to address exports of unrefined metals, including copper concentrates and anode slimes, and other matters related to the mining sector. On December 21, 2018, PT-FI was granted an IUPK to replace its former COW, enabling PT-FI to conduct operations in the Grasberg minerals district through 2041, subject to certain requirements. Refer to Note 13 for a summary of the IUPK's key fiscal terms and requirement to develop additional smelting and refining capacity. Since 2019, the Indonesia government has enacted various laws and regulations related to downstream processing of various products. Refer to "Operations - Indonesia Mining" in MD&A and Notes 12, 13 and 14 for a discussion of Indonesia regulatory matters, including those related to export licenses, export duties, export proceeds, smelter assurance bonds and smelter development progress, including assessing administrative fines. In 2023, PT-FI was granted export licenses for copper concentrates and anode slimes, both of which are valid through May 2024. PT-FI has requested approvals to continue exports of copper concentrates and anode slimes beyond May 2024 and until the Manyar smelter and precious metals refinery (PMR) in Indonesia (collectively, the Indonesia smelter projects) are fully commissioned and reach designed operating conditions. We cannot predict if PT-FI will be able to obtain approval timely or at all to continue exports beyond May 2024, including of sufficient volumes of copper concentrates and anode slimes. If any limitations on exports or additional financial impacts resulting from Indonesia regulations were to be assessed prior to PT-FI's Indonesia smelter projects becoming operational later in 2024, PT-FI would be required to reduce production levels or be subject to additional costs, which could adversely impact our revenues and operations. Further, PT-FI continues to discuss the applicability of the revised regulation for export duties with the Indonesia government because of inconsistencies with its IUPK. If PT-FI is unable to successfully dispute the export duties, it may be unable to recover the assessed duties and would be required to continue paying such duties until the Manyar smelter construction is completed and operational. There can be no assurance that future regulatory changes affecting the mining industry in Indonesia will not be introduced or unexpectedly repealed, or that new interpretations of existing laws and regulations will not be issued, any of which may conflict with PT-FI's contractual rights, which could adversely affect our business, financial condition and results of operations. Beginning in 2022, the Indonesia government divided the Indonesia portion of the island of New Guinea from two provinces into a total of six provinces, which has resulted in public protest and civil unrest. For further discussion of violence, civil and religious strife, and activism affecting our operations in Indonesia, see the related risk factor below. Further, we cannot predict the impact of splitting provinces on local and regional regulations, permits and other governmental administrative functions, which could have an adverse impact on our business. In 2024, Indonesia is holding national legislative elections, including the presidential election. Political considerations leading up to and resulting from these elections could affect, among other things, national and local policies pertaining to foreign investment, permitting and export restrictions, which could adversely affect our Indonesia mining operations. 54 54 54 54 54 54 Table of Contents Table of Contents Table of Contents --- ## Modified: Total FCX - Net equity intereste **Key changes:** - Reworded sentence: "a.Refer to "Mill and Leach Stockpiles" for additional information." - Reworded sentence: "The break-even cutoff grade is defined for a metric ton of ore as that equivalent copper grade, once produced and sold, that generates sufficient revenue to cover all estimated operating and administrative costs associated with our production." - Reworded sentence: "39 39 39 39 39 39 Table of Contents Table of Contents Table of Contents The table below shows the minimum cutoff grade for mineral reserves by process for each of our existing ore bodies as of December 31, 2023: Copper Equivalent Cutoff Grade (%)MolybdenumCutoff Grade(%)MillCrushed LeachROMLeachMillNorth America Morenci0.170.100.03 - Bagdad0.15 - 0.06 - Safford, including Lone Star - 0.13 - - Sierrita0.16 - - - Chino, including Cobre0.23 - 0.06 - Tyrone - - 0.03 - Henderson - - - 0.13Climax - - - 0.05South AmericaCerro Verde0.13 - 0.08 - El Abra - 0.140.07 - IndonesiaGrasberg Block Cave0.56 - - - DMLZ0.65 - - - Big Gossan1.70 - - - Kucing Liar0.58 - - - 40 40 40 40 40 40 Table of Contents Table of Contents Table of Contents" **Prior (2023):** Recoverable metal in stockpilesb a Recoverable metal in stockpilesb 48.76%c 48.76%c 48.76%c Kucing Liard 48.76%c **Current (2024):** Note: Amounts may not equal the sum of proven and probable mineral reserves as presented on the previous page because of rounding. In addition, totals may not foot because of rounding. a.Recoveries are net of estimated mill and smelter losses. b.Amounts not shown because of rounding. c.PT-FI has commenced long-term mine development activities for the Kucing Liar deposit. See "Mining Operations - Indonesia" for discussion of Kucing Liar capital investments. d.Consolidated reserves represent estimated quantities after reduction for Morenci's joint venture partner interests (refer to Note 3 for further discussion). e.Net equity interest represents estimated consolidated quantities further reduced for noncontrolling interest ownership (refer to Note 3 for further discussion of our ownership in subsidiaries). 37 37 37 37 37 37 Table of Contents Table of Contents Table of Contents Estimated Recoverable Proven and Probable Mineral Reservesat December 31, 2023 (continued) Recoverable Mineral Reserves CopperGoldMolySilver FCX'sProcessingbillionmillionbillionmillion InterestMethodlbs.ozs.lbs.ozs.North America Morenci72%Mill7.2 - 0.23 - Crushed leach2.9 - - - ROM leach2.2 - - - Bagdad100%Mill15.8 0.2 0.89 55.5 ROM leach0.1 - - - Safford, including Lone Star100%Crushed leach6.5 - - - Sierrita100%Mill9.8 0.1 0.99 41.0 Chino, including Cobre100%Mill2.3 0.3 - 6.0 ROM leach0.2 - - - Tyrone100%ROM leach0.2 - - - Henderson100%Mill - - 0.15 - Climax100%Mill - - 0.43 - 47.1 0.6 2.69 102.5 Recoverable metal in stockpilesa 1.2 - b0.03 0.1 100% operations 48.3 0.6 2.72 102.6 Consolidated 44.7 0.6 2.66 102.6 Net equity interest 44.7 0.6 2.66 102.6 South America Cerro Verde53.56%Mill26.3 - 0.67 106.2 ROM leach0.2 - - - El Abra51%Crushed leach3.0 - - - ROM leach0.2 - - - 29.7 - 0.67 106.2 Recoverable metal in stockpilesa 0.7 - 0.01 0.9 100% operations 30.5 - 0.68 107.1 Consolidated 30.5 - 0.68 107.1 Net equity interest 16.2 - 0.36 57.4 Indonesia Grasberg Block Cave48.76%Mill14.7 11.3 - 48.5 DMLZ48.76%Mill4.9 5.3 - 26.0 Big Gossan48.76%Mill2.2 1.0 - 13.7 Kucing Liarc48.76%Mill7.1 6.3 - 31.4 100% operations 29.0 23.9 - 119.5 Consolidated 29.0 23.9 - 119.5 Net equity interest 14.1 11.6 - 58.3 Total FCX - 100% basis 107.7 24.5 3.40 329.2 Total FCX - Consolidated basisd 104.1 24.5 3.34 329.2 Total FCX - Net equity intereste 75.1 12.2 3.02 218.2 Recoverable metal in stockpilesa b Recoverable metal in stockpilesa Kucing Liarc --- ## Modified: Our information and operational technology systems have been and in the future may be adversely affected by cybersecurity events, disruptions, damage, failure and risks associated with implementation and integration, including of new technologies. **Key changes:** - Reworded sentence: "Cybersecurity Our industry has become increasingly supported by and dependent on digital technologies." - Reworded sentence: "As our dependence on information systems, including those of our third-party service providers and vendors, grows, we have become more vulnerable to an increasing threat of continually evolving cybersecurity risks." - Reworded sentence: "In August 2023, we determined