We are a leading international mining company with headquarters in Phoenix, Arizona. We operate large, long-lived, geographically diverse assets with significant proven and probable mineral reserves of copper, gold and molybdenum. We are one of the world’s largest publicly traded copper producers. Our portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; and significant mining operations in North America and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru.

Our results for ~~2021~~2023 reflect strong operating performance, including achievement of a number of important initiatives to advance growth options, to position us for the future and ~~financial performance,~~aimed at enhancing value. Despite economic uncertainty, including rising costs, we continued to generate positive operating cash flows. We believe the actions we have taken in recent years to build a solid balance sheet and cash flow generation. We remained focused on cost and capital management and advanced our sustainability objectives. Despite continued challenges associated with the COVID-19 pandemic, we achieved a 19 percent increase in copper sales volumes and a 59 percent increase in gold sales volumes in 2021, compared with 2020. To date, our vigilant operating protocols have been effective in mitigating and preventing a major outbreak of COVID-19 at each of our operating sites. Protecting the health of our workforce and communities where we operate is a top priority, and wemaintain flexible organic growth options while maintaining liquidity, will allow us to continue to ~~focus on safeguarding~~execute our business plans in ~~an uncertain public health~~a prudent manner and ~~economic environment.~~preserve substantial future asset values.

We believe that we have a high-quality portfolio of long-lived copper assets that are positioned to generate long-term ~~value. The ramp-up of~~value, and we remain focused on executing our operating and investment plans. Our underground mining operations at the Grasberg minerals district in Indonesia ~~continues~~continue to ~~advance on schedule, and in fourth-quarter 2021, we achieved quarterly~~perform well, with copper and gold ~~volumes approximating 100 percent~~production increasing in each of the ~~projected annualized levels. Also, the Lone Star copper leach project~~past three years, including achievement of multiple operating records during 2023. Furthermore, projects to expand our domestic smelting and refining capacity in Indonesia are progressing, with construction progress for these projects measured at over 90% at year-end 2023. We are also advancing a series of initiatives across our ~~Safford mine is exceeding the~~North America and South America operations to incorporate new applications, technologies and data analytics to our leaching processes. In fourth-quarter 2023, we achieved our initial ~~design capacity~~run rate target of ~~200 million pounds annually and produced~~ approximately ~~235~~200 million pounds of copper ~~in 2021. During 2022, we plan to continue to advance organic growth initiatives at our operating sites, based on a favorable operational and market outlook.~~per year through these initiatives.

~~During 2021, we adopted~~For the year 2023, the London Metal Exchange (LME) copper settlement prices averaged $3.85 per pound, ranging from a high of $4.28 per pound in January to a low for the year of $3.54 per pound in May, and ~~implemented a performance-based payout framework. Refer~~closing at $3.84 per pound on December 29, 2023. Current physical market conditions are strong as evidenced by low levels of global exchange stocks. We believe long-term fundamentals for copper are favorable and that future demand will be supported by copper’s role in the global transition to ~~Item 1A. “Risk Factors,” Item 5. “Market for Registrant’s Common Equity, Related Stockholder Matters~~renewable power, electric vehicles and ~~Issuer Purchases of Equity Securities,” MD&A~~other carbon-reduction initiatives, continued urbanization in developing countries and ~~Note 10 for further discussion.~~growing connectivity globally.

At December 31, 2021, our estimated consolidated recoverable proven and probable mineral reserves totaled 107.2 billion pounds of copper, 27.1 million ounces of gold and 3.39 billion pounds of molybdenum. Following is the allocation of our estimated consolidated recoverable proven and probable mineral reserves at December 31, ~~2021,~~2023, by geographic location (refer to “Mining Operations” and “Mineral Reserves” for further discussion):

In North America, we operate seven copper mines -– Morenci, Bagdad, Safford (including Lone Star), Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico, and two molybdenum mines -– Henderson and Climax in Colorado. In addition to copper, certain of our North America copper mines also produce molybdenum concentrate, gold and silver. In South America, we operate two copper mines -– Cerro Verde in Peru and El Abra in Chile. In addition to copper, the Cerro Verde mine also produces molybdenum concentrate and silver. In Indonesia, PT-FI operates in the Grasberg minerals district. In addition to copper, the Grasberg minerals district also produces gold and silver.

Following is the allocation of our consolidated copper, gold and molybdenum production for the year ~~2021~~2023 by geographic location (refer to “Mining Operations” and MD&A for further information):

Copper production from three of our mines, the Morenci mine in North America, the Cerro Verde mine in Peru and the Grasberg minerals district in Indonesia, together totaled ~~74 percent~~76% of our consolidated copper production in ~~2021.~~2023.

The geographic locations of our operating mines are shown on the world map below.

~~Following is~~The following provides a ~~brief discussion~~summary of our primary natural resources -– copper, gold and molybdenum. ~~For~~Refer to MD&A for further discussion of historical and current market prices of these commodities ~~refer to MD&A.~~and Item 1A. “Risk Factors” for discussion of factors that can cause price fluctuations.

Copper is an internationally traded commodity, and its prices are determined by the major metals exchanges -– the ~~London Metal Exchange (LME),~~LME, Commodity Exchange Inc. (COMEX) and Shanghai Futures Exchange. Prices on these exchanges generally reflect the worldwide balance of copper supply and demand, and can be volatile and cyclical. ~~During 2021, the LME copper settlement price averaged $4.23 per pound, ranging from a low of $3.52 per pound to a record high of $4.86 per pound, and was $4.40 per pound on December 31, 2021.~~

In general, demand for copper reflects the rate of underlying world economic growth, particularly in industrial production and construction. According to Wood Mackenzie, a widely followed independent metals market consultant, copper’s end-use markets (and their estimated shares of total consumption) are ~~construction (29 percent),~~ electrical applications ~~(27 percent)~~(28%), construction (27%), consumer products ~~(22 percent)~~(21%), transportation ~~(11 percent)~~(13%) and industrial machinery ~~(11 percent)~~(11%). We believe copper will continue to be essential in these basic uses as well as contribute significantly to new technologies for clean energy, to advance communications and to enhance public health. Examples of areas we

believe will require additional copper in the future include: (i) high efficiency motors, which consume up to ~~75 percent~~75% more copper than a standard motor; (ii) electric vehicles, which consume up to four

Gold is used for jewelry, coinage and bullion as well as various industrial and electronic applications. Gold can be readily sold on numerous markets throughout the world. Benchmark prices are generally based on London Bullion Market Association (London) quotations. During 2021, the London PM gold price averaged $1,799 per ounce, ranging from a low of $1,684 per ounce to a high of $1,943 per ounce, and was $1,806 per ounce on December 30, 2021 (there was no London PM gold price quote on December 31, 2021).

Our consolidated revenues for ~~2021~~2023 primarily included sales of copper ~~(80 percent)~~(75%), gold ~~(11 percent)~~(15%) and molybdenum ~~(6 percent)~~(8%). ~~Copper concentrate sales to PT Smelting (PT-FI’s 39.5-percent-owned copper smelter and refinery in Gresik, Indonesia) totaled 14 percent~~For the three years ended December 31, 2023, there were no customers that accounted for 10% or more of our consolidated revenues ~~for the year ended December 31, 2021, 12 percent for the year ended December 31, 2020,~~in 2023, and ~~13 percent for the year ended December 31, 2019, which is~~ the only customer that accounted for ~~10 percent~~10% or more of our consolidated revenues ~~during the three years ended December 31, 2021.~~in both 2022 and 2021 was PT Smelting (PT-FI’s 39.5% owned copper smelter and refinery). Beginning January 1, 2023, PT-FI’s commercial arrangement with PT Smelting changed to a tolling arrangement and there are no further sales from PT-FI to PT Smelting (refer to Note 3 for further discussion). Refer to Note 16 for a summary of our consolidated revenues and operating income (loss) by business segment and geographic area.

We are one of the world’s leading producers of copper concentrate, cathode and continuous cast copper rod. During ~~2021, 59 percent~~2023, 51% of our mined copper was sold in concentrate, ~~21 percent~~27% as cathode and ~~20 percent~~22% as rod from our North America operations. The copper ore from our mines is generally processed either by smelting and refining or by solution extraction and electrowinning (SX/EW) as described below.

During 2023, PT-FI sold 75% of its copper production in concentrate and 25% as cathode. During 2023, PT-FI shipped 10% of its concentrate sales volumes to Atlantic Copper, ~~for the years ended December 31:~~

Substantially all of PT-FI’s copper concentrate sales contracts provide final ~~copper~~ pricing in a specified future month (generally one to four months from the shipment date) primarily based on quoted LME monthly average settlement copper prices. Revenues from PT-FI’s concentrate sales are recorded net of royalties, export duties, treatment charges and allowances for unrecoverable metals. Revenues from PT-FI’s cathode sales are recorded net of royalties.

Refer to Item 1A. “Risk ~~Factors”~~Factors,” “Operations – Indonesia Mining” in MD&A and Notes 12, 13 and 14 for a discussion of Indonesia ~~regulations regarding PT-FI’s concentrate exports.~~regulatory matters, including those related to export licenses, export duties and export proceeds.

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 anode 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 anode slimes are recorded net of royalties and refining charges.

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 laws and regulations touch all aspects of our operations, ~~including~~the most significant of which include how we extract, process and explore for minerals and how we conduct our business, including laws and regulations governing matters such as mining rights, environmental and reclamation matters, ~~mining rights,~~ climate change, occupational health and safety, and human rights.

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, ~~including laws and regulations applicable to PT-FI,~~ governmental agreements, ~~and~~ licenses to operate, and tax regulations and related matters refer to “Mining Operations” below, Item 1A. “Risk Factors” and Notes 3, 11, 12 and 13.

Our operations are subject to extensive and complex 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. We believe our operations follow applicable laws and regulations in all material respects, and we have internal company policies that in some instances go beyond compliance with such laws and regulations.

At December 31, 2023, we had $1.9 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 $0.5 billion in 2023, $0.4 billion in 2022 and $0.3 billion in 2021. For 2024, we expect to incur approximately $0.6 billion of aggregate environmental capital expenditures and other environmental costs (including our joint venture partners’ shares). 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.

For information about environmental laws and regulations at our global operations, including litigation and related costs, and reclamation matters, see below as well as Item 1A. “Risk Factors,” Item 3 “Legal Proceedings” and Notes 1, 12 and 13.

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 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 EPA’s decision. In connection with the presidential executive order issued in January 2021, EPA will review this final action, though the timing of its review is unknown. In 2023, a federal Interagency Working Group on mining laws, regulations and permitting led by the Department of the Interior (DOI) identified financial responsibility as one of many substantive reforms to federal mining laws and recommended reform and enhancement of laws, regulations and policies governing financial assurance, which if enacted, may impact other mining laws that may be applicable to us in the future.

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, in 2023, EPA amended its rule proposal to revise the standards for hazardous air pollutant emissions from primary copper smelters, including our Miami, Arizona smelter, which processes a significant portion of the copper concentrate produced by our North America copper mines. EPA continues to consider comments and collect additional data, and EPA’s final rule, expected by mid-2024, 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. In 2023, EPA issued a draft toxicological assessment for

inorganic arsenic. In January 2024, EPA announced that, effective immediately, it is lowering recommended screening levels for investigation and clean up of lead-contaminated soils. We are reviewing EPA’s guidance to understand possible ramifications to completed or ongoing work overseen by either EPA or state agencies. This EPA guidance and future changes to EPA’s lead and arsenic cleanup levels could result in material increases to our environmental reserves for ongoing residential property cleanup projects near former smelter sites.

In 2023, EPA and the U.S. Army Corps of Engineers issued a final rule to amend the final revised definition of the “waters of the United States.” Although future court decisions may further affect the scope of the final rule and legal challenges have already been successful, we may need federal authorization under the Clean Water Act to expand some of our operations.

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, in 2023, Cerro Verde submitted its updated closure plan and cost estimates and received approval from MINEM in December 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. For any future projects, including for existing facilities, Cerro Verde also may be required by MINEM or the National Environmental Certification Service for Sustainable Investments to incur additional costs to comply with the requirements of new regulations that provide for the adequacy of the transportation and final disposal of tailings.

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 2023, 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 additional 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 structures to increase retention of 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, and PT-FI completed the approval requirements of the AMDAL covering all support activities for the underground transition in 2023. In December 2023, PT-FI received technical approval for its tailings management activities. A second AMDAL submission covering additional underground activities is in the final stages of approval.

A detailed mine closure plan and five-year reclamation plan have been approved by Indonesia regulators as required by Indonesia law. In 2019, PT-FI completed and received approval on an updated mine closure plan to reflect Grasberg minerals district production operations until 2041. The plan is reviewed annually and 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 the mine life.

In many of the jurisdictions in which we or our customers 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. and Chile, have pledged “Nationally Determined Contributions” to control and reduce greenhouse gas emissions ~~including the U.S.~~(GHG). Additionally, the ~~recent~~ 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 the European Union (EU), and we expect that such carbon taxes and other carbon pricing mechanisms will increase over time.

While it is not yet possible to reasonably estimate the nature, extent, timing and cost or other impacts of any future carbon pricing mechanisms, mandatory disclosures, other climate change regulatory programs or future legislative action that may be ~~enacted.~~enacted, we anticipate that we will dedicate more resources and incur more costs to comply and remediate in response to legislative or regulatory changes.

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For information about human rights, refer to “Community and Human Rights” below.

The top 10 producers of copper comprise approximately ~~43 percent~~41% of total worldwide mined copper production. For the year ~~2021,~~2023, we ranked ~~second~~third among those producers, with approximately ~~seven percent~~6% of estimated total worldwide mined copper ~~production. Our~~production on an attributable basis. We believe our competitive position is based on the size, quality and grade of our ore bodies and our ability to manage costs compared with other producers. We have a diverse portfolio of mining operations with varying ore grades and cost structures. Our costs are driven by the location, grade and nature of our ore bodies, and the level of input costs, including energy, labor and equipment. The metals markets are cyclical, and we believe our ability to maintain our competitive position over the long term is based on our ability

to acquire and develop quality deposits ~~hire~~(including the expansion of deposits at our existing mine sites); recruit, retain, develop and ~~retain~~advance a skilled ~~workforce,~~workforce; and to manage our costs.

We ~~are committed to validating all of~~demonstrate our ~~copper producing sites, including our mines and smelting and refining facilities, with~~responsible production performance through the Copper Mark, a comprehensive assurance framework ~~designed to demonstrate~~developed specifically for the copper ~~industry’s responsible production practices.~~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 3233 environmental, social and governance ~~requirements. As of December 31, 2021, we had a total of seven~~(ESG) criteria. Awarded sites ~~that had been validated (Bagdad, Morenci, Miami, El Paso, Cerro Verde, El Abra and Atlantic Copper), and we~~must be revalidated every three years. We have ~~commenced~~achieved the Copper Mark ~~assessment process~~and/or Molybdenum Mark, as applicable, at ~~four additional~~all of our sites ~~in North America (Chino, Tyrone, Safford~~globally.

We are a founding member of the International Council on Mining & Metals (ICMM), an organization dedicated to a safe, fair and ~~Sierrita).~~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.

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~~Independent Tailings Review Boards and our Tailings Stewardship Team, ~~complies~~conform with the tailings governance framework on preventing catastrophic failure of tailings storage facilities adopted ~~in December 2016~~ by the ~~International Council on Mining~~ICMM. Further, our Tailings Management Policy outlines our continued commitment to managing our tailings responsibly and ~~Metals (ICMM),~~effectively across our sites globally. As an ~~industry group of which we are a founding~~ICMM member and ~~required to be~~in accordance with our commitment in our Tailings Management Policy, we also have implemented ~~by ICMM members. 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~~ for all tailings storage facilities with “Extreme” or “Very High” potential consequences based on “credible failure modes” 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~~implementing the

Refer to Item 1A. “Risk Factors” for further discussion of the risks associated with our ~~remaining facilities, in line with the Tailings Standard requirements/commitments.~~tailings management.

Following are maps and descriptions of our copper and molybdenum mining operations in North America, ~~(including both copper and molybdenum operations),~~ South America and Indonesia. We consider our material mines, as defined under the disclosure requirements of Subpart 1300 of SEC Regulation S-K, ~~(S-K 1300),~~ to be the Morenci mine in North America, the Cerro Verde mine in Peru and the Grasberg minerals district in Indonesia. Refer to Exhibits 96.1, 96.2 and 96.3 for the Technical Report Summaries that have been prepared for our material ~~mines in support of the disclosure and filing requirements of the SEC under S-K 1300.~~mines.

In the U.S., most of the land occupied by our copper and molybdenum mines, concentrators, SX/EW facilities, smelter, refinery, rod mills, molybdenum roasters and processing facilities is owned by us or is located on unpatented mining claims owned by us. Certain portions of our Bagdad, Sierrita, Miami, Chino, Tyrone, Henderson and Climax operations are located on government-owned land and are operated under a Mine Plan of Operations or other use permit. We hold various federal and state permits or leases on government land for purposes incidental to mine operations.

We own a ~~72 percent~~72% undivided interest in Morenci, with the remaining ~~28 percent~~28% owned by Sumitomo Metal Mining Arizona, Inc. ~~(15 percent)~~(15%) and SMM Morenci, Inc. ~~(13 percent)~~(13%). Each partner takes in kind its share of Morenci’s production.

Morenci is an open-pit copper mining complex that has been in continuous operation since 1939 and previously was mined through underground workings. In the 1880s, Phelps Dodge & Company (Phelps Dodge) first invested in the

The Morenci mine is a porphyry copper deposit that has oxide, secondary sulfide and primary sulfide mineralization. The predominant oxide copper mineral is chrysocolla. Chalcocite is the most important secondary copper sulfide mineral, with chalcopyrite as the dominant primary copper sulfide.

The Morenci operation consists of two concentrators with a milling design capacity of 132,000 metric tons of ore per day, which produce copper and molybdenum concentrate; a 72,500 metric ton-per-day, crushed-ore leach pad and stacking system; a low-grade run-of-mine (ROM) leaching system; four SX plants; and three EW tank houses that produce copper cathode. Total EW tank house capacity is approximately 900 million pounds of copper per year. Morenci’s available mining fleet consists of one hundred and ~~fifty-four 236-metric-ton~~forty-one 235-metric-ton haul trucks loaded by 13 electric shovels with bucket sizes ranging from 47 to 57 cubic meters. Morenci’s mining fleet is capable of moving an average of ~~815,000~~785,000 metric tons of material per day. ~~One of Morenci’s concentrators, which has a milling capacity of approximately 50,000 metric tons of ore per day was restarted in July 2021 after being on care and maintenance~~

Morenci’s production, including our joint venture partners’ share, totaled 0.8 billion pounds of copper and 3 million pounds of molybdenum in 2023, 0.9 billion pounds of copper and 4 million pounds of molybdenum in 2022, and 0.9 billion pounds of copper and 5 million pounds of molybdenum in ~~2021, 1.0 billion pounds of copper and 6 million pounds of molybdenum in 2020, and 1.0 billion pounds of copper and 5 million pounds of molybdenum in 2019.~~2021.

Morenci is located in a desert environment with rainfall averaging 13 inches per year. The highest bench elevation is 1,900 meters above sea level and the ultimate pit bottom is expected to have an elevation of ~~780~~760 meters above sea level. The Morenci operation encompasses approximately 61,700 acres, comprising 51,300 acres of fee lands and 10,400 acres of unpatented mining claims held on public mineral estate and numerous state or federal permits, easements and rights-of-way.

The Morenci operation’s electrical power is supplied by our wholly owned subsidiary, The Morenci Water ~~and~~& Electric Company (MW&E). MW&E sources its generation services through our wholly owned subsidiary, Freeport-McMoRan Copper & Gold Energy Services LLC, through capacity rights at the Luna Energy Facility in Deming, New Mexico, and other power purchase agreements. Although we believe the Morenci operation has sufficient water sources to support current operations, we are a party to litigation that may impact our water right claims or rights to continued use of currently available water supplies, which could adversely affect our water supply for the Morenci operation. Refer to “Governmental Regulations” above, Item 1A. “Risk Factors” and Item 3. “Legal Proceedings” for further discussion.

Our wholly owned Bagdad mine is an open-pit copper and molybdenum mining complex that has been in continuous operations since 1945 and prior mining was conducted through underground workings. Bagdad is located in Yavapai County in west-central ~~Arizona. It is~~Arizona, approximately 60 miles west of Prescott and 100 miles northwest of Phoenix. The property can be reached by U.S. Highway 93 to State Route 97 or Arizona Highway 96, which ends at the town of Bagdad. The closest railroad is at Hillside, Arizona, 24 miles southeast on Arizona Highway 96. ~~The open-pit mining operation has been ongoing since 1945, and prior mining was conducted through underground workings.~~

The Bagdad mine is a porphyry copper deposit containing both sulfide and oxide mineralization. Chalcopyrite and molybdenite are the dominant primary sulfides and are the primary economic minerals in the mine. Chalcocite is the most common secondary copper sulfide mineral, and the predominant oxide copper minerals are chrysocolla, malachite and azurite.

The Bagdad operation consists of a concentrator with a milling design capacity of 77,100 metric tons of ore per day that produces copper and molybdenum concentrate, a SX/EW plant that can produce approximately 69 million pounds per year of copper cathode from solution generated by low-grade stockpile leaching, and a pressure-leach plant to process molybdenum concentrate. The available mining fleet consists of ~~thirty-two~~thirty-five 235-metric-ton haul trucks loaded by ~~eight~~8 electric shovels with bucket sizes ranging from 30 to 48 cubic meters, which are capable of moving an average of 236,000 metric tons of material per day. In 2023, we announced a project to convert Bagdad’s fleet of haul trucks to become fully autonomous over the next three years. Bagdad’s net ~~property, plant, equipment~~PP&E and mine development costs at December 31, ~~2021,~~2023, totaled ~~$618 million. We are evaluating an expansion to potentially double concentrate capacity at our Bagdad operation.~~$0.8 billion.

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We have a potential expansion project to more than double the concentrator capacity of the Bagdad operation. Bagdad’s reserve life currently exceeds 80 years and supports an expanded operation. In late 2023, we completed technical and economic studies, which indicated the opportunity to construct new concentrating facilities to expand capacity from 77,000 metric tons of ore per day to between 165,000 to 185,000 metric tons of ore per day. Estimated incremental project capital costs approximate $3.5 billion (excluding infrastructure that would be required in the long-range plans) and is expected to increase production by approximately 200-250 million pounds per year, which would more than double Bagdad’s current production. Expanded operations also are expected to provide improved efficiency and reduce unit net cash costs through economies of scale. Project economics indicate that the expansion would require an incentive copper price in the range of $3.50 to $4.00 per pound and ~~11 million pounds~~would require approximately three to four years to complete. The decision to proceed and timing of ~~molybdenum~~the potential expansion will take into account overall copper market conditions, availability of labor and other factors, including progress on conversion of the existing haul truck fleet to autonomous and expanding housing alternatives to support long-range plans. In parallel, we are advancing activities for expanded tailings infrastructure projects required under long-range plans in ~~2020, and 218 million pounds of copper and 13 million pounds of molybdenum in 2019.~~order to advance the potential construction timeline. Refer to Item 1A. “Risk Factors” for further discussion.

Bagdad is located in a desert environment with rainfall averaging 15 inches per year. The highest bench elevation is ~~1,200~~1,250 meters above sea level and the ultimate pit bottom is expected to be ~~150~~120 meters above sea level. The Bagdad operation encompasses approximately 51,200 acres, comprising 40,000 acres of fee lands and 11,200 acres of unpatented mining claims held on public mineral estate and numerous state or federal permits, easements and rights-of-ways.

Bagdad receives electrical power from Arizona Public Service Company. We believe the Bagdad operation has sufficient water sources to support current operations.

Our wholly owned Safford mine ~~has been in operation since 2007 and~~ is an open-pit copper mining complex that has been in operation since 2007. Safford is located in Graham County, Arizona, 8 miles north of the town of Safford and 170 miles east of Phoenix. The site is accessible by a paved county road off U.S. Highway 70.

The Safford mine includes three copper deposits that have oxide mineralization overlaying primary copper sulfide mineralization. The predominant oxide copper minerals are chrysocolla and copper-bearing iron oxides with the predominant copper sulfide material being chalcopyrite. The only Safford deposit currently being mined is ~~the~~ Lone Star, ~~copper leach project,~~ which began leaching operations in the second half of 2020 and ~~produced approximately 235~~production from oxide ores averaged 265 million pounds of copper ~~in 2021.~~per year over the past three years. We continue to advance ~~opportunities to increase Lone Star operating rates and are advancing~~ plans to increase volumes to achieve 300 million pounds of copper per year from oxide ~~ores. The oxide project advances the opportunity for development~~ores, which reflects a continuing expansion of the ~~large-scale~~initial design capacity of 200 million pounds of copper per year. Positive drilling conducted in recent years indicates opportunities to expand production to include sulfide ~~resources at Lone Star.~~ores in the future. We are ~~increasing exploration in the area to support~~completing metallurgical testing and mine development planning and expect to commence pre-feasibility studies during 2024 for a potential ~~long-term investment in a concentrator.~~significant expansion.

Safford is a mine-for-leach operation that produces copper cathode. The operation consists of three open pits, of which ~~one (Lone Star)~~only Lone Star is currently being mined, feeding a crushing facility with a design capacity of 103,500 metric tons of ore per day. The crushed ore is delivered to a leach pad by a series of overland and portable conveyors. Leach solutions feed a SX/EW facility with a capacity of 305 million pounds of copper per year. A sulfur burner plant is also in operation at Safford, providing a cost-effective source of sulfuric acid used in SX/EW operations. The available mining fleet consists of ~~forty-two~~fifty-nine 235-metric-ton haul trucks loaded by ~~six~~7 electric shovels with bucket sizes ranging from 34 to 47 cubic meters, which are capable of moving an average of ~~358,000~~408,000 metric tons of material per day. Safford’s net ~~property, plant, equipment~~PP&E and mine development costs at December 31, ~~2021,~~2023, totaled ~~$1.2~~$1.4 billion.

Safford’s copper production totaled 245 million pounds in 2023, 285 million pounds in 2022 and 265 million pounds in ~~2021, 161 million pounds in 2020 and 110 million pounds in 2019.~~2021.

Safford is located in a desert environment with rainfall averaging 10 inches per year. The highest bench elevation is 1,783 meters above sea level and the ultimate pit bottom is expected to have an elevation of ~~823~~716 meters above sea level. The Safford operation encompasses approximately 78,300 acres, comprising 37,700 acres of fee lands and 40,600 acres of unpatented claims held on public mineral estate.

The Safford operation’s electrical power is primarily sourced from Tucson Electric Power Company, Arizona Public Service Company and the Luna Energy facility. Although we believe the Safford operation has sufficient water sources to support current operations, we are a party to litigation that may impact our water right claims or rights to continued use of currently available water supplies, which could adversely affect our water supply for the Safford operation. Refer to “Governmental Regulations” above, Item 1A. “Risk Factors” and Item 3. “Legal Proceedings” for further discussion.

Our wholly owned Sierrita mine ~~has been in operation since 1959 and~~ is an open-pit copper and molybdenum mining complex that has been in operation since 1959. Sierrita is located in Pima County, Arizona, approximately 20 miles southwest of Tucson and 7 miles west of the town of Green Valley and Interstate Highway 19. The site is accessible by a paved highway and by rail.

The Sierrita mine is a porphyry copper deposit that has oxide, secondary sulfide and primary sulfide mineralization. The predominant oxide copper minerals are malachite, azurite and chrysocolla. Chalcocite is the most important secondary copper sulfide mineral, and chalcopyrite and molybdenite are the dominant primary sulfides.

The Sierrita operation includes a concentrator with a milling design capacity of 100,000 metric tons of ore per day that produces copper and molybdenum concentrate. Sierrita also produces copper from a ROM oxide-leaching system. Cathode copper is plated at the Twin Buttes EW facility, which has a design capacity of approximately 50 million pounds of copper per year. The Sierrita operation also has molybdenum facilities consisting of a leaching circuit, two molybdenum roasters and a packaging facility. The molybdenum facilities process molybdenum concentrate produced by Sierrita, from our other mines and from third-party sources. The available mining fleet consists of twenty-four 235-metric-ton haul trucks loaded by ~~three~~4 electric shovels with bucket sizes ranging from 34 to 56 cubic meters, which are capable of moving an average of ~~175,000~~200,000 metric tons of material per day. Sierrita’s net ~~property, plant, equipment~~PP&E and mine development costs at December 31, ~~2021,~~2023, totaled ~~$722 million.~~$0.8 billion.

Sierrita’s production totaled 185 million pounds of copper and 18 million pounds of molybdenum in 2023, 184 million pounds of copper and 17 million pounds of molybdenum in 2022, and 189 million pounds of copper and 21 million pounds of molybdenum in ~~2021, 178 million pounds of copper and 17 million pounds of molybdenum in 2020, and 160 million pounds of copper and 16 million pounds of molybdenum in 2019.~~2021.

Sierrita is located in a desert environment with rainfall averaging ~~14.5~~14 inches per year. The highest bench elevation is ~~1,300~~1,387 meters above sea level and the ultimate pit bottom is expected to be ~~410~~427 meters above sea level. The Sierrita operation, including the adjacent Twin Buttes site, encompasses approximately ~~47,600~~47,700 acres, comprising 38,700 acres of fee lands including split estate lands and ~~8,900~~9,000 acres of unpatented mining claims held on public mineral estate.

Sierrita receives electrical power through long-term contracts with the Tucson Electric Power Company. Although we believe the Sierrita operation has sufficient water sources to support current operations, we are a party to litigation that may impact our water rights claims or rights to continued use of currently available water supplies, which could adversely affect our water supply for the Sierrita operation. Refer to “Governmental Regulations” above, Item 1A. “Risk Factors” and Item 3. “Legal Proceedings” for further discussion.

Our wholly owned Miami mine is an open-pit copper mining complex located in Gila County, Arizona, 90 miles east of Phoenix and 6 miles west of the city of Globe on U.S. Highway 60. The site is accessible by a paved highway and by rail.

The Miami mine is a porphyry copper deposit that has leachable oxide and secondary sulfide mineralization. The predominant oxide copper minerals are chrysocolla, copper-bearing clays, malachite and azurite. Chalcocite and covellite are the most important secondary copper sulfide minerals.

Since about 1915, the Miami mining operation had processed copper ore using both flotation and leaching technologies. The design capacity of the SX/EW plant is 200 million pounds of copper per year. Miami is no longer mining ore, but currently produces copper through leaching material already placed on ~~stockpiles, which is currently expected to continue through at least 2025.~~stockpiles. Miami’s net ~~property, plant, equipment~~PP&E and mine development costs

Miami’s copper production totaled 12 million pounds in ~~2021, 17~~2023, 11 million pounds in ~~2020~~2022 and 1512 million pounds in ~~2019.~~2021.

Miami is located in a desert environment with rainfall averaging 18 inches per year. The highest bench elevation is 1,390 meters above sea level and mining advanced the pit bottom to an elevation of 810 meters above sea level. Subsequent sloughing of material into the pit has filled it back to an elevation estimated to be 900 meters above sea level. The Miami operation encompasses approximately ~~14,700~~14,800 acres, comprising 10,400 acres of fee lands and ~~4,300~~4,400 acres of unpatented mining claims held on public mineral estate.

Miami receives electrical power through long-term contracts with the Salt River Project and natural gas through long-term contracts with El Paso Natural Gas as the transporter. We believe the Miami operation has sufficient water sources to support current operations. Refer to “Governmental Regulations” above and Item 1A. “Risk Factors” for further discussion.

The Chino mine is a porphyry copper deposit with adjacent copper skarn deposits. There is leachable oxide, secondary sulfide and millable primary sulfide mineralization. The predominant oxide copper mineral is chrysocolla. Chalcocite is the most important secondary copper sulfide mineral, and chalcopyrite and molybdenite the dominant primary sulfides.

The Chino operation consists of a concentrator with a milling design capacity of 36,000 metric tons of ore per day that produces copper concentrate, and a 150 million pound-per-year SX/EW plant that produces copper cathode from solution generated by ROM leaching. The available mining fleet consists of ~~twenty-five~~nineteen 240-metric-ton haul trucks loaded by ~~three~~3 electric shovels with bucket sizes ranging from 31 to 48 cubic meters, which are capable of moving an average of 180,000 metric tons of material per day. Chino’s net ~~property, plant, equipment~~PP&E and mine development costs at December 31, ~~2021,~~2023, totaled ~~$491 million.~~$0.5 billion.

