

	At June 30, 2011						At December 31, 2010
	Carrying Amount			Fair Value			Carrying Amount			Fair Value
Cash and cash equivalents^a	$	4,378		$	4,378		$	3,738		$	3,738
McMoRan Exploration Co. investment^b	489			686			500			623
Net embedded derivatives included in accounts receivable or payable^a	42			42			242			242
Trust assets (current and long-term)^{a, c}	150			150			148			148
Available-for-sale securities (current and long-term)^{a, c}	27			27			34			34
Derivative assets^{a, d}	10			10			18			18
Derivatives included in accounts payable and accrued liabilities^a	(11		)	(11		)	(10		)	(10		)
Long-term debt (including amounts due within one year)^e	(3,542		)	(3,842		)	(4,755		)	(5,146		)

At March 31, 2011 At December 31, 2010
Carrying Fair Carrying Fair
Amount Value Amount Value
Cash and cash equivalentsa
$ 4,090 $ 4,090 $ 3,738 $ 3,738
Restricted cash for early extinguishment of debta
1,168 1,168 - -
McMoRan Exploration Co. investmentb
496 658 500 623
Net embedded derivatives included in accounts
receivable or payablea
6 6 242 242
Trust assets (current and long-term)a, c
148 148 148 148
Available-for-sale securities (current and
long-term)a, c
37 37 34 34
Derivative assetsa, d
7 7 18 18
Derivatives included in accounts payable and
accrued liabilitiesa
(3 ) (3 ) (10 ) (10 )
Long-term debt (including amounts due
within one year)e
(4,752 ) (5,114 ) (4,755 ) (5,146 )


a.	Recorded at fair value.

Recorded at cost and included in other assets. ~~Fair~~At December 31, 2010, fair value iswas based on a bid evaluation, which iswas an estimated price at which a dealer would pay for a security. At June 30, 2011, these securities were not actively trading; as such, fair value was based on a convertible pricing model using McMoRan Exploration Co.'s publicly traded common stock as the principle variable.


c.	Current portion included in other current assets and long-term portion included in other assets.


d.	Included in other current assets.


e.	Recorded at cost except for long-term debt acquired in the Phelps Dodge acquisition, which was recorded at fair value at the acquisition date. Fair value of substantially all of FCX’s long-term debt is estimated based on quoted market prices.

Table of Contents


9.	NEW ACCOUNTING STANDARD

~~Fair Value Measurements and Disclosures (Topic 820), Improving Disclosures about Fair Value Measurements.~~In ~~January 2010,~~May 2011, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) in connection with accounting guidance ~~intended to improve disclosures related to~~for fair value ~~measurements.~~measurement and disclosure. This ASU clarifies the FASB's intent on current guidance, ~~requires significant transfers in~~modifies and ~~out of~~changes certain guidance and principles, and expands disclosures concerning Level ~~1 and Level 2~~3 fair value measurements ~~to be disclosed separately along with the reasons for the transfers. Additionally,~~ in ~~the reconciliation for~~ the fair value ~~measurements using~~hierarchy (including quantitative information about significant unobservable inputs (Level 3), separate information about purchases, sales, issuances and settlements must be presented (cannot net as one number). This guidance also provides clarification for existing disclosures on (i) levelwithin Level 3 of ~~disaggregation and (ii) inputs and valuation techniques.~~the fair value hierarchy). In addition, this ~~guidance includes conforming amendments for employers’~~ASU requires disclosure of ~~postretirement benefit plan assets.~~the fair value hierarchy for assets and liabilities not measured at fair value in the statement of financial position, but whose fair value is required to be disclosed. This ~~guidance~~ASU is effective for interim and annual reporting periods beginning after December 15, ~~2009, except~~2011, and early application is not permitted.

In June 2011, FASB issued an ASU in connection with accounting guidance on the presentation of comprehensive income. The objective of this ASU is to improve the comparability, consistency, and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income. This ASU requires an entity to present the components of net income and other comprehensive income and total comprehensive income (includes net income) either in a single continuous statement of comprehensive income or in two separate but consecutive statements. This ASU eliminates the option to present the components of other comprehensive income as part of the statement of equity, but does not change the items that must be reported in other comprehensive income. This ASU is effective for ~~the disclosures about purchases, sales, issuances~~interim and ~~settlements in the rollforward of activity in Level 3 fair value measurements. Those disclosures are required for fiscal years~~annual reporting periods beginning after December 15, ~~2010,~~2011, and ~~for interim periods within those fiscal years.~~early adoption is permitted. FCX is in the process of determining which presentation it will choose (single statement or two separate statements) and when it will adopt this ASU.

~~Table of Contents~~


10.	SUBSEQUENT EVENTS

In October 2010, the government of the DRC announced the conclusion of the review of Tenke Fungurume Mining S.A.R.L.’s (TFM) contracts, and confirmed that TFM’s existing mining contracts are in good standing and acknowledged the rights and benefits granted under those contracts. In connection with the review, TFM made several commitments that have been reflected in amendments to its mining contracts, which were signed by the parties in December 2010. In March 2011, the amendments were approved by a ministerial council, and a Presidential Decree signed by the President and Prime Minister of the DRC was issued in April 2011. After giving effect to the modifications that will be made to TFM’s bylaws to reflect the agreement of the parties, FCX’s effective ownership percentage in the project will be 56.0 percent prospectively, compared to its current ownership interest of 57.75 percent.

On April 20, 2011, FCX’s Board of Directors declared a supplemental common stock dividend of $0.50 per share to be paid on June 1, 2011, to common shareholders of record at the close of business on May 15, 2011.

FCX evaluated events after ~~March 31,~~June 30, 2011, and through the date the consolidated financial statements were issued, and determined any events or transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these consolidated financial statements.


11.	BUSINESS SEGMENTS

FCX has organized its operations into five primary divisions – North America copper mines, South America mining, Indonesia mining, Africa mining and Molybdenum operations. Notwithstanding this structure, FCX internally reports information on a mine-by-mine basis. Therefore, FCX concluded that its operating segments include individual mines. Operating segments that meet certain thresholds are reportable segments.

Intersegment Sales. Intersegment sales between FCX’s operations are based on similar 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.

Allocations. FCX allocates certain operating costs, expenses and capital expenditures to the operating divisions and individual segments. However, not all costs and expenses applicable to a mine or operation are allocated. All U.S. federal and state income taxes are recorded and managed at the corporate level, whereas foreign income taxes are recorded and managed at the applicable country. In addition, most exploration and research activities are managed at the corporate level, and those costs along with some selling, general and administrative costs are not allocated to the operating divisions or segments. Accordingly, the following segment information 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.

Table of Contents

Business Segments



(In millions)	North America Copper Mines						South America						Indonesia			Africa
																						Atlantic			Corporate,
																						Copper			Other &
			Other				Cerro		Other									Molyb-		Rod &		Smelting			Elimi-			FCX
	Morenci		Mines		Total		Verde		Mines		Total		Grasberg			Tenke		denum		Refining		& Refining			nations			Total
Three Months Ended June 30, 2011
Revenues:
Unaffiliated customers	$	157	$	94	$	251	$	598	$	638	$	1,236	$	1,465	^a	$	375	$	413	$	1,421	$	651		$	2		$	5,814
Intersegment	441		855		1,296		138		74		212		99			3		—		6		2			(1,618		)	—
Production and delivery	260		399		659		198		243		441		518			156		286		1,421		685			(1,609		)	2,557
Depreciation, depletion and amortization	30		41		71		36		30		66		60			38		16		2		9			5			267
Selling, general and administrative expenses	1		—		1		1		—		1		28			3		4		—		5			65			107
Exploration and research expenses	1		—		1		—		—		—		—			—		1		—		—			64			66
Environmental obligations and shutdown costs	3		—		3		—		—		—		—			—		—		1		—			56			60
Operating income (loss)	303		509		812		501		439		940		958			181		106		3		(46		)	(197		)	2,757

Interest expense, net	1		2		3		1		—		1		1			1		—		—		4			64			74
Provision for income taxes	—		—		—		159		162		321		392			40		—		—		—			153			906
Total assets at June 30, 2011	1,970		4,797		6,767		4,732		3,558		8,290		5,876			3,744		2,193		359		1,316			2,034			30,579
Capital expenditures	19		66		85		32		85		117		176			29		91		2		16			11			527

Three Months Ended June 30, 2010
Revenues:
Unaffiliated customers	$	1	$	1	$	2	$	274	$	453	$	727	$	871	^a	$	207	$	325	$	1,123	$	605		$	4		$	3,864
Intersegment	386		656		1,042		108		14		122		56			—		—		6		11			(1,237		)	—
Production and delivery	177		360		537		148		241		389		427			96		190		1,121		605			(1,313		)	2,052
Depreciation, depletion and amortization	35		36		71		33		26		59		57			30		12		2		9			9			249
Selling, general and administrative expenses	—		—		—		—		—		—		23			—		3		—		4			71			101
Exploration and research expenses	—		—		—		—		—		—		—			—		—		—		—			38			38
Environmental obligations and shutdown costs	—		—		—		—		—		—		—			—		—		—		—			—			—
Operating income (loss)	175		261		436		201		200		401		420			81		120		6		(2		)	(38		)	1,424

Interest expense, net	—		3		3		—		—		—		—			—		—		—		3			116			122
Provision for income taxes	—		—		—		68		66		134		177			18		—		—		—			104			433
Total assets at June 30, 2010	1,882		4,218		6,100		4,318		2,744		7,062		4,703			3,458		1,781		306		934			1,635			25,979
Capital expenditures	12		50		62		19		87		106		97			11		5		1		3			11			296


a.	Includes PT Freeport Indonesia’s sales to PT Smelting totaling $653 million in second-quarter2011 and $373 million in second-quarter2010.

(In Millions) North America Copper Mines South America Indonesia Africa
Atlantic Corporate,
Copper Other &
Other Cerro Other Molyb- Rod & Smelting Elimi- FCX
Morenci Mines Total Verde Mines Total Grasberg Tenke denum Refining & Refining nations Total
Three Months Ended March 31, 2011
Revenues:
Unaffiliated customers $ 136 $ 16 $ 152 $ 668 $ 595 $ 1,263 $ 1,372 a $ 309 $ 374 $ 1,481 $ 756 $ 2 $ 5,709
Intersegment 386 810 1,196 60 79 139 358 - - 6 6 (1,705 ) -
Production and delivery 210 365 575 175 236 411 526 124 240 1,481 763 (1,743 ) 2,377
Depreciation, depletion and amortization 28 30 58 34 23 57 57 28 14 2 10 6 232
Selling, general and administrative expenses - 1 1 1 1 2 43 2 4 - 8 54 114
Exploration and research expenses - - - - - - - - 1 - - 49 50
Operating income (loss) 284 430 714 518 414 932 1,104 155 115 4 (19 ) (69 ) 2,936

Interest expense, net 1 1 2 - - - 1 2 - - 4 89 98
Provision for income taxes - - - 163 143 306 507 40 - - - 131 984
Total assets at March 31, 2011 1,991 4,623 6,614 4,573 3,427 8,000 5,440 3,630 2,068 384 1,437 3,435 31,008
Capital expenditures 29 90 119 24 116 140 125 11 71 3 8 28 505

Three Months Ended March 31, 2010
Revenues:
Unaffiliated customers $ 9 $ 15 $ 24 $ 458 $ 497 $ 955 $ 1,161 a $ 249 $ 275 $ 1,066 $ 633 $ - $ 4,363
Intersegment 356 674 1,030 83 31 114 298 - - 7 - (1,449 ) -
Production and delivery 146 318 464 171 205 376 475 110 185 1,067 628 (1,387 ) 1,918
Depreciation, depletion and amortization 42 40 82 34 27 61 63 30 13 2 10 10 271
Selling, general and administrative expenses - - - - - - 29 - 3 - 6 57 95
Exploration and research expenses - - - - - - - - 1 - - 30 31
Operating income (loss) 177 331 508 336 296 632 892 109 73 4 (11 ) (159 ) 2,048

Interest expense, net 2 3 5 - - - - 2 - - 2 136 145
Provision for income taxes - - - 105 92 197 393 25 - - - 63 678
Total assets at March 31, 2010 1,897 4,194 6,091 4,294 2,803 7,097 4,896 3,431 1,745 347 1,207 2,299 27,113
Capital expenditures 3 16 19 12 36 48 98 39 7 1 9 10 231

a. Includes PT Freeport Indonesia’s sales to PT Smelting totaling $680 million in the first three months of 2011 and $486 million in the first three months of 2010.