that we were subject to a cybersecurity incident that affected certain of our information systems." - Reworded sentence: "We could also be adversely affected by system or network disruptions if new or upgraded information or operational technology systems are defective, not installed properly or not properly integrated into our operations." **Prior (2023):** Our industry has become increasingly supported by and dependent on digital technologies. Our strategy of operating large, long-lived, geographically diverse assets has been increasingly dependent on our ability to become fully integrated and highly automated. Many of our business and operational processes are heavily dependent on traditional and emerging technology systems to conduct day-to-day operations, improve safety and efficiency, and lower costs. As our dependence on information systems, including those of our third-party service providers and vendors, grows, we become more vulnerable to an increasing threat of continually evolving cybersecurity risks. In recent years, cybersecurity events have increased in frequency and magnitude. These incidents may include, but are not limited to, installation of malicious software, phishing, ransomware, credential attacks, unauthorized access to data and other advanced and sophisticated cybersecurity breaches and threats, including threats that increasingly target critical operational technologies and process control networks. If any of these threats materialize, we could be subject to manipulation or improper use of our systems and networks, production downtimes, communication interruption or other disruptions and delays to our operations or to the transportation of products or infrastructure utilized by our operations, unauthorized release of proprietary, commercially sensitive, confidential or otherwise protected information, a misappropriation or loss of funds, the corruption of data, significant health and safety consequences, environmental damage, loss of intellectual property, fines and litigation, damage to our reputation or financial losses from remedial actions, any of which could have a material adverse effect on our cash flows, results of operations and financial condition. We have experienced targeted and non-targeted cybersecurity events in the past and may experience them in the future. While these cybersecurity events did not result in any material loss to us or interrupt our day-to-day operations, as of January 31, 2023, there can be no assurance that we will not experience any such losses or interruption in the future. Given the unpredictability of the timing and the evolving nature and scope of information technology disruptions, the various procedures and controls we use to monitor and protect against these threats and to mitigate our potential risks to such threats may not be sufficient in preventing cybersecurity events from materializing. Further, as cybersecurity threats continue to evolve, we may be required to expend significant additional resources to continue to modify or enhance our protective measures or to investigate and remediate vulnerabilities to cybersecurity threats. We could also be adversely affected by system or network disruptions if new or upgraded information technology systems are defective, not installed properly or not properly integrated into our operations. System modification failures could have a material adverse effect on our business, financial position and results of operations and could, if not successfully implemented, adversely impact the effectiveness of our internal controls over financial reporting. Further, we increasingly depend on our information technology infrastructure for electronic communications among our locations, personnel, customers and suppliers around the world, including as a result of remote working and flexible working arrangements. These information technology systems, some of which are managed by third parties that we do not control, may be susceptible to damage, disruptions or shutdowns because of failures during the process of upgrading or replacing software, databases or components thereof, cutover activities in our restructuring and simplification initiatives, power outages, hardware failures, telecommunication failures, user errors, catastrophic events or other problems. 62 62 62 62 62 62 **Current (2024):** Cybersecurity Our industry has become increasingly supported by and dependent on digital technologies. Our strategy of operating large, long-lived, geographically diverse assets has been increasingly dependent on our ability to become fully integrated and highly automated. Many of our business and operational processes are heavily dependent on traditional and emerging technology systems to conduct day-to-day operations, improve safety and efficiency, and lower costs. As our dependence on information systems, including those of our third-party service providers and vendors, grows, we have become more vulnerable to an increasing threat of continually evolving cybersecurity risks. In recent years, 60 60 60 60 60 60 Table of Contents Table of Contents Table of Contents cybersecurity events have increased in frequency and magnitude and the methods used to gain unauthorized access change frequently, making it increasingly difficult for us to prevent cybersecurity incidents or detect and remediate incidents in a timely and effective manner. Attacks have included and may include, but are not limited to, installation of malicious software, phishing, ransomware, social engineering tactics and credential attacks, insider threats, denial of service attacks, unauthorized access to data and other advanced and sophisticated cybersecurity breaches and threats, including those that increasingly target critical operational technologies and process control networks and those that are increasingly using artificial intelligence (AI) and quantum computing. Such attacks may be perpetrated by a variety of bad actors, some of which may reside in jurisdictions where law enforcement measures to address such attacks are ineffective. We have experienced targeted and non-targeted cybersecurity events in the past and may experience them in the future. In August 2023, we determined that we were subject to a cybersecurity incident that affected certain of our information systems. We performed an investigation of the incident and its associated impact and incurred costs to remediate, which were not material. We cannot guarantee that events of a similar nature, with potentially greater exposure, will not occur in the future. Cybersecurity threats could subject us to manipulation or improper use of our systems and networks, production downtimes, loss of sales, communication interruption or other disruptions and delays to our operations or to the transportation of products or infrastructure utilized by our operations, unauthorized release of proprietary, commercially sensitive, confidential or otherwise protected information, a misappropriation or loss of funds, the corruption of data, significant health and safety consequences, physical destruction of assets, environmental damage, loss of intellectual property, fines, penalties, litigation, regulatory or governmental investigation, liability under or termination of our contracts with third parties, damage to our reputation or financial losses from remedial actions, any of which could have a material adverse effect on our cash flows, results of operations and financial condition, and which in addition could adversely impact the effectiveness of our internal control over financial reporting. We do not maintain cyber risk insurance, and the lack of insurance coverage could adversely affect our cash flows and overall profitability in the event of a material cybersecurity incident. While the August 2023 cybersecurity incident and other cybersecurity events have not had a material impact on us, we can provide no assurance that we will not experience any such impact or additional interruptions to our operations in the future. Given the