Chino is located in a desert environment with rainfall averaging 16 inches per year. The highest bench elevation is 2,250 meters above sea level and the ultimate pit bottom is expected to be 1,508 meters above sea level. The Chino operation encompasses approximately ~~122,800~~127,800 acres, comprising ~~109,000~~110,000 acres of fee lands and ~~13,800~~17,800 acres of unpatented mining claims held on public mineral estate.

The Tyrone mine is a porphyry copper deposit. Mineralization is predominantly secondary sulfide consisting of chalcocite, with leachable oxide mineralization consisting of chrysocolla.

Copper processing facilities consist of a SX/EW operation with a maximum capacity of approximately 100 million pounds of copper cathode per year. The available mining fleet consists of nine 240-metric-ton haul trucks loaded by ~~one~~1 electric shovel with a bucket size of 47 cubic meters, which is capable of moving an average of 108,000 metric tons of material per day. Tyrone’s net ~~property, plant, equipment~~PP&E and mine development costs at December 31, ~~2021,~~2023, totaled ~~$90 million.~~$0.1 billion.

Tyrone’s copper production totaled 51 million pounds in 2023, 59 million pounds in 2022 and 55 million pounds in 2021.

Tyrone is located in a desert environment with rainfall averaging 16 inches per year. The highest bench elevation is 2,070 meters above sea level and the ultimate pit bottom is expected to have an elevation of 1,475 meters above sea level. The Tyrone operation encompasses approximately 80,700 acres, comprising 67,700 acres of fee lands and 13,000 acres of unpatented mining claims held on public mineral estate.

The Climax ore body is a porphyry molybdenum deposit, with molybdenite as the primary sulfide mineral.

The Climax mine includes a 25,000 metric tons of ore per day mill facility. Climax has the capacity to produce approximately 30 million pounds of molybdenum per year. The available mining fleet consists of eleven 177-metric-ton haul trucks loaded by 2 hydraulic shovels with bucket sizes of 34 cubic meters, which are capable of moving an average of 90,000 metric tons of material per day. Climax’s net PP&E and mine development costs at December 31, 2023, totaled $1.3 billion.

Over the past three years, Climax has been operating at approximately 75% of capacity with molybdenum production totaling 17 million pounds in 2023, 21 million pounds in 2022 and 18 million pounds in 2021.

The Climax mine is located in a mountainous region. The highest bench elevation is approximately 4,050 meters above sea level and the ultimate pit bottom is expected to have an elevation of approximately 3,100 meters above sea level. This region experiences significant snowfall during the winter months. The Climax operation encompasses approximately 15,100 acres, comprising 14,300 of privately owned land and 800 acres of federal claims.

The Henderson mine is a porphyry molybdenum deposit, with molybdenite as the primary sulfide mineral.

The Henderson operation consists of a block-cave underground mining complex feeding a concentrator with a design capacity of approximately 32,000 metric tons per day. Henderson has the capacity to produce approximately 15 million pounds of molybdenum per year. The majority of the molybdenum concentrate produced is shipped to our Fort Madison, Iowa, processing facility. The available underground mining equipment fleet consists of fifteen 9-metric-ton load-haul-dump (LHD) units and seven 73-metric-ton haul trucks, which deliver ore to a gyratory crusher feeding a series of ~~three~~3 overland conveyors to the mill stockpiles. Henderson’s net ~~property, plant, equipment~~PP&E and mine development costs at December 31, ~~2021,~~2023, totaled ~~$265 million.~~$0.2 billion.

Henderson’s molybdenum production totaled 1213 million pounds in ~~2021, 10 million pounds in 2020~~2023 and 12 million pounds in ~~2019.~~both 2022 and 2021.

The Henderson mine is located in a mountainous region with the main access shaft at 3,180 meters above sea level. The main production levels are currently at elevations of 2,200 and 2,350 meters above sea level. This region experiences significant snowfall during the winter months.

At our operations in South America, mine properties and facilities are controlled through mining claims or concessions under the general mining laws of the relevant country. The claims or concessions are owned or controlled by the operating companies in which we or our subsidiaries have a controlling ownership interest. Roads, power lines and aqueducts are controlled by easements.

We have a ~~53.56 percent~~53.56% ownership interest in Cerro Verde, with the remaining ~~46.44 percent~~46.44% held by SMM Cerro Verde Netherlands B.V. ~~(21.0 percent)~~(21.0%), Compañia de Minas Buenaventura S.A.A. ~~(19.58 percent)~~(19.58%) and other stockholders whose Cerro Verde shares are publicly traded on the Lima Stock Exchange ~~(5.86 percent)~~(5.86%).

Cerro Verde is an open-pit copper and molybdenum mining complex that has been in operation since ~~1976 and~~1976. Cerro Verde is located 20 miles southwest of Arequipa, Peru. Prior to being acquired in 1994 by a predecessor of Phelps Dodge, the mine was previously operated by the Peru government. The property is located at latitude 16.53 degrees south

The Cerro Verde mine is a porphyry copper deposit that has oxide, secondary sulfide and primary sulfide mineralization. The predominant oxide copper minerals are brochantite, chrysocolla, malachite and copper “pitch.” Chalcocite and covellite are the most important secondary copper sulfide minerals. Chalcopyrite and molybdenite are the dominant primary sulfides.

Cerro Verde’s operation ~~consists of two~~includes 2 concentrating facilities with ~~a total~~an annual average permitted milling ~~design~~ capacity of ~~360,000~~409,500 metric tons of ore per day ~~and~~(and the ability to annually treat up to 5% more for a total of 430,000 metric tons of ore per day). As a result of several efficiency initiatives implemented over the past several years, in 2023, Cerro Verde’s 2 concentrators were able to achieve a combined average milling rate of 417,400 metric tons of ore per day in 2023. Cerro Verde also operates SX/EW leaching ~~facilities. Leach copper~~facilities, which have a production ~~is derived from a 39,000-metric-ton-per-day crushed leach facility and a 100,000-metric-ton-per-day ROM leach system. This SX/EW leaching operation has a~~ capacity of approximately 200 million pounds of copper per year. In 2023, Cerro Verde began to dismantle its crushed leach facility (which had a capacity of 39,000 metric tons of ore per day) as a result of pit expansion but continues to utilize its 100,000-metric-ton-per-day ROM leach system.

The available fleet consists of fifty-four 300-metric-ton haul trucks ~~and~~(1 of which is currently on standby), ninety-three ~~245-metric-ton~~250-metric-ton haul trucks ~~(21~~(10 of which are currently on standby) and ~~three 363-metric-ton~~7 leased 380-metric-ton haul trucks loaded by ~~thirteen~~13 electric shovels with bucket sizes ranging ~~in size~~ from 33 to 57 cubic ~~meters and two hydraulic shovels with a bucket size of 21 cubic meters (both of which are currently on standby).~~meters. This fleet is capable of moving an average of approximately ~~970,000~~1,000,000 metric tons of material per day. Cerro Verde’s net ~~property, plant, equipment~~PP&E and mine development costs at December 31, ~~2021,~~2023, totaled ~~$6.1~~$5.9 billion.

Cerro Verde’s production totaled 1.0 billion pounds of copper and 22 million pounds of molybdenum in 2023, 1.0 billion pounds of copper and 23 million pounds of molybdenum in 2022, and 0.9 billion pounds of copper and 21 million pounds of molybdenum in ~~2021, 0.8 billion pounds of copper and 19 million pounds of molybdenum in 2020, and 1.0 billion pounds of copper and 29 million pounds of molybdenum in 2019.~~2021.

Cerro Verde is located in a desert environment with rainfall averaging ~~1.5~~less than two inches per year and is in an active seismic zone. The highest bench elevation is ~~2,810~~2,768 meters above sea level and the ultimate pit bottom is expected to be ~~1,523~~1,538 meters above sea level. The Peru general mining law and Cerro Verde’s mining stability agreement grant the surface rights of mining concessions located on government land. Government land obtained after 1997 must be leased or purchased. Cerro Verde has a mining concession covering approximately ~~178,000~~175,000 acres, including 62,000 acres of surface rights and access to 14,600 acres granted through an easement from the Peru National Assets Office, plus ~~150~~151 acres of owned property, and 1,151 acres of rights-of-way outside the mining concession area leased from both government agencies and private parties.

Cerro Verde currently receives electrical power, including hydro-generated power, under long-term contracts with ElectroPeru and Engie Energia Peru S.A. During 2023, Cerro Verde entered into a new power purchase agreement that is expected to transition its electric power to fully renewable energy sources in 2026.

Water for our Cerro Verde processing operations comes from renewable sources through a series of storage reservoirs on the ~~Rio~~Río Chili watershed that collect water primarily from seasonal precipitation and from wastewater collected from the city of Arequipa and treated at a wastewater treatment ~~plant.~~plant operated by Cerro Verde. We believe the Cerro Verde operation has sufficient water ~~resources~~sources to support current ~~operations.~~operations, but we are closely monitoring ongoing El Niño weather patterns. Refer to “Governmental Regulations” above and Item 1A. “Risk Factors” for further discussion.

We have a ~~51 percent~~51% ownership interest in El Abra, and the remaining ~~49 percent~~49% interest is held by the state-owned copper enterprise Corporación Nacional del Cobre de Chile.

El Abra is an open-pit copper mining complex that has been in operation since ~~1996 and~~1996. El Abra is located 47 miles north of Calama in Chile’s El Loa province ~~Region II.~~of the northern Chilean region of Antofagasta. The site is accessible by paved ~~highway~~highways and by rail.

The El Abra mine is a porphyry copper deposit that has sulfide and oxide mineralization. The predominant primary sulfide copper minerals are bornite and chalcopyrite. There is a minor amount of secondary sulfide mineralization as chalcocite. The oxide copper minerals are chrysocolla and pseudomalachite. There are lesser amounts of copper bearing clays and tenorite.

The El Abra operation consists of a SX/EW facility with a capacity of 500 million pounds of copper cathode per year from a 125,000-metric-ton-per-day crushed leach circuit and a ROM leaching operation. The available fleet consists of twenty-three 242-metric-ton haul trucks loaded by ~~four~~4 electric shovels with buckets ranging in size from 29 to 41 cubic meters, which are capable of moving 217,000 metric tons of material per day. El Abra’s net ~~property, plant, equipment~~PP&E and mine development costs at December 31, ~~2021,~~2023, totaled ~~$707 million.~~

El Abra’s copper production totaled 217 million pounds in 2023, 202 million pounds in 2022 and 160 million pounds in ~~2021, 159 million pounds~~2021. Higher mining and stacking activities at El Abra over the past two years resulted in ~~2020 and 180 million pounds~~the increase in ~~2019.~~production compared to 2021.

We ~~continue to evaluate~~have identified a ~~large-scale expansion at El Abra to process additional sulfide material and to achieve higher copper recoveries. El Abra's~~ large sulfide resource ~~could potentially~~that would support a potential major mill project similar to the ~~facilities constructed~~large-scale concentrator at Cerro ~~Verde in 2015.~~Verde. Technical and economic studies continue to be evaluated to determine the optimal scope and timing for the sulfide ~~project, and we~~project. Capital cost requirements are ~~engaging stakeholders and preparing data required for submission of a robust permit application.~~being updated to reflect current market conditions. We are ~~monitoring potential changes in~~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 ~~Chile~~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 ~~will defer major investment decisions pending clarity on these matters.~~economic evaluations.

El Abra is located in a desert environment with rainfall averaging less than one inch per year and is in an active seismic zone. The highest bench elevation is 4,225 meters above sea level and the ultimate pit bottom is expected to be 3,385 meters above sea level. El Abra controls a total of approximately ~~183,600~~183,900 acres of mining claims covering the ore deposit, stockpiles, process plant, and water wellfield and pipeline. In addition, El Abra has land surface rights for the road between the processing plant and the mine, the water wellfield, power transmission lines and for the water pipeline from the Salar de Ascotán aquifer.

El Abra currently receives electrical power under a long-term contract with Engie Energia Chile S.A. Water for our El Abra processing operations currently comes from the continued pumping of groundwater from the Salar de Ascotán aquifer pursuant to regulatory approval. We believe El Abra has sufficient water ~~rights and regulatory approvals~~sources to support current ~~operations.~~operations, although we are evaluating options for water infrastructure alternatives to provide options to extend existing operations and support a future expansion. Refer to “Governmental Regulations” above and Item 1A. “Risk Factors” for further discussion.

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. An extension would enable continuity of large-scale operations and provide growth options through additional resource development opportunities in the Grasberg minerals district.

Refer to ~~Note 13 and~~ Item 1A. “Risk Factors” and Note 13 for discussion of PT-FI’s IUPK and risks associated with our Indonesia mining operations.

airport. The project site is located at latitude 4.08 degrees south and longitude 137.12 degrees east using the WGS 84 coordinate system. The project area includes a 70-mile main service road from portsite to the mill complex. PT-FI’s net PP&E and mine development costs at December 31, 2023, totaled $19.1 billion.

~~The~~Production from the Grasberg minerals district ~~includes the following~~totaled 1.7 billion pounds of copper and 2.0 million ounces of gold in 2023, 1.6 billion pounds of copper and 1.8 million ounces of gold in 2022, and 1.3 billion pounds of copper and 1.4 million ounces of gold in 2021.

Over a multi-year investment period, PT-FI has successfully commissioned three large-scale underground mines ~~that are being operated;~~in the Grasberg minerals district (Grasberg Block Cave, ~~the~~ Deep Mill Level Zone (DMLZ) and Big ~~Gossan. During 2021, we began development~~Gossan), which provided 100% of ~~the Kucing Liar~~production volumes. Milling rates for ore from these underground mines averaged 198,300 metric tons of ore per day in 2023, an approximate 3% increase from 192,600 metric tons of ore per day in 2022, and an approximate 31% increase from 151,600 metric tons of ore per day in 2021. PT-FI set a number of annual operating records during 2023, including total underground ore ~~body~~mined (and milled) and ~~the Deep Ore Zone (DOZ) underground mine ceased production. The ramp-up~~volume of ~~underground production at the Grasberg minerals district in Indonesia continues to advance on schedule. During 2021, a total of 139 new drawbells were added at the Grasberg Block Cave and DMLZ~~concentrate produced. Production from these underground mines ~~bringing cumulative open drawbells~~is expected to ~~510.~~continue through 2041 and an extension of PT-FI’s operating rights beyond 2041 would extend the lives of these mines. Refer to Item 1A. “Risk Factors” for discussion of risks associated with development projects and underground mines.

~~Production from~~In December 2023, PT-FI completed the ~~Grasberg minerals district totaled 1.3 billion~~installation of new milling facilities, which will enable PT-FI to further leverage the success of the underground mines and provide sustained large-scale production volumes. PT-FI is also advancing a mill recovery project with the installation of a new copper cleaner circuit that is expected to be completed in the second half of 2024 to provide incremental production of approximately 60 million pounds of copper and ~~1.4 million~~40 thousand ounces of gold in 2021, 0.8 billion pounds of copper and 0.8 million ounces of gold in 2020, and 0.6 billion pounds of copper and 0.9 million ounces of gold in 2019. PT-FI’s net property, plant, equipment and mine development costs at December 31, 2021, totaled $15.1 billion.per year.

Our principal source of power for our Indonesia operations is a coal-fired power plant that we built in 1998. Diesel generators supply peaking and backup electrical power generating ~~capacity; however, beginning in 2022, our new~~capacity. In 2023, PT-FI commissioned a dual-fuel power plant to support increased power requirements and diversify its energy sources. PT-FI is advancing plans to transition its existing energy source from coal to liquefied natural gas, which is expected ~~eventually~~ to ~~provide up~~meaningfully reduce PT-FI’s Scope 1 GHG emissions at the Grasberg minerals district. The project includes investments in a new gas-fired combined cycle facility. Capital expenditures for the new facilities, to ~~approximately 40 percent~~be incurred over the next four years, approximate $1 billion representing an incremental cost of ~~PT-FI’s power needs.~~ $0.4 billion compared to previously planned investments to refurbish the existing coal units.

A combination of naturally occurring mountain streams and water derived from our underground operations provides water for our operations. Our Indonesia operations are in an active seismic zone and experience average annual rainfall of approximately 200 inches.

The Grasberg Block Cave ore body is the same ore body historically mined from the surface in the Grasberg open pit. Undercutting, drawbell construction and ore extraction activities in the Grasberg Block Cave underground mine continue to track expectations. Monitoring data on cave propagation in the Grasberg Block Cave underground mine is providing confidence in growing production rates over time. As existing drawpoints mature and additional drawpoints are added, cave expansion is expected to accelerate production rates to an average of over 105,000 metric tons of ore per day in 2022 and 122,000 metric tons of ore per day in 2023 from five production blocks spanning 335,000 square meters. As of December 31, ~~2021,~~2023, the Grasberg Block Cave underground mine had ~~336~~425 open drawbells.

Ore milled from the Grasberg Block Cave underground mine averaged 117,300 metric tons per day in 2023, 103,300 metric tons per day in 2022 and 70,600 metric tons per day in ~~2021, 30,800 metric tons per day in 2020 and 8,600 metric tons per day in 2019. Production at the Grasberg Block Cave underground mine is expected to continue through 2041.~~2021.

The Grasberg Block Cave fleet consists of approximately ~~580~~870 pieces of mobile equipment. The primary mining equipment directly associated with production and development includes an available fleet of 8898 LHD units and 3322 haul trucks. Each production LHD unit typically carries approximately 11 metric tons of ore and transfers ore into the rail haulage system. The Grasberg Block Cave has a rail haulage system currently operating with 1013 locomotives and ~~120~~143 ore wagons that haul the ore to ~~the first 2 of the~~ 3 ~~planned~~ gyratory crushers located underground via an automated rail system. Each ore wagon typically carries 3035 metric tons. The crushed ore is conveyed to surface stockpiles for processing.

The DMLZ ore body lies below the ~~DOZ~~Deep Ore Zone (DOZ) underground mine at the 2,590-meter elevation and represents the downward continuation of mineralization in the Ertsberg East Skarn system and neighboring Ertsberg porphyry.

~~The DMLZ has continued its ramp-up of production.~~ Hydraulic fracturing operations have been effective in managing rock stresses and pre-conditioning the cave following mining-induced seismic activity experienced from time to time. Ongoing hydraulic fracturing operations combined with continued undercutting and drawbell openings in the two currently active production blocks are expected to expand the cave, supporting higher production rates that are expected to average approximately 68,000 metric tons of ore per day in 2022 and 69,000 metric tons of ore per day in 2023 from three production blocks. As of December 31, ~~2021,~~2023, the DMLZ underground mine had ~~174~~132 open drawbells.

Ore milled from the DMLZ underground mine averaged 75,900 metric tons per day in 2023, 76,300 metric tons per day in 2022 and 58,000 metric tons per day in ~~2021, 28,600 metric tons per day in 2020 and 9,800 metric tons per day in 2019. Production at the DMLZ underground mine is expected to continue through 2041.~~2021.

The DMLZ fleet consists of ~~over 390~~425 pieces of mobile equipment, which includes 6360 LHD units and 3433 haul trucks used in production and development activities. Each production LHD unit typically carries approximately 119 metric tons of ore and transfers ore into the truck haulage system. The haul trucks have a capacity of 55 to 60 metric tons and load ore from chutes fed by the LHDs and transfer it to one of two gyratory crushers. The crushed ore is conveyed to surface stockpiles for processing.

The Big Gossan ore body lies underground and adjacent to the current mill site. It is a tabular, near vertical ore body with approximate dimensions of 1,200 meters along strike and 800 meters down dip with varying thicknesses from 20 meters to 120 meters. The mine utilizes a blasthole stoping method with delayed paste backfill. Stopes of varying sizes are mined and the ore dropped down passes to a truck haulage level. Trucks are chute loaded and transport the ore to a jaw crusher. The crushed ore is then hoisted vertically via a two-skip production shaft to a level where it is loaded onto a conveyor belt. The belt carries the ore to one of the main underground conveyors where the ore is transferred and conveyed to the surface stockpiles for processing.

Ore milled from the Big Gossan underground mine averaged ~~approximately~~7,900 metric tons per day in 2023, 7,600 metric tons per day in 2022 and 7,500 metric tons per day in ~~2021, 7,000 metric tons per day in 2020 and 6,100 metric tons per day in 2019. Production at the Big Gossan underground mine is expected to continue through 2041.~~2021.

The Big Gossan fleet consists of ~~over 90~~79 pieces of mobile equipment, which ~~includes 14~~include 10 LHD units and 108 haul trucks used in development and production activities.

~~PT-FI commenced long-term~~Long-term mine development activities are ongoing for ~~its~~PT-FI’s Kucing Liar deposit in ~~October 2021,~~the Grasberg minerals district, which is expected to produce over 67 billion pounds of copper and 56 million ounces of gold between ~~2028~~2029 and the end of 2041. ~~The Kucing Liar underground deposit lies on~~An extension of PT-FI’s operating rights beyond 2041 would extend the ~~southern flank of and underneath the southern portion~~life of the ~~Grasberg open pit at the 2,605-meter elevation level. Similar to PT-FI's experience with large-scale, block-cave mines, pre-production~~project. Pre-production development activities ~~will occur~~commenced in 2022 and are expected to continue over an approximate 10-year timeframe. Capital investments are estimated to average approximately $400 million per year over this period. At full operating rates of approximately 90,000 metric tons of ore per day, annual production from Kucing Liar is expected to approximate ~~600~~560 million pounds of copper and ~~500,000~~520 thousand ounces of gold, providing PT-FI with sustained long-term, large-scale and low-cost production. ~~Capital investments for Kucing Liar over the next 10 years are expected to average approximately $400 million per year.~~ Kucing Liar will benefit from substantial shared infrastructure and ~~PT-FI's~~PT-FI’s experience and long-term success in block-cave mining.

~~The DOZ ore body lies vertically below the depleted Intermediate Ore Zone.~~ PT-FI began production from the DOZ ore body in 1989 and the ore body was depleted at the end of 2021. ~~Ore milled from the DOZ underground mine averaged 8,700 metric tons per day in 2021, 20,900 metric tons per day in 2020 and 25,500 metric tons per day in 2019.~~

PT-FI began open-pit mining of the Grasberg ore body in 1990 and the final phase was mined during 2019. In aggregate, the Grasberg open pit produced over 27 billion pounds of copper and 46 million ounces of gold in the 30-year period from 1990 through 2019.

location and orientation are strongly influenced by major faults and by the chemistry of the carbonate rocks along the margins of the intrusions.

The copper mineralization in these skarn deposits is dominated by chalcopyrite, but higher bornite concentrations are common. Moreover, gold occurs in significant concentrations in all of the district’s ore bodies, though rarely visible to the naked eye. These gold concentrations usually occur as inclusions within the copper sulfide minerals, though, in some deposits, these concentrations can also be strongly associated with pyrite.

The following diagram indicates the relative elevations (in meters) of our reported Indonesia ore bodies.

The following map, which encompasses an area of 42 square kilometers, indicates the relative positions and sizes of our reported Indonesia ore bodies and their locations.

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.

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 ~~278,600~~261,900 metric tons of copper in ~~2021, 275,900~~2023, 215,000 metric tons in ~~2020~~2022 and ~~272,000~~278,600 metric tons in ~~2019.~~2021. Copper cathode production from its refinery totaled ~~277,000~~260,300 metric tons of copper in ~~2021, 275,000~~2023, 218,400 metric tons in ~~2020~~2022 and ~~268,300~~277,000 metric tons in ~~2019.~~2021.

~~Following is the allocation~~During 2023, Atlantic Copper purchased 40% of ~~Atlantic Copper’s~~its concentrate ~~purchases~~ from ~~unaffiliated third parties and~~ our copper mining operations ~~for~~(20% from PT-FI, 17% from South America mining and 3% from the ~~years ended December 31:~~

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 ~~last completed~~is developing an e-material recycling project as a ~~major maintenance turnaround~~result of the significant and continued

growth in ~~2013~~electronic waste material. Atlantic Copper’s existing smelting and ~~most recently completed~~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 ~~16-day maintenance turnaround in 2019. The next major maintenance turnaround is scheduled for~~smelting furnace and associated equipment to recover copper, gold, silver, palladium, tin, nickel and platinum from electronic materials. Atlantic Copper estimates that the ~~first half of 2022.~~initial project capital will approximate $345 million.

In November 2021, PT-FI completed agreements with ~~Mitsubishi Materials Corporation~~MMC to implement the expansion of PT Smelting’s capacity by ~~30 percent~~30% to 1.3 million metric tons of copper concentrate per ~~year, which is~~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 ~~be completed by the end of 2023~~convert to equity in ~~connection with~~2024, increasing PT-FI’s ~~commitment~~ownership in PT Smelting to ~~develop additional smelting capacity in Indonesia.~~approximately 65%. Refer to Note 23 for ~~discussion of PT-FI’s loan to PT Smelting.~~further discussion.

PT Smelting’s anode production from its smelter totaled ~~280,400~~251,300 metric tons of copper in ~~2021, 276,900~~2023, 316,700 metric tons in ~~2020~~2022 and ~~246,100~~280,400 metric tons in ~~2019.~~2021. Copper cathode production from its refinery totaled ~~256,900~~212,000 metric tons of copper in ~~2021, 273,000~~2023, 268,400 metric tons in ~~2020~~2022 and ~~241,200~~256,900 metric tons in ~~2019.~~2021.

PT Smelting’s major scheduled maintenance turnarounds (which ~~range from two weeks~~approximate 30 days 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~~an 18-day maintenance turnaround during ~~December 2020, and the next major turnaround is scheduled for the second half of 2022. In addition, PT Smelting has~~October 2022, a ~~planned 75-day~~72-day shutdown ~~scheduled for the first half of~~in July 2023 associated with its expansion ~~project.~~

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.

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, ~~764,000~~and copper anode production from the smelter totaled 222,000 metric tons in ~~2020 and 641,000~~2023, 202,000 metric tons in ~~2019.~~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 ~~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 first half of 2024.~~mid-year 2025.

~~Capital~~In 2023, capital expenditures totaled ~~$2.1~~$4.8 billion (including ~~$1.25~~$1.8 billion for major mining projects ~~and $0.2 billion~~– primarily for Indonesia smelter projects) in 2021, $2.0 billion (including $1.2 billion for major projects and $0.1 billion for Indonesia smelter projects) in 2020 and $2.65 billion (including $1.5 billion for major projects) in 2019. Capital expenditures for major projects during 2021, 2020 and 2019 were primarily associated with underground development activities in the Grasberg minerals district – and ~~the Lone Star copper leach project at our Safford mine, which was completed in the second half of 2020. Refer to MD&A~~$1.7 billion for ~~projected capital expenditures for the year 2022.~~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 $3$6 billion (most ~~of which~~ will be incurred over ~~an approximate 12-year period)~~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 ~~with capital~~and as such, PT-FI is planning investments in a new gas-fired combined cycle facility. Capital expenditures ~~approximating $0.6 billion~~ for the new ~~dual-fuel~~ power generation ~~upgrades~~facilities, to ~~existing transmission lines, and refurbishment of~~be incurred over the ~~existing three coal units.~~

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 ~~mineral~~ 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 $50 million in 2021, $34 million in 2020 and $77 million in 2019.~~

Refer to Item 1A. “Risk Factors” for further discussion of risks associated with mine development projects and exploration activities, and PT-FI’s IUPK.

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 ~~approximately 21 percent~~19% of our copper mine site operating costs in ~~2021,~~2023, including purchases of approximately ~~220~~250 million gallons of diesel fuel; approximately ~~8,000~~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 ~~750~~700 thousand metric tons of coal for our coal power plant in Indonesia; and approximately 12 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 ~~25 percent~~20% of our copper mine site operating costs in ~~2022.~~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.”

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 ~~Board’s~~ Corporate Responsibility Committee (CRC) having oversight of health and safety matters and the ~~Board’s~~ Compensation Committee having oversight of other human capital matters, including those relating to workforce recruitment, retention and development, pay equity and inclusion and diversity.

At December 31, ~~2021,~~2023, we had approximately ~~24,700~~27,200 employees ~~(11,600~~(13,000 in North America, ~~6,100 in Indonesia, 6,000~~6,700 in South America, 6,400 in Indonesia and ~~1,000~~1,100 in Europe and other locations). We also had contractors that ~~employ~~employed personnel at many of our operations at various times throughout 2023, including approximately ~~22,200~~56,000 in Indonesia (approximately 32,000 at the Manyar smelter development site and approximately 24,000 at the Grasberg ~~minerals district in Indonesia, 13,600~~Minerals District), 20,100 in North America, ~~6,100~~6,800 at our South America mining operations and ~~600~~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 ~~31 percent~~29% of our global employee population is covered by collective labor agreements ~~(CLA), with 14 percent covered by a CLA that will or was scheduled to expire in 2022.~~(CLAs). In North America, our workforce is not covered by a CLA. ~~Our~~Rather, our hourly, full-time employees at our active North America ~~hourly employees choose~~sites elect to work directly with management ~~utilizing~~using our Guiding Principles, which ~~sets out~~outline how we work together to achieve our collective goals within the values of the ~~company to achieve our collective goals.~~

Employees covered by CLAs on December 31, ~~2021,~~2023, are listed below, with the number of employees covered and the expiration date of the applicable CLA:

Our highest priority is the health, safety and well-being of our employees and contractors. We also ~~instill health and safety processes for~~work to promote our safety-first values with our suppliers and in the communities where we operate. We believe ~~that~~ health and safety considerations are integral to, and fundamental for, all other functions in our organization, and we understand ~~that~~ the health and safety of our workforce is critical to our operational efficiency and long-term success. Our global health and safety ~~approach,~~strategy, “Safe Production Matters,” is focused on fatality prevention, eliminating systemic root causes of incidents and continuous improvement through ~~the use of~~ robust management systems, which are supported by leaders empowering ~~safe~~our teams to work ~~behaviors~~safely. Foundational to our Safe Production Matters strategy is our Fatal Risk Management (FRM) program. The goal of our FRM program is to achieve zero workplace fatalities by raising awareness to fatal risks and ~~strengthening our safety culture.~~the measures necessary to mitigate them.

We ~~focus on fatality prevention through~~further seek to prevent fatalities by leveraging technology to support safe work practices in the ~~use of~~field and data ~~and technology as well as behavioral science principles.~~analytics to identify opportunities for improvement. Our framework for managing risks and compliance obligations is certified ~~company wide~~company-wide in accordance with the ~~new~~ ISO 45001 Health and Safety Management System (ISO 45001), most recently certified in ~~September 2021.~~January 2023. ISO 45001 requires third-party site-level verification of requirements, with aan overall goal ~~to prevent~~of preventing fatalities and ~~reduce~~reducing safety incidents.

As part of our commitment to providing a ~~safe~~healthy and ~~healthy~~safe workplace, we strive to provide the training, tools and resources needed so our workforce can identify risks and consistently apply effective controls. We share information and key learnings about ~~potentially~~potential fatal events ~~near misses~~(PFEs) and best practices throughout the company, and we engage with industry peers ~~outside the organization~~and professional organizations to learn and continuously improve our health and safety ~~performance.~~program. We also review and discuss all ~~fatalities~~fatal incident investigations with the ~~Corporate Responsibility Committee~~CRC and the Board.

Our objective is to achieve zero workplace fatalities and to decrease injuries and occupational illnesses. We measure our safety performance through regularly established benchmarks, including ~~our company-wide~~the industry-established Total Recordable Incident Rate (TRIR), and our company-established PFEs, both of which ~~includes both~~include employees and ~~contractors. In 2021, regrettably,~~contractors company-wide. Regrettably, we had ~~3 workplace fatal events, 2 work related~~one work-related fatality in each of 2023 and ~~1 not yet classified as either an independent medical episode or work related, and 17 potential fatal events (PFEs), compared to 5 fatalities and 12~~2022. In addition, we had 46 PFEs in ~~2020. Overall, the percentage of high risk incidents has trended down from 11 percent~~2023 and 30 PFEs in ~~2019 to 7 percent in 2020 and 2021.~~2022. Our TRIR per 200,000 man-hours worked was ~~0.69~~0.60 in ~~both 2021~~2023 and 2020, meeting our 2021 and 2020 targets. The metal mining sector industry average per 200,000 man-hours worked reported by MSHA was 1.70 for 2021 (preliminary for the period of January 1, 2021, through September 30, 2021) and 1.660.77 in ~~2020.~~2022.