Table of Contents

Business Segments (Continued)



(In millions)	North America Copper Mines						South America						Indonesia			Africa
																						Atlantic			Corporate,
																						Copper			Other &
			Other				Cerro		Other									Molyb-		Rod &		Smelting			Elimi-			FCX
	Morenci		Mines		Total		Verde		Mines		Total		Grasberg			Tenke		denum		Refining		& Refining			nations			Total
Six Months Ended June 30, 2011
Revenues:
Unaffiliated customers	$	293	$	110	$	403	$	1,266	$	1,233	$	2,499	$	2,837	^a	$	684	$	787	$	2,902	$	1,407		$	4		$	11,523
Intersegment	827		1,665		2,492		198		153		351		457			3		—		12		8			(3,323		)	—
Production and delivery	470		764		1,234		373		479		852		1,044			280		526		2,902		1,448			(3,352		)	4,934
Depreciation, depletion and amortization	58		71		129		70		53		123		117			66		30		4		19			11			499
Selling, general and administrative expenses	1		1		2		2		1		3		71			5		8		—		13			119			221
Exploration and research expenses	1		—		1		—		—		—		—			—		2		—		—			113			116
Environmental obligations and shutdown costs	3		—		3		—		—		—		—			—		—		1		—			56			60
Operating income (loss)	587		939		1,526		1,019		853		1,872		2,062			336		221		7		(65		)	(266		)	5,693

Interest expense, net	2		3		5		1		—		1		2			3		—		—		8			153			172
Provision for income taxes	—		—		—		322		305		627		899			80		—		—		—			284			1,890
Capital expenditures	48		156		204		56		201		257		301			40		162		5		24			39			1,032

Six Months Ended June 30, 2010
Revenues:
Unaffiliated customers	$	10	$	16	$	26	$	732	$	950	$	1,682	$	2,032	^a	$	456	$	600	$	2,189	$	1,238		$	4		$	8,227
Intersegment	742		1,330		2,072		191		45		236		354			—		—		13		11			(2,686		)	—
Production and delivery	323		678		1,001		319		446		765		902			206		375		2,188		1,233			(2,702		)	3,968
Depreciation, depletion and amortization	77		76		153		67		53		120		120			60		25		4		19			19			520
Selling, general and administrative expenses	—		—		—		—		—		—		52			—		6		—		10			128			196
Exploration and research expenses	—		—		—		—		—		—		—			—		1		—		—			68			69
Environmental obligations and shutdown costs	—		—		—		—		—		—		—			—		—		—		—			2			2
Operating income (loss)	352		592		944		537		496		1,033		1,312			190		193		10		(13		)	(197		)	3,472

Interest expense, net	2		6		8		—		—		—		—			2		—		—		5			252			267
Provision for income taxes	—		—		—		173		158		331		570			43		—		—		—			167			1,111
Capital expenditures	15		66		81		31		123		154		195			50		12		2		12			21			527


a.	Includes PT Freeport Indonesia's sales to PT Smelting totaling $1.3 billion in the first six months of2011 and $859 million in the first six months of2010.

R~~EPORT~~

Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

TO THE BOARD OF DIRECTORS AND STOCKHOLDERS OF

FREEPORT-McMoRan COPPER & GOLD INC.

We have reviewed the condensed consolidated balance sheet of Freeport-McMoRan Copper & Gold Inc. as of ~~March 31,~~June 30, 2011, and the related consolidated statements of income for the three- andsix-month periods ended June 30, 2011 and 2010, the consolidated statements of cash flows for the ~~three-month~~six-month periods ended ~~March 31,~~June 30, 2011 and 2010, and the consolidated statement of equity for the ~~three-month~~six-month period ended ~~March 31, 2011.~~June 30, 2011. These financial statements are the responsibility of the Company’s management.

We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the condensed consolidated financial statements referred to above for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of Freeport-McMoRan Copper & Gold Inc. as of December 31, 2010, and the related consolidated statements of operations, cash flows, and equity for the year then ended (not presented herein), and in our report dated February 25, 2011, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2010, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

ERNST & YOUNG LLP

Phoenix, Arizona

~~May 6,~~August 5, 2011

Table of Contents

It~~em 2.~~ ~~Management's Discussion and Analysis of Financial Condition and Results of Operations.~~


Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations.

OVERVIEW

In Management’s Discussion and Analysis of Financial Condition and Results of Operations, “we,” “us” and “our” refer to Freeport-McMoRan Copper & Gold Inc. (FCX) and its consolidated subsidiaries. You should read this discussion in conjunction with our financial statements, the related Management’s Discussion and Analysis of Financial Condition and Results of Operations and the discussion of our Business and Properties in our ~~Annual Report~~annual report on Form 10-K for the year ended December 31, 2010, filed with the United States (U.S.) Securities and Exchange Commission (SEC). The results of operations reported and summarized below are not necessarily indicative of future operating results. References to “Notes” are Notes included in our Notes to Consolidated Financial Statements. Throughout Management's Discussion and Analysis of Financial Condition and Results of Operations all references to earnings or losses per share are on a diluted basis, unless otherwise noted, and have been retroactively adjusted to reflect the February 1, 2011, two-for-one stock split.

We are one of the world’s largest copper, gold and molybdenum mining companies in terms of reserves and production. Our portfolio of assets includes the Grasberg minerals district in Indonesia, significant mining operations in North and South America, and the Tenke Fungurume (Tenke) minerals district in the Democratic Republic of Congo (DRC). The Grasberg minerals district contains the largest single recoverable copper reserve and the largest single gold reserve of any mine in the world based on the latest available reserve data provided by third-party industry consultants. We also operate Atlantic Copper, our wholly owned copper smelting and refining unit in Spain.

Our results for ~~first-quarter~~ the second quarter and first six months of2011, compared with ~~first-quarter~~ the 2010 periods, primarily reflected higher realized copper and gold prices ~~partly offset by lower copper~~and higher sales volumes. Refer to “Consolidated Results” for further discussion of our consolidated financial results for the ~~first quarters of~~quarter and six-month periods ended June 30, 2011 and ~~2010.~~2010.

At ~~March 31,~~June 30, 2011, we had ~~$4.1~~$4.4 billion in consolidated cash and cash equivalents and ~~$4.8~~$3.5 billion in total debt. ~~On April 1,~~During second-quarter 2011, we ~~redeemed~~repaid $1.2 billion in debt, including the ~~remaining~~April 2011 redemption of $1.1 billion of ~~the~~ outstanding 8.25% Senior Notes (refer to Note 6 for further discussion). ~~After taking into account the April 1, 2011, redemption, which was funded with restricted cash, total debt approximated $3.7 billion.~~ We have no significant debt maturities in the near term; however, we may consider additional opportunities to prepay debt in advance of scheduled maturities. Refer to “Capital Resources and Liquidity – Financing Activities” for further discussion.

In December 2010, our Board of Directors (the Board) authorized a two-for-one common stock split effected on February 1, 2011 (refer to Note 1 for further discussion). All references to our common stock, per share amounts and dividends on common stock herein have been retroactively adjusted to reflect the two-for-one stock split. Refer to “Capital Resources and Liquidity – Financing Activities” for further discussion of common stock dividends.

In December 2010, the Board declared a $0.50 per share supplemental common stock dividend that was paid on December 30, 2010. In April 2011, the Board declared an additional $0.50 per share supplemental common stock dividend to be paid on June 1, 2011, to shareholders of record on May 15, 2011.

In October 2010, the government of the DRC announced the conclusion of the review of Tenke Fungurume Mining S.A.R.L.’s (TFM) contracts, and confirmed that TFM’s existing mining contracts are in good standing and acknowledged the rights and benefits granted under those contracts. In connection with the review, TFM made several commitments that have been reflected in amendments to its mining contracts, which were signed by the parties in December 2010 (refer to Note 14 in our Annual Report on Form 10-K for the year ended December 31, 2010, for further discussion). In March 2011, the amendments were approved by a ministerial council, and a Presidential Decree signed by the President and Prime Minister of the DRC was issued in April 2011. After giving effect to the modifications that will be made to TFM’s bylaws to reflect the agreement of the parties, our effective ownership interest in the project will be 56.0 percent prospectively, compared to our current ownership interest of 57.75 percent.

Table of Contents

OUTLOOK

We view the long-term outlook for our business positively, supported by limitations on supplies of copper and by the requirements for copper in the world’s economy.

Our financial results can vary significantly as a result of fluctuations in the market prices of copper and, to a lesser extent, gold and molybdenum. World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control. 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 and operating cash flow. Discussion of the outlook for each of these measures follows.

Sales Volumes. Our projected sales volumes depend on the achievement of targeted mining rates, the successful operation of production facilities, the impact of weather conditions and other factors. Consolidated sales from mines for the year 2011 are expected to approximate 3.9 billion pounds of copper, 1.6 million ounces of gold and 7377 million pounds of molybdenum, including ~~965~~940 million pounds of copper, ~~365~~415 thousand ounces of gold and 1718 million pounds of molybdenum for ~~second-quarter 2011.~~third-quarter2011.

Unit Net Cash Costs. Quarterly unit net cash costs vary with fluctuations in sales volumes. Quarterly unit net cash costs for the remainder of 2011 are expected to be higher than first-quarter 2011 consolidated unit net cash costs of $0.79 per pound. Assuming average prices of ~~$1,400~~$1,500 per ounce of gold and $15 per pound of molybdenum for the ~~remainder~~second half of 2011, and achievement of current ~~2011~~ sales ~~volumes~~volume and cost estimates, we estimate our consolidated unit net cash costs (net of by-product credits) for our copper mining operations would average approximately ~~$1.04~~$1.01 per pound of copper for the year ~~2011.~~2011. Quarterly unit net cash costs vary with fluctuations in sales volumes. The impact of price changes on consolidated unit net cash costs would approximate ~~$0.02~~$0.01 per pound for each $50 per ounce change in the average price of gold for the ~~remainder~~second half of 2011, and ~~$0.02~~$0.01 per pound for each $2 per pound change in the average price of molybdenum for the ~~remainder~~second half of ~~2011.~~2011. Refer to “Consolidated Results – Production and Delivery Costs” for further discussion of consolidated production and delivery costs.

Operating Cash Flows. Our operating cash flows vary with prices realized from copper, gold and molybdenum sales, our sales volumes, production costs, income taxes and other working capital changes and other factors. Based on projected consolidated sales volumes and unit net cash costs for 2011, and assuming average prices of $4.25 per pound of copper, ~~$1,400~~$1,500 per ounce of gold and $15 per pound of molybdenum for the ~~remainder~~second half of 2011, we estimate consolidated operating cash flows will ~~approximate $8.3~~exceed $8 billion for the year 2011, net of an estimated ~~$60 million~~$0.3 billion for working capital requirements. ~~Our estimate of~~Projected operating cash flows for the year 2011 also reflect estimated taxes of ~~$3.9~~$3.7 billion (refer to “Consolidated Results – Provision for Income Taxes” for further discussion of our projected annual consolidated effective annual tax rate for ~~2011)~~2011). The impact of price changes for the ~~remainder~~second half of 2011 on operating cash flows would approximate ~~$125~~$80 million for each $0.05 per pound change in the average price of copper ~~$50~~during the second half of 2011, $35 million for each $50 per ounce change in the average price of gold during the second half of 2011and ~~$60~~$40 million for each $2 per pound change in the average price of ~~molybdenum.~~molybdenum during the second half of 2011.

Table of Contents

COPPER, GOLD AND MOLYBDENUM MARKETS

World prices for copper, gold and molybdenum can fluctuate significantly. During the period from January 2001 through ~~April~~July 2011, the London Metal Exchange (LME) spot copper price varied from a low of $0.60 per pound in 2001 to a record high of $4.60 per pound in February 2011, the London gold price fluctuated from a low of $256 per ounce in 2001 to a record high of ~~$1,536~~over $1,600 per ounce in ~~April~~July 2011, and the Metals Week Molybdenum Dealer Oxide weekly average price ranged from a low of $2.19 per pound in 2001 to a high of $39.25 per pound in 2005. Copper, gold and molybdenum prices are affected by numerous factors beyond our control as described further in our “Risk Factors” contained in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, ~~2010.~~2010.

* Excludes Shanghai stocks, producer, consumer and merchant stocks.

This graph presents LME spot copper prices and reported stocks of copper at the LME and the New York Mercantile Exchange (COMEX) from January 2001 through ~~April~~July 2011. From 2006 through most of 2008, limited supplies, combined with growing demand from China and other emerging economies, resulted in high copper prices and low levels of inventories. In late 2008, slowing consumption, turmoil in the U.S. financial markets and concerns about the global economy led to a sharp decline in copper prices, which reached a four-year low of $1.26 per pound in December 2008. Copper prices have since improved significantly, attributable to a combination of an improved global economic outlook, strong demand from emerging markets, recovering demand in the western world and limitations of available supply. During ~~first-quarter~~ second-quarter2011, LME spot copper prices ranged from ~~$4.07~~$3.87 per pound to a ~~record~~ high of ~~$4.60~~$4.46 per pound and averaged ~~$4.38~~$4.14 per pound. Combined LME and COMEX inventories have risen somewhat in 2011, compared to year-end 2010 levels, as a result of reduced Chinese imports.

We believe the underlying fundamentals of the copper business remain positive, supported by the significant role of copper in the global economy, limited supplies from existing mines and the absence of significant new development projects. Future copper prices are expected to be volatile and are likely to be influenced by demand from China, economic activity in the U.S. and other industrialized countries, the timing of the development of new supplies of copper and production levels of mines and copper smelters. The LME spot copper price closed at ~~$4.25~~$4.41 per pound on ~~April 28, 2011.~~July 29, 2011.