unpredictability of the timing and the evolving nature and scope of information and operational technology system disruptions, the various procedures and controls we use to monitor and protect against cybersecurity threats and to mitigate potential risks arising from such threats have not been effective in some instances and may not be sufficient in preventing future cybersecurity incidents. Further, as cybersecurity threats continue to evolve, we may be required to expend significant additional resources to continue to modify or enhance our protective measures or to investigate and remediate vulnerabilities to cybersecurity threats. We could also be adversely affected by system or network disruptions if new or upgraded information or operational technology systems are defective, not installed properly or not properly integrated into our operations. System modification failures could have a material adverse effect on our business, financial position and results of operations and could, if not successfully implemented, adversely impact the effectiveness of our internal control over financial reporting. Further, we increasingly depend on our information technology infrastructure for electronic communications among our operations, personnel, customers and suppliers around the world, including as a result of remote working and flexible working arrangements. These information technology systems, some of which are managed by third parties that we do not control, may be susceptible to damage, disruptions or shutdowns because of failures during the process of upgrading or replacing software, databases or components thereof, cutover activities in our restructuring and simplification initiatives, power outages, hardware failures, telecommunication failures, human errors, catastrophic events or other problems. Refer to Item 1C. "Cybersecurity" for further information on our cybersecurity governance, risk management and strategy. Artificial Intelligence and Other New Technologies Information and operational technology systems continue to evolve and, in order to remain competitive, we must implement new technologies in a timely, cost-effective and efficient manner. For example, we may develop and apply AI in decision support systems, material characterization, equipment reliability, mineral extraction and remote/autonomous operation. These applications may become important in our operations over time. We also are advancing a series of initiatives to incorporate new applications, technologies and data analytics to our leaching 61 61 61 61 61 61 Table of Contents Table of Contents Table of Contents processes. For additional information on our leaching innovation initiatives, see MD&A. Our failure to successfully implement new technologies, including AI, may adversely affect our competitiveness and, consequently, our results of operations. In addition, we may utilize AI and other new technologies in software provided by third parties to enhance our capabilities in producing copper, improving business processes and responding to threats to our technology platforms. The use of AI may increase our exposure to cybersecurity risks and additional risks relating to the protection of data, including increased exposure of confidential or otherwise protected information to unauthorized recipients, which could result in liability under or termination of our contracts with third parties, misuse of our intellectual property or other unintended consequences. --- ## Modified: Total FCX - Net equity interestd **Key changes:** - Added sentence: "42 42 42 42 42 42 Table of Contents Table of Contents Table of Contents" **Prior (2023):** Note: Totals may not foot because of rounding. a.Our net equity interest in all North America copper mines is 100% except for Morenci, which is 72%. b.Rounds to less than 0.1 billion pounds of recoverable copper. c.Consolidated stockpiles represent estimated metal quantities after reduction for Morenci's joint venture partner interests (refer to Note 3 for further discussion). d.Net equity interest represents estimated consolidated metal quantities further reduced for noncontrolling interest ownership (refer to Note 3 for further discussion of our ownership in subsidiaries). 43 43 43 43 43 43 **Current (2024):** Note: Totals may not foot because of rounding. a.Amounts not shown because of rounding. b.PT-FI has commenced long-term mine development activities for the Kucing Liar deposit. See "Mining Operations - Indonesia" for discussion of Kucing Liar capital investments. c.Consolidated reserves represent estimated quantities after reduction for Morenci's joint venture partner interests (refer to Note 3 for further discussion). d.Net equity interest represents estimated consolidated quantities further reduced for noncontrolling interest ownership (refer to Note 3 for further discussion of our ownership in subsidiaries). The reserve table above and the tables on the following pages utilize the abbreviations described below: •g/t - grams per metric ton •Moly - Molybdenum 36 36 36 36 36 36 Table of Contents Table of Contents Table of Contents Estimated Recoverable Proven and Probable Mineral Reservesat December 31, 2023 (continued)Proven and Probable Million Metric TonsAverage Ore GradeRecoveriesa FCX'sProcessingFCX's100%CopperGold MolySilverCopperGoldMolySilver InterestMethodInterestBasis%g/t %g/t%%%%North America Morenci72%Mill922 1,280 0.31 - 0.02 - 82.3 - 43.7 - Crushed leach323 448 0.36 - - - 81.9 - - - ROM leach1,506 2,091 0.13 - - - 37.3 - - - Bagdad100%Mill2,453 2,453 0.35 - b0.02 1.43 84.2 59.1 77.0 49.3 ROM leach20 20 0.27 - - - 43.2 - - - Safford, including Lone Star100%Crushed leach1,038 1,038 0.40 - - - 70.6 - - - Sierrita100%Mill2,398 2,398 0.23 - b0.02 1.08 81.1 59.1 77.7 49.3 Chino, including Cobre100%Mill260 260 0.51 0.05 - 0.92 79.0 77.9 - 78.5 ROM leach86 86 0.24 - - - 34.9 - - - Tyrone100%ROM leach90 90 0.17 - - - 57.7 - - - Henderson100%Mill48 48 - - 0.16 - - - 87.7 - Climax100%Mill149 149 - - 0.15 - - - 88.8 - 9,292 10,362 South America Cerro Verde53.56%Mill2,141 3,998 0.35 - 0.01 1.84 86.0 - 54.4 44.9 ROM leach48 89 0.24 - - - 50.1 - - - El Abra51%Crushed leach282 553 0.48 - - - 52.0 - - - ROM leach55 107 0.24 - - - 31.2 - - - 2,526 4,747 Indonesia Grasberg Block Cave48.76%Mill379 777 1.02 0.68 - 3.26 84.1 66.7 - 59.6 DMLZ48.76%Mill163 333 0.80 0.63 - 3.80 83.9 78.5 - 63.7 Big Gossan48.76%Mill24 49 2.26 0.93 - 13.80 90.6 68.0 - 63.5 Kucing Liarc48.76%Mill188 385 1.05 0.92 - 5.55 79.3 55.2 - 45.6 753 1,544 Total FCX - 100% Basis 16,653 Total FCX - Consolidated basisd15,584 Total FCX - Net equity intereste12,571 --- ## Modified: Mineral Resources **Key changes:** - Reworded sentence: "43 43 43 43 43 43 Table of Contents Table of Contents Table of Contents Estimated Mineral Resourcesat December 31, 2023a MeasuredIndicatedInferred Million Metric TonsAverage Ore GradeMillion Metric TonsAverage Ore GradeMillion Metric TonsAverage Ore Grade FCX'sProcessingFCX's100%CopperGoldMolySilverFCX's100%CopperGoldMolySilverFCX's100%CopperGoldMolySilver InterestMethodInterestBasis%g/t%g/tInterestBasis%g/t%g/tInterestBasis%g/t%g/tNorth America Morenci72%Milling1,064 1,478 0.24 - 0.02 - 996 1,383 0.25 - 0.02 - 677 941 0.24 - 0.02 - Leaching967 1,344 0.16 - - - 727 1,011 0.15 - - - 441 613 0.11 - - - Bagdad100%Milling388 388 0.31 - b0.02 1.28 544 544 0.27 - b0.02 1.09 639 639 0.18 - b0.01 0.73 Leaching1 1 0.10 - - - 6 6 0.08 - - - 12 12 0.08 - - - Safford, including Lone Star100%Milling1,627 1,627 0.37 0.01 - 0.30 1,762 1,762 0.35 0.01 - 0.20 441 441 0.30 0.01 - 0.23 Leaching495 495 0.30 - - - 313 313 0.28 - - - 58 58 0.29 - - - Sierrita100%Milling866 866 0.17 - b0.02 0.84 874 874 0.18 - b0.02 0.88 375 375 0.17 - b0.02 0.81 Chino, including Cobre100%Milling167 167 0.37 0.04 0.01 0.71 121 121 0.45 0.04 0.01 0.83 45 45 0.37 0.03 0.01 0.63 Leaching22 22 0.21 - - - 12 12 0.20 - - - 8 8 0.23 - - - Tyrone100%Leaching60 60 0.26 - - - 11 11 0.23 - - - 5 5 0.28 - - - Henderson100%Milling72 72 - - 0.15 - 32 32 - - 0.12 - - - - - - - Climax100%Milling312 