In ~~2021,~~addition to a traditional focus on safety, we ~~continued~~aim to ~~take steps to protect~~support the overall health and well-being of our workforce ~~from COVID-19, including~~ by ~~continuing operating protocols at each of our operating sites~~providing access to ~~contain~~health and ~~mitigate the risk of spread of COVID-19. We will continue to monitor, assess~~wellness resources, and ~~update our COVID-19 response and to provide assistance to employees in obtaining vaccinations. We are committed to the communities~~offering opportunities for flexible work schedules, where ~~we operate and continue to work closely with them, including providing monetary support and in-kind contributions of medical supplies and food. To support our~~practicable, among other efforts.

~~We operate in regions~~In addition to the health, safety and well-being of ~~varying ethnic, religious~~our global workforce, we have prioritized retaining a flexible, highly engaged and ~~cultural backgrounds, and we often are the largest employer in our local communities.~~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 ~~attracting~~recruiting and retaining talented people by offering quality employment with competitive compensation and benefits, ~~as well as~~which support our efforts in the tight labor markets. We also offer opportunities for professional development and ~~growth.~~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.

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 ~~respect~~are often the largest employer in our local communities and ~~value~~hiring locally is a commitment we make to the ~~different ideas, beliefs, experiences, talents, skills, perspectives, backgrounds~~host communities surrounding our operations and ~~cultures~~to our host countries. As of December 31, 2023, the vast majority of our ~~workforce.~~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. ~~Our~~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.

~~Our~~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 ~~reflected in our Inclusion and Diversity Policy,~~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.

We continue to make significant expenditures on community development, health, education, training and cultural programs, which include:

In 2000, we endorsed the joint U.S. State Department-British Foreign Office Voluntary Principles on Security and Human Rights ~~and Security~~ (Voluntary Principles). We participated in developing these Voluntary Principles with other major natural resource companies and international human rights organizations and they are incorporated into our ~~human rights policy.~~Human Rights Policy. The Voluntary Principles provide guidelines for our security programs, including interaction with host-government security personnel, private security contractors and our internal security employees.

Our ~~human rights policy, most recently updated in December 2020,~~Human Rights Policy reflects our commitment to implementing the United Nations Guiding Principles on Business and Human Rights. We ~~have embarked on a program to plan and~~ conduct site-level human rights impact assessments ~~(HRIA)~~(HRIAs) at our global ~~operations.~~

We believe that our social and economic development programs are responsive to the issues raised by the local communities near our areas of operation and help us maintain good relations with the surrounding communities and avoid disruptions of mining operations. As part of our ongoing commitment to our community stakeholders, we have made and expect to continue making investments in certain social programs, including in-kind support and administration, across our global operations from time to time. Over the last three years, these investments have averaged ~~$124~~$170 million per year. Nevertheless, social and political instability in the areas of our operations may adversely impact our mining operations. Refer to Item 1A. “Risk Factors” for further discussion.

Cerro Verde ~~reached an agreement with the Regional Government of Arequipa, the National Government, the local water utility company and other local institutions to allow it to finance, engineer and construct~~constructed a wastewater treatment plant for the city of Arequipa, which was completed in 2015. The wastewater treatment plant supplements existing water supplies to support Cerro Verde’s concentrator expansion and also improves the local water quality, enhances agriculture products grown in the area and reduces the risk of waterborne illnesses. In addition to these projects, Cerro Verde annually makes significant community development investments in the Arequipa region.

as protecting company facilities, monitoring shipments of supplies and products, assisting in traffic control and aiding in emergency response operations. The security department receives human rights and Voluntary Principles training annually. ~~Some contractors assigned to protection of expatriate personnel are armed. These contractors also receive training in defensive driving and firearms handling.~~ Cerro Verde’s costs for its internal civilian security department totaled approximately $8 million in 2023 and $7 million infor both ~~2021~~of the years 2022 and ~~2020 and $9 million in 2019.~~2021.

Cerro Verde, like all businesses and residents of Peru, relies on the Peru government for the maintenance of public order, upholding the rule of law and the protection of personnel and property. The Peru government is responsible for employing police personnel and directing their operations. Cerro Verde has limited public security forces in support of its operation, with the arrangement defined through ~~a memorandum of understanding~~an Inter-institutional Cooperation Agreement with the Peru National Police. Cerro Verde’s share of support costs for government-provided security approximated $1 million in each of the years ~~2021, 2020~~2023, 2022 and ~~2019.~~2021. Refer to Item 1A. “Risk Factors” for further discussion of security risks in Peru.

In addition, since 2001, PT-FI has voluntarily established and contributed to land rights trust funds administered by Amungme and Kamoro representatives that focus on socioeconomic initiatives, human rights and environmental issues.

PT-FI is committed to the ~~Partnership Fund, PT-FI~~continued funding of YPMAK programs and the land rights trust funds, as well as for other local-community development initiatives through 2041 and has made and expects to continue making annual investments in public health, education, ~~community infrastructure~~ and local economic development. PT-FI recorded charges totaling $123 million in both 2023 and 2022 and $109 million in 2021 to cost of sales for social and economic development programs.

PT-FI’s costs for its internal civilian security department totaled $51 million in 2023 and $50 million in ~~2021, $47 million in 2020~~both 2022 and ~~$52 million in 2019.~~2021.

PT-FI, like all businesses and residents of Indonesia, relies on the Indonesia government for the maintenance of public order, upholding the rule of law and protection of personnel and property. The Grasberg minerals district has been designated by the Indonesia government as one of Indonesia’s vital national assets. This designation results in the police and, to a lesser extent, the military playing a significant role in protecting the area of our operations. The Indonesia government is responsible for employing police and military personnel and directing their operations.

From the outset of PT-FI’s operations, the Indonesia government has looked to PT-FI to provide logistical and infrastructure support and assistance for these necessary services because of the limited resources of the Indonesia government and the remote location of and lack of development in Central Papua. PT-FI’s financial support of the Indonesia government security institutions assigned to PT-FI’s operations area represents a prudent response to PT-FI’s requirements and commitments to protect its workforce and property better ensuring that personnel are properly fed and lodged and have the logistical resources to patrol PT-FI’s roads and secure its area of operations. In addition, the provision of such support is consistent with our philosophy of responsible corporate citizenship and reflects our commitment to pursue practices that protect and respect human rights.

PT-FI’s support costs for the government-provided security totaled $25 million in ~~2021~~2023, 2022 and ~~$22 million in both 2020 and 2019.~~2021. This supplemental support consists of various infrastructure and other costs, including food, housing, fuel, travel, vehicle

repairs, allowances to cover incidental and administrative costs, and community assistance programs conducted by the military and police.

Our estimates of mineral reserves have been prepared ~~in accordance with~~using industry accepted practice and conform to the disclosure requirements of ~~S-K 1300.~~Subpart 1300 of SEC Regulation S-K. Proven and probable mineral reserves were determined from the application of relevant modifying factors to geological data ~~in order~~ to establish an operational, economically viable mine plan. The estimates are based on mapping, drilling, sampling, assaying and evaluation methods generally applied in the mining industry. Mineral reserves, as used in the mineral reserve data presented here, means the economically mineable part of a measured or indicated resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted. Proven mineral reserves mean the economically mineable part of a measured mineral resource, from geological evidence revealed in outcrops, trenches, workings or drill holes with grades and/or quality estimates from detailed, ~~closely-spaced~~closely spaced sampling, and geologic characterization that defines the size, shape, depth and mineral content to a high degree of confidence. Probable mineral reserves means the economically mineable part of an indicated mineral 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. Probable mineral reserves can also include remaining portions of a measured mineral resource. The degree of assurance, although lower than that for proven mineral reserves, is high enough to assume continuity between points of observation.

Our estimates of recoverable proven and probable mineral reserves are prepared by and are the responsibility of our employees. These estimates are reviewed and verified regularly by independent experts in mining, geology and reserve determination. Our mineral reserve estimates are based on the latest available geological and geotechnical studies. We conduct ongoing studies of our ore bodies to optimize economic values and to manage risk. We revise our mine plans and estimates of recoverable proven and probable mineral reserves as required in accordance with the latest available studies. Refer to Item 1A. “Risk Factors” for discussion of risks associated with our estimates of proven and probable mineral reserves.

The estimated recoverable proven and probable mineral reserves presented in the table below represent the estimated metal quantities from which we expect to be paid after application of estimated metallurgical recoveries and smelter recoveries, where applicable.

The updated estimate of mineral reserves for the Morenci mine as of December 31, 2023, materially changed from previously reported estimates as of December 31, 2022. Increased cost assumptions without a change in copper price assumptions, and revised operating rates (as shown in Sections 11.2.6 and 13 of the 2023 Technical Report Summary of Mineral Reserves and Resources for the Morenci mine ~~designs~~dated December 31, 2023, filed as Exhibit 96.3 to this Form 10-K) resulted in a decrease of approximately 20% of recoverable copper reserves, including 2023 production, with the majority of the change resulting in the reclassification of mineral reserves to mineral resources. Estimates of mineral reserves for the Cerro Verde mine and ~~mine schedule changes.~~Grasberg minerals district were primarily impacted by 2023 production, and there were no material changes to the estimates of mineral reserves and mineral resources disclosed in the previously filed 2022 Technical Report Summaries for each of these properties.

In defining our open-pit mineral reserves, we apply ~~a “variable~~an “operational cutoff grade” ~~strategy. The objective of this~~ strategy, iswherein multiple processing options, throughput constraints, mine development and ore availability are given consideration to maximize the ~~net present~~ value of our operations. In defining our open-pit mineral resources, internal cutoff grades are applied. The internal 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 estimated processing and administrative costs. We use a “break-even cutoff ~~grade”~~grades” to define the in-situ mineral reserves and resources for our underground ore bodies. 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.

Our copper mines may contain other commercially recoverable metals, such as gold, molybdenum and silver. We value all commercially recoverable metals in terms of a copper equivalent percentage to determine a single cutoff grade. Copper equivalent percentage is used to express the relative value of multi-metal ores in terms of one metal. The calculation expresses the relative value of the ore using estimates of contained metal quantities, metals prices as used for reserve or resource determination, recovery rates, treatment charges and royalties. Our molybdenum properties use a molybdenum cutoff grade.

The table below shows the minimum cutoff grade for mineral reserves by process for each of our existing ore bodies as of December 31, ~~2021:~~ 2023:

The following chart illustrates our current plans for sequencing and producing our proven and probable mineral reserves at each of our ore bodies and the years in which we currently expect production from each ore body and related stockpiles. Our proven and probable mineral reserves in Indonesia reflect estimates of minerals that can be recovered through the end of 2041, and our current mine plan and planned operations are based on the assumption that PT-FI will comply with its obligations under the IUPK and receive the second 10-year extension from 2031 through 2041 (refer to Item 1A. “Risk Factors” and Note 13 for further discussion). We develop our mine plans based on maximizing the net present value from the ore bodies. Significant additional capital expenditures will be required at many of these mines in order to achieve the life-of-mine plans reflected below.

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 mineralogy of the ore and rock type. Total copper recovery in leach stockpiles can vary significantly from a low percentage to more than ~~90 percent~~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 percent~~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 ~~periodically as additional~~annually based on new information ~~becomes available~~ and as related technology ~~changes.~~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, ~~2021:~~2023:

Our estimates of mineral resources have been prepared in accordance with the disclosure requirements of S-K 1300. As a result of the SEC’s revised disclosure requirements for mining registrants, we replaced our estimate of mineralized material with an estimate of mineral resources, including measured, indicated and inferred resources in accordance with the disclosure requirements of S-K 1300. ~~We hold various properties containing mineral resources in~~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.

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 ~~$3.00~~$3.50 per pound for copper, ~~$1,200~~$1,500 per ounce for gold, ~~$12~~$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.

The table below summarizes changes in estimated contained copper, gold and molybdenum in mineral resources between December 31, ~~2020~~2022 and ~~2021,~~2023, for our ~~properties identified as~~ material ~~under S-K 1300:~~properties:

We have internal controls over the mineral reserves and mineral resources estimation processes that result in reasonable and reliable estimates aligned with industry practice and reporting regulations. Annually, qualified persons and other employees review the estimates of mineral reserves and mineral resources, the supporting documentation, and compliance towith the internal controls and, based on their review of such information, recommend approval to use the mineral reserve and mineral resource estimates to our senior management. Our controls utilize management systems including but not limited to, formal quality assurance and quality control protocols, standardized procedures, workflow processes, supervision and management approval, internal and external reviews and audits, reconciliations, and data security covering record keeping, chain of custody and data storage.

Our systems ~~also~~ cover exploration activities, sample preparation and analysis, data verification, mineral processing, metallurgical testing, recovery estimation, mine design and sequencing, and mineral reserve and resource evaluations, with environmental, social and regulatory considerations. Our quality assurance and control protocols over sampling and assaying of drill hole samples include insertion of blind samples consisting of standards, blanks, and duplicates in the primary sample streams, as well as selective sample validation at secondary laboratories.

These controls and other methods help to validate the reasonableness of the estimates. The effectiveness of the controls ~~are~~is reviewed periodically to address changes in conditions and the degree of compliance with policies and procedures. Refer to Item 1A. “Risk Factors” for discussion of risks associated with our estimates of mineral reserves and mineral resources.

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, youYou 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. ~~However,~~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. Other~~face and there may be 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.~~may emerge or become material.

Our financial results are significantly influenced by and vary with fluctuations in the market prices of the commodities we produce, primarily copper and gold, and to a lesser extent molybdenum. Extended material declines in market prices of such commodities could have a material adverse effect on our financial results and the value of our assets, may depress the price of our common stock, and may have a material adverse effect on our ability to comply with financial and other covenants in our debt agreements, ~~repay~~service our debt and meet our other obligations. ~~During 2020,~~For additional information regarding recent macroeconomic and geopolitical factors, see risk factor

below regarding the ~~COVID-19 pandemic~~price and ~~resulting negative impact~~availability of consumables and components we purchase and constraints on ~~the global economy created~~supply and logistics, and transportation services.

There has been a history of significant volatility in the ~~financial~~commodities markets, including the copper market. ~~Copper prices were initially impacted by economic uncertainty; however, in mid-2020 copper prices began to rise and reached a record high during 2021, despite the ongoing COVID-19 pandemic.~~

In addition to the factors discussed above, copper prices may be affected by demand from China, which is currently the largest consumer of refined copper in the world, including as a result of geopolitical uncertainty between the U.S. and China as well as uncertainties about China’s economy. The adoption and expansion of trade restrictions, or other governmental action related to tariffs or trade agreements or policies are difficult to predict and could adversely affect copper prices, demand for ~~infrastructure,~~our products, our costs, our customers, our suppliers and the ~~growing~~U.S. economy, which in turn could have a material adverse effect on our business, results of operations or financial condition. Copper prices also may be affected by the construction industry, the markets for automobiles and appliances, ~~and by~~ the global focus on a transition to new technologies for clean energy, ~~to advance~~advancement in communications and ~~to enhance~~enhanced public health, and inadequate investment in and limited production from copper mining operations in South America, as well as demand from North America, Europe, and Asian countries other than China.

Additional factors affecting gold prices may include purchases and sales of gold by governments and central banks, demand from China and India, two of the world’s largest consumers of gold, and global demand for jewelry containing gold. ~~For additional information regarding the historical fluctuations of the prices of copper, gold and molybdenum, refer to “Markets” in MD&A.~~

If market prices for the primary commodities we produce were to ~~materially~~ decline and remain low for a sustained period of time, we may have to revise our operating plans, including curtailing or modifying our mining and processing operations, as we ~~had~~have done in the past, and our cash flows, ability to ~~do in early 2020 in response~~return capital to ~~the global COVID-19 pandemic.~~shareholders and capital expenditure plans could be negatively affected. We may be unable to decrease our costs in an amount sufficient to offset reductions in revenues, in which case we may incur losses, and those losses may be material.

Declines in prices of commodities we sell could also result in metals inventory adjustments and impairment charges for our long-lived assets. ~~Refer~~

Consumables and components for key machines and equipment we purchase are subject to ~~Note 4 for additional information regarding metals inventory adjustments recorded for the three years ended December 31, 2021. Other events~~price volatility caused by global economic factors that ~~could result in impairment of~~are beyond our ~~long-lived assets include,~~control, including, but ~~are~~ not limited to, ~~decreases~~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 ~~estimated proven~~our operations, such as natural gas, diesel, coal, other sources of energy, ammonium nitrate, chemical reagents (including sulfuric acid), and ~~probable mineral reserves~~steel-related products, and ~~any event that might~~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 ~~current~~our results of operations and ~~future expected mine~~could result in material changes to our operating plans or development projects.

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 ~~costs.~~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.

At December 31, ~~2021,~~2023, our total consolidated debt was ~~$9.5~~$9.4 billion (see MD&A and Note 8) and our total consolidated cash and cash equivalents was ~~$8.1 billion.~~$4.8 billion ($5.8 billion including restricted cash and cash equivalents associated with PT-FI’s export proceeds required to be temporarily deposited in Indonesia banks, as described in MD&A and Note 14). We also have various other financial commitments, including reclamation and environmental obligations, take-or-pay contracts and leases. ~~For further information, see the risk factor below relating to mine closure and reclamation regulations.~~ Although we have been successful in ~~repaying~~servicing debt in the past, refinancing our bank facilities and issuing new debt securities in capital markets transactions, there can be no assurance that we can continue to do so. ~~See the risk factor below regarding increasing scrutiny and evolving expectations from stakeholders, including creditors, with respect to our ESG practices, performance and disclosures.~~ In addition, we or(including our ~~subsidiaries~~subsidiaries) may incur additional debt in future periods or reduce our holdings of cash and cash equivalents in connection with funding existing operations, capital expenditures, dividends, share or debt repurchases, or in pursuing other business opportunities. For further information, see the risk factors below relating to mine closure and reclamation regulations and the increasing scrutiny and evolving expectations from stakeholders and other third parties, including creditors, with respect to our ESG practices, performance and disclosures.

Our level of indebtedness and other financial commitments could have important consequences to our business, including the following:

Any failure to comply with the financial and/or other covenants in our debt agreements may result in an event of default that would allow the creditors to accelerate maturities of the related debt, which in turn may trigger cross-acceleration or cross-default provisions in other debt agreements. Our available cash and liquidity may not be sufficient to fully repay borrowings under our debt instruments that may be accelerated upon an event of default.

As of January 31, ~~2022,~~2024, our senior unsecured debt was rated ~~“Baa3”~~“Baa2” with a stable outlook by Moody’s Investors Service, “BBB-” with a ~~stable~~positive outlook by Fitch Ratings, and “BB+” with a ~~stable~~positive outlook by Standard & Poor’s. If

we are unable to maintain our indebtedness and financial ratios at levels acceptable to these credit rating agencies, or should our business prospects deteriorate, our current credit ratings could be downgraded, which could adversely affect the value of our outstanding securities and existing debt, our ability to obtain new financing on favorable terms and could increase our borrowing costs.

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. As of December 31, ~~2021,~~2023, our financial assurance obligations totaled ~~$1.5~~$1.8 billion for closure and ~~reclamation/restoration~~reclamation costs of U.S. mining sites. Refer to Note 12 for additional information regarding our financial assurance obligations and Items 1. and 2. “Business and Properties” for a discussion of certain of such U.S. federal and state laws and regulations applicable to ~~Freeport-McMoRan Inc. (FCX).~~us. A substantial portion of our financial assurance obligations are satisfied by ~~FCX~~guarantees by us and ~~subsidiary guarantees.~~certain of our subsidiaries. Our ability to continue to provide guarantees depends on state and other regulatory requirements, our financial performance and our financial condition. Other forms of assurance, such as letters of credit and surety bonds, are costly to provide and, depending on our financial condition and market conditions, may be difficult or impossible to obtain. Failure to provide or maintain the required financial assurance could result in the closure of the affected properties.

Plans and provisions for mine closure, reclamation and remediation may change over time ~~due to~~as a result of changes in stakeholder and other third-party expectations, legislation, standards, and technical understanding and techniques, which may cause our ~~provisions~~actual costs of closure, reclamation and remediation to be higher than estimated for ~~environmental and~~ asset retirement obligations ~~to be underestimated~~(AROs) and environmental obligations and could materially affect our financial position or results of operations. For example, our implementation of the Global Industry Standard for Tailings Management (the Tailings Standard) ~~(discussed in~~(refer to Items 1. and 2. “Business and Properties” ~~herein)~~for further discussion) has required changes and could require

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”.~~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~~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.~~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.

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 ~~right~~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.

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, ~~resulting~~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. ~~Changes~~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. ~~income tax laws and/or~~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 ~~Organization~~Organisation for Economic Co-operation and Development regarding a global minimum income tax and other changes are being considered and/or implemented in ~~countries~~jurisdictions where we operate. At current metals market prices, we believe enactment of the recommended framework in jurisdictions where we operate ~~could materially impact our income tax provision, cash tax liability, and effective tax rate. In addition, these changes may~~will result in minimal impacts to our financial results in the near term. The impact of any new ~~limitations on our ability to benefit~~tax legislation may differ materially from our ~~significant U.S. NOLs.~~estimates as a result of future regulatory guidance or changes in our interpretations or assumptions we have made.

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:

~~Our insurance does not cover most losses caused by the above described risks. 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 ~~unpredictable~~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 ~~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.~~business partners. As such, our corporate policies and processes may not prevent or detect all potential breaches of law

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 ~~and exploration activities in~~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.

Maintaining a good working relationship with the Indonesia government, ~~and~~ PT Mineral Industri Indonesia ~~Asahan Aluminium (Persero) (PT Inalum, also known as MIND~~(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,

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 ~~past. In particular, 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.

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.

~~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~~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 capacity totaling 2 million metric tons of concentrate per year by the end of 2023 (an extension of which has been requested due to COVID-19 mitigation measures subject to the approval of the Indonesia government), and ~~fulfilling its defined fiscal obligations to the Indonesia government.~~refining capacity. Refer to Note 13 for a summary of the IUPK’s key fiscal ~~terms. The expansion~~terms and development of PT Smelting is expected to be complete in late 2023 and the construction of the greenfield smelter is expected to be completed as soon as feasible in 2024, which is subject to, among other things, no additional COVID-19 related disruptions.

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 ~~48 percent~~43% of aggregate proven and probable recoverable mineral reserves at December 31, ~~2021,~~2023, representing ~~53 percent~~approximately half of our net equity share of recoverable copper ~~reserves~~ and ~~55 percent of our net equity share of recoverable~~ gold reserves.

If PT-FI does not complete the construction of additional domestic smelting and refining capacity, totaling 2 million metric tons of concentrate per year by the end of 2023 (an extension of which has been requested due to 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 ~~the~~its proven and probable mineral reserves in the Grasberg minerals district, which ~~would~~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.

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

For a discussion of risks specific to our tailings management, see the risk ~~factor~~factors below relating to our management of waste rock and ~~tailings.~~tailings, including our river transport system for tailings management in Indonesia.

We are facing continued geotechnical challenges ~~due to~~because of the older age of some of our open-pit mines and a trend toward mining deeper pits and more complex deposits. ~~No assurances~~There can be ~~given~~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. InFor example, in late 2022, significant rainfall events impacted production at Morenci. Further, 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.~~

~~We maintain insurance at amounts we believe to be reasonable to cover some of these risks and hazards; however,~~Our business is dependent upon our insurance may not sufficiently cover losses from certain natural or operating disasters. No assurance can be given that such insurance will continue to be available, or that it will be available at economically feasible premiums, or that we will beworkforce being able to obtain or maintain such insurance. We may elect to not purchase insurance for certain risks due to 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.

52In 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 continue to view the long-term outlook for our business positively, supported by expected rising demand associated with limitations on supplies of copper, the global economic recovery and infrastructure development and new demand associated with clean energy. Our financial results vary as a result of fluctuations in market prices primarily for copper, gold and, to a lesser extent, molybdenum, as well as other factors. World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control. Refer to ~~“Markets”~~“Markets,” and Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2023, for further discussion. Because we cannot control the price of our products, the key measures that management focuses on in operating our business are sales volumes, unit net cash costs, operating cash flows and capital expenditures.

Following are our projected consolidated sales volumes for ~~2022~~2024 and actual consolidated sales volumes for ~~2021:~~2023:

~~Consolidated sales for first-quarter 2022~~For the year 2024, consolidated copper production volumes are expected to ~~approximate 970~~exceed consolidated sales volumes, reflecting the deferral of approximately 90 million pounds of copper ~~380 thousand ounces of gold~~from PT-FI concentrates that is expected to be processed by the Manyar smelter and ~~20 million pounds of molybdenum.~~ sold as refined metal in future periods.

Projected sales volumes are dependent on operational ~~performance,~~performance; extension of PT-FI’s export permits for copper concentrates and anode slimes beyond May 2024; the timing of the ramp-up of the Indonesia smelter projects; weather-related conditions, including ongoing El Niño weather impacts; timing of shipments and other factors. For further discussion of other important factors that could cause results to differ materially from projections, refer to “Cautionary Statement” below, and Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, ~~2021.~~2023.

~~Assuming average prices of $1,800 per ounce of gold and $19.00 per pound of molybdenum and achievement of current sales volume and cost estimates, consolidated~~Consolidated unit net cash costs (net of by-product credits) for our copper mines are expected to average ~~$1.35~~$1.60 per pound of copper ~~in 2022. The impact~~for the year 2024, based on achievement of ~~price changes on 2022~~current sales volume and cost estimates and assuming average prices of $2,000 per ounce of gold and $19.00 per pound of molybdenum for the year 2024. Estimated consolidated unit net cash costs ~~would approximate $0.03~~for the year 2024 include assessment of export duties at PT-FI of $0.11 per pound of copper (refer to “Operations – Indonesia Mining” for ~~each $100 per ounce change in the average price of gold and $0.02 per pound for each $2 per pound change in the average price of molybdenum.~~further discussion). Quarterly unit net cash costs vary with fluctuations in sales volumes and realized prices, primarily for gold and molybdenum. The impact of price changes on consolidated unit net cash costs for the year 2024 would approximate $0.04 per pound of copper for each $100 per ounce change in the average price of gold and $0.02 per pound of copper for each $2 per pound change in the average price of molybdenum.

Our consolidated operating cash flows vary with sales volumes; prices realized from copper, gold and molybdenum sales; production costs; income taxes; other working capital changes; and other factors. ~~Based~~Our consolidated operating cash flows are estimated to approximate $5.8 billion (including $0.1 billion of working capital and other sources) for the year 2024, based on current sales volume and cost estimates, and assuming average prices of ~~$4.50~~$3.75 per pound of copper, ~~$1,800~~$2,000 per ounce of gold and $19.00 per pound of molybdenum ~~our consolidated operating cash flows are estimated to approximate $8.0 billion (net of $1.3 billion of working capital and other uses, mostly for income tax payments)~~ for the year ~~2022.~~2024. Estimated consolidated operating cash flows in ~~2022~~2024 also reflect a projected income tax provision of ~~$3.2~~$2.3 billion (refer to “Consolidated Results -– Income Taxes” for further discussion of our projected income tax ~~rate for the year 2022)~~rate). The impact of price changes ~~during 2022~~ on operating cash flows for the year 2024 would approximate ~~$365~~$400 million for each $0.10 per pound change in the average price of copper, ~~$100~~$180 million for each $100 per ounce change in the average price of gold and ~~$110~~$120 million for each $2 per pound change in the average price of molybdenum.

Capital expenditures for the year ~~2022~~2024 are expected to approximate ~~$4.7~~$4.6 billion ~~$3.3 billion excluding the greenfield smelter and precious metals refinery (PMR) (collectively, the Indonesia smelter projects discussed below), including $2.0~~(including $2.3 billion for major mining projects ~~($1.4~~and $1.0 billion for the Indonesia smelter projects). Projected capital expenditures for the Indonesia smelter projects in 2024 exclude capitalized interest and $0.3 billion of estimated commissioning and owner’s costs. Projected capital expenditures for major mining projects include $1.1 billion for planned ~~major~~ projects, primarily ~~related to development activities~~ associated with underground mine development in the Grasberg ~~Block Cave~~minerals district and ~~Deep Mill Level Zone (DMLZ) underground mines~~potential expansion projects in North America, and ~~$0.6~~$1.2 billion for discretionary growth ~~projects).~~projects. We closely monitor market conditions and will continue to adjust our operating plans, including capital expenditures, to protect our liquidity and preserve our asset values, as necessary.

Capital expenditures for the Indonesia smelter projects are expected to approximate $1.4 billion for the year 2022. Development of additional smelting capacity in Indonesia will result in the elimination of export duties, providing an offset to the economic cost associatedbeing funded with the ~~Indonesia smelter projects.~~remaining proceeds from PT-FI’s senior notes and availability under its revolving credit facility.

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MD&A is based on our consolidated financial statements, which have been prepared in conformity with generally accepted accounting principles (GAAP) in the U.S. The preparation of these statements requires that we make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. We base these estimates on historical experience and on assumptions that we consider reasonable under the circumstances; however, reported results could differ from those based on the current estimates under different assumptions or conditions. The areas requiring the use of management’s estimates are also discussed in Note 1 under the subheading “Use of Estimates.” Management has reviewed the following discussion of its development and selection of critical accounting estimates with the Audit Committee of our ~~Board.~~Board of Directors (Board).

In preparing our consolidated financial statements, we estimate the actual amount of income taxes currently payable or receivable as well as deferred income tax assets and liabilities attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates or laws is recognized in income in the period in which such changes are enacted.

~~As discussed~~On January 1, 2023, the provisions of the U.S. Inflation Reduction Act of 2022 (the Act) became applicable, and we have made interpretations of certain provisions of the Act. Based on these interpretations, we determined that the provisions of the Act did not materially impact our financial results in ~~Note 11,~~2023; however, future guidance released by the U.S. Department of the Treasury (Treasury) could differ from our interpretations.

In December 2021, the Organisation for Economic Co-operation and Development (OECD) published a framework for Pillar Two of the Global Anti-Base Erosion Rules (GloBE). The GloBE rules were designed to coordinate participating jurisdictions in updating the international tax system to ensure that large multinational companies pay a minimum level of income tax. Recommendations from the OECD 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.

We operate in the U.S. and multiple international tax jurisdictions, and our income tax returns are subject to examination by tax authorities in those jurisdictions who may challenge any tax position on these returns. Uncertainty in a tax position may arise because tax laws are subject to interpretation. We use significant judgment to (1) determine whether, based on the technical merits, a tax position is more likely than not to be sustained and (2) measure the amount of tax benefit that qualifies for recognition.

We have uncertain tax positions related to income tax assessments in ~~Indonesia~~Peru and ~~Peru,~~Indonesia, including penalties and interest, which have not been recorded at December 31, ~~2021.~~2023. Final taxes paid may be dependent upon many factors, including negotiations with taxing authorities. In certain jurisdictions, we pay a portion of the disputed amount before formally appealing an assessment. Such payment is recorded as a receivable if we believe the amount is collectible. Refer to Note 12 for further discussion.

A valuation allowance is provided for those deferred income tax assets for which ~~the weight of~~ available information, including positive and negative evidence, suggests that the related benefits will not be realized. In determining the amount of the valuation allowance, we consider ~~estimated~~future reversals of existing taxable temporary differences, future taxable income ~~or loss~~exclusive of reversing temporary differences, carryback opportunities, as well as prudent and feasible tax planning strategies in each jurisdiction. If we determine that we will not realize all or a portion of our deferred income

tax assets, we will increase our valuation allowance. Conversely, if we determine that we will ultimately be able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced.

Refer to Notes 1 and 12, and Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2023, for further discussion of environmental obligations, including a summary of changes in our estimated environmental obligations for the three years ended December 31, 2023.