Table of Contents

This graph presents London gold prices from January 2001 through ~~April~~July 2011. ~~Gold prices reached a record high of $1,536 per ounce in April 2011,~~Market sentiment for gold remains positive, which we believe is supported by ~~investment demand and~~ weakness in the U.S. ~~dollar.~~dollar, fiscal issues affecting the U.S. and Europe and prospects for future inflation. During ~~first-quarter~~ second-quarter2011, gold prices ranged from approximately ~~$1,319~~$1,418 per ounce to ~~$1,447~~$1,553 per ounce and averaged ~~$1,386~~$1,506 per ounce. ~~London gold~~Gold prices closed at a record high of approximately ~~$1,536~~$1,629 per ounce on ~~April 28, 2011.~~

~~Table of Contents~~July 29, 2011

This graph presents the Metals Week Molybdenum Dealer Oxide weekly average prices from January 2001 through ~~April~~July 2011. In late 2008, molybdenum prices declined significantly as a result of the financial market turmoil and a decline in demand; however, molybdenum prices have ~~since~~ increased from the 2008 lows, which we believe is supported by improved economic conditions and ~~increased~~resulting demand ~~in the chemical and metallurgical sectors.~~increases. During ~~first-quarter~~ second-quarter2011, the weekly average price of molybdenum ranged from ~~$16.40~~$15.55 per pound to ~~$17.88~~$17.15 per pound and averaged ~~$17.24~~$16.70 per pound. The ~~weekly average~~ Metals Week Molybdenum Dealer Oxide weekly average price was ~~$17.03~~$14.65 per pound on ~~April 28, 2011.~~July 29, 2011.

Table of Contents

CONSOLIDATED RESULTS


							Three Months Ended						Six Months Ended
	Three Months Ended March 31,						June 30,						June 30,
	2011			2010			2011			2010			2011			2010
Financial Data (in millions, except per share amounts)
Revenuesa,b	$	5,709		$	4,363		$	5,814		$	3,864		$	11,523		$	8,227
Operating incomeb	$	2,936		$	2,048		$	2,757		$	1,424		$	5,693		$	3,472
Net income attributable to FCX common stockholders	$	1,499	c	$	897	d	$	1,368	^c	$	649	^c	$	2,867	^c	$	1,546	^c
Diluted net income per share attributable to FCX common stockholders	$	1.57	c	$	1.00	d,e	$	1.43	^c	$	0.70	^c,d	$	3.00	^c	$	1.70	^c,d
Diluted weighted-average common shares outstanding		955			947	e	956			947		^d	956			947		^d

Mining Operating Data
Copper (recoverable)
Production (millions of pounds)		950			929		967			930			1,917			1,859
Sales, excluding purchases (millions of pounds)		926			960		1,002			914			1,928			1,874
Average realized price per pound	$	4.31		$	3.42		$	4.22		$	3.06		$	4.24		$	3.13
Site production and delivery costs per poundf	$	1.61		$	1.35
Unit net cash costs per poundf	$	0.79		$	0.82
Site production and delivery costs per pound^e							$	1.63		$	1.41		$	1.62		$	1.38
Unit net cash costs per pound^e							$	0.93		$	0.97		$	0.87		$	0.89
Gold (recoverable)
Production (thousands of ounces)		466			449		351			316			817			765
Sales, excluding purchases (thousands of ounces)		480			478
Sales (thousands of ounces)							356			298			836			776
Average realized price per ounce	$	1,399		$	1,110		$	1,509		$	1,234		$	1,466		$	1,171
Molybdenum (recoverable)
Production (millions of pounds)		20			17		22			17			42			34
Sales, excluding purchases (millions of pounds)		20			17		21			16			41			33
Average realized price per pound	$	18.10		$	15.09		$	18.16		$	18.18		$	18.13		$	16.62


a.	Includes the impact of adjustments to provisionally priced concentrate and cathode sales recognized in ~~the~~ prior ~~years~~periods (refer to “Revenues” for further discussion).

b.	~~Following is~~
b.	Refer to Note 11 for a summary of revenues and operating income ~~(loss)~~ by ~~division (in millions):~~business segment.

Three Months Ended
March 31, 2011

Three Months Ended
March 31, 2010

Operating Operating
Income Income
Revenues (Loss) Revenues (Loss)
North America copper mines $ 1,348 $ 714 $ 1,054 $ 508
South America mining 1,402 932 1,069 632
Indonesia mining 1,730 1,104 1,459 892
Africa mining 309 155 249 109
Molybdenum 374 115 275 73
Rod & Refining 1,487 4 1,073 4
Atlantic Copper Smelting & Refining 762 (19 ) 633 (11 )
Corporate, other & eliminations (1,703 ) (69 ) (1,449 ) (159 )
Total FCX $ 5,709 $ 2,936 $ 4,363 $ 2,048

~~Refer to Note 11 for further discussion of our operating divisions and business segments.~~

Includes losses on early extinguishment of debt totaling $6$54 million ($~~0.01~~0.06 per share) ~~associated with~~for second-quarter2011, $42 million ($0.05 per share) for second-quarter2010, $60 million ($0.06 per share) for the ~~revolving credit facilities that were replaced in March~~ first six months of2011 ~~(refer~~ and $65 million ($0.07 per share) for the first six months of2010. Refer to Note 6 for further ~~discussion).~~discussion.

d.	Includes losses on early extinguishment of debt totaling $23 million ($0.02 per share) associated with open-market purchases of our 8.25% and 8.375% Senior Notes (refer to Note 6 for further discussion).

e. d.

Amounts have been adjusted to reflect the February 1, 2011, two-for-one stock split.

Reflects per pound weighted-average production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines, excluding net noncash and other costs. For reconciliations of the per pound costs by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements, refer to “Operations – Unit Net Cash Costs” and to “Product Revenues and Production Costs.”

~~Table of Contents~~

Revenues

Consolidated revenues ~~which~~ totaled ~~$5.7~~$5.8 billion in ~~first-quarter~~ second-quarter2011 and ~~$4.4~~$11.5 billion for the first six months of2011, compared with $3.9 billion in ~~first-quarter~~ second-quarter2010 and $8.2 billion for the first six months of2010. Consolidated revenues include the sale of copper concentrates, copper cathodes, copper rod, gold, molybdenum and other metals by our North and South America mines, the sale of copper concentrates (which also contain significant quantities of gold and silver) by our Indonesia mining operations, the sale of copper cathodes and cobalt hydroxide by our Africa mining operations, the sale of molybdenum in various forms by our Molybdenum operations, and the sale of copper cathodes, copper anodes, and gold in anodes and slimes by Atlantic Copper.

Table of Contents

Following is a summary of changes in our consolidated revenues between periods (in millions):

First-quarter 2010 consolidated revenues	$	4,363

				Three Months Ended June 30,			Six Months Ended June 30,

Consolidated revenues - 2010 periods				$	3,864		$	8,227
Higher price realizations from mining operations:
Copper		824		1,163			2,140
Gold		139		98			247
Molybdenum		59		—			62
(Lower) higher sales volumes from mining operations:
Higher sales volumes from mining operations:
Copper		(117	)	270			170
Gold		2		72			70
Molybdenum		44		95			136
Cobalt		28		66			150
Lower net adjustments primarily for prior year provisionally priced sales		(22	)
Lower (higher) net adjustments primarily for prior period/year provisionally priced sales				121			(5		)
Higher purchased copper		273		98			371
Higher Atlantic Copper revenues		129		37			166
Other, including intercompany eliminations		(13	)	(70		)	(211		)
First-quarter 2011 consolidated revenues	$	5,709
Consolidated revenues - 2011 periods				$	5,814		$	11,523

Price Realizations

Our consolidated revenues can vary significantly as a result of fluctuations in the market prices of copper and, to a lesser extent, gold and molybdenum. Consolidated revenues in ~~first-quarter~~ the 2011 periods reflected higher copper and gold price realizations, compared with ~~first-quarter 2010.~~the 2010 periods. Realized copper prices averaged ~~$4.31~~$4.22 per pound in ~~first-quarter~~ second-quarter2011 ~~compared~~ (compared with ~~$3.42~~$3.06 per pound in ~~first-quarter 2010; realized~~second-quarter2010) and $4.24 per pound for the first six months of2011 (compared with $3.13 per pound for the first six months of2010). Realized gold prices averaged ~~$1,399~~$1,509 per ounce in ~~first-quarter~~ second-quarter2011 ~~compared~~ (compared with ~~$1,110~~$1,234 per ounce in ~~first-quarter 2010;~~second-quarter2010) and ~~realized~~$1,466 per ounce for the first six months of2011 (compared with $1,171 per ounce for the first six months of2010). Realized molybdenum prices averaged ~~$18.10~~$18.16 per pound in ~~first-quarter~~ second-quarter2011 ~~compared~~ (compared with ~~$15.09~~$18.18 per pound in ~~first-quarter 2010.~~second-quarter2010) and $18.13 per pound for the first six months of2011 (compared with $16.62 per pound for the first six months of2010).

Sales Volumes

Consolidated sales volumes ~~totaled 926 million~~in second-quarter2011 of 1.0 billion pounds of copper, ~~480~~356 thousand ounces of gold and 2021 million pounds of molybdenum, ~~in first-quarter 2011, compared with 960~~were higher than second-quarter2010 sales volumes of 914 million pounds of copper, ~~478~~298 thousand ounces of gold and 1716 million pounds of molybdenum. For the first six months of2011, consolidated sales volumes of 1.9 billion pounds of copper, 836 thousand ounces of gold and 41 million pounds of molybdenum, ~~in first-quarter 2010. Lower~~were also higher than sales volumes for the first six months of2010 of 1.9 billion pounds of copper, 776 thousand ounces of gold and 33 million pounds of molybdenum. Higher copper sales volumes in ~~first-quarter~~the 2011 periods primarily ~~related to~~reflects increased production in North America and timing of shipments in ~~North America~~South America. Higher gold sales volumes in the 2011 periods reflected timing of mine sequencing at Grasberg, and ~~Indonesia. Higher consolidated~~higher molybdenum sales volumes ~~in first-quarter 2011~~ reflected improved ~~demand in the chemical and metallurgical sectors.~~demand. Refer to “Operations” for further discussion of sales volumes at our operating divisions.

Provisionally Priced Sales

During ~~first-quarter~~ the first half of 2011 57, 56 percent of our mined copper was sold in concentrate, 22 percent as rod (from our North America operations) and 2122 percent as cathodes. Substantially all of our copper concentrate and cathode sales contracts provide final copper pricing in a specified future ~~period~~month (generally one to four months from the shipment date) based primarily on quoted LME monthly average spot copper 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 ~~provisional~~provisionally priced concentrate and cathode sales that is adjusted to fair value through earnings each period, using the period-end forward prices, until the date of final pricing. 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 revenues benefit from ~~higher prices received for contracts priced at current market rates and also from an increase related~~adjustments to the final pricing of provisionally priced sales pursuant to contracts entered into in prior periods; in times of falling copper prices, the opposite occurs.

~~Table of Contents~~

At ~~December~~March 31, ~~2010,~~2011, we had provisionally priced copper sales totaling ~~417~~464 million pounds of copper at our copper mining operations (net of intercompany sales and noncontrolling interests) recorded at an average of ~~$4.36~~$4.27 per pound. ~~Adjustments~~Lower prices during second-quarter2011 resulted in adjustments to these provisionally priced copper sales and decreased consolidated

Table of Contents

revenues by $47 million ($23 million to net income attributable to common stockholders or $0.02 per share) in second-quarter2011, compared with a decrease of $169 million ($72 million to net income attributable to common stockholders or $0.08 per share) in second-quarter2010. Additionally, adjustments to the December 31, 2010, provisionally priced copper sales resulted in a ~~net~~ decrease ~~to consolidated revenues~~ of ~~$10~~$12 million ~~($4~~ ($5 million to net income attributable to ~~FCX~~ common stockholders or ~~less than $0.01~~$0.01 per share) ~~in first-quarter 2011. Adjustments to~~for the ~~December 31, 2009, provisionally priced copper sales resulted in~~first six months of2011, compared with a ~~net~~ decrease of $4$23 million ~~($2~~ ($9 million to net income attributable to ~~FCX~~ common stockholders or ~~less than $0.01~~$0.01 per share) ~~in first-quarter 2010.~~for the first six months of2010.

At ~~March 31,~~June 30, 2011, we had provisionally priced copper sales at our copper mining operations totaling ~~464~~435 million pounds of copper (net of intercompany sales and noncontrolling interests) recorded at an average of $4.27 per pound, subject to final pricing over the next several months. We estimate that each $0.05 change in the price realized from the ~~March 31,~~June 30, 2011, provisional price recorded would have a net impact on our 2011 consolidated revenues of approximately ~~$31~~$28 million ($1514 million to net income attributable to ~~FCX~~ common stockholders). The LME spot copper price closed at ~~$4.25~~$4.41 per pound on ~~April 28, 2011.~~July 29, 2011.

Purchased Copper

From time to time we purchase copper cathode to be processed by our Rod & Refining operations when production from our North America copper mines does not meet customer demand. ~~Accordingly, the~~The increase in purchased copper in ~~first-quarter~~the 2011 ~~compared with first-quarter 2010,~~periods resulted from higher customer demand and also reflected higher copper prices.

Atlantic Copper Revenues

The increase in Atlantic Copper’s revenues in ~~first-quarter~~the 2011 ~~compared with first-quarter 2010,~~periods primarily reflected higher copper ~~revenues associated with higher~~ prices. Refer to “Operations” for further discussion of Atlantic Copper Smelting & Refining.

Production and Delivery Costs

Consolidated production and delivery costs totaled ~~$2.4~~$2.6 billion in ~~first-quarter~~ second-quarter2011 and $4.9 billion for the first six months of2011, compared with ~~$1.9~~$2.1 billion in ~~first-quarter 2010.~~second-quarter2010 and $4.0 billion for the first six months of2010. Higher production and delivery costs for ~~first-quarter~~the 2011 periods primarily reflected increased mining and milling activities, higher input costs at our mining operations and higher costs of concentrate purchases at Atlantic Copper associated with higher copper prices.