312 - - 0.17 - 65 65 - - 0.10 - 14 14 - - 0.07 - Ajo100%Milling507 507 0.38 0.07 0.01 0.94 252 252 0.31 0.05 - b0.70 20 20 0.32 0.04 - b1.02 Cochise/Bisbee100%Leaching148 148 0.49 - - - 120 120 0.41 - - - 20 20 0.38 - - - Sanchez100%Leaching86 86 0.35 - - - 103 103 0.23 - - - 13 13 0.18 - - - Tohono100%Milling304 304 0.63 0.09 0.01 1.91 38 38 0.66 0.08 0.01 1.69 7 7 0.51 0.05 - b1.28 Leaching233 233 0.71 - - - 46 46 0.56 - - - 23 23 0.51 - - - Twin Buttes100%Milling178 178 0.60 0.01 0.04 6.34 16 16 0.58 0.01 0.03 6.06 7 7 0.70 0.01 0.02 7.44 Leaching80 80 0.22 - - - 27 27 0.20 - - - 11 11 0.26 - - - Christmas100%Milling71 71 0.52 0.06 - b1.55 271 271 0.36 0.06 - b0.92 59 59 0.37 0.06 - b0.93 South America Cerro Verde53.56%Milling21 39 0.27 - 0.01 1.45 1,084 2,024 0.32 - 0.01 1.73 587 1,097 0.33 - 0.01 1.76 Leaching3 6 0.37 - - - 9 18 0.25 - - - 10 18 0.31 - - - El Abra51%Milling543 1,064 0.45 0.02 0.01 1.47 914 1,792 0.37 0.02 0.01 1.18 792 1,552 0.29 0.01 0.01 0.90 Leaching31 61 0.26 - - - 33 65 0.27 - - - 22 43 0.25 - - - Indonesia Grasberg minerals district48.76%Milling189 387 0.77 0.62 - 4.07 1,255 2,573 0.67 0.56 - 3.73 182 372 0.45 0.36 - 2.44 Total FCX - 100% basis 9,995 13,478 6,393 Total FCX - Consolidated basisc9,205 12,807 5,957 Total FCX - Net equity interestd8,435 9,631 4,467" **Prior (2023):** In addition to mineral reserves, our properties contain mineral resources that we believe could be brought into production should market conditions warrant. However, permitting and significant capital expenditures may be required before mining of these resources could commence at these properties. A mineral resource is a concentration or occurrence of material of economic interest in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. Such a deposit cannot qualify as recoverable proven and probable mineral reserves until engineering, legal and economic feasibility are confirmed based upon a comprehensive evaluation of development and operating costs, grades, recoveries and other material factors. Mineral resources include measured, indicated and inferred mineral classifications. •A measured mineral resource is a resource for which the quantity and grade are estimated from detailed, closely spaced sampling, and geologic characterization that defines the size, shape, depth and mineral content to a high degree of confidence. •An indicated mineral resource is a resource for which quantity and grade are estimated from information similar to that used for measured mineral resources where the samples are farther apart, and the geological characterization is adequate. •An inferred mineral resource is a resource for which quantity and grade are estimated from information similar to that used for measured and indicated mineral resources, but with limited geological evidence and sampling. Inferred mineral resource grade and mineralization continuity have a lower degree of confidence. Our estimates of mineral resources have been prepared in accordance with the disclosure requirements of Subpart 1300 of SEC Regulation S-K. No assurance can be given that the estimated mineral resources not included in mineral reserves will become proven and probable mineral reserves. Estimated mineral resources as presented on the following pages were assessed using prices of $3.50 per pound for copper, $1,500 per ounce for gold, $15 per pound for molybdenum and $20 per ounce for silver. Cutoff grade strategy and expected recoveries used to evaluate mineral resources are consistent with those for mineral reserves but would require additional work to substantiate. Refer to Item 1A. "Risk Factors" for discussion of risks associated with our estimates of mineral resources. 44 44 44 44 44 44 Estimated Mineral Resourcesat December 31, 2022a MeasuredIndicatedInferred Million Metric TonsAverage Ore GradeMillion Metric TonsAverage Ore GradeMillion Metric TonsAverage Ore Grade FCX'sProcessingFCX's100%CopperGoldMolySilverFCX's100%CopperGoldMolySilverFCX's100%CopperGoldMolySilver InterestMethodInterestBasis%g/t%g/tInterestBasis%g/t%g/tInterestBasis%g/t%g/tNorth America Morenci72%Milling1,210 1,681 0.22 - 0.02 - 1,231 1,709 0.22 - 0.02 - 1,086 1,509 0.21 - 0.02 - Leaching837 1,165 0.14 - - - 713 991 0.14 - - - 529 736 0.11 - - - Bagdad100%Milling467 467 0.31 - b0.03 1.29 884 884 0.27 - b0.02 1.13 1,560 1,560 0.18 - b0.01 0.74 Leaching1 1 0.10 - - - 12 12 0.07 - - - 27 27 0.06 - - - Safford, including Lone Star100%Milling1,059 1,059 0.32 0.02 - 0.43 2,239 2,239 0.35 0.02 - 0.46 1,235 1,235 0.28 - b - 0.08 Leaching379 379 0.27 - - - 519 519 0.27 - - - 261 261 0.25 - - - Sierrita100%Milling496 496 0.17 - b0.02 0.77 1,090 1,090 0.18 - b0.02 0.82 1,645 1,645 0.17 - b0.02 0.81 Chino, including Cobre100%Milling387 387 0.32 0.03 0.02 0.57 246 246 0.35 0.03 0.01 0.60 98 98 0.32 0.03 0.01 0.60 Leaching23 23 0.20 - - - 4 4 0.24 - - - 6 6 0.24 - - - Tyrone100%Leaching78 78 0.25 - - - 24 24 0.21 - - - 11 11 0.28 - - - Henderson100%Milling75 75 - - 0.15 - 36 36 - - 0.12 - - - - - - - Climax100%Milling328 328 - - 0.17 - 81 81 - - 0.09 - 20 20 - - 0.06 - Ajo100%Milling513 513 0.37 0.06 0.01 0.81 262 262 0.33 0.04 0.01 0.76 68 68 0.28 0.04 - b0.75 Cochise/Bisbee100%Leaching164 164 0.47 - - - 134 134 0.40 - - - 24 24 0.35 - - - Sanchez100%Leaching89 89 0.35 - - - 119 119 0.23 - - - 17 17 0.18 - - - Tohono100%Milling69 69 0.73 - - - 252 252 0.63 - - - 33 33 0.44 - - - Leaching45 45 0.94 - - - 253 253 0.61 - - - 51 51 0.49 - - - Twin Buttes100%Milling264 264 0.52 0.01 0.03 5.52 28 28 0.48 0.01 0.03 5.06 14 14 0.56 0.01 0.02 5.69 Leaching72 72 0.23 - - - 25 25 0.22 - - - 11 11 0.26 - - - Christmas100%Milling80 80 0.52 0.06 - b1.56 358 358 0.34 0.05 - b0.93 132 132 0.32 0.05 - b0.99 South America Cerro Verde53.56%Milling17 33 0.26 - 0.01 1.38 1,114 2,080 0.33 - 0.01 1.73 748 1,396 0.33 - 0.01 1.76 Leaching3 6 0.36 - - - 11 20 0.24 - - - 12 22 0.29 - - - El Abra51%Milling509 998 0.46 0.03 0.01 1.55 889 1,743 0.37 0.02 0.01 1.17 802 1,573 0.30 0.01 0.01 0.87 Leaching30 58 0.25 - - - 28 54 0.27 - - - 21 41 0.28 - - - Indonesia Grasberg minerals district48.76%Milling169 347 0.78 0.57 - 4.02 1,246 2,555 0.69 0.58 - 3.88 172 353 0.46 0.39 - 2.69 Total FCX - 100% basis 8,878 15,719 10,844 Total FCX - Consolidated basisc8,080 14,962 10,214 Total FCX - Net equity interestd7,366 11,797 8,584 **Current (2024):** In addition to mineral reserves, our properties contain mineral resources that we believe could be brought into production should market conditions warrant. However, permitting and significant capital expenditures may be required before mining of these resources could commence at these properties. A mineral resource is a concentration or occurrence of material of economic interest in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. Such a deposit cannot qualify as recoverable proven and probable mineral reserves until engineering, legal and economic feasibility are confirmed based upon a comprehensive evaluation of development and operating costs, grades, recoveries and other material factors. Mineral resources include measured, indicated and inferred mineral classifications. •A measured mineral resource is a resource for which the quantity and grade are estimated from detailed, closely spaced sampling, and geologic characterization that defines the size, shape, depth and mineral content to a high degree of confidence. •An indicated mineral resource is a resource for which quantity and grade are estimated from information similar to that used for measured mineral resources where the samples are farther apart, and the geological characterization is adequate. •An inferred mineral resource is a resource for which quantity and grade are estimated from information similar to that used for measured and indicated mineral resources, but with limited geological evidence and sampling. Inferred mineral resource grade and mineralization continuity have a lower degree of confidence. Our estimates of mineral resources have been prepared in accordance with the disclosure requirements of Subpart 1300 of SEC Regulation S-K. No assurance can be given that the estimated mineral resources not included in mineral reserves will become proven and probable mineral reserves. Estimated mineral resources as presented on the following pages were assessed using prices of $3.50 per pound for copper, $1,500 per ounce for gold, $15 per pound for molybdenum and $20 per ounce for silver. Cutoff grade strategy and expected recoveries used to evaluate mineral resources are consistent with those for mineral reserves but would require additional work to substantiate. Refer to Item 1A. "Risk Factors" for discussion of risks associated with our estimates of mineral resources. 