Our current and historical operating activities are subject to various national, state and local environmental laws and regulations that govern ~~the protection~~emissions of ~~the environment,~~air pollutants; discharges of water pollutants; generation, handling, storage and disposal of hazardous substances, hazardous wastes and other toxic materials; and remediation, restoration and reclamation of environmental contamination, and compliance with ~~those~~these laws and regulations requires significant expenditures. Environmental expenditures are charged to expense or capitalized, depending upon their future economic benefits. The guidance provided by U.S. GAAP requires that liabilities for contingencies be recorded when it is probable that obligations have been incurred, and the cost can be reasonably estimated. At December 31, ~~2021,~~2023, environmental obligations recorded in our consolidated balance sheet totaled ~~$1.7~~$1.9 billion, which reflect obligations for environmental liabilities attributed to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 ~~(CERCLA)~~ or analogous state programs and for estimated future costs associated with environmental matters. Refer to Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2021, and Notes 1 and 12 for further discussion of environmental obligations, including a summary of changes in our estimated environmental obligations for the three years ended December 31, 2021.

Accounting for environmental obligations represents a critical accounting estimate because (i) changes to environmental laws and regulations and/or circumstances affecting our operations could result in significant changes to our estimates, which could have a significant impact on our results of operations, (ii) we will not incur most of these costs for a number of years, requiring us to make estimates over a long period, (iii) calculating the discounted cash flows for certain of our environmental obligations requires management to estimate the amounts and timing of projected cash flows and make long-term assumptions about inflation rates and (iv) changes in estimates used in determining our environmental obligations could have a significant impact on our results of operations.

Refer to Notes 1 and 12, and Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2023, for further discussion of reclamation and closure costs, including a summary of changes in our asset retirement obligations (AROs) for the three years ended December 31, 2023.

We record the fair value of our estimated ~~asset retirement obligations (AROs)~~AROs associated with tangible long-lived assets in the period incurred. Fair value is measured as the present value of cash flow estimates after considering inflation and a market risk premium. Our cost estimates are reflected on a third-party cost basis and comply with our legal obligation to retire tangible long-lived assets in the period incurred. These cost estimates may differ from financial assurance cost estimates for reclamation activities because of a variety of factors, including obtaining updated cost estimates for reclamation activities, the timing of reclamation activities, changes in scope and the exclusion of certain costs not considered reclamation and closure costs. At December 31, ~~2021,~~2023, AROs recorded in our consolidated balance sheet totaled $2.7 billion, including $0.3 billion associated with our remaining oil and gas operations. In 2021, primarily because of safety constraints and other concerns regarding our reclamation activities associated with an overburden stockpile at our Indonesia operations, we recorded a $397 million adjustment to our Indonesia AROs. Refer to Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2021, and to Notes 1 and 12 for further discussion of reclamation and closure costs, including a summary of changes in our AROs for the three years ended December 31, 2021.$3.0 billion.

Generally, ARO activities are specified by regulations or in permits issued by the relevant governing authority, and management’s judgment is required to estimate the extent and timing of expenditures. Accounting for AROs

represents a critical accounting estimate because (i) we will not incur most of these costs for a number of years, requiring us to make estimates over a long period, (ii) reclamation and closure laws and regulations could change in the future and/or circumstances affecting our operations could change, either of which could result in significant changes to our current plans, (iii) our commitment to implement the Global Industry Standard on Tailings Management could result in changes to our plans and the scope of work required, (iv) the methods used or required to plug and abandon non-producing oil and gas wellbores, remove platforms, tanks, production equipment and flow lines, and restore the wellsite could change, ~~(iv)~~(v) calculating the fair value of our AROs requires management to estimate projected cash flows, make long-term assumptions about inflation rates, determine our credit-adjusted, risk-free interest rates and determine market risk premiums that are appropriate for our operations and ~~(v)~~(vi) given the magnitude of our estimated reclamation, mine closure and wellsite abandonment and restoration costs, changes in any or all of these estimates could have a significant impact on our results of operations.

Refer to Note 17, and Items 1. and 2. “Business and Properties” and Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2023, for further information regarding, and risks associated with, our estimated recoverable proven and probable mineral reserves.

Recoverable proven and probable mineral reserves were determined from the application of relevant modifying factors to geological data, in order to establish an operational, economically viable mine plan, and have been prepared in accordance with the disclosure requirements of ~~subpart~~Subpart 1300 of U.S. Securities and Exchange Commission Regulation S-K. The determination of mineral reserves involves numerous uncertainties with respect to the ultimate geology of the ore bodies, including quantities, grades and recoveries. Estimating the quantity and grade of mineral reserves requires us to determine the size, shape and depth of our ore bodies by analyzing geological data, such as samplings of drill holes, tunnels and other underground workings. In addition to the geology of our mines, assumptions are required to determine the economic feasibility of mining these reserves, including estimates of future commodity prices, ~~and demand,~~ the mining methods we use and the related costs incurred to develop and mine our mineral reserves. Our estimates of recoverable proven and probable mineral reserves are prepared by and are the responsibility of our employees. These estimates are reviewed and verified regularly by independent experts in mining, geology and reserve determination.

As discussed in Note 1, we depreciate our life-of-mine mining and milling assets and values assigned to proven and probable mineral reserves using the unit-of-production (UOP) method based on our estimated recoverable proven and probable mineral reserves. Because the economic assumptions used to estimate mineral reserves may change from period to period and additional geological data is generated during the course of operations, estimates of mineral reserves may change, which could have a significant impact on our results of operations, including changes to prospective depreciation rates and impairments of long-lived asset carrying values. Based on projected copper sales volumes, if estimated copper reserves at our mines were ~~10 percent~~10% higher at December 31, ~~2021,~~2023, we estimate that our annual depreciation, depletion and amortization (DD&A) expense for ~~2022~~2024 would decrease by approximately ~~$50~~$56 million (approximately ~~$30~~$24 million to net income attributable to common stock), and a ~~10 percent~~10% decrease in copper reserves would increase DD&A expense by approximately ~~$165~~$219 million (approximately ~~$85~~$73 million to net income attributable to common stock). We perform annual assessments of our existing assets in connection with the review of mine operating and development plans. If it is determined that assigned asset lives do not reflect the expected remaining period of benefit, any change could affect prospective DD&A rates.

As discussed below, ~~and in Note 1,~~ we review and evaluate our long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amount of such assets may not be recoverable, and changes to our estimates of recoverable proven and probable mineral reserves could have an impact on our assessment of asset recoverability.

Refer to Note 1 for further discussion of our accounting policy for recoverable copper in stockpiles, including adjustments to stockpile inventory volumes.

We record, as inventory, applicable costs for copper contained in mill and leach stockpiles that are expected to be processed in the future based on proven processing technologies. Mill and leach stockpiles are evaluated periodically to ensure that they are stated at the lower of weighted-average cost or net realizable ~~value (refer to Note 4 and “Consolidated Results” for further discussion of inventory adjustments recorded for the three years ended December 31, 2021).~~ value.

Accounting for recoverable copper from mill and leach stockpiles represents a critical accounting estimate because (i) it is impracticable to determine copper contained in mill and leach stockpiles by physical count, thus requiring management to employ reasonable estimation methods and (ii) recoveries from leach stockpiles can vary significantly. ~~Refer to Note 1 for further discussion of our accounting policy for recoverable copper in stockpiles.~~

At December 31, ~~2021,~~2023, estimated consolidated recoverable copper was ~~1.8~~1.5 billion pounds in leach stockpiles (with a carrying value of ~~$2.1~~$2.3 billion) and 0.3 billion pounds in mill stockpiles (with a carrying value of ~~$0.4~~$0.5 billion).

~~As discussed in~~Refer to Note 1, weand Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2023, for further information regarding, and risks associated with, impairment of long-lived mining assets.

We assess the carrying values of our long-lived mining assets when events or changes in circumstances indicate that the related carrying amounts of such assets may not be recoverable. In evaluating our long-lived mining assets for recoverability, we use estimates of pre-tax undiscounted future cash flows of our mines.

Estimates of future cash flows are derived from current business plans, which are developed using near-term metal price forecasts reflective of the current price environment and management’s projections for long-term average metal prices. In addition to near- and long-term metal price assumptions, other key assumptions include estimates of commodity-based and other input costs; proven and probable mineral reserves estimates, including the timing and cost to develop and produce the mineral reserves; value beyond proven and probable mineral reserve ~~estimates (refer to Note 1);~~estimates; and the use of appropriate discount rates in the measurement of fair value. We believe our estimates and models used to determine fair value are similar to what a market participant would use. As quoted market prices are unavailable for our individual mining operations, fair value is determined through the use of after-tax discounted estimated future cash flows.

During the two-year period ended December 31, ~~2021,~~2023, no material impairments of our long-lived mining assets were recorded.

In addition to decreases in future metal price assumptions, other events that could result in future impairment of our long-lived mining assets include, but are not limited to, decreases in estimated recoverable proven and probable mineral reserves and any event that might otherwise have a material adverse effect on mine site production levels or costs. ~~Refer to Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2021.~~

Consolidated revenues totaled $22.9 billion in 2023 and $22.8 billion in ~~2021 and $14.2 billion in 2020.~~2022. Our revenues primarily include the sale of copper concentrate, copper cathode, copper rod, gold in concentrate and molybdenum. Following is a summary of changes in our consolidated revenues from ~~2020~~2022 to ~~2021~~2023 (in millions):

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At December 31, 2023, we had provisionally priced copper sales totaling 223 million pounds of copper (net of intercompany sales and noncontrolling interests) recorded at an average price of $3.87 per pound, subject to final pricing over the next several months. We estimate that each $0.05 change in the price realized from the December 31, 2023, recorded provisional price would have an approximate $22 million effect on 2024 revenues ($7

million to net income attributable to common stock). The LME copper price settled at $3.86 per pound on January 31, 2024.

Consolidated production and delivery costs totaled ~~$12.0~~$13.6 billion in ~~2021,~~2023, compared with ~~$10.0~~$13.1 billion in ~~2020.~~2022. Higher consolidated production and delivery costs in ~~2021~~2023 primarily ~~reflect higher sales volumes, the ramp-up of underground mining at the Grasberg minerals district, higher milling rates at Cerro Verde associated with the return to pre-COVID-19~~reflected increased consolidated operating rates, higher commodity-related costs across our operations and increased costs of labor (including contract labor), particularly in North America. Partly offsetting these higher ~~maintenance and input costs. The year 2021 includes net~~costs was an adjustment of $112 million recorded in 2023 to correct certain inputs in the historical PT-FI ARO model. Additionally, in 2022, PT-FI recorded charges ~~totaling $415~~of $116 million ~~primarily associated with an unfavorable~~for ARO ~~adjustment~~adjustments (refer to Note 12) and other net charges at PT-FI and nonrecurring labor-related charges at Cerro Verde for collective labor agreements, partly offset by refunds of Arizona transaction privilege taxes related to purchased electricity and favorable adjustments to prior-years’ profit sharing at Cerro Verde. The year 2020 includes net charges totaling $252 million, primarily associated with the COVID-19 pandemic and revised operating plans (including employee separation costs). Refer to Note 16 for details of production and delivery costs by operating segment.

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. Our take-or-pay contractual obligations for electricity totaled approximately $0.3 billion at December 31, ~~2021.~~2023. We do not have take-or-pay contractual obligations for other energy commodities. Energy represented ~~approximately 21 percent~~19% of our copper mine site operating costs in ~~2021,~~2023, including purchases of approximately ~~220~~250 million gallons of diesel fuel; approximately ~~8,000~~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 ~~750~~700 thousand metric tons of coal for our coal power plant in Indonesia; and approximately 12 million MMBtu (million British thermal units) of natural gas at certain of our North America mines. Based on current cost estimates, energy will approximate ~~25 percent~~20% of our copper mine site operating costs for ~~2022.~~2024.

Depreciation will vary under the UOP method as a result of changes in sales volumes and the related UOP rates at our mining operations. Consolidated DD&A totaled $2.1 billion in 2023 and $2.0 billion in ~~2021 and $1.5~~2022. Our consolidated DD&A is estimated to approximate $2.4 billion ~~in 2020. Higher DD&A in 2021, compared with 2020, primarily relates to significant assets placed in service associated with~~for the ~~ramp-up of underground mining at the Grasberg minerals district.~~

Environmental obligation costs reflect net revisions to our long-term environmental obligations, which vary from period to period because of changes to environmental laws and regulations, the settlement of environmental matters and/or circumstances affecting our operations that could result in significant changes in our estimates (refer to “Critical Accounting Estimates -– Environmental Obligations” for further discussion). Shutdown costs include care-and-maintenance costs and any litigation, remediation or related expenditures associated with closed facilities or operations.

Net charges for environmental obligations and shutdown costs totaled ~~$91~~$319 million in ~~2021,~~2023, including ~~unfavorable~~$195 million in net adjustments to environmental obligations ~~totaling $41 million.~~and $65 million associated with an adjustment to the proposed settlement of talc-related litigation. Net charges for the year ~~2020~~2022 totaled ~~$159~~$121 million, including ~~talc-related litigation charges of $132~~$43 million ~~primarily associated with a framework for the resolution of all current and future potential talc-related litigation, partly offset by $19 million of~~in net ~~favorable~~ adjustments to environmental ~~obligations.~~obligations and $44 million for a proposed settlement related to historical environmental litigation. Refer to Note 12 for further discussion of environmental obligations and litigation matters.

Net gain on ~~sales~~early extinguishment of ~~assets~~debt totaled ~~$80~~$10 million in ~~2021~~2023 and ~~$473~~$31 million in ~~2020. Gains on sales of assets in 2021 were~~2022, primarily associated with ~~the sale~~senior note purchases. The year 2022 also includes a charge of ~~our remaining Freeport Cobalt assets and the sale of carbon dioxide emissions credits at Atlantic Copper. Gains on sales of assets in 2020 were primarily~~$10 million associated with the ~~sale~~repayment of ~~our interests in~~ the ~~Kisanfu undeveloped exploration project.~~PT-FI term loan. Refer to Note 28 for further ~~discussion of dispositions.~~discussion.

Capitalized interest ~~varies with the level of expenditures for our development projects and average interest rates on our borrowings, and~~ totaled ~~$72~~$267 million in ~~2021~~2023 and ~~$147~~$150 million in ~~2020.~~2022. The ~~decrease~~increase in capitalized interest in ~~2021,~~2023, compared with ~~2020,~~2022, is primarily associated with development activities related to ~~significant assets at PT-FI’s underground mines being placed in service.~~the Indonesia smelter projects. Refer to “Operations” and “Capital Resources and Liquidity -– Investing Activities” for further discussion of current development projects.

Other ~~(expense)~~ income (expense), net, ~~totaled $(105)~~of $286 million in ~~2021 and $59~~2023 was higher than $207 million in ~~2020. The year 2021 includes charges~~2022, primarily reflecting higher interest income. Additionally, other income (expense), net included penalties totaling ~~$208~~$69 million in 2023 associated with Cerro Verde’s contested tax rulings issued by the Peruvian Supreme Court, and credits totaling $76 million in 2022 associated with adjustments to penalties on historical contested tax matters ~~at PT-FI (refer~~in Indonesia.

Refer to Note ~~11), partly offset by gains~~11, and Item 1A. “Risk Factors” contained in Part I of our annual report on ~~currency exchange rate movements and other net credits. The year 2020 includes a gain of $30 million~~Form 10-K for the ~~sale~~year ended December 31, 2023, for further discussion of ~~royalty interests.~~income taxes.

Following is a summary of the approximate amounts used in the calculation of our consolidated income tax provision for the years ended December 31 (in millions, except percentages):

Assuming achievement of current sales volume and cost estimates and average prices of ~~$4.50~~$3.75 per pound for copper, ~~$1,800~~$2,000 per ounce for gold and $19.00 per pound for molybdenum for ~~2022,~~2024, we estimate our consolidated effective tax rate for the year ~~2022~~2024 would approximate ~~30 percent.~~40%. The estimated consolidated effective tax rate is expected to decrease with higher copper prices. Changes in projected sales volumes and average prices during ~~2022~~2024 would incur tax impacts at estimated effective rates of ~~39 percent~~39% for Peru, ~~38 percent~~36% for Indonesia and ~~0 percent~~0% for the U.S., which excludes any impact from the Act. Our projected estimated effective tax rate of 0% for the U.S. for the year 2024 may be adjusted as additional guidance is released by the Treasury on key provisions of the Act.

Refer to Note 1116 for ~~further discussion~~net income attributable to noncontrolling interests for each of ~~income taxes.~~our business segments.

Net income attributable to noncontrolling interests, which is primarily associated with PT-FI, Cerro Verde and El Abra, totaled $1.9 billion in 2023 and $1.0 billion in 2022 (which represented 32% and 15%, respectively, of our consolidated net income before income taxes). The increase in net income attributable to noncontrolling interests reflects the change in our economic interest in PT-FI, which is 48.76%, compared to approximately 81% prior to January 1, 2023. Net income in 2023 also included a $35 million net benefit associated with PT-FI sales volumes that were attributed to us at our previous approximate 81% economic ownership interest (refer to Note 3).

83Based on achievement of current sales volume and cost estimates and assuming average prices of $3.75 per pound of copper, $2,000 per ounce of gold and $19.00 per pound of molybdenum, net income attributable to noncontrolling interests is estimated to approximate $2.1 billion for the year 2024 (which represents 36% of our estimated consolidated net income before income taxes). The actual amount of net income attributable to noncontrolling interests will depend on many factors, including relative performance of each business segment, commodity prices, costs and other factors. Refer to Note 3 for ownership in our subsidiaries.

~~The Copper Mark.~~ We are committed to validating 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. We have a total of seven sites that have been validated (Bagdad, Morenci, Miami, El Paso, Cerro Verde, El Abra and Atlantic Copper) and we have commenced the Copper Mark assessment process at four additional sites in North America, including Chino, Tyrone, Safford and Sierrita.

~~During 2021, we continued to advance innovation~~We are advancing a series of initiatives designed to enhance productivity, expand margins and reduce the capital intensity of our business through the utilization of new technology applications in combination with a more interactive operating structure. These initiatives are expected to allow us to recover additional copper from our large existing leach stockpiles. There are several projects ongoing across our North America and South America operations ~~which~~to incorporate new applications, technologies and data ~~analytics.~~analytics to our leaching processes. These leach innovation initiatives are providing opportunities to produce incremental copper from our large existing leach stockpiles. Initial results are ~~encouraging~~providing incremental low-cost additions to our expected annual production and ~~support additional work on~~the potential to add to our reserve profile. Incremental copper production from these ~~emerging opportunities.~~initiatives totaled 144 million pounds for the year 2023, and in fourth-quarter 2023 we achieved our initial run rate target of approximately 200 million pounds of copper per year. We are pursuing opportunities to apply recent operational enhancements at a larger scale and are testing new technology applications that we believe have the potential for significant increases in recoverable metal beyond the initial annual run rate target.

We are engaged in various studies associated with potential future expansion projects primarily at our mining operations. The costs for these studies are charged to production and delivery costs as incurred and totaled $185 million for 2023 and $139 million for 2022. We estimate the costs of these studies will approximate $200 million for the year 2024.

We operate seven open-pit copper mines in North America -– Morenci, Bagdad, Safford (including Lone Star), Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico. All of the North America mining operations are wholly owned, except for Morenci. We record our ~~72 percent~~72% undivided joint venture interest in Morenci using the proportionate consolidation method.

We have a potential expansion project to more than double the ~~Lone Star copper leach~~concentrator capacity of the Bagdad operation in northwest Arizona. Bagdad’s reserve life currently exceeds 80 years and supports an expanded operation. In late 2023, we completed technical and economic studies, which indicated the opportunity to construct new concentrating facilities to expand capacity from 77,000 metric tons of ore per day to between 165,000 to 185,000 metric tons of ore per day. Estimated incremental project ~~at our Safford mine, which was completed~~capital costs approximate $3.5 billion (excluding infrastructure that would be required in the ~~second half of 2020, are exceeding the initial design capacity of 200 million pounds annually~~long-range plans) and ~~produced~~is expected to increase production by approximately ~~235~~200-250 million pounds of copper per year, which would more than double Bagdad’s current production. Expanded operations also are expected to provide improved efficiency and reduce unit net cash costs through economies of scale. Project economics indicate that the expansion would require an incentive copper price in ~~2021.~~ the range of $3.50 to $4.00 per pound and would require approximately three to four years to complete. The decision to proceed and timing of the potential expansion will take into account overall copper market conditions, availability of labor and other factors,

including progress on conversion of the existing haul truck fleet to autonomous and expanding housing alternatives to support long-range plans. In parallel, we are advancing activities for expanded tailings infrastructure projects required under long-range plans in order to advance the potential construction timeline. Refer to Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2023, for further discussion.

We continue to advance ~~opportunities to increase~~ plans at Safford/Lone Star ~~operating rates and are advancing plans~~ to increase volumes to achieve 300 million pounds of copper per year from oxide ~~ores. The oxide project advances~~ores, which reflects expansion of the ~~opportunity for development~~initial design capacity of

~~Copper~~Our consolidated copper production and sales volumes from ~~our~~the North America copper mines ~~totaled 1.4 billion pounds~~ in ~~2021~~2023 were below 2022 volumes, primarily reflecting lower ore grades associated with the Morenci and ~~2020.~~ Safford mines, partly offset by leach recovery initiatives and higher mining and milling rates. We are pursuing a number of initiatives to enhance productivity and improve equipment reliability to offset declines in ore grades. We are also reviewing cost performance and evaluating the costs and benefits of adjusting mining and milling rates at Morenci.

North America copper sales are estimated to approximate ~~1.55~~1.3 billion pounds in ~~2022.~~2024. Refer to “Outlook” for projected molybdenum sales volumes.

The following table summarizes unit net cash costs and gross profit per pound ~~of copper~~ at our North America copper mines for the two years ended December 31, ~~2021.~~2023. Refer to “Product Revenues and Production Costs” for an explanation of the “by-product” and “co-product” methods and a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements.

Our North America copper mines have varying cost structures because of differences in ore grades and characteristics, processing costs, by-product credits and other factors. ~~During 2021, average~~Average unit net cash costs (net of by-product credits) for the North America copper mines ~~ranged from $1.47~~of $2.63 per pound ~~to $2.86 per pound at the individual mines and averaged $1.89 per pound. Higher~~of copper in 2023 were higher than average unit net cash costs ~~(net~~ of ~~by-product credits) of $1.89 in 2021, compared with $1.81~~$2.35 per pound of copper in ~~2020,~~2022, primarily ~~reflect higher mining~~reflecting lower volumes and ~~milling~~increased costs ~~associated with higher operating rates at Lone Star~~of labor (including contract labor) and ~~higher~~ maintenance and ~~input costs,~~supplies, partly offset by higher molybdenum by-product credits ~~because~~and lower energy costs.

Because certain assets are depreciated on a straight-line basis, North America’s average unit depreciation rate may vary with asset additions and the level of ~~higher molybdenum prices.~~copper production and sales.

Revenue adjustments primarily result from changes in prices on provisionally priced copper sales recognized in prior periods. Refer to “Consolidated Results – Revenues” for further discussion of adjustments to prior period provisionally priced copper sales.

Average unit net cash costs (net of by-product credits) for ~~our~~the North America copper mines are expected to approximate ~~$2.00~~$2.89 per pound of copper ~~in 2022,~~for the year 2024, based on achievement of current sales volume and cost estimates and assuming an average ~~molybdenum~~ price of $19.00 per ~~pound. The impact~~pound of ~~price changes during 2022 on~~molybdenum. North America’s average unit net cash costs for the year ~~2022~~2024 would ~~approximate~~change by approximately $0.04 per pound for each $2 per pound change in the average price of molybdenum.

We operate two copper mines in South America -– Cerro Verde in Peru (in which we own a ~~53.56 percent~~53.56% interest) and El Abra in Chile (in which we own a ~~51.0 percent~~51% interest), which are consolidated in our financial statements.

South America mining includes open-pit mining, sulfide-ore concentrating, leaching and SX/EW operations. Production from our South America mines is sold as copper concentrate or cathode under long-term contracts. Our South America mines also sell a portion of their copper concentrate production to Atlantic Copper. In addition to copper, the Cerro Verde mine produces molybdenum concentrate and silver.

~~Higher~~Our consolidated copper production and sales volumes from South America ~~of 1.1 billion pounds~~mining for the year 2023 were higher than the year 2022, primarily reflecting an increase in ~~2021, compared with 1.0 billion pounds in 2020, primarily reflect higher~~ mining and milling rates ~~at Cerro Verde.~~

The following table summarizes unit net cash costs and gross profit per pound of copper at our South America mining operations for the two years ended December 31, ~~2021.~~2023. Unit net cash costs per pound of copper are reflected under the by-product and co-product methods as the South America mining operations also had sales of molybdenum and silver. Refer to “Product Revenues and Production Costs” for an explanation of the “by-product” and “co-product” methods and a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements.

Our South America mines have varying cost structures because of differences in ore grades and characteristics, processing costs, by-product credits and other factors. ~~Higher average~~Average unit net cash costs (net of by-product credits) for South America mining of ~~$2.05~~$2.38 per pound of copper in ~~2021, compared with $1.85~~2023 were higher than average unit net cash costs of $2.34 per pound in ~~2020,~~2022, primarily ~~reflect~~reflecting increased ~~profit-sharing~~ costs of maintenance and ~~nonrecurring labor-related charges at Cerro Verde for collective labor agreements~~supplies and higher ~~maintenance and input costs,~~treatment charges, partly offset by higher ~~sales~~ volumes and molybdenum by-product credits.

Revenues from Cerro Verde’s concentrate sales are recorded net of treatment charges, which will vary with Cerro Verde’s sales volumes and the price of copper. Higher treatment charges in 2023, compared to 2022, reflected higher smelting and refining rates.

Because certain assets are depreciated on a straight-line basis, South America’s unit depreciation rate may vary with asset additions and the level of copper production and sales.

Revenue adjustments primarily result from changes in prices on provisionally priced copper sales recognized in prior periods. Refer to “Consolidated Results -– Revenues” for further discussion of adjustments to prior period provisionally priced copper sales.

Average unit net cash costs (net of by-product credits) for ~~our~~ South America ~~mines~~mining are expected to approximate ~~$2.06~~$2.37 per pound of copper ~~in 2022,~~for the year 2024, based on achievement of current sales volume and cost estimates and assuming an average price of $19.00 per pound of molybdenum.

~~PT-FI’s assets include~~PT-FI operates one of the world’s largest copper and gold ~~deposits~~mines at the Grasberg minerals district in Central Papua, Indonesia. PT-FI produces copper concentrate that contains significant quantities of gold and silver. We have a ~~48.76 percent~~48.76% ownership interest in PT-FI and manage its mining operations. ~~As further discussed in Note 3, under the terms of the shareholders agreement, our economic interest in PT-FI approximates 81 percent through 2022 and 48.76 percent thereafter.~~ PT-FI’s results are consolidated in our financial statements. Prior to January 1, 2023, our ownership interest in PT-FI approximated 81%.

~~Substantially all~~Other than copper concentrate delivered to PT Smelting for further processing into refined products, most of PT-FI’s

copper concentrate is sold under long-term contracts. ~~During 2021, 41 percent~~

In July 2023, PT-FI was granted an export license for copper concentrate, and in December 2023, PT-FI was ~~sold~~granted an export license for anode slimes, each for the export of specified quantities of concentrate and anode slimes and valid through May 2024. PT-FI and the Indonesia government are completing administrative processes to ~~PT Smelting (PT-FI owned 25.0 percent~~update quotas for estimated concentrate and anode slimes exports through May 2024.

PT-FI is working with the Indonesia government to obtain approvals to continue exports of ~~PT Smelting prior~~copper concentrates and anode slimes subsequent to ~~April 30, 2021,~~May 2024 until the Indonesia smelter projects are fully commissioned and ~~39.5 percent thereafter - See Note 2)~~reach designed operating conditions.

Refer to Notes 12 and 13 for further discussion of Indonesia regulatory matters and export duties being assessed at PT-FI under revised regulations.

In December 2023, PT-FI completed the installation of ~~additional~~new milling facilities, ~~are in progress~~which will enable PT-FI to further leverage the success of the underground mines and ~~are currently~~provide sustained large-scale production volumes. PT-FI is also advancing a mill recovery project with the installation of a new copper cleaner circuit that is expected to be completed in ~~2023, which will increase milling capacity~~the second half of 2024 to provide incremental production of approximately ~~240,000 metric tons~~60 million pounds of ~~ore~~copper and 40 thousand ounces of gold per ~~day.~~year.

PT-FI ~~expects~~is advancing plans to generate average annual production of approximately 1.6 billion pounds of copper and 1.6 million ounces of gold for the next five years at an attractive unit net cash cost, providing significant margins and cash flows.

~~Higher~~Lower consolidated sales of ~~1.3~~1.5 billion pounds of copper and ~~1.3~~1.7 million ounces of gold in ~~2021,~~2023, compared with ~~0.8~~1.6 billion pounds of copper and ~~0.8~~1.8 million ounces of gold in ~~2020,~~2022, primarily reflect the ~~ramp-up~~deferral of ~~underground mining at~~sales recognition related to the ~~Grasberg minerals district.~~PT Smelting tolling arrangement. Lower gold sales volumes in 2023, compared to 2022, also reflect

the timing of shipments of anode slimes associated with a change in administrative requirements for products that were previously being exported by PT Smelting.

Consolidated sales volumes from PT-FI are expected to approximate ~~1.6~~1.7 billion pounds of copper and ~~1.6~~2.0 million ounces of gold for the year 2024. For the year 2024, consolidated copper production volumes from PT-FI are expected to exceed its consolidated sales volumes, reflecting the deferral of approximately 90 million pounds of copper that will be processed by the Manyar smelter and sold as refined metal in ~~2022.~~future periods.

The following table summarizes the unit net cash costs and gross profit per pound of copper and per ounce of gold at our Indonesia mining operations for the two years ended December 31, ~~2021.~~2023. Refer to “Product Revenues and Production Costs” for an explanation of “by-product” and “co-product” methods and a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements.

A significant portion of PT-FI’s costs are fixed and unit costs vary depending on volumes and other factors. PT-FI’s unit net cash costs ~~(including~~(net of gold, silver and ~~silver~~other by-product credits) of ~~$0.19~~$0.10 per pound of copper in ~~2021,~~2023 were ~~lower~~higher than the unit net cash costs of ~~$0.43~~$0.09 per pound of copper in ~~2020,~~2022, primarily reflecting higher ~~copper~~treatment charges , partly offset by higher gold, silver and ~~gold sales volumes.~~other by-product credits.

Treatment charges vary with the volume of metals sold and the price of ~~copper, and royalties vary with the volume of metals sold and the prices~~copper. The increase in treatment charges per pound of copper and ~~gold.~~ounce of gold in 2023, compared with 2022, reflects higher costs associated with the new tolling arrangement with PT Smelting compared to the previous copper concentrate sales agreement. Tolling costs

paid to PT Smelting are recorded as production costs in the consolidated statements of income but are reflected as treatment costs above in our unit net cash costs presentation.

PT-FI’s export duties totaled ~~$218~~$324 million in ~~2021~~2023 and ~~$93~~$307 million in 2020, and PT-FI’s royalties totaled $319 million in 2021 and $153 million in 2020. PT-FI will continue to pay export duties until development progress for additional smelting capacity in Indonesia exceeds 50 percent.2022. Refer to Note 13 for further discussion of PT-FI’s export duties under its IUPK and ~~royalties.~~amounts being assessed under a revised regulation.

PT-FI’s royalties vary with the volume of metal sold and the prices of copper and gold. PT-FI’s royalties totaled $338 million in 2023 and $357 million in 2022.

Because certain assets are depreciated on a straight-line basis, PT-FI’s unit depreciation rate may vary with asset

additions and the level of copper production and sales. ~~DD&A per pound of copper under they by-product method was $0.80 in 2021, compared with $0.72 in 2020, primarily reflecting significant underground development assets placed in service.~~

Revenue adjustments primarily result from changes in prices on provisionally priced copper sales recognized in prior periods. Refer to “Consolidated Results -– Revenues” for further discussion of adjustments to prior period provisionally priced copper sales.

PT Smelting intercompany ~~loss~~profit represents the change in the deferral of 39.5% of PT-FI’s profit on sales to PT Smelting. As discussed in Note 3, beginning in 2023, PT-FI’s commercial arrangement with PT Smelting ~~(25.0 percent prior~~changed from a copper concentrate sales agreement to ~~April 30, 2021,~~a tolling arrangement and ~~39.5 percent thereafter). Refer~~there will be no further sales from PT-FI to ~~“Operations - Smelting & Refining” below for further discussion.~~PT Smelting.