Consolidated unit site production and delivery costs for our copper mining operations averaged ~~$1.61~~$1.63 per pound of copper in ~~first-quarter~~ second-quarter2011 and $1.62 per pound of copper for the first six months of2011, compared with ~~$1.35~~$1.41 per pound of copper in ~~first-quarter 2010.~~second-quarter2010 and $1.38 per pound of copper for the first six months of2010. Higher site production and delivery costs in ~~first-quarter~~the 2011 periods primarily ~~reflected~~resulted from increased mining and milling activities and increased input costs, including materials, ~~labor~~energy and ~~energy.~~currency exchange rate impacts. Refer to “Operations – Unit Net Cash Costs” for further discussion of unit net cash costs associated with our operating divisions, and to “Product Revenues and Production Costs” for reconciliations of per pound costs by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements.

Our copper mining operations require significant energy, principally diesel, electricity, coal and natural gas. For the year 2011 ~~we expect~~, energy costs are expected to approximate 22 percent of our consolidated copper production costs, which reflects purchases of approximately 250 million gallons of diesel fuel; ~~6,660~~6,650 gigawatt hours of electricity at our North America, South America and Africa copper mining operations (we generate all of our power at our Indonesia mining operation); ~~735~~800 thousand metric tons of coal for our coal power plant in Indonesia; and 1 million MMBTU (million british thermal units) of natural gas at certain of our North America mines. Energy costs for 2010 approximated 20 percent of our consolidated copper production costs.

Depreciation, Depletion and Amortization

Consolidated depreciation, depletion and amortization expense totaled ~~$232~~$267 million in ~~first-quarter~~ second-quarter2011 ~~compared with $271~~, $499 million for the first six months of2011, $249 million in ~~first-quarter 2010. Lower depreciation,~~second-quarter2010 and $520 million for the first six months of2010. Depreciation, depletion and amortization expense ~~in first-quarter~~for the 2011 ~~primarily reflected lower~~periods reflect higher expense under the units-of-production method as a result of ~~lower~~higher copper sales volumes. Higher units-of-production expense for the six-month period was more than offset by lower straight-line depreciation expense.

Selling, General and Administrative Expenses

Consolidated selling, general and administrative expenses ~~increased to $114~~totaled $107 million in ~~first-quarter~~ second-quarter2011 and $221 million for the first six months of2011, compared with ~~$95~~$101 million in ~~first-quarter~~ second-quarter2010 and $196 million for the first six months of2010, primarily reflecting an increase in contributions made to our charitable foundation and higher incentive compensation costs associated with improved operating results.

Table of Contents

Exploration and Research Expenses

Consolidated exploration and research expenses totaled ~~$50~~$66 million in ~~first-quarter~~ second-quarter2011 and $116 million for the first six months of2011, compared with ~~$31~~$38 million in ~~first-quarter 2010.~~second-quarter2010 and $69 million for the first six months of2010. We are conducting exploration activities near our existing mines with a focus on opportunities to expand reserves that will support additional future production capacity in the large mineral districts where we currently operate. Favorable exploration results indicate opportunities for what we believe could be significant future potential reserve additions in North and South America and in the Tenke minerals district. The drilling data in North America continues to indicate the potential for expanded sulfide production.

For the year 2011, exploration and research expenditures are expected to total ~~$285~~$310 million, including approximately ~~$225~~$250 million for exploration. Exploration activities will continue to focus primarily on the potential for future reserve additions in our existing mineral districts.

Environmental Obligations and Shutdown Costs

Environmental obligations consist of net revisions to our long-term environmental obligations as further described in Note 13 of our annual report on Form 10-K for the year ended December 31, 2010. Shutdown costs include care and maintenance costs and any litigation, remediation or related expenditures associated with closed facilities or operations. The increase in the 2011 periods, compared with the 2010 periods, primarily reflects second-quarter 2011 adjustments to accruals for future shutdown costs.

Interest Expense, Net

Consolidated interest expense, ~~(before capitalization)~~excluding capitalized interest, totaled ~~$123~~$97 million in ~~first-quarter~~ second-quarter2011 and ~~$151~~$220 million for the first six months of2011, compared with $132 million in ~~first-quarter 2010.~~second-quarter2010 and $283 million for the first six months of2010. Lower interest expense in ~~first-quarter~~the 2011 periods primarily reflected the impact of debt repayments during ~~2010.~~2010 and the first half of 2011.

Capitalized interest is primarily related to our development projects and totaled ~~$25~~$23 million in ~~first-quarter~~ second-quarter2011 and $6$48 million for the first six months of2011, compared with $10 million in ~~first-quarter 2010.~~second-quarter2010 and $16 million for the first six months of2010. Refer to “Operations” for further discussion of current development projects.

Losses on Early Extinguishment of Debt

~~During first-quarter 2011, we~~We recorded losses on early extinguishment of debt ~~totaling $7~~of $61 million ($654 million to net income attributable to ~~FCX~~ common stockholders or ~~$0.01~~$0.06 per share) in second-quarter2011 and $68 million ($60 million to net income attributable to common stockholders or $0.06 per share) for the first six months of2011 associated with the redemption of our 8.25% Senior Notes and open-market purchases of our 9.5% Senior Notes. Losses on early extinguishment of debt for the first six months of2011 also includes amounts related to the revolving credit facilities that were replaced in March 2011 by a new senior unsecured revolving credit facility.

~~During first-quarter 2010, we~~We recorded losses on early extinguishment of debt totaling ~~$27~~$50 million ($2342 million to net income attributable to ~~FCX~~ common stockholders or ~~$0.02~~$0.05 per share) in second-quarter2010 and $77 million ($65 million to net income attributable to common stockholders or $0.07 per share) for the first six months of2010associated with redemption of our Senior Floating Rate Notes and open-market purchases of our 8.25% and 8.375% Senior Notes.

On April 1, 2011, we redeemed the remaining $1.1 billion of our outstanding 8.25% Senior Notes due 2015. In second-quarter 2011, we expect to record a loss on early extinguishment of debt of $56 million ($49 million to net income attributable to FCX common stockholders) in connection with this redemption.

Refer to Note 6 for further discussion of these transactions.

Table of Contents

Provision for Income Taxes

Our first-quarter 2011 income tax provision resulted from taxes on international operations ($846 million) and U.S. operations ($138 million). Our first-quarter 2010 income tax provision resulted from taxes on international operations ($597 million) and U.S. operations ($81 million). AFollowing is a summary of the approximate amounts in the calculation of our consolidated provision for income taxes for the ~~first quarters of~~ 2011 and 2010 ~~follow~~periods (in millions, except percentages):


	Three Months Ended March 31, 2011						Three Months Ended March 31, 2010
				Income Tax							Income Tax			Six Months Ended							Six Months Ended
			Effective	(Provision)			Income			Effective	(Provision)			June 30, 2011							June 30, 2010
	Incomea		Tax Rate	Benefit			(Loss)a			Tax Rate	Benefit			Income^a		Effective Tax Rate		Income Tax Provision			Income^a		Effective Tax Rate	Income Tax Provision
U.S.	$	647	21%	$	(138	)	$	329		25%	$	(81	)	$	1,242	21%		$	258		$	586	23%	$	132
South America		914	33%		(306	)		623		32%		(197	)	1,827		34%		627			1,022		32%	331
Indonesia		1,161	44%		(507	)		909		43%		(393	)	2,105		43%		899			1,349		42%	570
Africa		104	38%		(40	)		85		30%		(25	)	240		33%		80			142		30%	43
Eliminations and other		15	N/A		7			(58	)	N/A		18		51		N/A		39			50		N/A	24
Annualized rate adjustment^b														N/A		N/A		(13		)	N/A		N/A	11
Consolidated FCX	$	2,841	35%b	$	(984	)	$	1,888		36%b	$	(678	)	$	5,465	35%	^c	$	1,890		$	3,149	35%	$	1,111


a.	Represents income ~~(loss)~~ by geographic location before income taxes and equity in affiliated companies’ net earnings.

b.
b.	In accordance with applicable accounting rules, we adjust our interim provision for income taxes equal to our estimated annualized tax rate.


c.	Our consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which we operate. Accordingly, variations in the relative proportions of jurisdictional income result in fluctuations to our consolidated effective income tax rate. Assuming average prices of $4.25 per pound for copper, ~~$1,400~~$1,500 per ounce for gold and $15 per

~~Table of Contents~~

pound for molybdenum for the remainder of 2011 and current sales estimates, we estimate our annual consolidated effective tax rate will approximate 35 percent.

OPERATIONS

North America Copper Mines

We currently operate seven copper mines in North America – Morenci, Bagdad, Safford, Sierrita and Miami in Arizona, and Tyrone and Chino in New Mexico. All of these mining operations are wholly owned, except for Morenci, an unincorporated joint venture, in which we own an 85 percent undivided interest.

The North America copper mines include open-pit mining, sulfide ore concentrating, leaching and solution extraction/electrowinning (SX/EW) operations. Molybdenum concentrate is also produced by Morenci, Bagdad and Sierrita. A majority of the copper produced at our North America copper mines is cast into copper rod by our Rod & Refining operations. The remainder of our North America copper sales is primarily in the form of copper cathode or copper concentrate.

Operating and Development Activities.

Morenci Mine Ramp-up and Mill Restart. ~~In March~~ During second-quarter 2011, we ~~reached~~completed our ~~targeted~~ramp up of Morenci's mining ~~rate of~~rates to 635,000 metric tons per day after commencing a staged ramp-up at the Morenci mine from the 2009 rate of 450,000 metric tons per day. In addition, in March 2010, we restarted the Morenci mill to process available sulfide material currently being mined. Mill throughput averaged 48,300 metric tons of ore per day ~~in first-quarter 2011~~ and ~~is expected to increase~~milling rates to approximately 50,000 metric tons of ore per day, ~~by the second half of 2011. These activities are expected to enable~~resulting in increased copper production ~~to increase by~~of approximately 125 million pounds of copper per ~~year beginning in 2011.~~year.

~~During first-quarter 2011, we also commenced~~We are advancing a feasibility study to ~~add additional~~expand mining and milling capacity at Morenci to process additional sulfide ore identified through positive exploratory drilling over the last few years. This project, which would require significant investment, would increase milling rates to approximately 115,000 metric tons of ore per day and target incremental annual copper production of ~~150 to 200~~approximately 225 million pounds within ~~a two to~~ three ~~year time frame. The~~years, following completion of the feasibility study, which is expected ~~to be completed in the second half of~~by year-end 2011.

Miami Restart. ~~We initiated limited~~ The ramp up of mining activities at the Miami mine ~~to improve efficiencies of ongoing reclamation projects associated with historical mining operations at the site. During an approximate five-year mine life, we~~continues. We expect to ramp up production at Miami to approximately 100 million pounds of copper per year by 2012.

Chino Restart. ~~We are restarting~~ During second-quarter 2011, we successfully restarted mining and milling activities at the Chino ~~mine, which were suspended in late 2008. The ramp up of~~mine. Planned mining and milling activities will significantly increase copper production at Chino, which is currently producing small amounts of copper from existing leach stockpiles. The start-up is on schedule, with planned mining and milling rates are expected to be achieved by the end of 2013. Incremental annual copper production is expected to be 100 million pounds in 2012 and 2013 and 200 million pounds in 2014. Costs for the project associated with equipment and mill refurbishment are expected to approximate $150 million. Project costs of $82 million have been incurred as of June 30, 2011 ($72 million during the first six months of2011).

Safford Sulphur Burner. We have completed construction of the $150 million sulphur burner project at the Safford mine, which ~~will provide~~is providing a more cost-effective source of sulphuric acid used in SX/EW operations and lower transportation costs.

Table of Contents

Twin Buttes. In December 2009, we purchased the Twin Buttes copper mine, which ceased operations in 1994 and is adjacent to our Sierrita mine. The purchase provides significant synergies in the Sierrita minerals district, including the potential for expanded mining activities and access to material that can be used for Sierrita tailings and stockpile reclamation purposes. We are conducting drilling on the property and metallurgical studies to support a feasibility study expected to commence in late 2011.

~~Table of Contents~~

Operating Data. Following is summary operating data for the North America copper mines for the second quarters and first ~~quarters~~six months of2011 and ~~2010:~~2010:


					Three Months Ended				Six Months Ended
	Three Months Ended March 31,				June 30,				June 30,
	2011		2010		2011		2010		2011		2010
Operating Data, Net of Joint Venture Interest
Copper (millions of recoverable pounds)
Production		282		264	313		263		595		527
Sales, excluding purchases		276		291	331		289		607		580
Average realized price per pound	$	4.40	$	3.32	$	4.19	$	3.21	$	4.28	$	3.27

Molybdenum (millions of recoverable pounds)
Productiona		7		6	10		5		17		11

100% Operating Data
SX/EW operations
Leach ore placed in stockpiles (metric tons per day)		811,700		601,900	847,500		646,100		829,700		624,100
Average copper ore grade (percent)		0.24		0.24	0.24		0.25		0.24		0.25
Copper production (millions of recoverable pounds)		182		202	201		182		383		384

Mill operations
Ore milled (metric tons per day)		213,400		162,900	221,100		195,300		217,300		179,200
Average ore grade (percent):
Copper		0.36		0.30	0.38		0.32		0.37		0.31
Molybdenum		0.03		0.02	0.03		0.02		0.03		0.02
Copper recovery rate (percent)		81.8		85.7	84.3		81.4		83.2		83.3
Production (millions of recoverable pounds):
Copper		122		80	136		100		258		180
Molybdenum		7		6	10		5		17		11


a.	Reflects molybdenum production from certain of ~~our~~the North America copper mines. Sales of molybdenum are reflected in the Molybdenum division.