43 43 43 43 43 43 Table of Contents Table of Contents Table of Contents Estimated Mineral Resourcesat December 31, 2023a MeasuredIndicatedInferred Million Metric TonsAverage Ore GradeMillion Metric TonsAverage Ore GradeMillion Metric TonsAverage Ore Grade FCX'sProcessingFCX's100%CopperGoldMolySilverFCX's100%CopperGoldMolySilverFCX's100%CopperGoldMolySilver InterestMethodInterestBasis%g/t%g/tInterestBasis%g/t%g/tInterestBasis%g/t%g/tNorth America Morenci72%Milling1,064 1,478 0.24 - 0.02 - 996 1,383 0.25 - 0.02 - 677 941 0.24 - 0.02 - Leaching967 1,344 0.16 - - - 727 1,011 0.15 - - - 441 613 0.11 - - - Bagdad100%Milling388 388 0.31 - b0.02 1.28 544 544 0.27 - b0.02 1.09 639 639 0.18 - b0.01 0.73 Leaching1 1 0.10 - - - 6 6 0.08 - - - 12 12 0.08 - - - Safford, including Lone Star100%Milling1,627 1,627 0.37 0.01 - 0.30 1,762 1,762 0.35 0.01 - 0.20 441 441 0.30 0.01 - 0.23 Leaching495 495 0.30 - - - 313 313 0.28 - - - 58 58 0.29 - - - Sierrita100%Milling866 866 0.17 - b0.02 0.84 874 874 0.18 - b0.02 0.88 375 375 0.17 - b0.02 0.81 Chino, including Cobre100%Milling167 167 0.37 0.04 0.01 0.71 121 121 0.45 0.04 0.01 0.83 45 45 0.37 0.03 0.01 0.63 Leaching22 22 0.21 - - - 12 12 0.20 - - - 8 8 0.23 - - - Tyrone100%Leaching60 60 0.26 - - - 11 11 0.23 - - - 5 5 0.28 - - - Henderson100%Milling72 72 - - 0.15 - 32 32 - - 0.12 - - - - - - - Climax100%Milling312 312 - - 0.17 - 65 65 - - 0.10 - 14 14 - - 0.07 - Ajo100%Milling507 507 0.38 0.07 0.01 0.94 252 252 0.31 0.05 - b0.70 20 20 0.32 0.04 - b1.02 Cochise/Bisbee100%Leaching148 148 0.49 - - - 120 120 0.41 - - - 20 20 0.38 - - - Sanchez100%Leaching86 86 0.35 - - - 103 103 0.23 - - - 13 13 0.18 - - - Tohono100%Milling304 304 0.63 0.09 0.01 1.91 38 38 0.66 0.08 0.01 1.69 7 7 0.51 0.05 - b1.28 Leaching233 233 0.71 - - - 46 46 0.56 - - - 23 23 0.51 - - - Twin Buttes100%Milling178 178 0.60 0.01 0.04 6.34 16 16 0.58 0.01 0.03 6.06 7 7 0.70 0.01 0.02 7.44 Leaching80 80 0.22 - - - 27 27 0.20 - - - 11 11 0.26 - - - Christmas100%Milling71 71 0.52 0.06 - b1.55 271 271 0.36 0.06 - b0.92 59 59 0.37 0.06 - b0.93 South America Cerro Verde53.56%Milling21 39 0.27 - 0.01 1.45 1,084 2,024 0.32 - 0.01 1.73 587 1,097 0.33 - 0.01 1.76 Leaching3 6 0.37 - - - 9 18 0.25 - - - 10 18 0.31 - - - El Abra51%Milling543 1,064 0.45 0.02 0.01 1.47 914 1,792 0.37 0.02 0.01 1.18 792 1,552 0.29 0.01 0.01 0.90 Leaching31 61 0.26 - - - 33 65 0.27 - - - 22 43 0.25 - - - Indonesia Grasberg minerals district48.76%Milling189 387 0.77 0.62 - 4.07 1,255 2,573 0.67 0.56 - 3.73 182 372 0.45 0.36 - 2.44 Total FCX - 100% basis 9,995 13,478 6,393 Total FCX - Consolidated basisc9,205 12,807 5,957 Total FCX - Net equity interestd8,435 9,631 4,467 --- ## Modified: We may not be able to maintain or grow our mineral reserves. **Key changes:** - Reworded sentence: "Depleted mineral reserves can be replaced in several ways, including expanding known ore bodies, reducing operating costs that could extend the life of a mine by allowing us to cost-effectively process ore types that were previously considered uneconomic, investing in and advancing new technologies (such as our leaching innovation initiatives), locating new deposits or acquiring interests in mineral reserves from third parties." **Prior (2023):** Our existing mineral reserves will be depleted over time by production from our operations. Because our profits are primarily derived from our mining operations, our ability to replenish our mineral reserves is essential to our long-term success. Depleted mineral reserves can be replaced in several ways, including expanding known ore bodies, reducing operating costs that could extend the life of a mine by allowing us to cost-effectively process ore types that were previously considered uneconomic, by locating new deposits or acquiring interests in mineral reserves from third parties. Exploration is highly speculative in nature, involves many risks and uncertainties, requires substantial capital expenditures and, in some instances, advances in processing technology, and is frequently unsuccessful in discovering significant mineral resources since new, large, long-life deposits are increasingly scarce. Accordingly, our current or future exploration programs may not result in the discovery of additional deposits that can be produced profitably. Even if significant mineral resources are discovered, it will likely take many years from the initial phases of exploration until commencement of production, during which time the economic feasibility of production may change. We may not be able to discover, enhance, develop or acquire mineral reserves in sufficient quantities to maintain or grow our current reserve levels, which could negatively affect our cash flows, results of operations and financial condition. **Current (2024):** Our existing mineral reserves will be depleted over time by production from our operations. Because our profits are primarily derived from our mining operations, our ability to replenish our mineral reserves is essential to our long-term success. Depleted mineral reserves can be replaced in several ways, including expanding known ore bodies, reducing operating costs that could extend the life of a mine by allowing us to cost-effectively process ore types that were previously considered uneconomic, investing in and advancing new technologies (such as our leaching innovation initiatives), locating new deposits or acquiring interests in mineral reserves from third parties. Exploration is highly speculative in nature, involves many risks and uncertainties, requires substantial capital expenditures (which may differ significantly from those estimated) and, in some instances, advances in processing 63 63 63 63 63 63 Table of Contents Table of Contents Table of Contents technology, and is frequently unsuccessful in discovering significant mineral resources since new, large, long-life deposits are increasingly scarce. Accordingly, our current or future exploration programs may not result in the discovery of additional deposits that can be produced profitably. Even if significant mineral resources are discovered, it will likely take many years from the initial phases of exploration until commencement of production, during which time the economic feasibility of production may change. We may not be able to discover, enhance, develop or acquire mineral reserves in sufficient quantities to maintain or grow our current reserve levels, which could negatively affect our cash flows, results of operations and financial condition. --- ## Modified: Changes in tax laws and regulations could have a material adverse effect on our financial condition. **Key changes:** - Reworded sentence: "Uncertainties exist with respect to our tax liabilities, including those arising from changes in laws in the jurisdictions in which we do business." - Reworded sentence: "As discussed in MD&A and Note 11, the provisions of the U.S." **Prior (2023):** As a global business, we are subject to income, royalty, transaction and other taxes in the U.S. and various foreign jurisdictions. Uncertainties exist with respect to our tax liabilities, including those arising from changes in laws in the countries in which we do business. We have significant net operating losses (NOLs) in the U.S. generated in prior years. These NOLs are available to offset future regular taxable income, which we believe will result in minimal estimated