Freeport-McMoRan Copper & Gold Inc. Updates Status Of PT-FI Operations

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) reported the following update on the status of operations at PT Freeport Indonesia’s Grasberg mining complex.

PT-FI continues to seek a mutually acceptable resolution to the ongoing labor strike which commenced on September 15, 2011. The Company is following the established Indonesian legal process, including pursuit of a resolution through a labor court process, while continuing to seek to negotiate with the union in good faith.

PT-FI is operating the Grasberg open pit mine and the DOZ underground mine at reduced rates using non-striking employees and contractors. Since October 22, 2011, milling operations have been temporarily suspended pending repairs to concentrate pipelines damaged as a result of civil unrest which has occurred during the course of the strike.

PT-FI has initiated repairs to the damaged pipelines but has not been able to gain full access to the affected areas of the pipelines because of road blockages by striking workers. PT-FI is working with local authorities to restore access to the road and the pipelines so that repairs can be completed and milling operations restarted.

As previously reported on October 19, 2011, FCX’s fourth quarter 2011 sales estimates of 915 million pounds of copper and 305,000 ounces of gold included 185 million pounds of copper and 280,000 ounces of gold from PT-FI (average daily production from PT-FI of 2 million pounds of copper and 3,000 ounces of gold). These estimates were based on PT-FI achieving fourth quarter mill throughput averaging approximately 175,000 tonnes per day (approximately 75% of normal rates). The quarter-to-date average through October 31, 2011, including the currently on-going suspension of milling and concentrate delivery operations since October 22, 2011, has been approximately 120,000 tonnes per day.

FCX will provide further updates on the status of operations and revised estimates of fourth quarter production when access is restored and repairs are completed.