Copper production from our North America copper mines was higher in first-quarter 2011, compared with first-quarter 2010, primarily reflecting increased mining and milling activities at Morenci. However, copper sales volumes from our North America copper mines ~~decreased~~increased to ~~276~~331 million pounds in ~~first-quarter~~ second-quarter2011 and 607 million pounds for the first six months of2011, compared with ~~291~~289 million pounds in ~~first-quarter~~ second-quarter2010 and 580 million pounds for the first six months of2010, primarily ~~because of~~reflecting higher production from the Morenci and Miami mines. For the six-month period increases from higher production were partly offset by timing of shipments.

For the year 2011, copper sales volumes from our North America copper mines are expected to approximate 1.2 billion pounds, compared with 1.1 billion pounds of copper in ~~2010.~~2010. The restart of the Miami and Chino mines and potential expansion of the Morenci mine are expected to further increase production in future periods. Molybdenum production from our North America copper mines is expected to approximate 3435 million pounds for the year ~~2011.~~2011, compared with 25 million pounds in 2010.

Unit Net Cash Costs. Unit net cash costs per pound of copper is a measure 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 our 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 generally accepted accounting principles (GAAP) in the U.S. and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies.

Table of Contents

Gross Profit per Pound of Copper and Molybdenum

The following table summarizes unit net cash costs and gross profit per pound at the North America copper mines for the second quarters and first ~~quarters~~six months of2011 and ~~2010.~~2010. 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.



	Three Months Ended									Three Months Ended
	June 30, 2011									June 30, 2010
	By- Product Method			Co-Product Method						By- Product Method			Co-Product Method
	By- Product Method			Copper			Molyb- denum^a			By- Product Method			Copper			Molyb- denum^a
Revenues, excluding adjustments	$	4.19		$	4.19		$	16.97		$	3.21		$	3.21		$	17.34

Site production and delivery, before net noncash and other costs shown below	1.78			1.60			6.61			1.46			1.31			8.55
By-product credits^a	(0.52		)	—			—			(0.38		)	—			—
Treatment charges	0.10			0.09			—			0.09			0.08			—
Unit net cash costs	1.36			1.69			6.61			1.17			1.39			8.55
Depreciation, depletion and amortization	0.20			0.19			0.39			0.23			0.22			0.64
Noncash and other costs, net	0.05			0.05			0.02			0.19			0.18			0.04
Total unit costs	1.61			1.93			7.02			1.59			1.79			9.23
Revenue adjustments	(0.02		)	(0.02		)	—			—			—			—
Idle facility and other non-inventoriable costs	(0.05		)	(0.04		)	(0.03		)	(0.08		)	(0.08		)	(0.01		)
Gross profit per pound	$	2.51		$	2.20		$	9.92		$	1.54		$	1.34		$	8.10

Copper sales (millions of recoverable pounds)	330			330						288			288
Molybdenum sales (millions of recoverable pounds)^b							10									5



	Six Months Ended									Six Months Ended
	June 30, 2011									June 30, 2010
	By- Product Method			Co-Product Method						By- Product Method			Co-Product Method
	By- Product Method			Copper			Molyb- denum^a			By- Product Method			Copper			Molyb- denum^a
Revenues, excluding adjustments	$	4.28		$	4.28		$	16.92		$	3.27		$	3.27		$	15.71

Site production and delivery, before net noncash and other costs shown below	1.76			1.58			6.81			1.39			1.25			8.00
By-product credits^a	(0.50		)	—			—			(0.32		)	—			—
Treatment charges	0.10			0.10			—			0.08			0.08			—
Unit net cash costs	1.36			1.68			6.81			1.15			1.33			8.00
Depreciation, depletion and amortization	0.20			0.19			0.41			0.25			0.24			0.63
Noncash and other costs, net	0.10			0.09			0.06			0.13			0.13			0.05
Total unit costs	1.66			1.96			7.28			1.53			1.70			8.68
Revenue adjustments	—			—			—			—			—			—
Idle facility and other non-inventoriable costs	(0.05		)	(0.05		)	(0.02		)	(0.08		)	(0.08		)	(0.01		)
Gross profit per pound	$	2.57		$	2.27		$	9.62		$	1.66		$	1.49		$	7.02

Copper sales (millions of recoverable pounds)	605			605						579			579
Molybdenum sales (millions of recoverable pounds)^b							17									11

Three Months Ended
March 31, 2011

Three Months Ended
March 31, 2010

By- Co-Product Method By- Co-Product Method
Product Molyb- Product Molyb-
Method Copper
denuma
Method Copper
denuma

Revenues, excluding adjustments $ 4.40 $ 4.40 $ 16.87 $ 3.32 $ 3.32 $ 13.93

Site production and delivery, before net noncash
and other costs shown below 1.75 1.57 7.08 1.31 1.20 7.40
By-product creditsa
(0.49 ) - - (0.26 ) - -
Treatment charges 0.11 0.10 - 0.08 0.08 -
Unit net cash costs 1.37 1.67 7.08 1.13 1.28 7.40
Depreciation, depletion and amortization 0.20 0.19 0.43 0.27 0.25 0.63
Noncash and other costs, net 0.15 0.15 0.12 0.08 0.08 0.05
Total unit costs 1.72 2.01 7.63 1.48 1.61 8.08
Revenue adjustments - - - - - -
Idle facility and other non-inventoriable costs (0.03 ) (0.03 ) (0.02 ) (0.06 ) (0.06 ) -
Gross profit per pound $ 2.65 $ 2.36 $ 9.22 $ 1.78 $ 1.65 $ 5.85

Copper sales (millions of recoverable pounds) 275 275 291 291
Molybdenum sales (millions of recoverable pounds)b
7 6


a.	Molybdenum ~~by-product~~ credits and revenues reflect volumes produced at market-based pricing and also include tolling revenues at Sierrita.


b.	Reflects molybdenum produced by ~~the~~certain of our North America copper mines.

Unit net cash costs (net of by-product credits) for our North America copper mines increased to $1.37 per pound of copper in first-quarter 2011, compared with $1.13 per pound of copper in first-quarter 2010, primarily reflecting higher site production and delivery costs ($0.44 per pound) resulting from increased mining and milling activities and higher input costs, partly offset by higher molybdenum credits ($0.23 per pound) resulting from higher molybdenum volumes and prices.

The decrease in depreciation, depletion and amortization in first-quarter 2011 primarily reflects lower straight-line expense, and the increase in net noncash and nonrecurring costs for first-quarter 2011 primarily reflects the restart of mining and milling activities at the Chino mine.

Our operating North America copper mines have varying cost structures because of differences in ore grades and characteristics, processing costs, by-products and other factors. ~~Based on current operating plans,~~Average unit net cash costs (net of by-product credits) for our North America copper mines averaged $1.36 per pound of copper in second-quarter2011 and ~~assuming~~for the first six months of2011, compared with $1.17 per pound of copper in second-quarter2010 and $1.15 per pound of copper for the first six months of2010, primarily reflecting higher site production and delivery costs ($0.32 per pound for the quarter and $0.37 per pound for the six-month period) resulting from increased mining and milling activities and higher input costs. Partly offsetting higher site production and delivery costs were higher molybdenum credits ($0.14 per pound for the quarter and $0.18 per pound for the six-month period) resulting from higher molybdenum volumes.

Table of Contents

The decrease in depreciation, depletion and amortization in the 2011 periods primarily reflects lower straight-line expense.

Assuming achievement of current ~~2011~~ sales volume and cost estimates and an average price of $15 per pound of molybdenum for the ~~remainder~~second half of 2011, we estimate that average unit net cash costs (net of by-product credits) for our North America copper mines would approximate ~~$1.47~~$1.42 per pound of copper for the year 2011, compared with $1.24 per pound of copper in ~~2010. Each~~2010. North America's average unit net cash costs for 2011 would change by approximately $0.025 per pound for each $2 per pound change in the average price of molybdenum during the ~~remainder~~second half of 2011 ~~would have an approximate $0.04 per pound impact on the North America copper mines’ 2011 average unit net cash costs.~~.

South America Mining

We operate four copper mines in South America – Cerro Verde in Peru, and El Abra, Candelaria and Ojos del Salado in Chile. We own a 53.56 percent interest in Cerro Verde, a 51 percent interest in El Abra, and an 80 percent interest in both Candelaria and Ojos del Salado.

South America mining includes open-pit and underground mining, sulfide ore concentrating, leaching and SX/EW operations. ~~In addition to copper, the Cerro Verde mine produces molybdenum concentrates, and the Candelaria and Ojos del Salado mines produce gold and silver.~~ Production from our South America mines is sold as copper concentrate or copper cathode under long-term contracts. Our South America mines sell a portion of their copper concentrate and cathode inventories to Atlantic Copper, an affiliated smelter. In addition to copper, the Cerro Verde mine produces molybdenum concentrates, and the Candelaria and Ojos del Salado mines produce gold and silver.

~~Table of Contents~~

Operating and Development Activities.

El Abra Sulfide.During first-quarter 2011, we commenced production from El Abra’s newly commissioned stacking and leaching facilities to transition from oxide to sulfide ores. Production from the sulfide ore, which is projected to reach design levels in the second half of 2011, ~~would~~is expected to approximate 300 million pounds of copper per year, ~~and substantially replaces~~replacing the currently depleting oxide copper production. The aggregate capital investment for this project is expected to total $725 million through 2015, of which approximately $565 million is for the initial phase of the project expected to be complete in 2011. Project costs of ~~$422~~$475 million have been incurred as of ~~March 31,~~June 30, 2011 ($61114 million during ~~first-quarter 2011)~~the first six months of2011).

We are also engaged in pre-feasibility studies for a potential large-scale milling operation at El Abra to process additional sulfide material and to achieve higher recoveries.

Cerro Verde Expansion. During ~~fourth-quarter 2010,~~second-quarter 2011, we completed the ~~$50 million~~feasibility study for a large-scale concentrator expansion at Cerro Verde. The $3.5 billion project ~~to increase throughput at~~would expand the ~~Cerro Verde concentrator. This project increased mill throughput~~concentrator facilities from ~~108,000~~120,000 metric tons of ore per day to ~~120,000~~360,000 metric tons of ore per day ~~resulting in~~and provide incremental annual ~~copper~~ production of approximately 30600 million pounds of ~~copper.~~

~~We are progressing our evaluation~~copper and 15 million pounds of ~~a large-scale concentrator expansion at Cerro Verde. Significant reserve additions~~molybdenum beginning in recent years have provided opportunities to significantly expand the existing facility’s capacity. A range of expansion options have been considered and we are targeting a project to increase mill throughput from 120,000 metric tons per day to 360,000 metric tons per day. Following the completion of the feasibility study in second-quarter 2011, we2016. We expect to file an environmental impact assessment during the second half of 2011.

An agreement has been reached with the Regional Government of Arequipa, the National Government, Servicio de Agua Potable y Alcantarillado de Arequipa S.A. (SEDAPAR) and other local institutions to allow Cerro Verde to finance the engineering and construction of a wastewater treatment plant for Arequipa, should Cerro Verde proceed with the expansion. The treated water, which is currently unlicensed, would be used by Cerro Verde to supplement its existing water supplies to support the potential concentrator expansion.

Candelaria Water Plant. As part of our overall strategy to supply water to the Candelaria mine, we recently completed construction of a pipeline to bring water from a nearby water treatment facility. In addition, we have ~~started~~completed engineering for a desalination plant that will supply ~~all of~~ Candelaria’s longer term water ~~needs.~~needs, and construction has begun. The plant is expected to be completed by the end of 2012 at a capital investment of $280 million. Project costs of ~~$30~~$49 million have been incurred as of ~~March 31,~~June 30, 2011 ($2443 million during ~~first-quarter 2011)~~the first six months of2011).

Other Matters. As reported in Note 13 of our ~~Annual Report~~annual report on Form 10-K for the year ended December 31, 2010, Cerro Verde has received assessments from SUNAT, the Peruvian national tax authority, in connection with ~~its alleged obligations~~claims for mining royalties related to the minerals processed by its concentrator, which was added to Cerro Verde’s processing facilities in late 2006. These assessments relate to the period from October 2006 through December 2007, and for the ~~year 2008.~~years 2008 and 2009. SUNAT has issued rulings denying Cerro Verde’s protest of the assessments, and Cerro Verde has appealed these decisions to the Peruvian Tax ~~Court.~~ Court and tax authorities. Cerro Verde is challenging these royalties because its stability agreement with the Peruvian government exempts from royalties all minerals extracted from its mining concession, irrespective of the method used for processing those minerals. If Cerro Verde is ultimately found responsible for these royalties, it will also be liable for interest, which accrues at rates that range from approximately 7 to 18 percent based on the year accrued and the currency in which the amounts would be payable. At ~~March 31,~~June 30, 2011, the aggregate amount of the assessments, including interest and penalties,

Table of Contents

approximated ~~$122~~$180 million. This amount will continue to increase at varying interest rates.~~Cerro Verde has also received a request for information for mining royalties covering the year 2009.~~ SUNAT may continue to assess mining royalties annually until this matter is resolved by the Tax Court.