regular income tax liability in the U.S. over the next several years at current metals market prices. In August 2022, the U.S. Inflation Reduction Act of 2022 (the Act) was signed into law, which includes, among other provisions, a new Corporate Alternative Minimum Tax (CAMT) of 15% on the adjusted financial statement income (AFSI) of corporations with average AFSI exceeding $1.0 billion over a three-year period. The provisions of the Act are applicable to us beginning January 1, 2023. Additional guidance related to how the CAMT provisions of the Act will be applied or otherwise administered is yet to be released by the U.S. Department of the Treasury, and may differ from our interpretations. We will continue to analyze the impacts as additional guidance becomes available. We expect the CAMT provisions will impact our U.S. tax position, and may further limit our ability to benefit from our U.S. NOLs. We are also continuing to monitor the progress of Chile's proposed mining royalty changes and their impact on future operations. Further, recommendations from the Organization for Economic Co-operation and Development regarding a global minimum income tax and other changes being considered and/or implemented in countries where we operate could materially impact our provisions for income and non-income taxes, cash tax liability and effective tax rate. **Current (2024):** As a global business, we are subject to income, royalty, transaction and other taxes in the U.S. and various foreign jurisdictions. Uncertainties exist with respect to our tax liabilities, including those arising from changes in laws in the jurisdictions in which we do business. We have significant net operating losses (NOLs) in the U.S. generated in prior years. These NOLs are available to offset future regular taxable income, which we believe will result in minimal estimated regular income tax liability in the U.S. over the next several years at current metals market prices. As discussed in MD&A and Note 11, the provisions of the U.S. Inflation Reduction Act of 2022 (the Act) became applicable to us on January 1, 2023. We have made interpretations of certain provisions of the Act, and based on these interpretations, determined that the provisions of the Act did not materially impact our financial results in 2023. Although the U.S. Department of the Treasury (Treasury) published guidance in 2023 that provided some additional clarity on the rules, uncertainty remains regarding the application of the Corporate Alternative Minimum Tax. Future guidance released by the Treasury may differ from our interpretations of the Act, which could be material and may further limit our ability to realize future benefits from our U.S. NOLs. Further, as discussed in MD&A, recommendations from the Organisation for Economic Co-operation and Development regarding a global minimum income tax and other changes are being considered and/or implemented in jurisdictions where we operate. At current metals market prices, we believe enactment of the recommended framework in jurisdictions where we operate will result in minimal impacts to our financial results in the near term. The impact of any new tax legislation may differ materially from our estimates as a result of future regulatory guidance or changes in our interpretations or assumptions we have made. --- ## Modified: HUMAN CAPITAL **Key changes:** - Reworded sentence: "Workforce At December 31, 2023, we had approximately 27,200 employees (13,000 in North America, 6,700 in South America, 6,400 in Indonesia and 1,100 in Europe and other locations)." - Reworded sentence: "Rather, our hourly, full-time employees at our active North America sites elect to work directly with management using our Guiding Principles, which outline how we work together to achieve our collective goals within the values of the company." **Prior (2023):** We are committed to promoting the health, safety and well-being of our workforce and striving to further strengthen our commitment to promoting an inclusive, diverse and agile workplace. We believe our global workforce is the foundation of our success. Our Board of Directors (Board) oversees our policies and implementation programs that govern our approach to management of our human capital, with the Corporate Responsibility Committee (CRC) having oversight of health and safety matters and the Compensation Committee having oversight of other human capital matters, including those relating to workforce recruitment, retention and development, pay equity and inclusion and diversity. Workforce At December 31, 2022, we had approximately 25,600 employees (12,400 in North America, 5,900 in Indonesia, 6,300 in South America and 1,000 in Europe and other locations). We also had contractors that employ personnel at many of our operations, including approximately 23,500 at the Grasberg minerals district in Indonesia, 16,600 in North America, 6,400 at our South America mining operations and 2,400 in Europe and other locations. Approximately 30% of our global employee population is covered by collective labor agreements (CLAs). In North America, our workforce is not covered by a CLA. Our North America hourly employees choose to work directly with management utilizing our Freeport Guiding Principles, which establishes how we work together within the values of the company to achieve our collective goals. Employees covered by CLAs on December 31, 2022, are listed below, with the number of employees covered and the expiration date of the applicable CLA: LocationNumber of UnionsNumber of Employees Covered by a CLAExpiration DatePT-FI - Indonesia32,758 March 2024Cerro Verde - Peru23,265 August 2024 and August 2025El Abra - Chile2943 April 2026aAtlantic Copper - Spain3511 December 2022bRotterdam - The Netherlands152 September 2023cStowmarket - United Kingdom 140 May 2023 a b c a b c 28 28 28 28 28 28 a.In September 2022, El Abra completed negotiations with its unions on a new three-year CLA that is effective through April 2026. b.The CLA between Atlantic Copper and its three unions expired in December 2022, but has been extended indefinitely and remains active by mutual agreement from both parties while a new agreement is negotiated. c.In December 2022, Rotterdam implemented the wage and bonus increases agreed to during union negotiations and extended the current CLA through September 2023. We engage openly with our employee and union leadership to negotiate and uphold labor agreements, recognizing that labor disruptions such as prolonged strikes or other work stoppages can adversely affect our business operations, our workforce and regional stakeholders. There were no strikes or lockouts at any of our operations in 2022. **Current (2024):** We are committed to promoting the health, safety and well-being of our workforce and striving to further strengthen our commitment to promoting an inclusive, diverse and agile workplace. We believe our global workforce is the foundation of our success. Our Board of Directors (Board) oversees our policies and implementation programs that govern our approach to management of our human capital, with the Corporate Responsibility Committee (CRC) having oversight of health and safety matters and the Compensation Committee having oversight of other human capital matters, including those relating to workforce recruitment, retention and development, pay equity and inclusion and diversity. Workforce At December 31, 2023, we had approximately 27,200 employees (13,000 in North America, 6,700 in South America, 6,400 in Indonesia and 1,100 in Europe and other locations). We also had contractors that employed personnel at many of our operations at various times throughout 2023, including approximately 56,000 in Indonesia (approximately 32,000 at the Manyar smelter development site and approximately 24,000 at the Grasberg Minerals District), 20,100 in North America, 6,800 at our South America mining operations and 2,500 in Europe and other locations. Certain of these contractors work on projects that are temporary in nature and fluctuate from year to year. Approximately 29% of our global employee population is covered by collective labor agreements (CLAs). In North America, our workforce is not covered by a CLA. Rather, our hourly, full-time employees at our active North America sites elect to work directly with management using our Guiding Principles, which outline how we work together to achieve our collective goals within the values of the company. 