92

PT-FI’s projected sales volumes and unit net cash costs for the year ~~2022~~2024 are dependent on ~~a number of factors, including~~ operational ~~performance, timing of shipments and the Indonesia government’s~~performance; extension of PT-FI’s export ~~permit. In March 2021, PT-FI received a one-year extension of its export license through March 15, 2022.~~permits for copper concentrates and anode slimes beyond May 2024; weather-related conditions; and other factors. Refer to ~~Note 12~~“Cautionary Statement” below, and Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, ~~2021,~~2023, for afurther discussion of ~~the administrative fine levied by the Indonesia government on PT-FI for failing~~factors that could cause results to ~~achieve physical development progress on the greenfield smelter and ongoing discussions with the Indonesia government regarding a deferred schedule for the completion of the greenfield smelter.~~differ materially from projections.

We ~~have~~operate two wholly owned molybdenum mines in Colorado -– the Climax open-pit mine and the Henderson underground ~~mine and the Climax open-pit~~ mine. The ~~Henderson~~Climax and ~~Climax~~Henderson mines produce high-purity, chemical-grade molybdenum concentrate, which is typically further processed into value-added molybdenum chemical products. The majority of the molybdenum concentrate produced at the ~~Henderson~~Climax and ~~Climax~~Henderson mines, as well as from our North America and South America copper mines, is processed at our ~~own~~ conversion ~~facilities.~~facilities

~~Unit~~Average unit net cash costs for our Molybdenum mines of ~~$8.87~~$15.13 per pound of molybdenum in ~~2021~~2023 were ~~lower~~higher than ~~$9.50~~$11.43 per pound of molybdenum in ~~2020,~~2022, primarily reflecting lower volumes and higher ~~volumes. Based on current sales volume and cost estimates, average~~contract labor costs.

Average unit net cash costs for the Molybdenum mines are expected to approximate ~~$12.50~~$14.29 per pound of molybdenum ~~in 2022. The increase in expected unit net cash costs~~ for ~~2022, compared with 2021, primarily reflects higher mining~~the year 2024, based on achievement of current sales volumes and ~~input costs.~~cost estimates. Refer to “Product Revenues and Production Costs” for a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements.

Through our downstream integration, we are able to assure placement of a significant portion of our copper concentrate production. We wholly own and operate the Miami smelter in Arizona, Atlantic Copper (a smelter and refinery in Spain), and the El Paso refinery in ~~Texas and a smelter and refinery in Spain (Atlantic Copper). Additionally,~~Texas. PT-FI also has a ~~39.5 percent~~39.5% ownership interest in PT Smelting (refer to Note 3).

In 2024, we expect to complete the Indonesia smelter projects, which will smelt and ~~expects its ownership to increase to~~refine copper concentrate from PT-FI as well as process anode slimes. As a ~~majority interest upon completion~~result, PT-FI’s operations will be fully integrated, and treatment charges reflecting the cost of the project to expand PT Smelting’s smelting capacity. See “Indonesia Smelter Capacity” above for additional information regarding the PT Smelting expansion and Note 13 for information regarding the tolling agreement effective in 2023. Treatment charges for smelting and refining operations will be recorded in production and delivery costs (refer to “Indonesia Mining – Indonesia Smelting and Refining” above). In addition, our North America copper ~~concentrate~~mines are largely integrated with our Miami smelter and El Paso refinery.

~~In December 2021, PT Smelting received a 12-month extension~~Refer to Items 1. and 2. “Business and Properties” contained in Part I of ~~its anodes slimes export license, which currently expires December 9, 2022, subject to review and approval by the Indonesia government every 6 months.~~

We defer recognizing profits on sales from our mining operations to Atlantic Copper ~~and~~(and on 39.5% of PT-FI’s sales to PT Smelting ~~(on 25.0 percent prior to April 30, 2021, and 39.5 percent thereafter)~~for 2022) until final sales to third parties occur. Changes in these deferrals attributable to variability in intercompany volumes resulted in net ~~(reductions)~~ additions to operating income totaling ~~$(188)~~$64 million ($~~(106)~~37 million to net income attributable to common stock) in ~~2021~~2023 and ~~$(7)~~$52 million ($133 million to net income attributable to common stock) in ~~2020.~~2022. Our net deferred profits on our inventories at Atlantic Copper ~~and PT Smelting~~ to be recognized in future periods’ net income attributable to common stock totaled ~~$175~~$57 million at December 31, ~~2021.~~2023. Quarterly variations in ore grades, the timing of intercompany shipments and changes in product prices will result in variability in our net deferred profits and quarterly earnings. ~~No significant changes in deferred profits are expected in the first quarter of 2022.~~

Our consolidated operating cash flows vary with sales volumes; prices realized from copper, gold and molybdenum sales; production costs; income taxes; other working capital changes; and other factors. ~~A large component of our production costs are related to energy.~~ See “Consolidated ~~Results”~~Results,” and Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, ~~2021,~~2023, for further discussion of our energy requirements and related costs.

~~Our operating cash flows during 2021 primarily reflected strong operating~~We remain focused on managing costs efficiently and ~~financial performance~~continue to advance several important value-enhancing initiatives. We believe the actions we have taken in recent years to build a solid balance sheet, successfully expand low-cost operations and ~~favorable copper prices. During 2022, we expect~~maintain flexible organic growth options while maintaining sufficient liquidity, will allow us to ~~grow production and sales volumes while continuing~~continue to execute our business plans in a prudent manner during periods of economic uncertainty while preserving substantial future asset values. We closely monitor market conditions and will adjust our operating plans ~~which~~to protect liquidity and preserve our asset values, if necessary. We expect to maintain a strong balance sheet and liquidity position as we ~~expect will provide strong cash flows to support advancement of organic growth initiatives~~focus on building long-term value in our business, executing our operating plans safely, responsibly and ~~continue cash returns to shareholders under our established financial policy, based on a favorable operational~~efficiently, and ~~market outlook.~~

Based on current sales volume, cost and metal price estimates discussed in ~~“Outlook”,~~“Outlook,” our available cash and cash equivalents plus our projected consolidated operating cash flows of ~~$8.0~~$5.8 billion for the year ~~2022~~2024 exceed our expected consolidated capital expenditures of ~~$4.7~~$4.6 billion (which includes ~~$2.0~~$2.3 billion for major mining projects and ~~$1.4~~$1.0 billion for the Indonesia smelter ~~projects)~~projects that are being funded with the remaining proceeds from PT-FI’s senior notes and availability under its revolving credit facility). Projected capital expenditures for the Indonesia smelter projects in 2024 exclude capitalized interest and $0.3 billion of estimated commissioning and owner’s costs.

Planned capital expenditures for major mining projects over the next few years are primarily associated with underground mine development in the Grasberg minerals district and potential expansion projects in North America.

We have cash on hand and the financial flexibility to fund capital expenditures and our other ~~expected~~ cash requirements for the ~~year,~~next twelve months, including ~~share repurchases,~~ noncontrolling interest distributions, income tax payments, debt repayments, current common stock dividends (base and variable) and any share or debt ~~repayments.~~

At December 31, 2023, we had $1.2 billion in current restricted cash and cash equivalents, which includes (i) $1.1 billion associated with PT-FI’s export proceeds temporarily deposited in Indonesia banks in accordance with a 2023 regulation issued by the Indonesia government that requires 30% of export proceeds to be temporarily deposited into Indonesia banks for a period of 90 days before withdrawal, and (ii) $145 million in assurance to support PT-FI’s ~~credit facility.~~commitment for smelter development in Indonesia.

At December 31, 2023, our net debt, excluding net debt for ~~2022 at an expected annual rate of $0.30 per share. The combined annual rate of~~ the base dividend and the variable dividend is expected to total $0.60 per share for 2022. Based on current shares outstanding totaling 1.5 billion, the total common stock dividends (base and variable) for 2022 are expected to approximate $0.9Indonesia smelter projects, totaled $0.8 billion. Refer to ~~“Financing Activities” below~~“Net Debt” for further discussion.

In December ~~2021,~~2023, our Board declared cash dividends totaling $0.15 per share on our common stock (including a $0.075 per share quarterly base cash dividend and a $0.075 per share quarterly variable, performance-based cash dividend), which was paid on February 1, ~~2022,~~2024, to shareholders of record as of January ~~14, 2022.~~ 12, 2024. Based on current market conditions, the base and variable dividends on our common stock are anticipated to total $0.60 per share for 2024 (including the dividends paid on February 1, 2024), comprised of a $0.30 per share base dividend and $0.30 per share variable dividend. The declaration and payment of dividends (base or variable) is at the discretion of our Board and will depend on our financial results, cash requirements, global economic conditions and other factors deemed relevant by our Board.

Refer to Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, ~~2021,~~2023, and “Cautionary Statement” below for further discussion.

Following is a summary of the U.S. and international components of consolidated cash and cash equivalents available to the parent company, excluding cash committed for the Indonesia smelter projects and net of noncontrolling interests’ share, taxes and other costs at December 31, ~~2021~~2023 (in billions):

Cash held at our international operations is generally used to support our foreign operations’ capital expenditures, operating expenses, debt repayments, working capital or other cash needs. Management believes that sufficient liquidity is available in the U.S. from cash balances and availability from our revolving credit facility. We have not

elected to permanently reinvest earnings from our foreign subsidiaries, and we have recorded deferred tax liabilities for foreign earnings that are available to be repatriated to the U.S. From time to time, our foreign subsidiaries distribute earnings to the U.S. through dividends that are subject to applicable withholding taxes and noncontrolling interests’ share. See Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, ~~2021,~~2023, for further discussion of our holding company ~~structure.~~structure and the potential impact of changes in tax laws.

At December 31, ~~2021,~~2023, consolidated debt totaled ~~$9.5~~$9.4 billion, with a related weighted-average interest rate of ~~4.6 percent.~~5.2%. Substantially all of our outstanding debt is fixed rate. FCX has $0.7 billion in scheduled senior note maturities in November 2024 with no further senior note maturities until 2027. Our total debt has an average remaining duration of approximately 10 years. We had no borrowings $8and $7 million in letters of credit issued ~~and approximately $3.5 billion available~~ under our ~~FCX~~$3.0 billion revolving credit ~~facility~~facility. Additionally, at December 31, ~~2021.~~

We may from time to time seek to retire or purchase our outstanding debt through cash tenders and/or exchanges for equity or debt, in open-market purchases, privately negotiated transactions or otherwise. Such tenders, exchanges or purchases, if any, will be upon such terms and at such prices as we may determine, and will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors.

We generated consolidated operating cash flows of ~~$7.7~~$5.3 billion in ~~2021 (including $0.8~~2023 (net of $0.9 billion ~~from~~of working capital and other ~~sources)~~uses) and ~~$3.0~~$5.1 billion in ~~2020 (including $0.7~~2022 (net of $1.6 billion ~~from~~of working capital and other ~~sources)~~uses).

Capital expenditures, including capitalized interest, totaled $3.5 billion for the year ~~2020,~~2022, including ~~$1.2~~$1.7 billion for major ~~projects. Major~~ projects ~~were~~ primarily associated with underground development activities in the Grasberg minerals ~~district.~~district and $0.8 billion for the Indonesia smelter projects.

A large portion of the capital expenditures relate to projects that are expected to add significant production and cash flow in future periods, enabling us to continue to generate operating cash flows exceeding capital expenditures in future years. Refer to “Outlook” for further discussion of projected capital expenditures for ~~2022.~~2024.

Net ~~repayments~~borrowings of debt totaled $1.2 billion in ~~2020 totaled $193 million, primarily reflecting~~2022, including PT-FI’s $3.0 billion senior notes offering, partly offset by the purchases of our senior notes in open market transactions ($1.0 billion), and the repayment of ~~$305 million~~borrowings under PT-FI’s term loan ($0.6 billion) and Cerro Verde’s term loan. During 2020, we also completed the sale of $2.8 billion of senior notes and used most of the net proceeds to purchase and redeem senior notes maturing in 2021, 2022, 2023 and 2024. The remaining net proceeds were used for general corporate purposes.loan ($0.3 billion).

Refer to Note 8 for further ~~discussion of debt transactions.~~discussion.

Board.Refer to Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, ~~2021,~~2023, and “Cautionary Statement” ~~below and discussion of our financial policy above.~~below.

As of February 15, ~~2022, we have acquired 18.2 million shares~~2024, $3.2 billion remains available under ~~our~~the share repurchase ~~program for a total cost of $710 million, $39.10 per share, and $2.3 billion remains available.~~program. The timing and amount of share repurchases is at the discretion of management and will depend on a variety of factors. The share repurchase program may be modified, increased, suspended or terminated at any time at the Board’s discretion. Refer to Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, ~~2021,~~2023, “Cautionary Statement” below and discussion of our financial policy above.

Refer to Note 12 and “Critical Accounting Estimates,” and Items 1. and 2. “Business and ~~Properties,”~~Properties” and Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, ~~2021, Note 12 and “Critical Accounting Estimates - Environmental Obligations” above~~2023, for further information about contingencies associated with environmental ~~regulation, including significant environmental matters.~~matters and AROs.

~~Asset Retirement Obligations~~

Refer to ~~Notes 2 and~~Note 12, and Item 1A. “Risk Factors” and Item 3. “Legal Proceedings” contained in Part I of our annual report on Form 10-K for the year ended December 31, ~~2021,~~2023, for further discussion of contingencies associated with legal proceedings and other matters.

Our 2023 consolidated revenues from our mining operations include the sale of copper concentrate, copper cathode, copper rod, gold, molybdenum and other metals by our North America and South America mines, the sale of copper concentrate (which also contains significant quantities of gold and silver), copper cathode and anode slimes by our Indonesia mining operations, the sale of molybdenum in various forms by our molybdenum operations, and the sale of copper cathode, copper anode and gold in anode and slimes by Atlantic Copper. Our financial results will vary with fluctuations in the market prices of the commodities we produce, primarily copper and gold, and to a lesser extent molybdenum. For projected sensitivities of our operating cash flow to changes in commodity prices, refer to “Outlook.” World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control. Refer to Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, ~~2021,~~2023, for further discussion of financial risks associated with fluctuations in the market prices of the commodities we sell.

During ~~2021,~~2023, our mined copper was sold ~~59 percent~~51% in concentrate, ~~21 percent~~27% as cathode and ~~20 percent~~22% as rod from North America operations. Substantially all of our copper concentrate and some cathode sales contracts provide final copper pricing in a specified future month (generally one to four months from the shipment date) based primarily on quoted LME monthly average copper settlement prices. We receive market prices based on prices in the specified future period, which results in price fluctuations recorded through revenues until the date of settlement. We record revenues and invoice customers at the time of shipment based on then-current LME prices, which results in an embedded derivative on our provisionally priced concentrate and cathode sales that is adjusted to fair value through earnings each period, using the period-end forward prices, until final pricing on the date of settlement. To the extent final prices are higher or lower than what was recorded on a provisional basis, an increase or decrease to revenues is recorded each reporting period until the date of final pricing. Accordingly, in times of rising copper prices, our

Following are the favorable ~~(unfavorable)~~ impacts of net adjustments to the prior years’ provisionally priced copper sales for the years ended December 31 (in millions, except per share amounts):

At December 31, ~~2021,~~2023, we had provisionally priced copper sales at our copper mining operations totaling ~~397~~223 million pounds of copper (net of intercompany sales and noncontrolling interests) recorded at an average price of ~~$4.42~~$3.87 per pound, subject to final pricing over the next several months. We estimate that each $0.05 change in the price realized from the December 31, ~~2021,~~2023, provisional price recorded would have an approximate ~~$12~~$22 million effect on ~~2022~~2024 revenues ($7 million to net income attributable to common ~~stock.~~stock). The LME copper settlement price closed at ~~$4.36~~$3.86 per pound on January 31, ~~2022.~~2024.

Following is a summary of estimated annual payments and the impact of changes in foreign currency rates on our annual operating costs:

At December 31, ~~2021,~~2023, we had total debt maturities based on principal amounts of $9.5 billion, substantially all of which ~~approximately 9 percent~~ was ~~variable-rate debt with interest rates primarily based on the London Interbank Offered Rate.~~fixed-rate debt. The table below presents average interest rates for our scheduled maturities of principal for our outstanding debt and the related fair values at December 31, ~~2021~~2023 (in millions, except percentages):

~~We did not adopt any new~~Refer to Note 1 for discussion of recently issued accounting standards ~~in 2021.~~and their projected impact on our future financial statements and disclosures.

~~Net~~We believe that net debt ~~which we define as consolidated debt less consolidated cash and cash equivalents, is intended to provide~~provides investors with information related to the performance-based payout framework in our financial policy, which requires ~~achievement of a~~us to maintain our net debt ~~target in~~at a level not to exceed the ~~range~~net debt target of $3 billion to $4 billion (excluding net project debt for ~~additional smelting capacity in Indonesia)~~the Indonesia smelter projects). We define net debt as consolidated debt less (i) consolidated cash and cash equivalents and (ii) current restricted cash associated with PT-FI’s export proceeds. This information differs from consolidated debt determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for consolidated debt determined in accordance with U.S. GAAP. Our net debt, ~~follows,~~ which may not be comparable to similarly titled measures reported by other companies, follows (in ~~millions)~~billions):

Unit net cash costs per pound of copper and molybdenum are measures intended to provide investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for the respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. These measures are presented by other metals mining companies, although our measures may not be comparable to similarly titled measures reported by other companies.

We present gross profit per pound of copper in the following tables using both a “by-product” method and a “co-product” method. We use the by-product method in our presentation of gross profit per pound of copper because (i) the majority of our revenues are copper revenues, (ii) we mine ore, which contains copper, gold, molybdenum and other metals, (iii) it is not possible to specifically assign all of our costs to revenues from the copper, gold, molybdenum and other metals we produce, (iv) it is the method used to compare mining operations in certain industry publications and (v) it is the method used by our management and the Board to monitor operations and to compare mining operations in certain industry publications. In the co-product method presentations, shared costs are allocated to the different products based on their relative revenue values, which will vary to the extent our metals sales volumes and realized prices change.

We show revenue adjustments for prior period open sales as separate line items. Because these adjustments do not result from current period sales, these amounts have been reflected separately from revenues on current period sales. Noncash and other costs, which are removed from site production and delivery costs in the calculation of unit net cash costs, consist of items such as stock-based compensation costs, long-lived asset impairments, idle facility costs, feasibility and optimization study costs, restructuring and/or unusual charges. As discussed above, gold, molybdenum and other metal revenues at copper mines are reflected as credits against site production and delivery costs in the by-product method. The following schedules are presentations under both the by-product and co-product methods together with reconciliations to amounts reported in our consolidated financial statements.

Freeport-McMoRan Inc.’s (the Company’s) management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) under the Securities Exchange Act of 1934 as a process designed by, or under the supervision of, the Company’s principal executive and principal financial officers and effected by the Company’s Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our management, including our principal executive officer and principal financial officer, assessed the effectiveness of our internal control over financial reporting as of the end of the fiscal year covered by this annual report on Form 10-K. In making this assessment, our management used the criteria set forth in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). Based on its assessment, management concluded that, as of December 31, ~~2021,~~2023, our Company’s internal control over financial reporting is effective based on the COSO criteria.

Ernst & Young LLP, an independent registered public accounting firm, who audited the Company’s consolidated financial statements included in this Form 10-K, has issued an attestation report on the Company’s internal control over financial reporting, which is included herein.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of ~~Freeport-McMoRan Inc.~~the Company as of December 31, ~~2021~~2023 and ~~2020,~~2022, the related consolidated statements of ~~operations,~~income, comprehensive income, ~~(loss),~~ equity and cash flows for each of the three years in the period ended December 31, ~~2021,~~2023, and the related notes and our report dated February 15, ~~2022~~2024 expressed an unqualified opinion thereon.

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

February 15, ~~2022~~2024

We have audited the accompanying consolidated balance sheets of Freeport-McMoRan Inc. (the Company) as of December 31, ~~2021~~2023 and ~~2020,~~2022, the related consolidated statements of ~~operations,~~income, comprehensive income, ~~(loss),~~ equity and cash flows for each of the three years in the period ended December 31, ~~2021,~~2023, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, ~~2021~~2023 and ~~2020,~~2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, ~~2021,~~2023, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, ~~2021,~~2023, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February 15, ~~2022~~2024 expressed an unqualified opinion thereon.

These financial statements are the responsibility of the ~~Company's~~Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

FMC’s unincorporated joint venture at Morenci is reflected using the proportionate consolidation method (refer to Note 3 for further discussion). Investments in unconsolidated companies ~~owned 20 percent or more~~over which FCX has the ability to exercise significant influence, but does not control, are ~~recorded using~~accounted for under the equity ~~method.~~method and include PT-FI’s investment in PT Smelting (refer to Note 3 for further discussion). Investments in unconsolidated companies owned less than ~~20 percent,~~20%, and for which FCX does not exercise significant influence, are recorded at (i) fair value for those that have a readily determinable fair value or (ii) cost, less any impairment, for those that do not have a readily determinable fair value. All significant intercompany transactions have been eliminated. Dollar amounts in tables are stated in millions, except per share amounts.

Raw materials are primarily unprocessed concentrate at Atlantic Copper’s smelting and refining operations.

Work-in-process inventories are primarily copper concentrate at various stages of conversion into anode and cathode at Atlantic Copper’s operations. Atlantic Copper’s in-process inventories are valued at the weighted-average cost of the material fed to the smelting and refining process plus in-process conversion costs.

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 grade of the 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 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 the total copper recovery may occur during the first year, and the remaining copper may be recovered over many years.

Based on the annual review of mill and leach stockpiles, FCX increased its estimated recoverable copper in certain leach stockpiles, net of joint venture interests, by 73 million pounds in 2023 and 223 million pounds in 2022. These revised estimates did not have a material impact on the weighted-average cost per pound of recoverable copper or FCX’s consolidated site production and delivery costs in 2023 or 2022.

Included in property, plant, equipment and mine development costs is value beyond proven and probable mineral reserves (VBPP), primarily resulting from FCX’s acquisition of ~~FMC in 2007.~~FMC. The concept of VBPP may be interpreted differently by different mining companies. FCX’s VBPP is attributable to (i) measured and indicated mineral resources that FCX believes could be brought into production with the establishment or modification of required permits and should market conditions and technical assessments warrant, (ii) inferred mineral resources and (iii) exploration potential.

Carrying amounts assigned to VBPP are not charged to expense until the VBPP becomes associated with additional proven and probable mineral reserves and the reserves are produced or the VBPP is determined to be impaired. Additions to proven and probable mineral reserves for properties with VBPP will carry with them the value assigned to VBPP at the date acquired, less any impairment amounts. Refer to Note 5 for further discussion.

Environmental obligations assumed in the acquisition of FMC, which were initially recorded at fair value and estimated on a discounted basis, are accreted to full value over time through charges to interest expense. Adjustments arising from changes in amounts and timing of estimated costs and settlements may result in increases and decreases in these obligations and are calculated in the same manner as they were initially estimated. Unless these adjustments qualify for capitalization, changes in environmental obligations are charged to operating income when they occur.

FCX performs a comprehensive review of its environmental obligations annually and also reviews changes in facts and circumstances associated with these obligations at least quarterly.

For mining operations, reclamation costs for disturbances are recognized as an ARO and as a related ARC in the period of the disturbance and depreciated primarily on a UOP basis. FCX’s AROs for mining operations consist primarily of costs associated with mine reclamation and closure activities. These activities, which are site specific, generally include costs for earthwork, revegetation, water treatment and demolition.

For non-operating properties without reserves, changes to the ARO are recorded in ~~earnings.~~production and delivery costs.

At least annually, FCX reviews its ARO estimates for changes in the projected timing of certain reclamation and closure/restoration costs, changes in cost estimates and additional AROs incurred during the period. Refer to Note 12 for further discussion.

FCX’s product revenues are also recorded net of treatment charges, royalties and export duties. Moreover, because a portion of the metals contained in copper concentrate is unrecoverable as a result of the smelting process, FCX’s revenues from concentrate sales are also recorded net of allowances based on the quantity and value of these unrecoverable metals. These allowances are a negotiated term of FCX’s contracts and vary by customer. Treatment and refining charges represent payments or price adjustments to smelters and refiners that are generally fixed. Refer to Note 16 for a summary of revenue by product type.

Gold sales are priced according to individual contract terms, generally the average London PM gold price for a specified month near the month of shipment.

Reconciliations of net income ~~(loss)~~ and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net income ~~(loss)~~ per share for the years ended December 31 follow:

Outstanding stock options with exercise prices greater than the average market price of FCX’s common stock during the year are excluded from the computation of diluted net income ~~(loss)~~ per share of common stock. ~~Stock options for 5 million~~Excluded shares of common stock ~~in 2021, 31~~associated with outstanding stock options totaled less than 1 million shares in ~~2020 and 42~~2023, 1 million shares in ~~2019 were excluded.~~2022 and 5 million shares in 2021.

FCX owns ~~48.76 percent~~48.76% of PT-FI (refer to “PT-FI Divestment”). At December 31, ~~2021,~~2023, PT-FI’s net assets totaled ~~$12.7~~$15.5 billion and its retained earnings totaled ~~$8.4~~$11.0 billion. FCX had no loans to PT-FI outstanding at December 31, ~~2021.~~

FCX owns ~~100 percent~~100% of the outstanding Atlantic Copper (FCX’s wholly owned smelting and refining unit in Spain) common stock. At December 31, ~~2021,~~2023, Atlantic Copper’s net assets totaled ~~$167~~$97 million and its accumulated deficit totaled ~~$379~~$443 million. FCX had ~~$274~~$611 million in loans to Atlantic Copper outstanding at December 31, ~~2021.~~2023.

FCX, PT-FI, PTI and ~~PT Inalum~~MIND ID entered into a shareholders agreement (the PT-FI Shareholders Agreement), which includes provisions related to the governance and management of PT-FI. FCX considered the terms of the PT-FI Shareholders Agreement and related governance structure, including whether ~~PT Inalum~~MIND ID has substantive participating rights, and concluded that it has retained control and would continue to consolidate PT-FI in its financial statements following the 2018 ~~transaction.~~Transaction. Among other terms, the governance arrangements under the PT-FI Shareholders Agreement transfers control over the management of PT-FI’s mining operations to an operating committee, which is controlled by FCX. Additionally, as discussed above, the existing PT-FI shareholders ~~will retain~~retained the economics of the revenue and cost sharing arrangements under the former Rio Tinto Joint Venture, so that FCX’s economic interest in the project through 2041 will not be significantly affected by the ~~transaction.~~2018 Transaction. FCX believes its conclusion to continue to consolidate PT-FI in its financial statements is in accordance with the U.S. Securities and Exchange Commission (SEC) Regulation S-X, Rule 3A-02 (a), which provides for situations in which

~~The above-described attribution of PT-FI’s net income or loss applies only through the Initial Period.~~ Beginning January 1, 2023, the attribution of PT-FI’s net income or loss ~~will be~~is based on equity ownership percentages ~~(48.76 percent~~(48.76% for FCX, ~~26.24 percent~~26.24% for ~~PT Inalum~~MIND ID and ~~25.00 percent~~25.00% for PTI)., except for net income of $35 million that was attributable to the approximately 190,000 ounces of gold sales discussed above.

For all of its other partially owned consolidated subsidiaries, FCX attributes net income or loss based on equity ownership percentages.

On November 30, 2021, PT-FI entered into a convertible loan agreement to fund an expansion of PT Smelting’s facilities. In December 2023, the project was completed and PT-FI’s loan is expected to convert into PT Smelting equity in 2024, increasing PT-FI’s ownership in PT Smelting to approximately 65%.

FCX has determined that PT Smelting is a variable interest entity (VIE), however, as mutual consent of both PT-FI and MMC is required to make the decisions that most significantly impact the economic performance of PT Smelting, PT-FI is not the primary beneficiary. As PT-FI has the ability to exercise significant influence over PT Smelting, it accounts for its investment in PT Smelting under the equity method (refer to Note 6).

PT-FI’s maximum exposure to loss is its investment in PT Smelting and its loan to fund the expansion (refer to Note 6). PT-FI’s equity in PT Smelting’s earnings totaled $10 million in 2023, $24 million in 2022 and $6 million in 2021.

The components of inventories follow:

The components of net property, plant, equipment and mine development costs follow:

FCX recorded $1.6 billion for VBPP in connection with the FMC acquisition ~~in 2007~~ (excluding ~~$634 million~~$0.6 billion associated with mining operations that were subsequently sold) and transferred ~~$811 million~~$0.8 billion to proven and probable mineral reserves through ~~2021 (none in 2021 and less than $0.1~~2023 ($1 million in ~~2020)~~2023 and $16 million in 2022). Cumulative impairments of and adjustments to VBPP total ~~$497 million,~~$0.5 billion, which were primarily recorded in 2008.

Capitalized interest, which primarily related to FCX’s mining operations’ capital projects, including the construction and development of the Manyar smelter and precious metals refinery in Indonesia (collectively, the Indonesia smelter projects), totaled $267 million in 2023, $150 million in 2022 and $72 million in ~~2021, $147 million in 2020 and $149 million in 2019.~~2021.

During the three-year period ended December 31, ~~2021,~~2023, no material impairments of FCX’s long-lived mining assets were recorded.

The components of accounts payable and accrued liabilities follow:

FCX’s debt at December 31, ~~2021, included additions of $9 million ($10 million at December 31, 2020) for unamortized fair value adjustments, and~~2023, is net of reductions of ~~$86~~$67 million ($8578 million at December 31, ~~2020)~~2022) for unamortized net discounts and unamortized debt issuance costs. The components of debt follow:

~~FCX’s~~The revolving credit facility contains customary affirmative covenants and representations, and also contains ~~a number of~~various negative covenants that, among other things ~~restrict,~~and subject to certain exceptions, restrict the ability of FCX’s subsidiaries that are not borrowers or guarantors to incur additional indebtedness (including guarantee obligations) and the ability of FCX or FCX’s ~~or its subsidiaries’ abilities~~subsidiaries to: create liens on assets; enter into sale and leaseback transactions; engage in mergers, liquidations and dissolutions; and sell assets. FCX’s revolving credit facility also contains financial ratios governing maximum total leverage and minimum interest expense coverage. At December 31, 2021, FCX was in compliance with its revolving credit facility covenants.

PT-FI’s revolving credit facility contains customary affirmative covenants and representations and also contains standard negative covenants that, among other things, restrict, subject to certain exceptions, the ability of PT-FI to

At December 31, 2023, FCX, PT-FI and Cerro Verde had no borrowings outstanding under their respective revolving credit facilities and were in compliance with their respective covenants.

Beginning in 2022 and through 2023, FCX has purchased $1.3 billion aggregate principal amount of ~~3.55% Senior Notes due 2022, at a redemption price equal to 100 percent of the principal amount of the notes outstanding, plus accrued and unpaid interest.~~

The senior notes listed below are redeemable in whole or in part, at the option of FCX, at a make-whole redemption price prior to the dates stated below, at specified redemption prices beginning on the dates stated below, and at ~~100 percent~~100% of principal two years before maturity.

The senior notes listed below are redeemable in whole or in part, at the option of FCX, at a make-whole redemption price prior to the dates stated below and beginning on the dates stated below at ~~100 percent~~100% of principal.

FCX’s senior notes contain limitations on liens and rank equally with FCX’s other existing and future unsecured and unsubordinated indebtedness.

~~PT-FI’s credit facility contains customary affirmative covenants and representations and also contains standard covenants that, among other things, restrict, subject to certain exceptions,~~The senior notes listed below are redeemable in whole or in part, at the ~~ability~~option of PT-FI, at a make-whole redemption price prior to ~~incur additional indebtedness; create liens on assets; enter into sale~~the dates stated below and leaseback transactions; sell assets; and modify or amend the shareholders agreement or related governance structure. The credit facility also contains financial ratios governing maximum total leverage and minimum interest expense coverage and certain environmental and social compliance requirements.~~At December 31, 2021, PT-FI was in compliance with its credit facility covenants.~~

The components of other liabilities follow:

FCX’s funding policy for these plans provides that contributions to pension trusts shall be at least equal to the minimum funding requirements of the Employee Retirement Income Security Act of 1974, as amended, for U.S. plans; or, in the case of international plans, the minimum legal requirements that may be applicable in the various countries. Additional contributions also may be made from time to time.

