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## ECONOMIC, SOCIAL AND ENVIRONMENTAL 

## OVERVIEW 

At FCX, we are fully committed to promoting sustain- able development for the communities where we operate through our operations and support programs. Sustainable development balances economic, social and environmental issues to meet the needs of the present without compromising the ability of future generations to meet their own needs. 

The copper we produce is needed throughout the world for modern development and electronics. While our mining operations impact the environment and nearby communities, we take actions to minimize and to mitigate negative environmental impacts and to maximize positive economic and social development results, both for the present and the future. We have adopted strong policies to enforce that commitment, and we work to achieve responsible operations and sustainable development through our economic, social and environmental programs. In partnership with the governments and the local communities where we operat e, we work to improve our performance in this area c ontinually. 

De monstrating the strength of our commitment, our su stainable development programs in our mining operat ions cost us $72.7 million during 2004, including $29.2 million on environmental management and $43.5 million on social development. 

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Economic Development Our Indonesian mining affili ate, PT Freeport Indonesia, provides substantial economic benefits for the economies of the Republic of Indones ia and the Indonesian province of Papua, where our minin g operations are located. These benefits include direct benefits through the payment of taxes, royalties, dividends, fees and other support and indirect benefi ts through wages to employees, the purchase of goods a nd services from national and local suppliers, and invest- ments in infrastructure such as roads, port and airpor t facilities, utility and communications systems, schoo ls, hospitals and community facilities. 

## Highlights 

• In 2004, we provided direct benefits to the Republi c of Indonesia of $260 million through the payment o f taxes, royalties, dividends and fees. Since 1992, the se direct benefits have totaled $2.6 billion. 

• The Institute For Economics and Social Research, Faculty of Economics, University of Indonesia has studied the multiplier effect of PT Freeport Indones ia’s direct and indirect contributions. Their study foun d that our total economic benefit to Indonesia in 200 4, including indirect benefits, was $3 billion. 

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