27 27 27 27 27 27 Table of Contents Table of Contents Table of Contents Employees covered by CLAs on December 31, 2023, are listed below, with the number of employees covered and the expiration date of the applicable CLA: LocationNumber of UnionsNumber of Employees Covered by a CLAExpiration DatePT-FI - Indonesia33,008 March 2024Cerro Verde - Peru23,470 August 2024 and August 2025El Abra - Chile2900 April 2026Atlantic Copper - Spain3523 December 2022 aRotterdam - The Netherlands153 March 2025 Stowmarket - United Kingdom 138 May 2026 PT-FI - Indonesia Cerro Verde - Peru El Abra - Chile Atlantic Copper - Spain a Rotterdam - The Netherlands Stowmarket - United Kingdom PT-FI - Indonesia Cerro Verde - Peru El Abra - Chile Atlantic Copper - Spain a Rotterdam - The Netherlands Stowmarket - United Kingdom a.The CLA between Atlantic Copper and its three unions expired in December 2022, but has been extended indefinitely and remains active by mutual agreement from both parties while a new agreement is negotiated. We seek to openly engage with our employees directly, and where applicable, our union leadership to negotiate and uphold labor agreements. We recognize labor disruptions, such as prolonged strikes or other work stoppages, can adversely affect our business operations, our workforce and regional stakeholders. In 2023, there were no strikes or lockouts at any of our operations. --- ## Modified: Health and Safety **Key changes:** - Reworded sentence: "We also work to promote our safety-first values with our suppliers and in the communities where we operate." - Reworded sentence: "We measure our safety performance through regularly established benchmarks, including the industry-established Total Recordable Incident Rate (TRIR), and our company-established PFEs, both of which include employees and contractors company-wide." **Prior (2023):** Management believes that safety and health considerations are integral to, and compatible with, all other functions in the organization and that proper safety and health management will enhance production and reduce costs. As a result, we consider the safety and health of our workforce as one of our highest priorities. We are subject to extensive regulation of worker health and safety, including the requirements of the U.S. Occupational Safety and Health Act and similar laws of other jurisdictions. In the U.S., the operation of our 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 our mines on a regular basis and issues citations and orders when it believes a violation has occurred under the Mine Act. Additionally, in the U.S. various state agencies have concurrent jurisdiction arising under state law that regulate worker health and safety in both our industrial facilities and mines. If regulatory inspections result in an alleged violation, we may be subject to fines and penalties and, in instances of alleged significant violations, our mining operations or industrial facilities could be subject to temporary or extended closures. Refer to Exhibit 95.1 to this Form 10-K for additional information regarding certain orders and citations issued by MSHA for our operations during the year ended December 31, 2022. For information about health and safety, refer to "Human Capital" below and Item 4. "Mine Safety Disclosures." **Current (2024):** Our highest priority is the health, safety and well-being of our employees and contractors. We also work to promote our safety-first values with our suppliers and in the communities where we operate. We believe health and safety considerations are integral to, and fundamental for, all other functions in our organization, and we understand the health and safety of our workforce is critical to our operational efficiency and long-term success. We are 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 our 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 our mines on a regular basis and issues citations and orders when it believes a violation has occurred under the Mine Act. Additionally, in the U.S., various state agencies have concurrent jurisdiction arising under state law that regulate worker health and safety in both our industrial facilities and mines. If regulatory inspections result in an alleged violation, we may be subject to fines and penalties and, in instances of alleged significant violations, our mining operations or industrial facilities could be subject to temporary or extended closures. Refer to Exhibit 95.1 to this Form 10-K for additional information regarding certain orders and citations issued by MSHA for our operations during the year ended December 31, 2023. For information about health and safety, refer to "Human Capital" below and Item 4. "Mine Safety Disclosures." --- ## Modified: Operating Data, Net of Joint Venture Interestsa **Key changes:** - Added sentence: "33 33 33 33 33 33 Table of Contents Table of Contents Table of Contents" **Prior (2023):** a.Amounts are net of Morenci's joint venture partners' undivided interest. 34 34 34 34 34 34 **Current (2024):** a.Amounts are net of Morenci's joint venture partners' undivided interest. 33 33 33 33 33 33 Table of Contents Table of Contents Table of Contents --- ## Modified: Total FCX - Net equity intereste **Key changes:** - Reworded sentence: "c.PT-FI has commenced long-term mine development activities for the Kucing Liar deposit." **Prior (2023):** Note: Amounts may not equal the sum of proven and probable mineral reserves as presented on the previous page because of rounding. In addition, totals may not foot because of rounding. a.Recoveries are net of estimated mill and smelter losses. b.Amounts not shown because of rounding. c.Beginning January 1, 2023, our economic interest in PT-FI is 48.76% (refer to Note 3 for further discussion). d.PT-FI has commenced long-term mine development activities for the Kucing Liar deposit. See "Mining Operations - Indonesia" for discussion of Kucing Liar capital investments. e.Consolidated reserves represent estimated quantities after reduction for Morenci's joint venture partner interests (refer to Note 3 for further discussion). f.Net equity interest represents estimated consolidated quantities further reduced for noncontrolling interest ownership (refer to Note 3 for further discussion of our ownership in subsidiaries). 38 38 38 38 38 38 Estimated Recoverable Proven and Probable Mineral Reservesat December 31, 2022(continued) Recoverable Mineral Reserves CopperGoldMolySilver FCX'sProcessingbillionmillionbillionmillion InterestMethodlbs.ozs.lbs.ozs.North America Morenci72%Mill7.5 - 0.29 - Crushed leach4.3 - - - ROM leach3.3 - - - Bagdad100%Mill16.1 0.2 0.91 56.6 ROM leach0.1 - - - Safford, including Lone Star100%Crushed leach6.7 - - - Sierrita100%Mill10.9 0.1 1.10 45.5 Chino, including Cobre100%Mill2.2 0.3 - 5.7 ROM leach0.2 - - - Tyrone100%ROM leach0.2 - - - Henderson100%Mill - - 0.16 - Climax100%Mill - - 0.43 - 51.5 0.6 2.88 107.8 Recoverable metal in stockpilesb 1.5 - a0.02 0.1 100% operations 52.9 0.6 2.91 107.9 Consolidated 48.6 0.6 2.83 107.9 Net equity interest 48.6 0.6 2.83 107.9 South America Cerro Verde53.56%Mill27.1 - 0.70 109.5 Crushed leach0.1 - - - ROM leach0.3 - - - El Abra51%Crushed leach3.2 - - - ROM leach0.2 - - - 30.9 - 0.70 109.5 Recoverable metal in stockpilesb 0.8 - 0.01 1.0 100% operations 31.7 - 0.70 110.5 Consolidated 31.7 - 0.70 110.5 Net equity interest 16.9 - 0.38 59.2 Indonesia Grasberg Block Cave48.76%cMill16.5 12.9 - 53.9 DMLZ48.76%cMill5.4 5.9 - 28.6 Big Gossan48.76%cMill2.2 1.0 - 13.7 Kucing Liard48.76%cMill6.8 6.5 - 25.0 100% operations 30.8 26.3 - 121.3 Consolidated 30.8 26.3 - 121.3 Net equity interest 15.0 12.9 - 59.2 Total FCX - 100% basis 115.4 26.9 3.61 339.7 Total FCX - Consolidated basise 111.0 26.9 3.53 339.7 Total FCX - Net equity interestf 80.4 13.5 3.20 226.2 Recoverable metal in stockpilesb a Recoverable metal in stockpilesb 48.76%c 48.76%c 48.76%c Kucing Liard 48.76%c **Current (2024):** Note: Amounts may not equal the sum of proven and probable mineral reserves as presented on the previous page because of rounding. In addition, totals may not foot because of rounding. a.Recoveries are net of estimated mill and smelter losses. b.Amounts not shown because of rounding. c.PT-FI has commenced long-term mine development activities for the Kucing Liar deposit. See "Mining Operations - Indonesia" for discussion of Kucing Liar capital investments. d.Consolidated reserves represent estimated quantities after reduction for Morenci's joint venture partner interests (refer to Note 3 for further discussion). e.Net equity interest represents estimated consolidated quantities further reduced for noncontrolling interest ownership (refer to Note 3 for further discussion of our ownership in subsidiaries). 