FCX’s primary investment objectives for the FMC plan assets held in a master trust (Master Trust) are to maintain funds sufficient to pay all benefit and expense obligations when due, minimize the volatility of the plan’s funded status to the extent practical, and to maintain prudent levels of risk consistent with the plan’s investment policy. ~~Historically,~~The FMC plan assets ~~have been~~are invested in a ~~balanced~~risk-mitigating portfolio, of return-seeking assets and risk-mitigating assets, with the allocation between these portfolios dependent on the funded status of the plan. During 2021, FCX reallocated essentially all of the portfolio to risk-mitigating assets with the objective of minimizing funded-status volatility. The risk-mitigating assets arewhich is allocated among multiple fixed income managers. The current target allocation of the portfolio is long-duration credit ~~(50 percent)~~(50%); long-duration U.S. government/credit ~~(20 percent)~~(20%); core fixed income ~~(16 percent)~~(16%); long-term U.S. Treasury Separate Trading of Registered Interest and Principal Securities ~~(STRIPS) (13 percent)~~(13%); and cash equivalents ~~(1 percent)~~(1%).

The expected rate of return on plan assets is evaluated at least annually, taking into consideration asset allocation, historical and expected future performance on the types of assets held in the Master Trust, and the current economic environment. Based on these factors, FCX expects the pension assets will earn an average of ~~3.00 percent~~5.75% per annum beginning January 1, ~~2022,~~2024, which ~~was~~is based on the target asset allocation and long-term capital market return expectations.

For estimation purposes, FCX assumes the long-term asset mix for these plans generally will be consistent with the current mix. Changes in the asset mix could impact the amount of recorded pension costs, the funded status of the plans and the need for future cash contributions. A lower-than-expected return on assets also would decrease plan assets and increase the amount of recorded pension costs in future years. When calculating the expected return on plan assets, FCX uses the market value of assets.

Information on the qualified and non-qualified FCX (FMC and SERP plans) and PT-FI plans as of December 31 follows:

The weighted-average assumptions used to determine net periodic benefit cost and the components of net periodic benefit cost for FCX’s pension plans for the years ended December 31 follow:

The weighted-average assumptions used to determine net periodic benefit cost and the components of net periodic benefit cost for PT-FI’s pension plan for the years ended December 31 follow:

The service cost component of net periodic benefit cost is included in operating income, and the other components are included in other income (expense) ~~income,~~, net in the consolidated statements of ~~operations.~~income.

Included in accumulated other comprehensive loss are the following amounts that have not been recognized in net periodic pension cost as of December 31:

Plan assets are classified within a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1), then to prices derived using significant observable inputs (Level 2) and the lowest priority to prices derived using significant unobservable inputs (Level 3).

A summary of the fair value for pension plan assets, including those measured at net asset value (NAV) as a practical expedient, associated with the FCX plans follows:

Following is a description of the pension plan asset categories included in the above tables and the valuation techniques used to measure fair value. There have been no changes to the techniques used to measure fair value.

Commingled/collective funds are managed by several fund managers and are valued at the NAV per unit of the fund. For most of these funds, the majority of the underlying assets are actively traded securities. These funds ~~(except the real estate property fund)~~ primarily require up to a two-business-day notice for redemptions. The real estate property fund is valued at NAV using information from independent appraisal firms, who have knowledge and expertise about the current market values of real property in the same vicinity as the investments. Redemptions of the real estate property fund are allowed once per quarter (with a 30-calendar-day notice), subject to available cash.

Fixed income investments include ~~government~~corporate and ~~corporate~~government bonds held directly by the Master Trust. Fixed income securities are valued using a bid-evaluation price or a mid-evaluation price and, as such, are classified within Level 2 of the fair value hierarchy. A bid-evaluation price is an estimated price at which a dealer would pay for a security. A mid-evaluation price is the average of the estimated price at which a dealer would sell a security and the estimated price at which a dealer would pay for a security. These evaluations are based on quoted prices, if available, or models that use observable inputs.

Common stocks included in global large-cap equity securities and preferred stocks included in other investments are valued at the closing price reported on the active market on which the individual securities are traded and, as such, are classified within Level 1 of the fair value hierarchy.

A summary of the fair value hierarchy for pension plan assets associated with the PT-FI plan follows:

Following is a description of the valuation techniques used for pension plan assets measured at fair value associated with the PT-FI plan. There have been no changes to the techniques used to measure fair value.

Government bonds, common stocks and mutual funds are valued at the closing price reported on the active market on which the individual securities are traded and, as such, are classified within Level 1 of the fair value hierarchy.

The techniques described above may produce a fair value calculation that may not be indicative of NRV or reflective of future fair values. Furthermore, while FCX believes its valuation techniques are appropriate and consistent with those used by other market participants, the use of different techniques or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

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The benefit obligation (funded status) for the postretirement medical and life insurance benefit plans consisted of a current portion of $7$5 million (included in accounts payable and accrued liabilities) and a long-term portion of ~~$57~~$34 million (included in other liabilities) at December 31, ~~2021,~~2023, and a current portion of $7$6 million and a long-term portion of ~~$69~~$43 million at December 31, ~~2020.~~2022.

FCX has a number of postemployment plans covering severance, long-term disability income, continuation of health and life insurance coverage for disabled employees or other welfare benefits. The accumulated postemployment benefit obligation consisted of a current portion of $6$7 million (included in accounts payable and accrued liabilities) and a long-term portion of ~~$35~~$46 million (included in other liabilities) at December 31, ~~2021,~~2023, and a current portion of $6$7 million and a long-term portion of ~~$42~~$41 million at December 31, ~~2020.~~2022.

FCX also sponsors a retirement savings plan for most of its U.S. employees. The plan allows employees to contribute a portion of their income in accordance with specified guidelines. The savings plan is a qualified 401(k) plan for all U.S. salaried and non-bargained hourly employees. Participants exercise control and direct the investment of their contributions and account balances among various investment options under the plan. FCX contributes to the plan and matches a percentage of employee contributions up to certain limits. For employees whose eligible compensation exceeds certain levels, FCX provides a nonqualified unfunded defined contribution plan, which had a liability balance of ~~$51~~$62 million at December 31, ~~2021,~~2023, and ~~$49~~$56 million at December 31, ~~2020,~~2022, all of which was included in other liabilities.

The costs charged to operations for the employee savings plan totaled $119 million in 2023, $101 million in 2022 and $95 million in 2021, $40 million in 2020 and $85 million in 2019. The costs were lower in 2020, compared with 2021 and 2019, because of a temporary suspension of FCX contributions implemented as part of FCX’s April 2020 revised operating plans. FCX contributions resumed on January 1, 2021. FCX has other employee benefit plans, certain of which are related to FCX’s financial results, which are recognized in operating costs.

FCX’s authorized shares of capital stock total 3.05 billion shares, consisting of 3.0 billion shares of common stock and 50 million shares of preferred stock.

In February 2021, the Board reinstated a cash dividend on FCX’s common stock (base dividend), and on November 1, 2021, the Board approved (i) a variable cash dividend on FCX’s common stock and (ii) a new share repurchase program authorizing repurchases of up to $3.0 billion of FCX common ~~stock and (ii) a variable cash dividend on FCX’s common stock for 2022.~~

Under its share repurchase program, FCX acquired ~~18.2~~12.74 million shares of its common stock for a total cost of ~~$710 million~~$0.5 billion ($~~39.10~~38.32 average cost per share) in 2021 and ~~$2.3~~35.12 million shares of its common stock for a total cost of $1.3 billion ~~remains~~($38.36 average cost per share) in 2022. There were no shares acquired under the program in 2023. As of February 15, 2024, FCX has $3.2 billion available for ~~repurchases.~~repurchases under the program.

On December ~~22, 2021,~~20, 2023, FCX declared quarterly cash dividends totaling $0.15 per share on its common stock (including a $0.075 per share base dividend and $0.075 per share variable dividend), which ~~was~~were paid on February 1, ~~2022,~~2024, to common stockholders of record as of January ~~14, 2022. This payment includes a $0.075 per share quarterly base cash dividend and a $0.075 per share quarterly variable cash dividend.~~12, 2024.

The declaration and payment of dividends (base or variable) and timing and amount of any share repurchases isare at the discretion of FCX’s Board and management, respectively, and isare subject to a number of factors, including ~~maintaining~~not exceeding FCX’s net debt target, capital availability, FCX’s financial results, cash requirements, ~~business prospects,~~ global economic conditions, changes in laws, contractual restrictions and other factors deemed relevant by FCX’s Board or management, as applicable. FCX’s share repurchase program may be modified, increased, suspended or terminated at any time at the Board’s discretion.

A summary of stock options outstanding as of December 31, ~~2021,~~2023, and activity during the year ended December 31, ~~2021,~~2023, follows:

The fair value of each stock option is estimated on the date of grant using the Black-Scholes-Merton option valuation model. Expected volatility is based on implied volatilities from traded options on FCX’s common stock and historical volatility of FCX’s common stock. FCX uses historical data to estimate future option exercises, forfeitures and expected life. When appropriate, separate groups of employees who have similar historical exercise behavior are considered separately for valuation purposes. The expected dividend rate is calculated using the expected annual dividend at the date of grant. The risk-free interest rate is based on Federal Reserve rates in effect for bonds with maturity dates equal to the expected term of the option.

Information related to stock options during the years ended December 31 follows:

FCX grants RSUs that vest over a period of three years or at the end of three years to certain employees. Some award agreements allow for participants to receive the following year’s vesting upon retirement. Therefore, on the date of grant of these RSU awards, FCX accelerates one year of amortization for retirement-eligible employees. FCX also grants RSUs to its directors, which vest on the first anniversary of the date of grant. The fair value of the RSUs is amortized over the vesting period or the period until the director becomes retirement eligible, whichever is shorter. Upon a director’s retirement, all of their unvested RSUs immediately vest. For retirement-eligible directors, the fair value of RSUs is recognized in earnings on the date of grant.

The award agreements provide for accelerated vesting of all RSUs held by directors if there is a change of control (as defined in the award agreements) and for accelerated vesting of all RSUs held by employees if they experience a qualifying termination within one year following a change of control.

Dividends attributable to RSUs and PSUs accrue and are paid if the ~~award vests.~~awards vest. A summary of outstanding stock-settled RSUs and PSUs as of December 31, ~~2021,~~2023, and activity during the year ended December 31, ~~2021,~~2023, follows:

The total fair value of stock-settled RSUs and PSUs granted was $93 million during 2023, $83 million during 2022 and $62 million during ~~2021, $47 million during 2020 and $24 million during 2019.~~2021. The total intrinsic value of stock-settled RSUs and PSUs vested was $136 million during 2023, $138 million during 2022 and $56 million during ~~2021, $18 million during 2020 and $26 million during 2019.~~2021. As of December 31, ~~2021,~~2023, FCX had ~~$17~~$27 million of total unrecognized compensation cost related to unvested stock-settled RSUs and PSUs expected to be recognized over approximately 1.2 years.

Dividends attributable to cash-settled RSUs accrue and are paid if the ~~award vests.~~awards vest. A summary of outstanding cash-settled RSUs as of December 31, ~~2021,~~2023, and activity during the year ended December 31, ~~2021,~~2023, follows:

The total grant-date fair value of cash-settled RSUs was $24 million during 2023, $15 million during 2022 and $9 million during ~~2021, $11 million during 2020 and $10 million during 2019.~~2021. The intrinsic value of cash-settled RSUs vested was $20 million during 2023, $26 million during 2022 and $24 million during ~~2021, $11 million during 2020 and $8 million during 2019.~~2021. The accrued liability associated with cash-settled RSUs consisted of a current portion of ~~$26~~$19 million (included in accounts payable and accrued liabilities) and a long-term portion of $6$7 million (included in other liabilities) at December 31, ~~2021,~~2023, and a current portion of ~~$22~~$19 million and a long-term portion of $6$5 million at December 31, ~~2020.~~2022.

Geographic sources of income ~~(losses)~~ before income taxes and equity in affiliated companies’ net earnings for the years ended December 31 consist of the following:

Income taxes are provided on the earnings of FCX’s material foreign subsidiaries under the assumption that these earnings will be distributed. FCX has not provided deferred income taxes for other differences between the book and tax carrying amounts of its investments in material foreign subsidiaries as FCX considers its ownership positions to be permanent in duration, and quantification of the related deferred tax liability is not practicable.

FCX’s provision for income taxes for the years ended December 31 consists of the following:

A reconciliation of the U.S. federal statutory tax rate to FCX’s effective income tax rate for the years ended December 31 follows:

FCX paid federal, state and foreign income taxes totaling $2.1 billion in 2023, $3.1 billion in 2022 and $1.3 billion in ~~2021, $397 million in 2020 and $610 million in 2019.~~2021. FCX received refunds of federal, state and foreign income taxes oftotaling less than $1 million in 2023, $46 million in 2022 and $109 million in ~~2021, $265 million in 2020 and $306 million in 2019.~~2021.

The components of deferred taxes follow:

The valuation allowance related to FCX’s U.S. federal, state and foreign NOLs totaled ~~$2.0~~$1.8 billion and other deferred tax assets totaled ~~$561 million~~$0.9 billion at December 31, ~~2021.~~2023. NOLs and deferred tax assets represent future deductions for which a benefit will only be realized to the extent these deductions offset future income. FCX develops an estimate of which future tax deductions will be realized and recognizes a valuation allowance to the extent these deductions are not expected to be realized in future periods.

Valuation allowances will continue to be carried on U.S. foreign tax credits, U.S. federal, state and foreign NOLs and U.S. federal, state and foreign deferred tax assets, until such time that (i) FCX generates taxable income against which any of the assets, credits or NOLs can be used, (ii) forecasts of future income provide sufficient positive evidence to support reversal of the valuation allowances or (iii) FCX identifies a prudent and feasible means of securing the benefit of the assets, credits or ~~net operating losses~~NOLs that can be implemented.

The ~~$645~~$91 million net decrease in the valuation allowances during ~~2021~~2023 is primarily related to ~~a $219~~$32 million ~~decrease associated with~~of U.S. federal NOLs utilized during ~~2021,~~2023, and a ~~$105~~$292 million decrease related to expirations of U.S. foreign tax credits, ~~and $228~~partially offset by an increase of $188 million, ~~decrease~~primarily associated with ~~PT Rio Tinto NOLs resulting from positive evidence supporting future taxable income~~current year changes in U.S. federal temporary differences and a $22 million increase in valuation allowances against which net operating losses can be used. Changes in assumptions about future taxable income against which PT Rio Tinto NOLs can be utilized resulted from delays in timing of the anticipated merger of PT Rio Tinto into PT-FI.Section 163(j) deferred tax assets related to current year activity.

Although the U.S. ~~alternative minimum tax (AMT). FCX collected~~Department of the Treasury (Treasury) published guidance in 2023 that provided some additional clarity on these rules, uncertainty remains regarding the application of the CAMT. Future guidance released by the Treasury may differ from FCX’s interpretations of the Act, which could be material and may further limit FCX’s ability to realize future benefits from its U.S. AMT refunds of $24 million in 2021 and $244 million in 2020. FCX continues to evaluate income tax accounting considerations of COVID-19 measures as they develop, including any impact on its measurement of existing deferred tax assets and deferred tax liabilities. FCX will recognize any impact from COVID-19 related changes to tax laws in the period in which the new legislation is enacted.NOLs.

~~During October~~In 2021, PT-FI participated in discussions with the Indonesia ~~tax office~~Tax Office regarding progress on the framework for ~~resolution of disputes arising from the audits of tax years 2012 through 2016.~~resolution. As a result of these discussions and the revised positions taken by both the Indonesia ~~tax office~~Tax Office and PT-FI, FCX ~~believes it can~~could no longer conclude a resolution of all of the disputed tax items at a more-likely-than-not ~~threshold.~~threshold and PT-FI ~~will continue to engage with the Indonesia tax office in pursuit of certain aspects of the original framework for resolution.~~

~~Peru Tax Matters.~~ ~~SUNAT (National Superintendency~~During 2022, in conjunction with the framework for resolution of ~~Customs~~disputed matters and ~~Administration),~~ the Peru national tax authority, has assessed mining royalties on ore processed by the Cerro Verde concentrator for the period December 2006 to December 2013, which Cerro Verde has contested on the basis that its 1998 stability agreement exempts from royalties all minerals extracted from its mining concessions, irrespectiveclosure of the ~~method used~~2018 corporate income tax audit, PT-FI recorded net charges of $13 million, including $5 million for ~~processing those minerals. Refer~~non-deductible interest recorded to ~~Note 12~~interest expense, net, and $8 million to provision for ~~further discussion~~income taxes. PT-FI continues to engage with the Indonesia Tax Office in pursuit of clarification on certain aspects of the ~~Cerro Verde royalty dispute.~~original framework for resolution of the disputed matters.

In ~~December 2016,~~2022, in conjunction with the issuance of Government Regulation Number 50 of 2022, which stipulates that objection, tax court, and judicial review verdicts issued after the issuance of the harmonization law qualify for reduced penalties, PT-FI recorded net credits totaling $69 million, including a credit of $76 million recorded to other income (expense), net and a charge of $7 million to provision for income taxes.

~~In 2010, the Chile legislature approved an increase in mining royalty taxes to help fund earthquake reconstruction activities, education and health programs.~~ Beginning in 2018, and through 2023 mining royalty rates at ~~FCX’s~~ El Abra ~~mine are~~were based on a sliding scale of 55% to ~~14 percent~~14% (depending on a defined operational margin). In August 2023, the Chile legislature approved a mining royalty tax reform package that took effect on January 1, 2024, under which the mining royalty taxes will consist of two main components (i) profitability based mining royalty rates on a sliding scale of 8% to 26% (depending on a defined operational margin) and (ii) an additional ad valorem royalty tax based on 1% of sales.

A summary of the activities associated with FCX’s reserve for unrecognized tax benefits for the years ended December 31 follows. The balance at year-end December 31, 2019, was revised by $115 million and the balance at year-end December 31, 2020, was revised by $179 million to adjust for amounts paid on accruals not yet settled.

The total amount of accrued interest and penalties associated with unrecognized tax benefits was ~~$620~~$536 million at December 31, ~~2021,~~2023, primarily relating to unrecognized tax benefits associated with cost recovery methods and royalties and other related mining taxes, ~~and $307~~$551 million at December 31, ~~2020,~~2022, and ~~$339~~$620 million at December 31, ~~2019.~~2021. Amounts include unpaid items on the consolidated balance sheet of $33 million at December 31, 2023, $36 million at December 31, 2022, and $41 million at December 31, 2021. Charges for interest and penalties related to unrecognized tax benefits totaled $153 million in 2023, $7 million in 2022 and $34 million in 2021.

The reserve for unrecognized tax benefits of ~~$808~~$720 million at December 31, ~~2021,~~2023, included ~~$694~~$597 million ($~~465~~421 million net of income tax benefits and valuation allowances) that, if recognized, would reduce FCX’s provision for income taxes. Changes in the reserve for unrecognized tax benefits associated with current and prior-year tax positions were primarily related to uncertainties associated with ~~FCX's~~FCX’s tax treatment of cost recovery ~~methods.~~methods and various non-deductible costs. There continues to be uncertainty related to the timing of settlements with taxing authorities, but if additional settlements are agreed upon during the year ~~2022,~~2024, FCX could experience a change in its reserve for unrecognized tax benefits.

FCX or its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The tax years for FCX’s major tax jurisdictions that remain subject to examination are as follows:

have occurred and, if so, to develop and implement remedial actions to address environmental concerns. FCX is also subject to claims where the release of hazardous substances is alleged to have damaged natural resources (NRD) and to litigation by individuals allegedly exposed to hazardous substances. As of December 31, ~~2021,~~2023, FCX had more than ~~100~~80 active remediation projects, including NRD claims, in 2422 U.S. states. The aggregate environmental obligation for approximately ~~60 percent~~50% of the active remediation projects totaled ~~less than~~approximately $20 million at December 31, ~~2021.~~2023.

A summary of changes in FCX’s estimated environmental obligations for the years ended December 31 follows:

Estimated future environmental cash payments (on an undiscounted and de-escalated basis) total ~~$89 million in 2022, $80 million in 2023, $105~~$4.5 billion, including $131 million in 2024, ~~$98~~$147 million in 2025, ~~$100~~$139 million in 2026, $128 million in 2027, $108 million in 2028 and ~~$3.2~~$3.9 billion thereafter. The amount and timing of these estimated payments will change as a result of changes in regulatory requirements, changes in scope and timing of remediation activities, the settlement of environmental matters and as actual spending occurs.

At December 31, ~~2021,~~2023, FCX’s environmental obligations totaled ~~$1.7~~$1.9 billion, including ~~$1.5~~$1.8 billion recorded on a discounted basis for those obligations assumed in the FMC acquisition at fair value. ~~On an undiscounted and de-escalated basis, these obligations totaled $3.7 billion.~~ FCX estimates it is reasonably possible that these obligations could range between ~~$3.3~~$3.9 billion and ~~$4.2~~$5.0 billion on an undiscounted and de-escalated basis.

At December 31, ~~2021,~~2023, the most significant environmental obligations were associated with the Pinal Creek site in Arizona; the Newtown Creek site in New York City; historical smelter sites principally located in Arizona, Indiana, Kansas, Missouri, New Jersey, Oklahoma and Pennsylvania; and uranium mining sites in the western U.S. The recorded environmental obligations for these sites totaled ~~$1.4~~$1.6 billion at December 31, ~~2021.~~2023. FCX may also be

New York entered an Administrative Order on Consent ~~(AOC)~~ to perform a remedial investigation/feasibility study (RI/FS) to assess the nature and extent of environmental contamination in the creek and identify remedial options. EPA approved the final RI in April 2023. The NCG’s ~~RI/~~FS work and efforts to identify other PRPs are ongoing. The NCG ~~submitted a final draft RI report in October 2021, which is currently under review by EPA. The NCG~~ expects to submit a draft FS report to EPA ~~in late 2025~~by October 2026 and currently expects EPA to select a creek-wide remedy in ~~2026,~~2029, with the actual remediation construction starting several years later. ~~In July 2019,~~Further, in early 2022, EPA asked the NCG ~~entered into an AOC with EPA~~ to ~~conduct a Focused Feasibility Study (FFS) of the first two miles of the creek to support an evaluation of~~develop and evaluate alternatives for an early ~~interim remedy for that section~~action remediation project in the East Branch tributary of the creek. ~~In July 2021,~~The NCG submitted to EPA ~~terminated~~a draft early action focused feasibility study relating to remediation options for the ~~FFS, which effectively means remediation of the lower creek will be performed at the same time as the site-wide remedy.~~East Branch and EPA provided comments. During 2023, FCX recorded adjustments to Newtown Creek environmental obligations totaling $64 million based on updated cost estimates from such draft early action focused feasibility study. FCX’s environmental liability balance for ~~the creek~~this site was ~~$318~~$423 million at December 31, ~~2021.~~2023. The final costs of fulfilling this remedial obligation and the allocation of costs among PRPs are uncertain and subject to change based on the results of the RI/FS, the remedy ultimately selected by EPA and related allocation determinations. Changes to the overall cost of this remedial obligation and the portion ultimately allocated to PDRC could be material to FCX.

From 1920 until 1986, United States Metals Refining Company (USMR), an indirect wholly owned subsidiary of FCX, owned and operated a copper smelter and refinery in the Borough of Carteret, New Jersey. Since the early 1980s, the site has been the subject of environmental investigation and remediation, under the direction and supervision of the New Jersey Department of Environmental Protection (NJDEP). On-site contamination is in the later stages of remediation. In 2012, after receiving a request from NJDEP, USMR also began investigating and remediating off-site properties, which is ongoing. As a result of off-site soil sampling in public and private areas near the former Carteret smelter, FCX established an environmental obligation for known and potential off-site environmental remediation. Assessments of sediments in the adjacent Arthur Kill and ~~sampling and analysis within the offsite area as we obtain access to residential properties are ongoing and~~possible remedial actions could result in additional adjustments to the related environmental remediation obligation in future periods. ~~The extent~~

FCX’s environmental liability balance for historical smelter sites, including in the Borough of ~~contamination and potential remedial actions are uncertain and may take several years to evaluate.~~Carteret, New Jersey, was $262 million at December 31, 2023.

In 2017, the Department of Justice, EPA, Navajo Nation, and two FCX subsidiaries reached an agreement regarding the financial contribution of the U.S. Government and the FCX subsidiaries and the scope of the environmental investigation and remediation work for 94 former uranium mining sites on tribal lands. Under the terms of the Consent Decree executed in May 2017, and approved by the U.S. District Court for the District of Arizona, the U.S. contributed $335 million into a trust fund to cover the government’s initial share of the costs, and FCX’s subsidiaries are proceeding with the environmental investigation and remediation work at the 94 sites. The program is expected to take more than 20 years to complete. ~~In 2020,~~The Consent Decree excluded 23 former uranium mine sites at which an FCX ~~reduced its associated obligation and recorded~~subsidiary may also be potentially liable, but for which the United States recovered

funds as part of a ~~$47 million credit to operating income to reflect the discounting effect of the recent and expected pace of project work under post-COVID-19 pandemic conditions.~~larger bankruptcy settlement with Tronox. By letter dated September 29, 2021, EPA ~~also~~ informed an FCX subsidiary as well as two other federal entities that it does not expect to have funds sufficient to remediate all of the sites covered by athe Tronox bankruptcy settlement. Based on information from EPA, it is currently considered unlikely that EPA will deplete the Tronox settlement ~~with Tronox and EPA considers a subsidiary of FCX to be potentially liable for 23 of these sites.~~ funds in the near-term.

FCX is also conducting site surveys of historical uranium mining claims associated with FCX subsidiaries on non-tribal federal lands in the Four Corners region. Under a memorandum of understanding with the U.S. Bureau of Land Management (BLM), site surveys are being performed on approximately 15,000 mining claims, ranging from undisturbed claims to claims with mining features. Based on these surveys, BLM has issued no further action determinations for certain undisturbed claims. A similar agreement is in place with the U.S. Forest Service for mine features on U.S. Forest Service land. Either BLM or the ~~U.S~~U.S. Forest Service may request additional assessment or remediation activities for other claims with mining features. FCX will update this obligation when it has a sufficient number of remedy decisions from the BLM or the ~~U.S~~U.S. Forest Service to support a reasonably certain range of outcomes. FCX expects it will take several years to complete this work.

FCX’s environmental liability balance for the uranium mining sites was $444 million at December 31, 2023.

ARO costs may increase or decrease significantly in the future as a result of changes in regulations, changes in engineering designs and technology, permit modifications or updates, changes in mine plans, settlements, inflation or other factors and as reclamation (concurrent with mining operations or post mining) spending occurs. ARO activities and expenditures for mining operations generally are made over an extended period of time commencing near the end of the mine life; however, certain reclamation activities may be accelerated if legally required or if

Portions of Arizona mining facilities that operated after January 1, 1986, also are subject to the Arizona Mined Land Reclamation Act (AMLRA). AMLRA requires reclamation to achieve stability and safety consistent with post-mining land use objectives specified in a reclamation plan. Reclamation plans must be approved by the State Mine Inspector and must include an estimate of the cost to perform the reclamation measures specified in the plan along with financial assurance. In fourth-quarter 2023, the Arizona State Mines Inspector requested updates to reclamation cost estimates and associated financial assurance for FCX’s Arizona mine sites. FCX’s responses to their requests and the posting of updated financial assurance will not be completed until mid-2024; FCX’s expectation is that these updates, in the aggregate, will not be material. FCX will continue to evaluate options for future reclamation and closure activities at its operating and non-operating sites, which are likely to result in adjustments to FCX’s AROs, and those adjustments

At December 31, ~~2021,~~2023, FCX had accrued reclamation and closure costs of ~~$363~~$607 million for its Arizona operations.

In 2019, Colorado enacted legislation that requires proof of an end date for water treatment as a condition of permit authorizations for new mining operations and expansions beyond current permit authorizations. While this requirement does not apply to existing operations, it may lead to changes in long-term water management requirements at Climax and Henderson operations and AROs. In accordance with its permit from DRMS, Climax ~~will~~expects to submit an updated reclamation plan and cost estimate in ~~2024.~~April 2024, which could result in a significant change in estimate.

As of December 31, 2023, FCX had accrued reclamation and closure costs of $171 million for its Colorado operations.

Indonesia government regulations issued in 2010 require a company to provide a mine closure guarantee in the form of a time deposit placed in a state-owned bank in Indonesia. In December 2018, PT-FI, in conjunction with the issuance of its special mining license (IUPK), submitted a revised mine closure plan to Indonesia’s Department of Energy and Mineral Resources to reflect the extension of operations to 2041. At December 31, ~~2021,~~2023, PT-FI had restricted time deposits totaling ~~$113~~$97 million for mine closure ~~and reclamation guarantees.~~included in other assets.

There has been a significant increase in the number of cases alleging the presence of asbestos contamination in talc-based cosmetic and personal care products and in cases alleging exposure to talc products that are not alleged to be contaminated with asbestos. The primary targets have been the producers of those products, but defendants in many of these cases also include talc miners. Cyprus Amax Minerals Company (CAMC), an indirect wholly owned subsidiary of FCX, and Cyprus Mines Corporation (Cyprus Mines), a wholly owned subsidiary of CAMC, are among those targets. Cyprus Mines was engaged in talc mining and processing from 1964 until 1992 when it exited

Cyprus Mines has contractual indemnification rights, subject to limited reservations, against Imerys, which ~~has~~ historically acknowledged those indemnification obligations and took responsibility for all cases tendered to it. However, in February 2019, Imerys filed for Chapter 11 bankruptcy protection, which triggered an immediate automatic stay under the federal bankruptcy code prohibiting any party from continuing or initiating litigation or asserting new claims against Imerys. As a result, Imerys stopped defending the talc lawsuits against Cyprus Mines and CAMC. In addition, Imerys took the position that it alone owns, and has the sole right to access, the proceeds of the legacy insurance coverage of Cyprus Mines and CAMC for talc liabilities. In March 2019, Cyprus Mines and CAMC challenged this position and obtained emergency relief from the bankruptcy court to gain access to the insurance until the question of ownership and contractual access could be decided in an adversary proceeding before the bankruptcy court, which is currently on hold. The bankruptcy court continues to temporarily stay

Cerro Verde’s income tax assessments, penalties and interest included in the table above totaled ~~$0.6 billion~~$712 million at December 31, ~~2021,~~2023, of which ~~$0.3 billion~~$242 million has not been ~~recorded.~~charged to expense.

As of December 31, ~~2021,~~2023, PT-FI had paid ~~$278~~$189 million on these disputed tax assessments. A reserve has been applied against these payments totaling ~~$221~~$179 million, resulting in a net receivable of ~~$57~~$10 million (included in other assets)., which PT-FI believes is collectible.

PT-FI’s income tax assessments, penalties and interest included in the table above totaled ~~$1.1 billion~~$301 million at December 31, ~~2021,~~2023, of which ~~$0.5 billion~~$117 million has not been ~~recorded.~~

In July 2023, PT-FI was granted an export license for copper concentrate and in December 2023, PT-FI was granted an export license for anode slimes, which are valid through May 2024. PT-FI and the Indonesia government are completing administrative processes to update quotas for estimated concentrate and anode slimes exports through May 2024.

PT-FI is working with the Indonesia government to obtain approvals to continue exports of copper concentrates and anode slimes subsequent to May 2024 until the Indonesia smelter projects are fully commissioned and reach designed operating conditions.

In June 2021, the ~~Indonesia government~~MEMR issued a ministerial decree for the calculation of an administrative fine for lack of smelter development in light of the COVID-19 ~~pandemic. During~~pandemic, and in 2021, PT-FI recorded charges totaling $16 million for a potential settlement of the administrative fine. OnIn January ~~25,~~ 2022, the Indonesia government submitted a new estimate of the administrative fine totaling $57 ~~million. On February 15,~~million, and in March 2022, PT-FI ~~responded~~paid the administrative fine and recorded an additional charge of $41 million.