As reported in Note 14 of our ~~Annual Report~~annual report on Form 10-K for the year ended December 31, 2010, during 2006, the Peruvian government announced that all mining companies operating in Peru would be required to make annual contributions to local development funds for a five-year period (covering the years 2006 through 2010) when copper prices exceeded certain levels that were adjusted annually. The contribution, which expired in 2010, was equal to 3.75 percent of after-tax profits, and totaled $41 million for the year 2010. It is not certain whether the contribution will be extended, abandoned, or replaced by a tax or different mechanism. We will continue to monitor ~~the~~any activity associated with this matter.

In July 2011, the Chilean senate approved changes to a bill regulating mine closure, which establishes new requirements for closure plans. Once effective our Chilean operations would be required to update closure plans and also will be required to provide financial assurance for these obligations. We will continue to monitor any activity associated with this legislation and any impact it may have on our operations.

~~Table of Contents~~

Operating Data. Following is summary operating data for our South America mining operations for the second quarters and first ~~quarters~~six months of2011 and ~~2010:~~2010:


					Three Months Ended				Six Months Ended
	Three Months Ended March 31,				June 30,				June 30,
	2011		2010		2011		2010		2011		2010
Copper (millions of recoverable pounds)
Production		317		322	327		329		644		651
Sales		312		307	331		311		643		618
Average realized price per pound	$	4.31	$	3.46	$	4.24	$	3.02	$	4.24	$	3.07

Gold (thousands of recoverable ounces)
Production		24		19	24		20		48		39
Sales		24		19	25		20		49		39
Average realized price per ounce	$	1,394	$	1,113	$	1,515	$	1,221	$	1,467	$	1,175

Molybdenum (millions of recoverable pounds)
Productiona		3		2	3		1		6		3

SX/EW operations
Leach ore placed in stockpiles (metric tons per day)		262,200		255,800	241,200		247,400		251,600		251,600
Average copper ore grade (percent)		0.43		0.44	0.47		0.42		0.43		0.43
Copper production (millions of recoverable pounds)		90		133	113		130		203		263

Mill operations
Ore milled (metric tons per day)		191,800		180,100	197,600		187,100		194,700		183,600
Average ore grade (percent):b
Copper		0.68		0.62
Molybdenum		0.02		0.02
Average ore grade:
Copper (percent)					0.62		0.62		0.65		0.62
Gold (grams per metric ton)					0.11		0.09		0.11		0.09
Molybdenum (percent)					0.02		0.02		0.02		0.02
Copper recovery rate (percent)		91.4		89.2	89.3		89.9		90.4		89.5
Production (recoverable):
Copper (millions of pounds)		227		189	214		199		441		388
Gold (thousands of ounces)		24		19	24		20		48		39
Molybdenum (millions of pounds)		3		2	3		1		6		3

Table of Contents

North America Copper Mines Product Revenues and Production Costs (continued)

Three Months Ended March 31, 2010
(In millions) By-Product Co-Product Method
Method Copper
Molybdenuma

Otherb
Total
Revenues, excluding adjustments $ 965 $ 965 $ 77 $ 12 $ 1,054

Site production and delivery, before net noncash
and other costs shown below 381 349 41 5 395
By-product creditsa
(75 ) - - - -
Treatment charges 22 21 - 1 22
Net cash costs 328 370 41 6 417
Depreciation, depletion and amortization 78 74 4 - 78
Noncash and other costs, net 24 24 - - 24
Total costs 430 468 45 6 519
Revenue adjustments (1 ) (1 ) - - (1 )
Idle facility and other non-inventoriable costs (18 ) (18 ) - - (18 )
Gross profit $ 516 $ 478 $ 32 $ 6 $ 516

Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
Totals presented above $ 1,054 $ 395 $ 78
Treatment charges per above N/A 22 N/A
Net noncash and other costs per above N/A 24 N/A
Revenue adjustments per above (1 ) N/A N/A
Idle facility and other non-inventoriable costs per above N/A 18 N/A
Eliminations and other 1 5 4
North America copper mines 1,054 464 82
South America mining 1,069 376 61
Indonesia mining 1,459 475 63
Africa mining 249 110 30
Molybdenum 275 185 13
Rod & Refining 1,073 1,067 2
Atlantic Copper Smelting & Refining 633 628 10
Corporate, other & eliminations (1,449 ) (1,387 ) 10
As reported in FCX’s consolidated financial statements $ 4,363 $ 1,918 $ 271



Three Months Ended June 30, 2010
(In millions)	By-Product			Co-Product Method
	Method			Copper			Molybdenum^a		Other^b		Total
Revenues, excluding adjustments	$	925		$	925		$	104	$	19	$	1,048

Site production and delivery, before net noncash and other costs shown below	421			376			51		9		436
By-product credits^a	(108		)	—			—		—		—
Treatment charges	26			26			—		—		26
Net cash costs	339			402			51		9		462
Depreciation, depletion and amortization	66			62			3		1		66
Noncash and other costs, net	53			52			1		—		53
Total costs	458			516			55		10		581
Revenue adjustments	(1		)	(1		)	—		—		(1		)
Idle facility and other non-inventoriable costs	(21		)	(21		)	—		—		(21		)
Gross profit	$	445		$	387		$	49	$	9	$	445

Reconciliation to Amounts Reported
	Revenues			Production and Delivery			Depreciation, Depletion and Amortization
Totals presented above	$	1,048		$	436		$	66
Treatment charges	N/A			26			N/A
Net noncash and other costs	N/A			53			N/A
Revenue adjustments	(1		)	N/A			N/A
Idle facility and other non-inventoriable costs	N/A			21			N/A
Eliminations and other	(3		)	1			5
North America copper mines	1,044			537			71
South America mining	849			389			59
Indonesia mining	927			427			57
Africa mining	207			96			30
Molybdenum	325			190			12
Rod & Refining	1,129			1,121			2
Atlantic Copper Smelting & Refining	616			605			9
Corporate, other & eliminations	(1,233		)	(1,313		)	9
As reported in FCX’s consolidated financial statements	$	3,864		$	2,052		$	249


a.	Molybdenum ~~by-product~~ credits and revenues reflect volumes produced at market-based pricing and also include tolling revenues at Sierrita.


b.	Includes gold and silver product revenues and production costs.

Table of Contents

North America Copper Mines Product Revenues and Production Costs (continued)



Six Months Ended June 30, 2011
(In millions)	By-Product			Co-Product Method
	Method			Copper			Molybdenum^a			Other^b		Total
Revenues, excluding adjustments	$	2,593		$	2,593		$	284		$	44	$	2,921

Site production and delivery, before net noncash and other costs shown below	1,067			959			114			18		1,091
By-product credits^a	(304		)	—			—			—		—
Treatment charges	62			60			—			2		62
Net cash costs	825			1,019			114			20		1,153
Depreciation, depletion and amortization	122			114			7			1		122
Noncash and other costs, net	57			56			1			—		57
Total costs	1,004			1,189			122			21		1,332
Revenue adjustments	(2		)	(2		)	—			—		(2		)
Idle facility and other non-inventoriable costs	(29		)	(28		)	(1		)	—		(29		)
Gross profit	$	1,558		$	1,374		$	161		$	23	$	1,558

Reconciliation to Amounts Reported
	Revenues			Production and Delivery			Depreciation, Depletion and Amortization
Totals presented above	$	2,921		$	1,091		$	122
Treatment charges	N/A			62			N/A
Net noncash and other costs	N/A			57			N/A
Revenue adjustments	(2		)	N/A			N/A
Idle facility and other non-inventoriable costs	N/A			29			N/A
Eliminations and other	(24		)	(5		)	7
North America copper mines	2,895			1,234			129
South America mining	2,850			852			123
Indonesia mining	3,294			1,044			117
Africa mining	687			280			66
Molybdenum	787			526			30
Rod & Refining	2,914			2,902			4
Atlantic Copper Smelting & Refining	1,415			1,448			19
Corporate, other & eliminations	(3,319		)	(3,352		)	11
As reported in FCX’s consolidated financial statements	$	11,523		$	4,934		$	499


a.	Molybdenum credits and revenues reflect volumes produced at market-based pricing and also include tolling revenues at Sierrita.


b.	Includes gold and silver product revenues and production costs.

Table of Contents

North America Copper Mines Product Revenues and Production Costs (continued)



Six Months Ended June 30, 2010
(In millions)	By-Product			Co-Product Method
	Method			Copper			Molybdenum^a		Other^b		Total
Revenues, excluding adjustments	$	1,890		$	1,890		$	181	$	31	$	2,102

Site production and delivery, before net noncash and other costs shown below	802			725			92		14		831
By-product credits^a	(183		)	—			—		—		—
Treatment charges	48			47			—		1		48
Net cash costs	667			772			92		15		879
Depreciation, depletion and amortization	144			136			7		1		144
Noncash and other costs, net	77			76			1		—		77
Total costs	888			984			100		16		1,100
Revenue adjustments	(2		)	(2		)	—		—		(2		)
Idle facility and other non-inventoriable costs	(39		)	(39		)	—		—		(39		)
Gross profit	$	961		$	865		$	81	$	15	$	961

Reconciliation to Amounts Reported
	Revenues			Production and Delivery			Depreciation, Depletion and Amortization
Totals presented above	$	2,102		$	831		$	144
Treatment charges	N/A			48			N/A
Net noncash and other costs	N/A			77			N/A
Revenue adjustments	(2		)	N/A			N/A
Idle facility and other non-inventoriable costs	N/A			39			N/A
Eliminations and other	(2		)	6			9
North America copper mines	2,098			1,001			153
South America mining	1,918			765			120
Indonesia mining	2,386			902			120
Africa mining	456			206			60
Molybdenum	600			375			25
Rod & Refining	2,202			2,188			4
Atlantic Copper Smelting & Refining	1,249			1,233			19
Corporate, other & eliminations	(2,682		)	(2,702		)	19
As reported in FCX’s consolidated financial statements	$	8,227		$	3,968		$	520


a.	Molybdenum credits and revenues reflect volumes produced at market-based pricing and also include tolling revenues at Sierrita.


b.	Includes gold and silver product revenues and production costs.

Table of Contents

South America Mining Product Revenues and Production Costs

Three Months Ended March 31, 2011
(In millions) By-Product Co-Product Method
Method Copper
Other a
Total
Revenues, excluding adjustments $ 1,345 $ 1,345 $ 119 $ 1,464

Site production and delivery, before net noncash
and other costs shown below 406 375 37 412
By-product credits (113 ) - - -
Treatment charges 59 59 - 59
Net cash costs 352 434 37 471
Depreciation, depletion and amortization 57 53 4 57
Noncash and other costs, net 5 5 - 5
Total costs 414 492 41 533
Revenue adjustments, primarily for pricing on prior
period open sales 11 (8 ) 19 11
Other non-inventoriable costs (14 ) (13 ) (1 ) (14 )
Gross profit $ 928 $ 832 $ 96 $ 928

Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
Totals presented above $ 1,464 $ 412 $ 57
Treatment charges per above (59 ) N/A N/A
Net noncash and other costs per above N/A 5 N/A
Revenue adjustments, primarily for pricing on prior
period open sales per above 11 N/A N/A
Other non-inventoriable costs per above N/A 14 N/A
Eliminations and other (14 ) (20 ) -
South America mining 1,402 411 57
North America copper mines 1,348 575 58
Indonesia mining 1,730 526 57
Africa mining 309 124 28
Molybdenum 374 240 14
Rod & Refining 1,487 1,481 2
Atlantic Copper Smelting & Refining 762 763 10
Corporate, other & eliminations (1,703 ) (1,743 ) 6
As reported in FCX’s consolidated financial statements $ 5,709 $ 2,377 $ 232



Three Months Ended June 30, 2011
(In millions)	By-Product			Co-Product Method
	Method			Copper			Other				Total
Revenues, excluding adjustments	$	1,404		$	1,404		$	129		^a	$	1,533

Site production and delivery, before net noncash and other costs shown below	417			382			41				423
By-product credits	(123		)	—			—				—
Treatment charges	62			62			—				62
Net cash costs	356			444			41				485
Depreciation, depletion and amortization	65			61			4				65
Noncash and other costs, net	6			6			—				6
Total costs	427			511			45				556
Revenue adjustments, primarily for pricing on prior period open sales	(24		)	(24		)	—				(24		)
Other non-inventoriable costs	(16		)	(15		)	(1		)		(16		)
Gross profit	$	937		$	854		$	83			$	937

Reconciliation to Amounts Reported
	Revenues			Production and Delivery			Depreciation, Depletion and Amortization
Totals presented above	$	1,533		$	423		$	65
Treatment charges	(62		)	N/A			N/A
Net noncash and other costs	N/A			6			N/A
Revenue adjustments, primarily for pricing on prior period open sales	(24		)	N/A			N/A
Other non-inventoriable costs	N/A			16			N/A
Eliminations and other	1			(4		)	1
South America mining	1,448			441			66
North America copper mines	1,547			659			71
Indonesia mining	1,564			518			60
Africa mining	378			156			38
Molybdenum	413			286			16
Rod & Refining	1,427			1,421			2
Atlantic Copper Smelting & Refining	653			685			9
Corporate, other & eliminations	(1,616		)	(1,609		)	5
As reported in FCX’s consolidated financial statements	$	5,814		$	2,557		$	267


a.	Includes ~~molybdenum,~~ gold sales of 25 thousand ounces ($1,515 per ounce average realized price) and silver ~~product revenues and production costs.~~sales of 766 thousand ounces ($41.03 per ounce average realized price); also includes molybdenum sales of 3 million pounds ($14.29 per pound average realized price), which reflects molybdenum produced by Cerro Verde at market based pricing.