37 37 37 37 37 37 Table of Contents Table of Contents Table of Contents Estimated Recoverable Proven and Probable Mineral Reservesat December 31, 2023 (continued) Recoverable Mineral Reserves CopperGoldMolySilver FCX'sProcessingbillionmillionbillionmillion InterestMethodlbs.ozs.lbs.ozs.North America Morenci72%Mill7.2 - 0.23 - Crushed leach2.9 - - - ROM leach2.2 - - - Bagdad100%Mill15.8 0.2 0.89 55.5 ROM leach0.1 - - - Safford, including Lone Star100%Crushed leach6.5 - - - Sierrita100%Mill9.8 0.1 0.99 41.0 Chino, including Cobre100%Mill2.3 0.3 - 6.0 ROM leach0.2 - - - Tyrone100%ROM leach0.2 - - - Henderson100%Mill - - 0.15 - Climax100%Mill - - 0.43 - 47.1 0.6 2.69 102.5 Recoverable metal in stockpilesa 1.2 - b0.03 0.1 100% operations 48.3 0.6 2.72 102.6 Consolidated 44.7 0.6 2.66 102.6 Net equity interest 44.7 0.6 2.66 102.6 South America Cerro Verde53.56%Mill26.3 - 0.67 106.2 ROM leach0.2 - - - El Abra51%Crushed leach3.0 - - - ROM leach0.2 - - - 29.7 - 0.67 106.2 Recoverable metal in stockpilesa 0.7 - 0.01 0.9 100% operations 30.5 - 0.68 107.1 Consolidated 30.5 - 0.68 107.1 Net equity interest 16.2 - 0.36 57.4 Indonesia Grasberg Block Cave48.76%Mill14.7 11.3 - 48.5 DMLZ48.76%Mill4.9 5.3 - 26.0 Big Gossan48.76%Mill2.2 1.0 - 13.7 Kucing Liarc48.76%Mill7.1 6.3 - 31.4 100% operations 29.0 23.9 - 119.5 Consolidated 29.0 23.9 - 119.5 Net equity interest 14.1 11.6 - 58.3 Total FCX - 100% basis 107.7 24.5 3.40 329.2 Total FCX - Consolidated basisd 104.1 24.5 3.34 329.2 Total FCX - Net equity intereste 75.1 12.2 3.02 218.2 Recoverable metal in stockpilesa b Recoverable metal in stockpilesa Kucing Liarc --- ## Modified: Net equity interestd **Key changes:** - Reworded sentence: "a.Estimated consolidated recoverable copper reserves include 1.5 billion pounds in leach stockpiles and 0.3 billion pounds in mill stockpiles (refer to "Mill and Leach Stockpiles" for further discussion)." - Reworded sentence: "Excluded from the table above are our estimated recoverable proven and probable silver reserves of 329 million ounces, which were determined using $20 per ounce." - Reworded sentence: "Excluded from the table above are our estimated recoverable proven and probable silver reserves of 218 million ounces." **Prior (2023):** Coppera (billion pounds) Gold (million ounces) Molybdenum (billion pounds) Indonesiab **Current (2024):** Coppera (billion pounds) Gold (million ounces) Molybdenum (billion pounds) Indonesiab --- ## Modified: Human Rights **Key changes:** - Reworded sentence: "We are dedicated to the recognition, respect and promotion of human rights wherever we do business." **Prior (2023):** We have adopted policies that govern our working relationships with the communities and governments where we operate and that are designed to guide our practices and programs in a manner that respects human rights and the culture of the local people impacted by our operations. For information about human rights, refer to "Community and Human Rights" below. **Current (2024):** We are dedicated to the recognition, respect and promotion of human rights wherever we do business. We are committed to respecting the rights of all people, including our employees, business partners, community members and others who potentially may be impacted by our business activities. We take this obligation seriously in all aspects of our business, and we expect the same of our business partners. For information about human rights, refer to "Community and Human Rights" below. --- ## Modified: Total FCX - Net equity interestd **Key changes:** - Reworded sentence: "b.PT-FI has commenced long-term mine development activities for the Kucing Liar deposit." **Prior (2023):** a a a a 48.76%b 48.76%b 48.76%b Kucing Liarc 48.76%b **Current (2024):** Note: Totals may not foot because of rounding. a.Amounts not shown because of rounding. b.PT-FI has commenced long-term mine development activities for the Kucing Liar deposit. See "Mining Operations - Indonesia" for discussion of Kucing Liar capital investments. c.Consolidated reserves represent estimated quantities after reduction for Morenci's joint venture partner interests (refer to Note 3 for further discussion). d.Net equity interest represents estimated consolidated quantities further reduced for noncontrolling interest ownership (refer to Note 3 for further discussion of our ownership in subsidiaries). The reserve table above and the tables on the following pages utilize the abbreviations described below: •g/t - grams per metric ton •Moly - Molybdenum 36 36 36 36 36 36 Table of Contents Table of Contents Table of Contents Estimated Recoverable Proven and Probable Mineral Reservesat December 31, 2023 (continued)Proven and Probable Million Metric TonsAverage Ore GradeRecoveriesa FCX'sProcessingFCX's100%CopperGold MolySilverCopperGoldMolySilver InterestMethodInterestBasis%g/t %g/t%%%%North America Morenci72%Mill922 1,280 0.31 - 0.02 - 82.3 - 43.7 - Crushed leach323 448 0.36 - - - 81.9 - - - ROM leach1,506 2,091 0.13 - - - 37.3 - - - Bagdad100%Mill2,453 2,453 0.35 - b0.02 1.43 84.2 59.1 77.0 49.3 ROM leach20 20 0.27 - - - 43.2 - - - Safford, including Lone Star100%Crushed leach1,038 1,038 0.40 - - - 70.6 - - - Sierrita100%Mill2,398 2,398 0.23 - b0.02 1.08 81.1 59.1 77.7 49.3 Chino, including Cobre100%Mill260 260 0.51 0.05 - 0.92 79.0 77.9 - 78.5 ROM leach86 86 0.24 - - - 34.9 - - - Tyrone100%ROM leach90 90 0.17 - - - 57.7 - - - Henderson100%Mill48 48 - - 0.16 - - - 87.7 - Climax100%Mill149 149 - - 0.15 - - - 88.8 - 9,292 10,362 South America Cerro Verde53.56%Mill2,141 3,998 0.35 - 0.01 1.84 86.0 - 54.4 44.9 ROM leach48 89 0.24 - - - 50.1 - - - El Abra51%Crushed leach282 553 0.48 - - - 52.0 - - - ROM leach55 107 0.24 - - - 31.2 - - - 2,526 4,747 Indonesia Grasberg Block Cave48.76%Mill379 777 1.02 0.68 - 3.26 84.1 66.7 - 59.6 DMLZ48.76%Mill163 333 0.80 0.63 - 3.80 83.9 78.5 - 63.7 Big Gossan48.76%Mill24 49 2.26 0.93 - 13.80 90.6 68.0 - 63.5 Kucing Liarc48.76%Mill188 385 1.05 0.92 - 5.55 79.3 55.2 - 45.6 753 1,544 Total FCX - 100% Basis 16,653 Total FCX - Consolidated basisd15,584 Total FCX - Net equity intereste12,571 --- ## Modified: International risks **Key changes:** - Reworded sentence: "•Geopolitical, economic, regulatory and social risks for our international operations; and •Failure of PT-FI to meet its commitments to achieve the extension of PT-FI's IUPK through 2041." **Prior (2023):** •Geopolitical, economic and social risks for our international operations; and •Failure of PT-FI to meet its commitments to achieve the extension of PT-FI's IUPK through 2041. 48 48 48 48 48 48 **Current (2024):** •Geopolitical, economic, regulatory and social risks for our international operations; and •Failure of PT-FI to meet its commitments to achieve the extension of PT-FI's IUPK through 2041. 47 47 47 47 47 47 Table of Contents Table of Contents Table of Contents --- *Data sourced from SEC EDGAR. Last updated 2026-06-01.*