In May 2023, the MEMR issued a new decree prescribing a revised formula for administrative fines for delays in construction of smelting and refining facilities, taking into account allowances for certain delays associated with the COVID-19 pandemic as verified by a third-party. In mid-July 2023, PT-FI submitted its third-party verified calculation, which resulted in an accrual for a potential administrative fine of $55 million based on the formula prescribed by the decree related to the period from August 2020 through January 2022. PT-FI continues to discuss the applicability of this administrative fine with MEMR. Based on PT-FI’s revised smelter construction schedule, which was accepted by the Indonesia government in connection with ~~a revised calculation~~the renewal of ~~$37 million.~~PT-FI’s export license in early 2022, PT-FI ~~expects to record a charge~~does not believe any additional fines should be assessed under the decree.

Operating lease costs, primarily included in production and delivery expense in the consolidated ~~statement~~statements of ~~operations,~~income, for the ~~two~~ years ended December 31 follow:

FCX acquired right-of-use assets through lease arrangements of $167 million in 2023, $76 million in 2022 and $176 million in 2021. FCX payments included in operating cash flows for its lease liabilities totaled $61 million in 2023, $41 million in 2022 and $54 million in ~~2021, $36 million in 2020 and $38 million in 2019.~~2021. FCX payments included in financing cash flows for its lease liabilities totaled $3 million in 2023, $7 million in 2022 and $25 million in ~~2021 and $4 million in both 2020 and 2019.~~2021. As of December 31, ~~2021,~~2023, the weighted-average discount rate used to determine the lease liabilities was ~~4.2 percent (5.4 percent~~4.7% (4.1% as of December 31, ~~2020)~~2022) and the weighted-average remaining lease term was ~~12.4~~13.1 years ~~(7.7~~(12.0 years as of December 31, ~~2020)~~2022).

The future minimum payments for leases presented in the consolidated balance sheet at December 31, ~~2021,~~2023, follow:

FCX’s unconditional purchase obligations ~~by year~~ total ~~$1.6 billion in 2022, $1.5 billion in 2023, $0.5~~$2.2 billion in 2024, ~~$0.2~~$1.3 billion in 2025, ~~$0.2~~$0.3 billion in 2026, $0.1 billion in 2027, $0.1 billion in 2028 and ~~$0.3~~$0.2 billion thereafter. During the three-year period ended December 31, ~~2021,~~2023, FCX fulfilled its minimum contractual purchase obligations.

The key fiscal terms set forth in the IUPK include a ~~25 percent~~25% corporate income tax rate, a ~~10 percent~~10% profits tax on net income, and royalty rates of ~~4 percent~~4% for copper, ~~3.75 percent~~3.75% for gold and ~~3.25 percent~~3.25% for silver. PT-FI’s royalties charged against revenues totaled $338 million in 2023, $357 million in 2022 and $319 million in ~~2021, $160 million in 2020 and $106 million in 2019.~~2021.

Dividend distributions from PT-FI to FCX totaled $0.4 billion in 2023, $2.5 billion in 2022 and $1.0 billion in 2021, and are subject to a ~~10 percent~~10% withholding tax. ~~There were no dividend distributions from PT-FI to FCX in 2020 or 2019.~~

In ~~March 2021,~~July 2023, the Ministry of Finance issued a revised regulation on duties for various exported products, including copper concentrates. Under the revised regulation PT-FI ~~received~~was assessed export duties for copper concentrates at 7.5% in the second half of 2023 (totaling $307 million). For 2024, the revised regulation assesses export duties for copper concentrates at 10% for companies with smelter progress of 70% to 90% and at 7.5% for companies with smelter progress exceeding 90%. As of December 31, 2023, construction progress of the Indonesia smelter projects exceeded 90%; however, PT-FI is subject to the 10% export duty in 2024 until it receives a ~~one-year extension of its~~revised concentrate export license ~~through March 15, 2022. In December 2021, PT Smelting received a twelve-month extension of its anodes slimes export license,~~(after which ~~expires December 9, 2022,~~PT-FI expects to be subject to ~~review~~the 7.5% export duty). PT-FI’s export duties totaled $324 million in 2023, $307 million in 2022 and ~~approval by~~$218 million in 2021. PT-FI also continues to discuss the applicability of the revised regulation with the Indonesia government ~~every six months.~~because of inconsistencies with its IUPK.

~~In 1996,~~ PT-FI ~~established the Freeport Partnership Fund for Community Development (Partnership Fund) through which PT-FI has made available~~provides funding and technical assistance to support various community development ~~initiatives~~programs in ~~the~~ areas ofsuch as health, education, economic development and local ~~infrastructure~~infrastructure. In 1996, PT-FI established a social investment fund with the aim of contributing to social and economic development in the ~~area. Throughout~~Mimika Regency. Prior to 2019, ~~PT-FI consulted with key stakeholders to restructure~~ the ~~management~~

fund was mainly managed by the Amungme and Kamoro Community Development Organization, a ~~legally-recognized Indonesia~~community-led institution. In 2019, a new foundation, (~~Yayasan~~the Amungme and Kamoro Community Empowerment Foundation (Yayasan Pemberdayaan Masyarakat Amungme dan Kamoro, or YPMAK). was established, and in 2020, PT-FI ~~charged $75~~appointed YPMAK to assist in distributing a significant portion of PT-FI’s funding to support the development and empowerment of the local indigenous Papuan people. YPMAK is governed by a Board of Governors consisting of seven representatives, including four from PT-FI.

In addition, since 2001, PT-FI has voluntarily established and contributed to land rights trust funds administered by Amungme and Kamoro representatives that focus on socioeconomic initiatives, human rights and environmental issues.

PT-FI is committed to the continued funding of YPMAK programs and the land rights trust funds, as well as for other local-community development initiatives through 2041 and has made and expects to continue making annual investments in public health, education and local economic development. PT-FI recorded charges totaling $123 million in both 2023 and 2022 and $109 million in 2021 ~~$36 million in 2020~~to production and ~~$28 million in 2019 to cost of sales~~delivery costs for ~~this commitment.~~social and economic development programs.

Prior to its acquisition by FCX, FMC and its subsidiaries have, as part of merger, acquisition, divestiture and other transactions, from time to time, indemnified certain sellers, buyers or other parties related to the transaction from and against certain liabilities associated with conditions in existence (or claims associated with actions taken) prior to the closing date of the transaction. As part of these transactions, FMC indemnified the counterparty from and against certain excluded or retained liabilities existing at the time of sale that would otherwise have been transferred to the party at closing. These indemnity provisions generally now require FCX to indemnify the party against certain liabilities that may arise in the future from the pre-closing activities of FMC for assets sold or purchased. The indemnity classifications include environmental, tax and certain operating liabilities, claims or litigation existing at closing and various excluded liabilities or obligations. Most of these indemnity obligations arise from transactions that closed many years ago, and given the nature of these indemnity obligations, it is not possible to estimate the maximum potential exposure. Except as described in the following sentence, FCX does not consider any of such obligations as having a probable likelihood of payment that is reasonably estimable, and accordingly, has not recorded any obligations associated with these indemnities. With respect to FCX’s environmental indemnity obligations, any expected costs from these guarantees are accrued when potential environmental obligations are considered by management to be probable and the costs can be reasonably estimated.

FCX does not purchase, hold or sell derivative financial instruments unless there is an existing asset or obligation, or it anticipates a future activity that is likely to occur and will result in exposure to market risks, which FCX intends to offset or mitigate. FCX does not enter into any derivative financial instruments for speculative purposes, but has entered into derivative financial instruments in limited instances to achieve specific objectives. These objectives principally relate to managing risks associated with commodity price changes, foreign currency exchange rates and interest rates.

In April 2020, FCX entered into forward sales contracts for 150 million pounds of copper for settlement in May and June of 2020. The forward sales provided for fixed pricing of $2.34 per pound of copper on approximately 60 percent of North America's sales volumes for May and June 2020. These contracts resulted in hedging losses totaling $24 million for the year ended December 31, 2020. There were no remaining forward sales contracts after June 30, 2020.

accounting for 78 million pounds at an average contract price of ~~$4.30~~$3.85 per pound, with maturities through ~~October 2023.~~November 2025.

A summary of FCX’s embedded derivatives at December 31, ~~2021,~~2023, follows:

A summary of the fair values of unsettled commodity derivative financial instruments follows:

A summary of these net unsettled commodity contracts in the balance sheet follows (there were no offsetting amounts at December 31, 2023 and 2022):

Fair value accounting guidance includes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). FCX did not have any significant transfers in or out of Level 3 for ~~2021.~~2023.

FCX’s financial instruments are recorded on the consolidated balance sheets at fair value except for contingent consideration associated with the sale of the Deepwater GOM oil and gas properties (which was recorded under the loss recovery approach) and debt. A summary of the carrying amount and fair value of FCX’s financial instruments (including those measured at NAV as a practical expedient), other than cash, ~~and~~ cash equivalents, restricted cash ~~restricted~~and cash equivalents, accounts receivable, accounts payable and accrued liabilities, accrued income taxes and dividends payable (refer to Note 14) follows:

Equity securities are valued at the closing price reported on the active market on which the individual securities are traded and, as such, are classified within Level 1 of the fair value hierarchy.

Fixed income securities (government mortgage-backed securities, government securities, corporate bonds, asset-backed securities, collateralized mortgage-backed securities and municipal bonds) are valued using a bid-evaluation price or a mid-evaluation price. These evaluations are based on quoted prices, if available, or models that use observable inputs and, as such, are classified within Level 2 of the fair value hierarchy.

Money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets.

FCX’s derivative financial instruments for copper futures and swap contracts and copper forward contracts that are traded on the respective exchanges are classified within Level 1 of the fair value hierarchy because they are valued using quoted monthly COMEX or LME prices at each reporting date based on the month of maturity (refer to Note 14 for further discussion). Certain of these contracts are traded on the over-the-counter market and are classified within Level 2 of the fair value hierarchy based on COMEX and LME forward prices.

In December 2016, FCX’s sale of its Deepwater GOM oil and gas properties included up to $150 million in contingent consideration that was recorded at the total amount under the loss recovery approach. The contingent consideration is being received over time as future cash flows are realized from a third-party production handling agreement for an offshore platform, with the related payments commencing in ~~third-quarter~~ 2018. The contingent consideration included in (i) other current assets totaled $12 million at December 31, 2023, and $20 million at December 31, ~~2021, and $12 million at December 31, 2020,~~2022, and (ii) other assets totaled ~~$70~~$38 million at December 31, ~~2021,~~2023, and ~~$96~~$47 million at December 31, ~~2020.~~2022. The fair value of this contingent consideration was calculated based on a discounted cash flow model using inputs that include third-party estimates for reserves, production rates and production timing, and discount rates. Because significant inputs are not observable in the market, the contingent consideration is classified within Level 3 of the fair value hierarchy.

Long-term debt, including current portion, is primarily valued using available market quotes and, as such, is classified within Level 2 of the fair value hierarchy.

The techniques described above may produce a fair value that may not be indicative of NRV or reflective of future fair values. Furthermore, while FCX believes its valuation techniques are appropriate and consistent with other market participants, the use of different techniques or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date. There have been no changes in the techniques used at December 31, ~~2021,~~2023, as compared to those techniques used at December 31, ~~2020.~~2022.

As discussed in Note 3, beginning January 1, 2023, PT-FI’s commercial arrangement with PT Smelting changed from a copper concentrate sales agreement to a tolling arrangement, and there are no further sales from PT-FI to PT Smelting.

Intersegment sales between FCX’s business segments are based on terms similar to arms-length transactions with third parties at the time of the sale. Intersegment sales may not be reflective of the actual prices ultimately realized because of a variety of factors, including additional processing, timing of sales to unaffiliated customers and transportation premiums.

FCX defers recognizing profits on sales from its ~~mines~~mining operations to ~~other segments, including~~ Atlantic Copper Smelting & Refining ~~and on PT-FI’s sales to PT Smelting (on 25.0 percent prior to April 30, 2021, and 39.5 percent thereafter)~~ until final sales to third parties occur. FCX also deferred recognizing profit on 39.5% of PT-FI’s sales to PT Smelting from April 30, 2021, to December, 31, 2022, and 25.0% prior to April 30, 2021, until final sales to third parties occurred. As discussed in Note 3, beginning January 1, 2023, PT-FI’s commercial arrangement with PT Smelting changed and there are no further sales from PT-FI to PT Smelting. Quarterly variations in ore grades, the timing of intercompany shipments and changes in product prices result in variability in FCX’s net deferred profits and quarterly earnings.

FCX allocates certain operating costs, expenses and capital expenditures to its operating divisions and individual segments. However, not all costs and expenses applicable to an operation are allocated. U.S. federal and state income taxes are recorded and managed at the corporate level (included in Corporate, Other & Eliminations), whereas foreign income taxes are recorded and managed at the applicable country level. In addition, most mining exploration and research activities are managed on a consolidated basis, and those costs, along with some selling, general and administrative costs, are not allocated to the operating divisions or individual segments. Accordingly, the following Financial Information by Business Segment reflects management determinations that may not be indicative of what the actual financial performance of each operating division or segment would be if it was an independent entity.

The Morenci open-pit mine, located in southeastern Arizona, produces copper cathode and copper concentrate. In addition to copper, the Morenci mine also produces molybdenum concentrate. During ~~2021,~~2023, the Morenci mine produced ~~43 percent~~43% of FCX’s North America copper and ~~16 percent~~14% of FCX’s consolidated copper production.

The Cerro Verde open-pit copper mine, located near Arequipa, Peru, produces copper cathode and copper concentrate. In addition to copper, the Cerro Verde mine also produces molybdenum concentrate and silver. During ~~2021,~~2023, the Cerro Verde mine produced ~~85 percent~~82% of FCX’s South America copper and ~~23 percent~~23% of FCX’s consolidated copper production.

Recoverable proven and probable mineral reserves as of December 31, ~~2021,~~2023, have been prepared using industry accepted practice and conform to the disclosure requirements under Subpart 1300 of SEC Regulation S-K. FCX’s proven and probable mineral reserves may not be comparable to similar information regarding mineral reserves disclosed in accordance with the guidance in other countries. Proven and probable mineral reserves were determined by the use of mapping, drilling, sampling, assaying and evaluation methods generally applied in the mining industry. Mineral reserves, as used in the reserve data presented here, mean an estimate of tonnage and grade of measured and indicated mineral resources that, in the opinion of the qualified person, can be the basis of an economically viable project. Proven mineral reserves are the economically mineable part of a measured mineral resource. To classify an estimate as a proven mineral reserve, the qualified person must possess a high degree of confidence of tonnage, grade and quality. Probable mineral reserves are the economically mineable part of an indicated or, in some cases, a measured mineral resource. The qualified person’s level of confidence will be lower in determining a probable mineral reserve than it would be in determining a proven mineral reserve. To classify an estimate as a probable mineral reserve, the qualified person’s confidence must still be sufficient to demonstrate that extraction is economically viable considering reasonable investment and market assumptions.

FCX’s mineral reserve estimates are based on the latest available geological and geotechnical studies. FCX conducts ongoing studies of its ore bodies to optimize economic values and to manage risk. FCX revises its mine plans and estimates of proven and probable mineral reserves as required in accordance with the latest available studies.

The recoverable proven and probable mineral reserves presented in the table below represent the estimated metal quantities from which FCX expects to be paid after application of estimated metallurgical recoveries and smelter recoveries, where applicable.

Not applicable.

(c) Management’s annual report on internal control over financial reporting and the report thereon of Ernst & Young LLP are included herein under Item 8. “Financial Statements and Supplementary Data.”

Not applicable.

The information ~~set forth~~required by this item regarding our executive officers appears in a separately captioned heading after Item 4. “Information About Our Executive Officers” in Part I of this report.

The information required by this item is incorporated by reference to “Information About Director Nominees,” “Board Committees,” and “Board and Committee Independence; Audit Committee Financial Experts,” ~~and “Corporate Governance Guidelines; Principles of Business Conduct,” of~~in our definitive proxy statement to be filed with the United States Securities and Exchange Commission (SEC), relating to our ~~2022~~2024 annual meeting of stockholders, is incorporated herein by reference. The information required by Item 10 regarding our executive officers appears in a separately captioned heading after Item 4. “Information About our Executive Officers” in Part I of this report.stockholders.

The information ~~set forth under the captions~~required by this item is incorporated herein by reference to “Director Compensation” and “Executive Officer Compensation” ofin our definitive proxy statement to be filed with the SEC, relating to our ~~2022~~2024 annual meeting of ~~stockholders, is incorporated herein by reference.~~stockholders.

Only our stockholder-approved 2016 Stock Incentive Plan ~~which was previously approved by our stockholders,~~ has shares of our common stock available for future grant. However, we have equity compensation plans pursuant to which awards have previously been made that could result in issuance of our common stock to employees and non-employees as compensation.

The information ~~set forth under the captions~~required by this item is incorporated by reference to “Certain Transactions” and “Board and Committee Independence; Audit Committee Financial Experts” ofin our definitive proxy statement to be filed with the SEC, relating to our ~~2022~~2024 annual meeting of ~~stockholders, is incorporated herein by reference.~~stockholders.

The information ~~set forth under the caption~~required by this item is incorporated by reference to “Independent Registered Public Accounting Firm” ofin our definitive proxy statement to be filed with the SEC (including fees billed to us by Ernst & Young, PCAOB ID No. 42), relating to our ~~2022~~2024 annual meeting of ~~stockholders, is incorporated herein by reference.~~stockholders.

The consolidated statements of ~~operations,~~income, comprehensive income, ~~(loss),~~ cash flows and equity, and the consolidated balance sheets are included as part of Item 8. “Financial Statements and Supplementary Data.”

The following financial statement schedule is presented below.

Schedule II -– Valuation and Qualifying Accounts

Schedules other than the one above have been omitted since they are either not required, not applicable or the required information is included in the financial statements or notes thereto.

Freeport-McMoRan Inc.

We have audited the consolidated financial statements of Freeport-McMoRan Inc. (the Company) as of December 31, ~~2021~~2023 and ~~2020,~~2022, for each of the three years in the period ended December 31, ~~2021,~~2023, and have issued our report thereon dated February 15, ~~2022~~2024 included elsewhere in this Form 10-K. Our audits of the consolidated financial statements included the financial statement schedule listed in Item 15 (a)(2) of this Form 10-K (the “schedule”). This schedule is the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s schedule based on our audits.

In our opinion, the schedule presents fairly, in all material respects, the information set forth therein when considered in conjunction with the consolidated financial statements.

/s/ Ernst & Young LLP

Phoenix, Arizona

February 15, ~~2022~~2024

Not applicable.

Pursuant to the requirements of Section 13 of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on February 15, ~~2022.~~2024.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the registrant in the capacities indicated on February 15, ~~2022.~~2024.


Delaware						74-2480931
(State or other jurisdiction of						(I.R.S. Employer Identification No.)
incorporation or organization)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.10 per share	FCX	The New York Stock Exchange


Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐


TABLE OF CONTENTS

			Page
Part I			1
Items 1. and 2. Business and Properties			1
Item 1A. Risk Factors			4447
Item 1B. Unresolved Staff Comments			6570
Item 1C. Cybersecurity			70
Item 3. Legal Proceedings			6572
Item 4. Mine Safety Disclosures			6875
Information About ~~our~~O ur Executive Officers			6875

Part II			6976
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters
and Issuer Purchases of Equity Securities			6976
Item 6. Reserved			7076
Items 7. and 7A. Management’s Discussion and Analysis of Financial Condition and Results
of Operations and Quantitative and Qualitative Disclosures about Market Risk			7077
Item 8. Financial Statements and Supplementary Data			~~109~~116
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure			~~174~~176
Item 9A. Controls and Procedures			~~174~~176
Item 9B. Other Information			~~174~~176
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections			~~174~~176

Part III			~~174~~176
Item 10. Directors, Executive Officers and Corporate Governance			~~174~~176
Item 11. Executive Compensation			~~174~~176
Item 12. Security Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters			~~174~~177
Item 13. Certain Relationships and Related Transactions, and Director Independence			~~175~~177
Item 14. Principal Accounting Fees and Services			~~175~~177

Part IV			~~175~~177
Item 15. Exhibits, Financial Statement Schedules			~~175~~177
Item 16. Form 10-K Summary			~~182~~183

Glossary of Terms			183

Signatures			S-1


Location	Number of Unions	Number of Union- Represented Employees	Expiration Date

PT-FI - Indonesia	3	2,990	March 2022	a
Cerro Verde - Peru	2	3,183	August 2024 and August 2025
El Abra - Chile	2	781	April 2023
Atlantic Copper - Spain	3	517	December 2022

Rotterdam - The Netherlands	1	55	September 2022
Stowmarket - United Kingdom	1	40	May 2023


☒			ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Portions of the registrant’s proxy statement for its ~~2022~~2024 annual meeting of stockholders are incorporated by reference into Part III of this report.


		Copper		Gold		Molybdenum
	Copper
North America
North America
North America	North America	40	%	2	%	79	%	a	43	%	2	%	80	%	a
South America	South America	30		—		21
Indonesia	Indonesia	30		98		—
		100	%	100	%	100	%
Indonesia
Indonesia
		100
		100
		100


	2021		2020		2019
Third parties	55	%	48	%	34	%
PT Smelting	41		50		64
Atlantic Copper	4		2		2
	100	%	100	%	100	%


Location	Number of Unions	Number of Employees Covered by a CLA	Expiration Date

PT-FI – Indonesia	3	3,008	March 2024
Cerro Verde – Peru	2	3,470	August 2024 and August 2025
El Abra – Chile	2	900	April 2026
Atlantic Copper – Spain	3	523	December 2022	a

Rotterdam – The Netherlands	1	53	March 2025
Stowmarket – United Kingdom	1	38	May 2026


		Years Ended December 31,
		Production			Sales
	Years Ended December 31,
		Production
		Production
		Production
COPPER (millions of recoverable pounds)
COPPER (millions of recoverable pounds)
COPPER (millions of recoverable pounds)	COPPER (millions of recoverable pounds)	2021	2020	2019	2021			2020			2019
(FCX’s net interest in %)	(FCX’s net interest in %)
(FCX’s net interest in %)
(FCX’s net interest in %)
North America
North America
North America	North America
Morenci (72%)a	Morenci (72%)a	631	707	730	632			711			717
Bagdad (100%)		184	216	218	185			213			218
Morenci (72%)a
Morenci (72%)a
Safford (100%)
Safford (100%)
Safford (100%)	Safford (100%)	265	161	110	252			150			111
Sierrita (100%)	Sierrita (100%)	189	178	160	187			177			157
Miami (100%)		12	17	15	13			16			15
Sierrita (100%)
Sierrita (100%)
Bagdad (100%)
Bagdad (100%)
Bagdad (100%)
Chino (100%)
Chino (100%)
Chino (100%)	Chino (100%)	124	92	175	114			108			174
Tyrone (100%)	Tyrone (100%)	55	45	48	53			45			49
Tyrone (100%)
Tyrone (100%)
Miami (100%)
Miami (100%)
Miami (100%)
Other (100%)
Other (100%)
Other (100%)	Other (100%)	—	2	1	—			2			1
Total North America	Total North America	1,460	1,418	1,457	1,436			1,422			1,442
Total North America
Total North America
South America
South America
South America	South America
Cerro Verde (53.56%)	Cerro Verde (53.56%)	887	820	1,003	888			825			1,002
Cerro Verde (53.56%)
Cerro Verde (53.56%)
El Abra (51%)
El Abra (51%)
El Abra (51%)	El Abra (51%)	160	159	180	167			151			181

Total South America	Total South America	1,047	979	1,183	1,055			976			1,183

Total South America

Total South America
Indonesia
Indonesia
Indonesia	Indonesia
Grasberg minerals district (48.76%)b	Grasberg minerals district (48.76%)b	1,336	809	607	1,316			804			667
Grasberg minerals district (48.76%)b
Grasberg minerals district (48.76%)b
Consolidated
Consolidated
Consolidated	Consolidated	3,843	3,206	3,247	3,807		c	3,202		c	3,292		c	4,212	4,210	4,210	3,843	3,843	4,086	4,086	c	c	4,213	c	c	3,807	c	c

Less noncontrolling interests	Less noncontrolling interests	741	610	668	741			608			679

Less noncontrolling interests

Less noncontrolling interests
Net
Net
Net	Net	3,102	2,596	2,579	3,066			2,594			2,613
Average realized price per pound	Average realized price per pound				$	4.33		$	2.95		$	2.73
Average realized price per pound
Average realized price per pound
GOLD (thousands of recoverable ounces)	GOLD (thousands of recoverable ounces)
GOLD (thousands of recoverable ounces)
GOLD (thousands of recoverable ounces)
(FCX’s net interest in %)
(FCX’s net interest in %)
(FCX’s net interest in %)
North America (100%)
North America (100%)
North America (100%)	North America (100%)	11	9	19	11			13			18

Indonesia (48.76%)b	Indonesia (48.76%)b	1,370	848	863	1,349			842			973

Indonesia (48.76%)b

Indonesia (48.76%)b
Consolidated
Consolidated
Consolidated	Consolidated	1,381	857	882	1,360			855			991
Less noncontrolling interests	Less noncontrolling interests	257	159	162	252			158			182
Less noncontrolling interests
Less noncontrolling interests
Net
Net
Net	Net	1,124	698	720	1,108			697			809
Average realized price per ounce	Average realized price per ounce				$	1,796		$	1,832		$	1,415
Average realized price per ounce
Average realized price per ounce
MOLYBDENUM (millions of recoverable pounds)	MOLYBDENUM (millions of recoverable pounds)
MOLYBDENUM (millions of recoverable pounds)
MOLYBDENUM (millions of recoverable pounds)
(FCX’s net interest in %)
(FCX’s net interest in %)
(FCX’s net interest in %)
Climax (100%)
Climax (100%)
Climax (100%)
Henderson (100%)	Henderson (100%)	12	10	12	N/A			N/A			N/A
Climax (100%)		18	14	17	N/A			N/A			N/A
Henderson (100%)
Henderson (100%)
North America copper mines (100%)a
North America copper mines (100%)a
North America copper mines (100%)a	North America copper mines (100%)a	34	33	32	N/A			N/A			N/A
Cerro Verde (53.56%)	Cerro Verde (53.56%)	21	19	29	N/A			N/A			N/A
Cerro Verde (53.56%)
Cerro Verde (53.56%)
Consolidated
Consolidated
Consolidated	Consolidated	85	76	90	82			80			90
Less noncontrolling interest	Less noncontrolling interest	10	9	13	9			10			13
Less noncontrolling interest
Less noncontrolling interest
Net
Net
Net	Net	75	67	77	73			70			77
Average realized price per pound	Average realized price per pound				$	15.56		$	10.20		$	12.61
Average realized price per pound
Average realized price per pound


	Years Ended December 31,
	2023		2022		2021		2020		2019
INDONESIA MINING

Copper (millions of recoverable pounds)
Production	1,660		1,567		1,336		809		607
Sales	1,525		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
Sales	1,697		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 (%):
Copper	89.7		90.0		89.8		91.9		88.4
Gold	77.9		77.7		77.0		78.1		75.0




MOLYBDENUM MINES
Ore 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


Estimated Recoverable Proven and Probable Mineral Reserves														Estimated Recoverable Proven and Probable Mineral Reserves
at December 31, 2023														at December 31, 2023




			Estimated Recoverable Proven and Probable Mineral Reserves
			at December 31, 2021
			Proven Mineral Reserves						Probable Mineral Reserves
				Average Ore Grade						Average Ore Grade
		Processing	Million	Copper	Gold		Moly	Silver	Million	Copper	Gold		Moly		Silver
		Method	metric tonsa	%	g/t		%	g/t	metric tonsa	%	g/t		%		g/t
North America	North America
North America
North America
Morenci
Morenci
Morenci	Morenci	Mill	784	0.37	—		0.02	—	110	0.35	—		0.02		—
		Crushed leach	501	0.37	—		—	—	87	0.35	—		—		—
		ROM leach	2,011	0.14	—		—	—	424	0.15	—		—		—




Bagdad
Bagdad
Bagdad	Bagdad	Mill	1,928	0.34	—	b	0.02	1.42	585	0.28	—	b	0.02		1.17
		ROM leach	19	0.22	—		—	—	2	0.20	—		—		—


Safford, including Lone Star	Safford, including Lone Star	Crushed leach	542	0.46	—		—	—	143	0.42	—		—		—
Safford, including Lone Star
Safford, including Lone Star

Sierrita

Sierrita

Sierrita	Sierrita	Mill	2,241	0.24	—	b	0.03	1.25	189	0.19	—	b	0.02		0.99

Chino, including Cobre	Chino, including Cobre	Mill	169	0.50	0.04		—	0.89	60	0.48	0.04		—		0.87
		ROM leach	70	0.27	—		—	—	10	0.25	—		—		—

Chino, including Cobre

Chino, including Cobre



Tyrone
Tyrone
Tyrone	Tyrone	ROM leach	18	0.29	—		—	—	1	0.13	—		—		—
Henderson	Henderson	Mill	37	—	—		0.18	—	17	—	—		0.13		—
Henderson
Henderson
Climax
Climax
Climax	Climax	Mill	138	—	—		0.15	—	13	—	—		0.10		—

			8,459						1,641




South America	South America
South America
South America
Cerro Verde
Cerro Verde
Cerro Verde	Cerro Verde	Mill	670	0.38	—		0.02	2.00	3,219	0.36	—		0.01		1.92
		Crushed leach	19	0.43	—		—	—	2	0.42	—		—		—
		ROM leach	33	0.38	—		—	—	56	0.26	—		—		—




El Abra
El Abra
El Abra	El Abra	Crushed leach	538	0.44	—		—	—	171	0.39	—		—		—
		ROM leach	16	0.20	—		—	—	7	0.18	—		—		—
			1,276						3,454




Indonesia
Indonesia
Indonesia	Indonesia
Grasberg Block Cave	Grasberg Block Cave	Mill	316	1.15	0.76		—	3.61	541	1.01	0.69		—		3.87
Grasberg Block Cave
Grasberg Block Cave
DMLZ
DMLZ
DMLZ	DMLZ	Mill	91	0.89	0.79		—	4.21	321	0.84	0.71		—		4.03

Big Gossan	Big Gossan	Mill	17	2.50	1.02		—	15.56	34	2.14	0.94		—		12.72

Kucing Liarc		Mill	88	1.06	0.96		—	5.64	263	1.02	0.89		—		4.98
Big Gossan
			512						1,159
Total FCX - 100% Basis			10,247						6,254
Big Gossan

Kucing Liarb

Kucing Liarb

Kucing Liarb



Total FCX – 100% Basis
Total FCX – 100% Basis
Total FCX – 100% Basis
Total FCX – Consolidated basisc
Total FCX – Consolidated basisc
Total FCX – Consolidated basisc
Total FCX – Net equity interestd
Total FCX – Net equity interestd
Total FCX – Net equity interestd


Estimated Recoverable Proven and Probable Mineral Reserves
at December 31, 2023 (continued)

			Proven and Probable
			Million Metric Tons		Average Ore Grade					Recoveriesa
	FCX’s	Processing	FCX’s	100%	Copper	Gold		Moly	Silver	Copper	Gold	Moly	Silver
	Interest	Method	Interest	Basis	%	g/t		%	g/t	%	%	%	%
North America
Morenci	72%	Mill	922	1,280	0.31	—		0.02	—	82.3	—	43.7	—
		Crushed leach	323	448	0.36	—		—	—	81.9	—	—	—
		ROM leach	1,506	2,091	0.13	—		—	—	37.3	—	—	—
Bagdad	100%	Mill	2,453	2,453	0.35	—	b	0.02	1.43	84.2	59.1	77.0	49.3
		ROM leach	20	20	0.27	—		—	—	43.2	—	—	—
Safford, including Lone Star	100%	Crushed leach	1,038	1,038	0.40	—		—	—	70.6	—	—	—

Sierrita	100%	Mill	2,398	2,398	0.23	—	b	0.02	1.08	81.1	59.1	77.7	49.3


Chino, including Cobre	100%	Mill	260	260	0.51	0.05		—	0.92	79.0	77.9	—	78.5
		ROM leach	86	86	0.24	—		—	—	34.9	—	—	—
Tyrone	100%	ROM leach	90	90	0.17	—		—	—	57.7	—	—	—
Henderson	100%	Mill	48	48	—	—		0.16	—	—	—	87.7	—
Climax	100%	Mill	149	149	—	—		0.15	—	—	—	88.8	—


			9,292	10,362
South America
Cerro Verde	53.56%	Mill	2,141	3,998	0.35	—		0.01	1.84	86.0	—	54.4	44.9