Table of Contents

South America Mining Product Revenues and Production Costs (continued)

Three Months Ended March 31, 2010
(In millions) By-Product Co-Product Method
Method Copper
Other a
Total
Revenues, excluding adjustments $ 1,061 $ 1,061 $ 56 $ 1,117

Site production and delivery, before net noncash
and other costs shown below 367 348 23 371
By-product credits (51 ) - - -
Treatment charges 47 47 - 47
Net cash costs 363 395 23 418
Depreciation, depletion and amortization 60 58 3 61
Noncash and other costs, net 2 2 - 2
Total costs 425 455 26 481
Revenue adjustments, primarily for pricing on prior
period open sales (2 ) (2 ) - (2 )
Other non-inventoriable costs (8 ) (7 ) (1 ) (8 )
Gross profit $ 626 $ 597 $ 29 $ 626

Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
Totals presented above $ 1,117 $ 371 $ 61
Treatment charges per above (47 ) N/A N/A
Net noncash and other costs per above N/A 2 N/A
Revenue adjustments, primarily for pricing on prior
period open sales per above (2 ) N/A N/A
Other non-inventoriable costs per above N/A 8 N/A
Eliminations and other 1 (5 ) -
South America mining 1,069 376 61
North America copper mines 1,054 464 82
Indonesia mining 1,459 475 63
Africa mining 249 110 30
Molybdenum 275 185 13
Rod & Refining 1,073 1,067 2
Atlantic Copper Smelting & Refining 633 628 10
Corporate, other & eliminations (1,449 ) (1,387 ) 10
As reported in FCX’s consolidated financial statements $ 4,363 $ 1,918 $ 271



Three Months Ended June 30, 2010
(In millions)	By-Product			Co-Product Method
	Method			Copper			Other				Total
Revenues, excluding adjustments	$	936		$	936		$	60		^a	$	996

Site production and delivery, before net noncash and other costs shown below	379			356			26				382
By-product credits	(57		)	—			—				—
Treatment charges	33			33			—				33
Net cash costs	355			389			26				415
Depreciation, depletion and amortization	59			57			2				59
Noncash and other costs, net	5			4			1				5
Total costs	419			450			29				479
Revenue adjustments, primarily for pricing on prior period open sales	(114		)	(114		)	—				(114		)
Other non-inventoriable costs	(6		)	(5		)	(1		)		(6		)
Gross profit	$	397		$	367		$	30			$	397

Reconciliation to Amounts Reported
	Revenues			Production and Delivery			Depreciation, Depletion and Amortization
Totals presented above	$	996		$	382		$	59
Treatment charges	(33		)	N/A			N/A
Net noncash and other costs	N/A			5			N/A
Revenue adjustments, primarily for pricing on prior period open sales	(114		)	N/A			N/A
Other non-inventoriable costs	N/A			6			N/A
Eliminations and other	—			(4		)	—
South America mining	849			389			59
North America copper mines	1,044			537			71
Indonesia mining	927			427			57
Africa mining	207			96			30
Molybdenum	325			190			12
Rod & Refining	1,129			1,121			2
Atlantic Copper Smelting & Refining	616			605			9
Corporate, other & eliminations	(1,233		)	(1,313		)	9
As reported in FCX’s consolidated financial statements	$	3,864		$	2,052		$	249


a.	Includes ~~molybdenum,~~ gold sales of 20 thousand ounces ($1,221 per ounce average realized price) and silver ~~product revenues and production costs.~~sales of 573 thousand ounces ($18.00 per ounce average realized price); also includes molybdenum sales of 1 million pounds ($12.26 per pound average realized price), which reflects molybdenum produced by Cerro Verde at market based pricing.

Table of Contents

South America Mining Product Revenues and Production Costs (continued)



Six Months Ended June 30, 2011
(In millions)	By-Product			Co-Product Method
	Method			Copper			Other				Total
Revenues, excluding adjustments	$	2,725		$	2,725		$	248		^a	$	2,973

Site production and delivery, before net noncash and other costs shown below	823			757			78				835
By-product credits	(236		)	—			—				—
Treatment charges	121			121			—				121
Net cash costs	708			878			78				956
Depreciation, depletion and amortization	122			115			7				122
Noncash and other costs, net	11			10			1				11
Total costs	841			1,003			86				1,089
Revenue adjustments, primarily for pricing on prior period open sales	12			(8		)	20				12
Other non-inventoriable costs	(30		)	(27		)	(3		)		(30		)
Gross profit	$	1,866		$	1,687		$	179			$	1,866

Reconciliation to Amounts Reported
	Revenues			Production and Delivery			Depreciation, Depletion and Amortization
Totals presented above	$	2,973		$	835		$	122
Treatment charges	(121		)	N/A			N/A
Net noncash and other costs	N/A			11			N/A
Revenue adjustments, primarily for pricing on prior period open sales	12			N/A			N/A
Other non-inventoriable costs	N/A			30			N/A
Eliminations and other	(14		)	(24		)	1
South America mining	2,850			852			123
North America copper mines	2,895			1,234			129
Indonesia mining	3,294			1,044			117
Africa mining	687			280			66
Molybdenum	787			526			30
Rod & Refining	2,914			2,902			4
Atlantic Copper Smelting & Refining	1,415			1,448			19
Corporate, other & eliminations	(3,319		)	(3,352		)	11
As reported in FCX’s consolidated financial statements	$	11,523		$	4,934		$	499


a.	Includes gold sales of 49 thousand ounces ($1,467 per ounce average realized price) and silver sales of 1.5 million ounces ($37.55 per ounce average realized price); also includes molybdenum sales of 6 million pounds ($15.01 per pound average realized price), which reflects molybdenum produced by Cerro Verde at market based pricing.

Table of Contents

South America Mining Product Revenues and Production Costs (continued)



Six Months Ended June 30, 2010
(In millions)	By-Product			Co-Product Method
	Method			Copper			Other				Total
Revenues, excluding adjustments	$	1,898		$	1,898		$	116		^a	$	2,014

Site production and delivery, before net noncash and other costs shown below	746			704			49				753
By-product credits	(108		)	—			—				—
Treatment charges	80			80			—				80
Net cash costs	718			784			49				833
Depreciation, depletion and amortization	119			115			5				120
Noncash and other costs, net	7			6			1				7
Total costs	844			905			55				960
Revenue adjustments, primarily for pricing on prior period open sales	(17		)	(17		)	—				(17		)
Other non-inventoriable costs	(14		)	(12		)	(2		)		(14		)
Gross profit	$	1,023		$	964		$	59			$	1,023

Reconciliation to Amounts Reported
	Revenues			Production and Delivery			Depreciation, Depletion and Amortization
Totals presented above	$	2,014		$	753		$	120
Treatment charges	(80		)	N/A			N/A
Net noncash and other costs	N/A			7			N/A
Revenue adjustments, primarily for pricing on prior period open sales	(17		)	N/A			N/A
Other non-inventoriable costs	N/A			14			N/A
Eliminations and other	1			(9		)	—
South America mining	1,918			765			120
North America copper mines	2,098			1,001			153
Indonesia mining	2,386			902			120
Africa mining	456			206			60
Molybdenum	600			375			25
Rod & Refining	2,202			2,188			4
Atlantic Copper Smelting & Refining	1,249			1,233			19
Corporate, other & eliminations	(2,682		)	(2,702		)	19
As reported in FCX’s consolidated financial statements	$	8,227		$	3,968		$	520


a.	Includes gold sales of 39 thousand ounces ($1,175 per ounce average realized price) and silver sales of 1.2 million ounces ($17.71 per ounce average realized price); also includes molybdenum sales of 3 million pounds ($12.68 per pound average realized price), which reflects molybdenum produced by Cerro Verde at market based pricing.

Table of Contents

Indonesia Mining Product Revenues and Production Costs

Three Months Ended March 31, 2011
(In millions) By-Product Co-Product Method
Method Copper Gold Silver Total
Revenues, excluding adjustments $ 1,184 $ 1,184 $ 636 $ 32 $ 1,852

Site production and delivery, before net noncash
and other costs shown below 511 327 175 9 511
Gold and silver credits (650 ) - - - -
Treatment charges 49 31 17 1 49
Royalty on metals 45 29 16 - 45
Net cash (credits) costs (45 ) 387 208 10 605
Depreciation and amortization 57 36 20 1 57
Noncash and other costs, net 15 10 4 1 15
Total costs 27 433 232 12 677
Revenue adjustments, primarily for pricing on prior
period open sales (10 ) (10 ) (17 ) (1 ) (28 )
PT Smelting intercompany loss 48 31 16 1 48
Gross profit $ 1,195 $ 772 $ 403 $ 20 $ 1,195

Reconciliation to Amounts Reported
(In millions) Depreciation,
Production Depletion and
Revenues and Delivery Amortization
Totals presented above $ 1,852 $ 511 $ 57
Treatment charges per above (49 ) N/A N/A
Royalty on metals per above (45 ) N/A N/A
Net noncash and other costs per above N/A 15 N/A
Revenue adjustments, primarily for pricing on prior
period open sales per above (28 ) N/A N/A
Indonesia mining 1,730 526 57
North America copper mines 1,348 575 58
South America mining 1,402 411 57
Africa mining 309 124 28
Molybdenum 374 240 14
Rod & Refining 1,487 1,481 2
Atlantic Copper Smelting & Refining 762 763 10
Corporate, other & eliminations (1,703 ) (1,743 ) 6
As reported in FCX’s consolidated financial statements $ 5,709 $ 2,377 $ 232



Three Months Ended June 30, 2011
(In millions)	By-Product			Co-Product Method
	Method			Copper			Gold		Silver			Total
Revenues, excluding adjustments	$	1,131		$	1,131		$	498	$	30	^a	$	1,659

Site production and delivery, before net noncash and other costs shown below	511			348			154		9			511
Gold and silver credits	(545		)	—			—		—			—
Treatment charges	48			33			14		1			48
Royalty on metals	44			30			13		1			44
Net cash costs	58			411			181		11			603
Depreciation and amortization	60			41			18		1			60
Noncash and other costs, net	7			5			2		—			7
Total costs	125			457			201		12			670
Revenue adjustments, primarily for pricing on prior period open sales	(20		)	(20		)	16		1			(3		)
Gross profit	$	986		$	654		$	313	$	19		$	986

Reconciliation to Amounts Reported
	Revenues			Production and Delivery			Depreciation, Depletion and Amortization
Totals presented above	$	1,659		$	511		$	60
Treatment charges	(48		)	N/A			N/A
Royalty on metals	(44		)	N/A			N/A
Net noncash and other costs	N/A			7			N/A
Revenue adjustments, primarily for pricing on prior period open sales	(3		)	N/A			N/A
Indonesia mining	1,564			518			60
North America copper mines	1,547			659			71
South America mining	1,448			441			66
Africa mining	378			156			38
Molybdenum	413			286			16
Rod & Refining	1,427			1,421			2
Atlantic Copper Smelting & Refining	653			685			9
Corporate, other & eliminations	(1,616		)	(1,609		)	5
As reported in FCX’s consolidated financial statements	$	5,814		$	2,557		$	267


a.	Includes silver sales of 832 thousand ounces ($36.16 per ounce average realized price).

Table of Contents

Indonesia Mining Product Revenues and Production Costs (continued)



Three Months Ended June 30, 2010
(In millions)	By-Product			Co-Product Method
	Method			Copper			Gold		Silver			Total
Revenues, excluding adjustments	$	765		$	765		$	342	$	14	^a	$	1,121

Site production and delivery, before net noncash and other costs shown below	422			285			132		5			422
Gold and silver credits	(366		)	—			—		—			—
Treatment charges	67			45			21		1			67
Royalty on metals	28			19			9		—			28
Net cash costs	151			349			162		6			517
Depreciation and amortization	57			38			17		2			57
Noncash and other costs, net	5			4			1		—			5
Total costs	213			391			180		8			579
Revenue adjustments, primarily for pricing on prior period open sales	(109		)	(109		)	10		—			(99		)
Gross profit	$	443		$	265		$	172	$	6		$	443

Reconciliation to Amounts Reported
	Revenues			Production and Delivery			Depreciation, Depletion and Amortization
Totals presented above	$	1,121		$	422		$	57
Treatment charges	(67		)	N/A			N/A
Royalty on metals	(28		)	N/A			N/A
Net noncash and other costs	N/A			5			N/A
Revenue adjustments, primarily for pricing on prior period open sales	(99		)	N/A			N/A
Indonesia mining	927			427			57
North America copper mines	1,044			537			71
South America mining	849			389			59
Africa mining	207			96			30
Molybdenum	325			190			12
Rod & Refining	1,129			1,121			2
Atlantic Copper Smelting & Refining	616			605			9
Corporate, other & eliminations	(1,233		)	(1,313		)	9
As reported in FCX’s consolidated financial statements	$	3,864		$	2,052		$	249

Three Months Ended March 31, 2010
(In millions) By-Product Co-Product Method
Method Copper Gold Silver Total
Revenues, excluding adjustments $ 1,039 $ 1,039 $ 508 $ 22 $ 1,569

Site production and delivery, before net noncash
and other costs shown below 456 302 148 6 456
Gold and silver credits (530 ) - - - -
Treatment charges 67 44 21 2 67
Royalty on metals 36 24 12 - 36
Net cash costs 29 370 181 8 559
Depreciation and amortization 63 42 21 - 63
Noncash and other costs, net 19 13 6 - 19
Total costs 111 425 208 8 641
Revenue adjustments, primarily for pricing on prior
period open sales (7 ) (7 ) 1 (1 ) (7 )
PT Smelting intercompany loss 12 8 4 - 12
Gross profit $ 933 $ 615 $ 305 $ 13 $ 933

Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
Totals presented above $ 1,569 $ 456 $ 63
Treatment charges per above (67 ) N/A N/A
Royalty on metals per above (36 ) N/A N/A
Net noncash and other costs per above N/A 19 N/A
Revenue adjustments, primarily for pricing on prior
period open sales per above (7 ) N/A N/A
Indonesia mining 1,459 475 63
North America copper mines 1,054 464 82
South America mining 1,069 376 61
Africa mining 249 110 30
Molybdenum 275 185 13
Rod & Refining 1,073 1,067 2
Atlantic Copper Smelting & Refining 633 628 10
Corporate, other & eliminations (1,449 ) (1,387 ) 10
As reported in FCX’s consolidated financial statements $ 4,363 $ 1,918 $ 271


a.	Includes silver sales of 800 thousand ounces ($16.78 per ounce average realized price).