		ROM leach	48	89	0.24	—		—	—	50.1	—	—	—
El Abra	51%	Crushed leach	282	553	0.48	—		—	—	52.0	—	—	—
		ROM leach	55	107	0.24	—		—	—	31.2	—	—	—
			2,526	4,747
Indonesia
Grasberg Block Cave	48.76%	Mill	379	777	1.02	0.68		—	3.26	84.1	66.7	—	59.6
DMLZ	48.76%	Mill	163	333	0.80	0.63		—	3.80	83.9	78.5	—	63.7

Big Gossan	48.76%	Mill	24	49	2.26	0.93		—	13.80	90.6	68.0	—	63.5

Kucing Liarc	48.76%	Mill	188	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 basisd				15,584
Total FCX – Net equity intereste				12,571


Period	(a) Total Number of Shares Purchased		(b) Average Price Paid Per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programsa		(d) Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programsa
October 1-31, 2021	—		$	—	—		—
November 1-30, 2021	2,680,026		$	39.19	2,680,026		—
December 1-31, 2021	10,518,245	b	$	38.04	10,062,511		—
Total	13,198,271		$	38.27	12,742,537	12742537000000	—


Estimated Recoverable Proven and Probable Mineral Reserves
at December 31, 2021
(continued)
			Recoverable Mineral Reservesa
			Copper		Gold		Moly	Silver
	FCX’s	Processing	billion		million		billion	million
	Interest	Method	lbs.		ozs.		lbs.	ozs.
North America
Morenci	72%	Mill	5.9		—		0.15	—
		Crushed leach	3.9		—		—	—
		ROM leach	2.8		—		—	—
Bagdad	100%	Mill	15.4		0.2		0.92	54.2
		ROM leach	—	b	—		—	—
Safford, including Lone Star	100%	Crushed leach	5.0		—		—	—

Sierrita	100%	Mill	10.1		0.1		1.02	47.2


Chino, including Cobre	100%	Mill	2.0		0.3		—	5.1
		ROM leach	0.2		—		—	—
Tyrone	100%	ROM leach	0.1		—		—	—
Henderson	100%	Mill	—		—		0.17	—
Climax	100%	Mill	—		—		0.44	—


			45.4		0.5		2.71	106.5
Recoverable metal in stockpilesc			1.3		—	b	0.02	0.1
100% operations			46.7		0.5		2.73	106.6
Consolidated			43.0		0.5		2.69	106.6
Net equity interest			43.0		0.5		2.69	106.6

South America
Cerro Verde	53.56%	Mill	26.8		—		0.69	108.4
		Crushed leach	0.2		—		—	—
		ROM leach	0.3		—		—	—
El Abra	51%	Crushed leach	3.7		—		—	—
		ROM leach	—	b	—		—	—
			31.0		—		0.69	108.4
Recoverable metal in stockpilesc			0.9		—		0.01	1.2
100% operations			31.9		—		0.69	109.6
Consolidated			31.9		—		0.69	109.6
Net equity interest			17.0		—		0.37	58.7

Indonesia
Grasberg Block Cave	48.76%d	Mill	16.7		12.6		—	57.9
DMLZ	48.76%d	Mill	6.6		7.6		—	34.5

Big Gossan	48.76%d	Mill	2.3		1.1		—	14.2

Kucing Liare	48.76%d	Mill	6.6		5.3		—	22.8


100% operations			32.2		26.6		—	129.5
Consolidated			32.2		26.6		—	129.5
Net equity interest			16.2		13.6		—	65.1

Total FCX - 100% basis			110.8		27.1		3.43	345.7
Total FCX - Consolidated basisf			107.2		27.1		3.39	345.7
Total FCX - Net equity interestg			76.2		14.2		3.06	230.5


	Estimated Recoverable Mineral Reserves on 100% Basis
	Copper (billion lbs.)			Gold (million ozs.)	Molybdenum (billion lbs.)
	Morenci	Cerro Verde	Grasberg minerals district	Grasberg minerals district	Morenci	Cerro Verde
Mineral reserves as of December 31, 2020	14.3	28.6	33.4	28.3	0.20	0.70
Production	(0.9)	(0.9)	(1.3)	(1.4)	(0.01)	(0.02)
Adjustmentsa	(0.3)	0.2	0.1	(0.3)	(0.04)	0.01
Mineral reserves as of December 31, 2021	13.1	27.9	32.2	26.6	0.15	0.69


	Estimated Recoverable Mineral Reserves at 100% Basis
	Copper (billion lbs.)							Gold (million ozs.)		Molybdenum (billion lbs.)
	Morenci		Cerro Verde			Grasberg minerals district		Grasberg minerals district		Morenci			Cerro Verde
Mineral reserves as of December 31, 2022a	15.7		28.0			30.8		26.3		0.29			0.70
Production	(0.8)		(1.0)			(1.7)		(2.0)		—		b	(0.02)
Adjustmentsc	(2.3)		—		b	(0.2)		(0.4)		(0.05)			—		b
Mineral reserves as of December 31, 2023a	12.6		27.0			29.0		23.9		0.23			0.68
Year-over-year percentage change	(20)	%	(4)	%		(6)	%	(9)	%	(21)	%		(3)	%


	Copper Equivalent Cutoff Grade (Percent)			Molybdenum Cutoff Grade (Percent)
	Mill	Crushed Leach	ROM Leach	Mill
North America
Morenci	0.21	0.14	0.03	—
Bagdad	0.09	—	0.15	—
Safford, including Lone Star	—	0.17	—	—

Sierrita	0.17	—	—	—

Chino, including Cobre	0.22	—	0.06	—
Tyrone	—	—	0.05	—
Henderson	—	—	—	0.13
Climax	—	—	—	0.05

South America
Cerro Verde	0.15	0.24	0.08	—
El Abra	—	0.15	0.11	—
Indonesia
Grasberg Block Cave	0.63	—	—	—
DMLZ	0.71	—	—	—

Big Gossan	1.70	—	—	—

Kucing Liar	0.70	—	—	—


	Copper Equivalent Cutoff Grade (%)			Molybdenum Cutoff Grade (%)
	Mill	Crushed Leach	ROM Leach	Mill
North America
Morenci	0.17	0.10	0.03	—
Bagdad	0.15	—	0.06	—
Safford, including Lone Star	—	0.13	—	—

Sierrita	0.16	—	—	—

Chino, including Cobre	0.23	—	0.06	—
Tyrone	—	—	0.03	—
Henderson	—	—	—	0.13
Climax	—	—	—	0.05

South America
Cerro Verde	0.13	—	0.08	—
El Abra	—	0.14	0.07	—
Indonesia
Grasberg Block Cave	0.56	—	—	—
DMLZ	0.65	—	—	—

Big Gossan	1.70	—	—	—

Kucing Liar	0.58	—	—	—


						Recoverable
		Million		Average	Recoveries	Coppera
		Metric Tonsa		Ore Grade (%)	(%)	(billion pounds)
										Recoverable
		FCX’s
		FCX’s
		FCX’s
		Interest
		Interest
		Interest
Mill stockpiles
Mill stockpiles
Mill stockpiles	Mill stockpiles
Cerro Verde	Cerro Verde	79		0.27	64.5	0.3
North America copper mines		5		0.45	90.9	—	b
Cerro Verde
Cerro Verde
North America copper minesa
North America copper minesa
North America copper minesa													5		5		0.45			82.6			—		b
			37
		84				0.3
Leach stockpiles

Leach stockpiles

Leach stockpiles	Leach stockpiles
Morenci	Morenci	7,216		0.24	1.1	0.4
Morenci
Morenci
Bagdad
Bagdad
Bagdad	Bagdad	505		0.25	0.8	—	b	100	%		506	506		506	0.25	0.25		0.9	0.9		—	—		b	b
Safford, including Lone Star	Safford, including Lone Star	382		0.42	6.4	0.2

Sierrita	Sierrita	650		0.15	8.6	0.2

Sierrita

Sierrita
Miami
Miami
Miami	Miami	498		0.39	1.0	—	b
Chino, including Cobre	Chino, including Cobre	1,769		0.25	2.7	0.3
Chino, including Cobre
Chino, including Cobre
Tyrone
Tyrone
Tyrone	Tyrone	1,192		0.28	1.8	0.1
Cerro Verde	Cerro Verde	566		0.45	4.7	0.3
Cerro Verde
Cerro Verde
El Abra	El Abra	855		0.43	4.6	0.4
El Abra
El Abra
				11,359
				11,359
				11,359
		13,633				1.9
Total FCX – 100% basis

Total FCX - 100% basis						2.3
Total FCX - Consolidated basisc						2.1
Total FCX - Net equity interestd						1.7
Total FCX – 100% basis

Total FCX – 100% basis
Total FCX – Consolidated basisc
Total FCX – Consolidated basisc
Total FCX – Consolidated basisc
Total FCX – Net equity interestd
Total FCX – Net equity interestd
Total FCX – Net equity interestd


Estimated Mineral Resources	Estimated Mineral Resources																Estimated Mineral Resources
at December 31, 2021a
at December 31, 2023a																	at December 31, 2023a
					Measured								Indicated								Inferred											Measured					Indicated						Inferred
					Million		Average Ore Grade						Million	Average Ore Grade							Million		Average Ore Grade									Million Metric Tons		Average Ore Grade				Million Metric Tons		Average Ore Grade				Million Metric Tons			Average Ore Grade
		FCX’s		Processing	metric		Copper	Gold		Moly		Silver	metric	Copper	Gold			Moly		Silver	metric		Copper	Gold		Moly		Silver	FCX’s	Processing	FCX’s		100%	Copper	Gold	Moly		Silver	FCX’s		100%	Copper	Gold		Moly	Silver		FCX’s	100%	Copper	Gold	Moly	Silver
		Interest		Method	tons		%	g/t		%		g/t	tons	%	g/t			%		g/t	tons		%	g/t		%		g/t	Interest	Method	Interest		Basis	%	g/t	%		g/t	Interest		Basis	%	g/t		%	g/t		Interest	Basis	%	g/t	%	g/t
North America	North America
Morenci	Morenci	72%		Milling	1,280		0.25	—		0.02		—	1,077	0.27	—			0.02		—	570		0.27	—		0.02		—
				Leaching	1,135		0.16	—		—		—	898	0.16	—			—		—	522		0.12	—		—		—
Morenci
Morenci
			Leaching
Bagdad	Bagdad	100%		Milling	492		0.32	—	b	0.02		1.36	717	0.27	—	b		0.02		1.13	961		0.17	—	b	0.01		0.70
				Leaching	—	b	0.22	—		—		—	1	0.08	—			—		—	11		0.08	—		—		—
			Leaching
Safford, including Lone Star	Safford, including Lone Star	100%		Milling	807		0.34	0.02		—		0.45	1,588	0.37	0.02			—		0.44	823		0.29	—	b	—		0.03
				Leaching	556		0.31	—		—		—	568	0.28	—			—		—	241		0.26	—		—		—
			Leaching
Sierrita	Sierrita	100%		Milling	1,467		0.18	—	b	0.02		0.74	597	0.17	—	b		0.02		0.79	131		0.16	—	b	0.01		0.75
Chino, including Cobre	Chino, including Cobre	100%		Milling	283		0.38	0.04		0.01		0.73	157	0.43	0.04			0.01		0.78	27		0.55	0.05		0.01		0.99
				Leaching	27		0.22	—		—		—	4	0.28	—			—		—	7		0.26	—		—		—
			Leaching
Tyrone	Tyrone	100%		Leaching	115		0.22	—		—		—	29	0.21	—			—		—	15		0.21	—		—		—
Henderson	Henderson	100%		Milling	75		—	—		0.15		—	36	—	—			0.12		—	—	b	—	—		0.04		—
Climax	Climax	100%		Milling	310		—	—		0.17		—	73	—	—			0.09		—	18		—	—		0.06		—
Ajo	Ajo	100%		Milling	470		0.37	0.06		0.01		0.81	159	0.32	0.04			0.01		0.76	31		0.24	0.05		—	b	0.80
Cochise/Bisbee	Cochise/Bisbee	100%		Leaching	153		0.48	—		—		—	124	0.41	—			—		—	21		0.37	—		—		—
Sanchez	Sanchez	100%		Leaching	86		0.35	—		—		—	104	0.23	—			—		—	14		0.18	—		—		—
Tohono	Tohono	100%		Milling	63		0.74	—		—		—	237	0.64	—			—		—	27		0.46	—		—		—
				Leaching	45		0.94	—		—		—	250	0.61	—			—		—	48		0.49	—		—		—
			Leaching
Twin Buttes	Twin Buttes	100%		Milling	188		0.58	0.01		0.03		6.23	17	0.56	0.01			0.03		5.94	8		0.67	0.01		0.02		7.27
				Leaching	78		0.22	—		—		—	27	0.20	—			—		—	11		0.25	—		—		—
			Leaching
Christmas	Christmas	100%		Milling	73		0.52	0.06		—	b	1.53	291	0.35	0.05			—	b	0.92	69		0.36	0.06		—	b	0.94
South America	South America
Cerro Verde	Cerro Verde	53.56%		Milling	22		0.31	—		0.01		1.64	1,460	0.36	—			0.01		1.90	673		0.35	—		0.01		1.87
				Leaching	10		0.35	—		—		—	27	0.29	—			—		—	13		0.32	—		—		—
Cerro Verde
Cerro Verde
			Leaching
El Abra	El Abra	51%		Milling	883		0.45	0.02		0.01		1.52	1,513	0.37	0.02			0.01		1.16	1,012		0.31	0.01		0.01		0.87
				Leaching	64		0.24	—		—		—	72	0.25	—			—		—	66		0.23	—		—		—
			Leaching
Indonesia	Indonesia
Grasberg minerals district	Grasberg minerals district	48.76%		Milling	319		0.78	0.60		—		4.39	2,136	0.76	0.64			—		4.15	154		0.49	0.40		—		2.77
Total FCX - 100% basisc					9,001								12,160								5,472
Total FCX - Consolidated basisd					8,323								11,606								5,166
Total FCX - Net equity intereste					7,681								9,044								4,240
Grasberg minerals district
Grasberg minerals district
Total FCX – 100% basis
Total FCX – Consolidated basisc
Total FCX – Consolidated basisc
Total FCX – Consolidated basisc
Total FCX – Net equity interestd
Total FCX – Net equity interestd
Total FCX – Net equity interestd


	Estimated Contained Mineral Resources at 100% Basis
	Copper (billion lbs.)			Gold (million ozs.)	Molybdenum (billion lbs.)
	Morenci	Cerro Verde	Grasberg minerals district	Grasberg minerals district	Morenci	Cerro Verde
Mineral resources as of December 31, 2020	23.7	17.5	43.6	54.0	1.06	0.61
Adjustmentsa	1.7	(0.4)	(0.8)	(2.2)	0.05	(0.01)
Mineral resources as of December 31, 2021	25.4	17.1	42.8	51.8	1.11	0.60


	Coppera (billion pounds)	Gold (million ounces)	Molybdenum (billion pounds)
Consolidated reserves at December 31, 2019	116.0	29.6	3.58

Net additions	0.4	0.2	0.21
Production	(3.2)	(0.9)	(0.08)
Consolidated reserves at December 31, 2020	113.2	28.9	3.71
Net revisions	(2.2)	(0.4)	(0.24)
Production	(3.8)	(1.4)	(0.08)
Consolidated reserves at December 31, 2021	107.2	27.1	3.39


	Copper (billion pounds)	Gold (million ounces)	Molybdenum (billion pounds)




Consolidated reserves at December 31, 2022a	111.0	26.9	3.53
Net revisionsb	(2.7)	(0.4)	(0.11)
Production	(4.2)	(2.0)	(0.08)
Consolidated reserves at December 31, 2023a	104.1	24.5	3.34


		2021						2020
		Income (Loss)a		Effective Tax Rate	Income Tax (Provision) Benefit			Income (Loss)a		Effective Tax Rate		Income Tax (Provision) Benefit
	2023
		Income (Loss)a
		Income (Loss)a
		Income (Loss)a
U.S.b
U.S.b
U.S.b	U.S.b	$	1,883	1%	$	(10)	c	$	(532)	11%		$	60	d
South America	South America	2,072		40%	(820)		e	466		51%		(239)		f
South America
South America
Indonesia
Indonesia
Indonesia	Indonesia	3,986		35%	(1,377)		g	1,342		45%		(608)		h

PT-FI historical contested tax disputesi		(219)		N/A	(147)			(44)		N/A		2
Gain on sale of Kisanfu		—		N/A	—			486		N/A		(135)
PT-FI historical contested tax disputes

PT-FI historical contested tax disputes

PT-FI historical contested tax disputes

Eliminations and other	Eliminations and other	(63)		N/A	55			79		N/A		(24)

Consolidated		$	7,659	30%	$	(2,299)		$	1,797	53%	j	$	(944)

Eliminations and other

Eliminations and other

Consolidated FCX

Consolidated FCX

Consolidated FCX


	2021		2020
Operating Data
Copper (millions of recoverable pounds)
Production	1,336		809
Sales	1,316		804
Average realized price per pound	$	4.34	$	3.08

Gold (thousands of recoverable ounces)
Production	1,370		848
Sales	1,349		842
Average realized price per ounce	$	1,796	$	1,832

100% Operating Data
Ore milled (metric tons per day):
Grasberg Block Cave	70,600		30,800
DMLZ	58,000		28,600
Deep Ore Zonea	8,700		20,900
Big Gossan	7,500		7,000

Other	6,800		400
Total	151,600		87,700

Average ore grade:
Copper (percent)	1.30		1.32
Gold (grams per metric ton)	1.04		1.10
Recovery rates (percent):
Copper	89.8		91.9
Gold	77.0		78.1
Production (recoverable):
Copper (millions of pounds)	1,336		809
Gold (thousands of ounces)	1,370		848




		2021		2020
Revenues	Revenues	$	169	$	(102)
Revenues
Revenues
Net income attributable to common stock
Net income attributable to common stock
Net income attributable to common stock	Net income attributable to common stock	$	65	$	(42)
Net income per share attributable to common stock	Net income per share attributable to common stock	$	0.04	$	(0.03)
Net income per share attributable to common stock
Net income per share attributable to common stock


		Exchange Rate per $1 at December 31,		Estimated Annual Payments				10% Change in Exchange Rate (in millions of U.S. dollars)a
		Exchange Rate per $1 at December 31,
		Exchange Rate per $1 at December 31,
		Exchange Rate per $1 at December 31,														Estimated Annual Payments		10% Change in Exchange Rate (in millions of U.S. dollars)a
		2021	2020		(in local currency)	(in millions of U.S. dollars)b			Increase		Decrease			2023	2022		(in local currency)		(in millions of U.S. dollars)b	Increase	Decrease
Indonesia	Indonesia												Indonesia
Rupiah	Rupiah	14,198	14,034		14.2 trillion	$	1,000		$	(91)	$	111
Australian dollar	Australian dollar	1.37	1.30		244 million	$	178		$	(16)	$	20
South America	South America
Peruvian sol	Peruvian sol	4.00	3.62		2.9 billion	$	735		$	(67)	$	82
Peruvian sol
Peruvian sol
Chilean peso	Chilean peso	845	711		193 billion	$	228		$	(21)	$	25
Atlantic Copper	Atlantic Copper
Euro	Euro	0.88	0.82		172 million	$	195		$	(18)	$	22
Euro
Euro


		2022			2023			2024			2025			2026			Thereafter			Fair Value				2024		2025		2026		2027		2028		Thereafter		Fair Value
Fixed-rate debt	Fixed-rate debt	$	4		$	997		$	735		$	4		$	4		$	6,971		$	9,819
Average interest rate	Average interest rate	—		%	3.9		%	4.5		%	—		%	—		%	5.0		%	4.9		%	Average interest rate	4.5	%	—	%	—	%	5.0	%	4.2	%	5.4	%	5.2	%

Variable-rate debt	Variable-rate debt	$	368		$	—		$	—		$	133		$	310		$	—		$	811
Variable-rate debt
Variable-rate debt
Average interest rate	Average interest rate	1.8		%	—		%	—		%	2.2		%	2.2		%	—		%	2.0		%	Average interest rate	4.5	%	—	%	—	%	—	%	—	%	—	%	4.5	%


Year Ended December 31, 2021
Year Ended December 31, 2023														Year Ended December 31, 2023
(In millions)	(In millions)		By-Product			Co-Product Method								(In millions)	By-Product		Co-Product Method
			Method			Copper		Molybdenuma		Otherb		Total
		Method														Method		Copper	Molybdenuma	Otherb	Total
Revenues, excluding adjustments	Revenues, excluding adjustments		$	6,174		$	6,174	$	481	$	120	$	6,775
Site production and delivery, before net noncash and other costs shown below	Site production and delivery, before net noncash and other costs shown below		3,051			2,820		278		75		3,173
By-product credits	By-product credits		(479)			—		—		—		—
Treatment charges	Treatment charges		135			130		—		5		135
Net cash costs	Net cash costs		2,707			2,950		278		80		3,308
DD&A	DD&A		368			340		21		7		368
Metals inventory adjustments			13			13		—		—		13

Noncash and other costs, net
Noncash and other costs, net
Noncash and other costs, net	Noncash and other costs, net		105		c	102		1		2		105
Total costs	Total costs		3,193			3,405		300		89		3,794
Other revenue adjustments, primarily for pricing on prior period open sales	Other revenue adjustments, primarily for pricing on prior period open sales		7			7		—		—		7
Gross profit	Gross profit		$	2,988		$	2,776	$	181	$	31	$	2,988

Copper sales (millions of recoverable pounds)	Copper sales (millions of recoverable pounds)		1,436			1,436
Molybdenum sales (millions of recoverable pounds)a	Molybdenum sales (millions of recoverable pounds)a							34
Molybdenum sales (millions of recoverable pounds)a
Molybdenum sales (millions of recoverable pounds)a

Gross profit per pound of copper/molybdenum:

Gross profit per pound of copper/molybdenum:

Gross profit per pound of copper/molybdenum:	Gross profit per pound of copper/molybdenum:

Revenues, excluding adjustments	Revenues, excluding adjustments		$	4.30		$	4.30	$	14.14

Revenues, excluding adjustments

Revenues, excluding adjustments
Site production and delivery, before net noncash and other costs shown below
Site production and delivery, before net noncash and other costs shown below
Site production and delivery, before net noncash and other costs shown below	Site production and delivery, before net noncash and other costs shown below		2.13			1.96		8.17
By-product credits	By-product credits		(0.33)			—		—
By-product credits
By-product credits
Treatment charges
Treatment charges
Treatment charges	Treatment charges		0.09			0.09		—
Unit net cash costs	Unit net cash costs		1.89			2.05		8.17
Unit net cash costs
Unit net cash costs
DD&A	DD&A		0.25			0.24		0.62
Metals inventory adjustments			0.01			0.01		—
DD&A
DD&A

Noncash and other costs, net

Noncash and other costs, net

Noncash and other costs, net	Noncash and other costs, net		0.07		c	0.07		0.03
Total unit costs	Total unit costs		2.22			2.37		8.82
Total unit costs
Total unit costs
Other revenue adjustments, primarily for pricing on prior period open sales
Other revenue adjustments, primarily for pricing on prior period open sales
Other revenue adjustments, primarily for pricing on prior period open sales	Other revenue adjustments, primarily for pricing on prior period open sales		—			—		—
Gross profit per pound	Gross profit per pound		$	2.08		$	1.93	$	5.32
Gross profit per pound
Gross profit per pound

Reconciliation to Amounts Reported

Reconciliation to Amounts Reported

Reconciliation to Amounts Reported	Reconciliation to Amounts Reported
										Metals
						Production				Inventory
			Revenues			and Delivery		DD&A		Adjustments



			Revenues
			Revenues
			Revenues
Totals presented above
Totals presented above
Totals presented above	Totals presented above		$	6,775		$	3,173	$	368	$	13
Treatment charges	Treatment charges		(24)			111		—		—
Treatment charges
Treatment charges
Noncash and other costs, net
Noncash and other costs, net
Noncash and other costs, net	Noncash and other costs, net		—			105		—		—
Other revenue adjustments, primarily for pricing on prior period open sales	Other revenue adjustments, primarily for pricing on prior period open sales		7			—		—		—
Other revenue adjustments, primarily for pricing on prior period open sales
Other revenue adjustments, primarily for pricing on prior period open sales
Eliminations and other
Eliminations and other
Eliminations and other	Eliminations and other		67			72		1		—
North America copper mines	North America copper mines		6,825			3,461		369		13
North America copper mines
North America copper mines
Other miningd
Other miningd
Other miningd	Other miningd		22,229			14,395		1,562		1

Corporate, other & eliminations	Corporate, other & eliminations		(6,209)			(5,840)		67		2

Corporate, other & eliminations

Corporate, other & eliminations
As reported in our consolidated financial statements	As reported in our consolidated financial statements		$	22,845		$	12,016	$	1,998	$	16
As reported in our consolidated financial statements
As reported in our consolidated financial statements


Year Ended December 31, 2020
Year Ended December 31, 2022														Year Ended December 31, 2022
(In millions)	(In millions)		By-Product			Co-Product Method								(In millions)	By-Product		Co-Product Method
			Method			Copper		Molybdenuma		Otherb		Total
		Method														Method		Copper	Molybdenuma	Otherb	Total
Revenues, excluding adjustments	Revenues, excluding adjustments		$	4,005	c	$	4,005	$	281	$	83	$	4,369
Site production and delivery, before net noncash and other costs shown below	Site production and delivery, before net noncash and other costs shown below		2,700			2,529		223		44		2,796
By-product credits	By-product credits		(268)			—		—		—		—
Treatment charges	Treatment charges		139			136		—		3		139
Net cash costs	Net cash costs		2,571			2,665		223		47		2,935
DD&A	DD&A		355			330		18		7		355
Metals inventory adjustments			52			49		—		3		52

Noncash and other costs, net
Noncash and other costs, net
Noncash and other costs, net	Noncash and other costs, net		138		d	133		3		2		138
Total costs	Total costs		3,116			3,177		244		59		3,480
Other revenue adjustments, primarily for pricing on prior period open sales	Other revenue adjustments, primarily for pricing on prior period open sales		(22)			(22)		—		—		(22)
Gross profit	Gross profit		$	867		$	806	$	37	$	24	$	867

Copper sales (millions of recoverable pounds)	Copper sales (millions of recoverable pounds)		1,420			1,420
Copper sales (millions of recoverable pounds)
Copper sales (millions of recoverable pounds)
Molybdenum sales (millions of recoverable pounds)a
Molybdenum sales (millions of recoverable pounds)a
Molybdenum sales (millions of recoverable pounds)a	Molybdenum sales (millions of recoverable pounds)a							33

Gross profit per pound of copper/molybdenum:	Gross profit per pound of copper/molybdenum:

Gross profit per pound of copper/molybdenum:

Gross profit per pound of copper/molybdenum:

Revenues, excluding adjustments

Revenues, excluding adjustments

Revenues, excluding adjustments	Revenues, excluding adjustments		$	2.82	c	$	2.82	$	8.62
Site production and delivery, before net noncash and other costs shown below	Site production and delivery, before net noncash and other costs shown below		1.90			1.78		6.84
Site production and delivery, before net noncash and other costs shown below
Site production and delivery, before net noncash and other costs shown below
By-product credits
By-product credits
By-product credits	By-product credits		(0.19)			—		—
Treatment charges	Treatment charges		0.10			0.10		—
Treatment charges
Treatment charges
Unit net cash costs
Unit net cash costs
Unit net cash costs	Unit net cash costs		1.81			1.88		6.84
DD&A	DD&A		0.25			0.23		0.56
Metals inventory adjustments			0.03			0.03		—
DD&A
DD&A

Noncash and other costs, net

Noncash and other costs, net

Noncash and other costs, net	Noncash and other costs, net		0.10		d	0.10		0.09
Total unit costs	Total unit costs		2.19			2.24		7.49
Total unit costs
Total unit costs
Other revenue adjustments, primarily for pricing on prior period open sales
Other revenue adjustments, primarily for pricing on prior period open sales
Other revenue adjustments, primarily for pricing on prior period open sales	Other revenue adjustments, primarily for pricing on prior period open sales		(0.02)			(0.02)		—
Gross profit per pound	Gross profit per pound		$	0.61		$	0.56	$	1.13
Gross profit per pound
Gross profit per pound

Reconciliation to Amounts Reported

Reconciliation to Amounts Reported

Reconciliation to Amounts Reported	Reconciliation to Amounts Reported
										Metals
						Production				Inventory
			Revenues			and Delivery		DD&A		Adjustments

			Revenues
			Revenues
			Revenues
Totals presented above
Totals presented above
Totals presented above	Totals presented above		$	4,369		$	2,796	$	355	$	52
Treatment charges	Treatment charges		(15)			124		—		—
Treatment charges
Treatment charges
Noncash and other costs, net
Noncash and other costs, net
Noncash and other costs, net	Noncash and other costs, net		—			138		—		—
Other revenue adjustments, primarily for pricing on prior period open sales	Other revenue adjustments, primarily for pricing on prior period open sales		(22)			—		—		—
Other revenue adjustments, primarily for pricing on prior period open sales
Other revenue adjustments, primarily for pricing on prior period open sales
Eliminations and other
Eliminations and other
Eliminations and other	Eliminations and other		32			42		—		—
North America copper mines	North America copper mines		4,364			3,100		355		52
Other mininge			13,642			10,595		1,103		16
North America copper mines
North America copper mines
Other miningd
Other miningd
Other miningd

Corporate, other & eliminations

Corporate, other & eliminations

Corporate, other & eliminations	Corporate, other & eliminations		(3,808)			(3,664)		70		28
As reported in our consolidated financial statements	As reported in our consolidated financial statements		$	14,198		$	10,031	$	1,528	$	96
As reported in our consolidated financial statements
As reported in our consolidated financial statements


/s/ Richard C. Adkerson						/s/ ~~Kathleen L. Quirk~~Maree E. Robertson
Richard C. Adkerson						~~Kathleen L. Quirk~~Maree E. Robertson
Chairman of the Board and						Senior Vice President and ~~Chief Financial Officer~~
Chief Executive Officer						Chief Financial Officer


			Auditing management’s estimate of the amount of tax benefit that qualifies for recognition involved auditor judgment because management’s estimate is complex, requires a high degree of judgment and is based on interpretations of tax laws and legal rulings.


How We Addressed the Matter in Our Audit			We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s accounting process for uncertain tax positions. This included testing controls over management’s review of the technical merits of tax positions and disputed tax assessments, including the process to measure the financial statement impact of these tax matters.

			Our audit procedures included, among others, evaluating the Company’s accounting for these tax positions by using our knowledge of and experience with the application of respective tax laws by the relevant tax authorities, or our understanding of the contractual arrangements with the applicable government, if the position is governed by a contract. We analyzed the Company’s assumptions and data used to determine the tax assessments and tested the accuracy of the calculations. We involved our tax professionals located in the respective jurisdictions to assess the technical merits of the Company’s tax positions and to evaluate the application of relevant tax laws in the Company’s recognition determination. We obtained and assessed the Company’s correspondence with the relevant tax authorities and, ~~evaluated~~as applicable, third-party tax or legal opinions ~~obtained by the Company.~~or other external correspondence and analyses. We also evaluated the adequacy of the Company’s disclosures included in ~~Note~~Notes 11 and 12 in relation to these tax matters.

			Environmental ~~obligations~~Obligations
Description of the Matter			As discussed in Note 12 to the consolidated financial statements, the Company is subject to national, state and local environmental laws and regulations governing the protection of the environment, including remediation, restoration and reclamation of environmental contamination. Liabilities for environmental contingencies are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. AtAs of December 31, ~~2021,~~2023, the Company’s consolidated environmental obligations totaled ~~$1.7~~$1.9 billion.

			Auditing management’s accounting for environmental obligations was challenging asbecause significant judgment is required by the Company ~~to evaluate whether an environmental loss has been incurred and~~ to estimate the future costs to remediate the environmental matters. The significant judgment was primarily due to the inherent estimation uncertainty relating to the amount of future costs. Such uncertainties involve assumptions regarding the nature and extent of contamination at each site, the nature and extent of required cleanup efforts under existing environmental regulations, the duration and effectiveness of the chosen remedial strategy, and allocation of costs among other potentially responsible parties. ~~Actual costs incurred in future periods could differ from amounts estimated.~~