Table of Contents

Indonesia Mining Product Revenues and Production Costs (continued)



Six Months Ended June 30, 2011
(In millions)	By-Product			Co-Product Method
	Method			Copper			Gold			Silver				Total
Revenues, excluding adjustments	$	2,297		$	2,297		$	1,150		$	63		^a	$	3,510

Site production and delivery, before net noncash and other costs shown below	1,022			669			335			18				1,022
Gold and silver credits	(1,195		)	—			—			—				—
Treatment charges	98			64			32			2				98
Royalty on metals	89			58			29			2				89
Net cash costs	14			791			396			22				1,209
Depreciation and amortization	117			77			38			2				117
Noncash and other costs, net	22			15			7			—				22
Total costs	153			883			441			24				1,348
Revenue adjustments, primarily for pricing on prior period open sales	(11		)	(11		)	(17		)	(1		)		(29		)
Gross profit	$	2,133		$	1,403		$	692		$	38			$	2,133

Reconciliation to Amounts Reported
	Revenues			Production and Delivery			Depreciation, Depletion and Amortization
Totals presented above	$	3,510		$	1,022		$	117
Treatment charges	(98		)	N/A			N/A
Royalty on metals	(89		)	N/A			N/A
Net noncash and other costs	N/A			22			N/A
Revenue adjustments, primarily for pricing on prior period open sales	(29		)	N/A			N/A
Indonesia mining	3,294			1,044			117
North America copper mines	2,895			1,234			129
South America mining	2,850			852			123
Africa mining	687			280			66
Molybdenum	787			526			30
Rod & Refining	2,914			2,902			4
Atlantic Copper Smelting & Refining	1,415			1,448			19
Corporate, other & eliminations	(3,319		)	(3,352		)	11
As reported in FCX’s consolidated financial statements	$	11,523		$	4,934		$	499


a.	Includes silver sales of 1.7 million ounces ($36.65 per ounce average realized price).

Table of Contents

Indonesia Mining Product Revenues and Production Costs (continued)



Six Months Ended June 30, 2010
(In millions)	By-Product			Co-Product Method
	Method			Copper			Gold		Silver			Total
Revenues, excluding adjustments	$	1,694		$	1,694		$	860	$	35	^a	$	2,589

Site production and delivery, before net noncash and other costs shown below	878			574			292		12			878
Gold and silver credits	(896		)	—			—		—			—
Treatment charges	134			88			44		2			134
Royalty on metals	64			42			21		1			64
Net cash costs	180			704			357		15			1,076
Depreciation and amortization	120			78			40		2			120
Noncash and other costs, net	24			16			8		—			24
Total costs	324			798			405		17			1,220
Revenue adjustments, primarily for pricing on prior period open sales	(6		)	(6		)	1		—			(5		)
Gross profit	$	1,364		$	890		$	456	$	18		$	1,364

Reconciliation to Amounts Reported
	Revenues			Production and Delivery			Depreciation, Depletion and Amortization
Totals presented above	$	2,589		$	878		$	120
Treatment charges	(134		)	N/A			N/A
Royalty on metals	(64		)	N/A			N/A
Net noncash and other costs	N/A			24			N/A
Revenue adjustments, primarily for pricing on prior period open sales	(5		)	N/A			N/A
Indonesia mining	2,386			902			120
North America copper mines	2,098			1,001			153
South America mining	1,918			765			120
Africa mining	456			206			60
Molybdenum	600			375			25
Rod & Refining	2,202			2,188			4
Atlantic Copper Smelting & Refining	1,249			1,233			19
Corporate, other & eliminations	(2,682		)	(2,702		)	19
As reported in FCX’s consolidated financial statements	$	8,227		$	3,968		$	520


a.	Includes silver sales of 2.1 million ounces ($17.16 per ounce average realized price).

Table of Contents

Africa Mining Product Revenues and Production Costs

Three Months Ended March 31, 2011
(In millions) By-Product Co-Product Method
Method Copper Cobalt Total
Revenues, excluding adjustmentsa
$ 249 $ 249 $ 64 $ 313

Site production and delivery, before net noncash
and other costs shown below 90 80 32 112
Cobalt creditsb
(45 ) - - -
Royalty on metals 6 5 1 6
Net cash costs 51 85 33 118
Depreciation, depletion and amortization 28 23 5 28
Noncash and other costs, net 9 8 1 9
Total costs 88 116 39 155
Revenue adjustments, primarily for pricing on prior
period open sales (1 ) (1 ) 3 2
Other non-inventoriable costs (3 ) (2 ) (1 ) (3 )
Gross profit $ 157 $ 130 $ 27 $ 157

Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
Totals presented above $ 313 $ 112 $ 28
Royalty on metals per above (6 ) N/A N/A
Net noncash and other costs per above N/A 9 N/A
Revenue adjustments, primarily for pricing on prior
period open sales per above 2 N/A N/A
Other non-inventoriable costs per above N/A 3 N/A
Africa mining 309 124 28
North America copper mines 1,348 575 58
South America mining 1,402 411 57
Indonesia mining 1,730 526 57
Molybdenum 374 240 14
Rod & Refining 1,487 1,481 2
Atlantic Copper Smelting & Refining 762 763 10
Corporate, other & eliminations (1,703 ) (1,743 ) 6
As reported in FCX’s consolidated financial statements $ 5,709 $ 2,377 $ 232



Three Months Ended June 30, 2011
(In millions)	By-Product			Co-Product Method
	Method			Copper			Cobalt			Total
Revenues, excluding adjustments^a	$	307		$	307		$	83		$	390

Site production and delivery, before net noncash and other costs shown below	122			103			43			146
Cobalt credits^b	(58		)	—			—			—
Royalty on metals	7			6			1			7
Net cash costs	71			109			44			153
Depreciation, depletion and amortization	38			32			6			38
Noncash and other costs, net	7			6			1			7
Total costs	116			147			51			198
Revenue adjustments, primarily for pricing on prior period open sales	(4		)	(4		)	(1		)	(5		)
Other non-inventoriable costs	(3		)	(3		)	—			(3		)
Gross profit	$	184		$	153		$	31		$	184

Reconciliation to Amounts Reported
	Revenues			Production and Delivery			Depreciation, Depletion and Amortization
Totals presented above	$	390		$	146		$	38
Royalty on metals	(7		)	N/A			N/A
Net noncash and other costs	N/A			7			N/A
Revenue adjustments, primarily for pricing on prior period open sales	(5		)	N/A			N/A
Other non-inventoriable costs	N/A			3			N/A
Africa mining	378			156			38
North America copper mines	1,547			659			71
South America mining	1,448			441			66
Indonesia mining	1,564			518			60
Molybdenum	413			286			16
Rod & Refining	1,427			1,421			2
Atlantic Copper Smelting & Refining	653			685			9
Corporate, other & eliminations	(1,616		)	(1,609		)	5
As reported in FCX’s consolidated financial statements	$	5,814		$	2,557		$	267


a.	Includes adjustments for point-of-sale transportation costs as negotiated in customer contracts.


b.	Net of cobalt downstream processing and freight costs.

Table of Contents

Africa Mining Product Revenues and Production Costs (continued)

Three Months Ended March 31, 2010
(In millions) By-Product Co-Product Method
Method Copper Cobalt Total
Revenues, excluding adjustmentsa
$ 214 $ 214 $ 35 $ 249

Site production and delivery, before net noncash
and other costs shown below 90 87 16 103
Cobalt creditsb
(26 ) - - -
Royalty on metals 5 5 - 5
Net cash costs 69 92 16 108
Depreciation, depletion and amortization 30 23 7 30
Noncash and other costs, net 1 1 - 1
Total costs 100 116 23 139
Revenue adjustments, primarily for pricing on prior
period open sales - - 4 4
Other non-inventoriable costs (6 ) (5 ) (1 ) (6 )
Gross profit $ 108 $ 93 $ 15 $ 108

Reconciliation to Amounts Reported
Depreciation,
Production Depletion and
Revenues and Delivery Amortization
Totals presented above $ 249 $ 103 $ 30
Royalty on metals per above (5 ) N/A N/A
Net noncash and other costs per above N/A 1 N/A
Revenue adjustments, primarily for pricing on prior
period open sales per above 4 N/A N/A
Other non-inventoriable costs per above N/A 6 N/A
Eliminations and other 1 - -
Africa mining 249 110 30
North America copper mines 1,054 464 82
South America mining 1,069 376 61
Indonesia mining 1,459 475 63
Molybdenum 275 185 13
Rod & Refining 1,073 1,067 2
Atlantic Copper Smelting & Refining 633 628 10
Corporate, other & eliminations (1,449 ) (1,387 ) 10
As reported in FCX’s consolidated financial statements $ 4,363 $ 1,918 $ 271



Three Months Ended June 30, 2010
(In millions)	By-Product			Co-Product Method
	Method			Copper			Cobalt			Total
Revenues, excluding adjustments^a	$	163		$	163		$	47		$	210

Site production and delivery, before net noncash and other costs shown below	70			64			24			88
Cobalt credits^b	(30		)	—			—			—
Royalty on metals	3			2			1			3
Net cash costs	43			66			25			91
Depreciation, depletion and amortization	30			26			4			30
Noncash and other costs, net	3			2			1			3
Total costs	76			94			30			124
Revenue adjustments, primarily for pricing on prior period open sales	—			—			1			1
Other non-inventoriable costs	(6		)	(5		)	(1		)	(6		)
Gross profit	$	81		$	64		$	17		$	81

Reconciliation to Amounts Reported
	Revenues			Production and Delivery			Depreciation, Depletion and Amortization
Totals presented above	$	210		$	88		$	30
Royalty on metals	(3		)	N/A			N/A
Net noncash and other costs	N/A			3			N/A
Revenue adjustments, primarily for pricing on prior period open sales	1			N/A			N/A
Other non-inventoriable costs	N/A			6			N/A
Eliminations and other	(1		)	(1		)	—
Africa mining	207			96			30
North America copper mines	1,044			537			71
South America mining	849			389			59
Indonesia mining	927			427			57
Molybdenum	325			190			12
Rod & Refining	1,129			1,121			2
Atlantic Copper Smelting & Refining	616			605			9
Corporate, other & eliminations	(1,233		)	(1,313		)	9
As reported in FCX’s consolidated financial statements	$	3,864		$	2,052		$	249


a.	Includes adjustments for point-of-sale transportation costs as negotiated in customer contracts.


b.	Net of cobalt downstream processing and freight costs.

Table of Contents

Africa Mining Product Revenues and Production Costs (continued)



Six Months Ended June 30, 2011
(In millions)	By-Product			Co-Product Method
	Method			Copper			Cobalt			Total
Revenues, excluding adjustments^a	$	553		$	553		$	146		$	699

Site production and delivery, before net noncash and other costs shown below	212			183			74			257
Cobalt credits^b	(103		)	—			—			—
Royalty on metals	13			10			3			13
Net cash costs	122			193			77			270
Depreciation, depletion and amortization	66			56			10			66
Noncash and other costs, net	17			14			3			17
Total costs	205			263			90			353
Revenue adjustments, primarily for pricing on prior period open sales	(1		)	(1		)	2			1
Other non-inventoriable costs	(6		)	(5		)	(1		)	(6		)
Gross profit	$	341		$	284		$	57		$	341

Reconciliation to Amounts Reported
	Revenues			Production and Delivery			Depreciation, Depletion and Amortization
Totals presented above	$	699		$	257		$	66
Royalty on metals	(13		)	N/A			N/A
Net noncash and other costs	N/A			17			N/A
Revenue adjustments, primarily for pricing on prior period open sales	1			N/A			N/A
Other non-inventoriable costs	N/A			6			N/A
Africa mining	687			280			66
North America copper mines	2,895			1,234			129
South America mining	2,850			852			123
Indonesia mining	3,294			1,044			117
Molybdenum	787			526			30
Rod & Refining	2,914			2,902			4
Atlantic Copper Smelting & Refining	1,415			1,448			19
Corporate, other & eliminations	(3,319		)	(3,352		)	11
As reported in FCX’s consolidated financial statements	$	11,523		$	4,934		$	499


a.	Includes adjustments for point-of-sale transportation costs as negotiated in customer contracts.


b.	Net of cobalt downstream processing and freight costs.

Table of Contents

Africa Mining Product Revenues and Production Costs (continued)



Six Months Ended June 30, 2010
(In millions)	By-Product			Co-Product Method
	Method			Copper			Cobalt			Total
Revenues, excluding adjustments^a	$	377		$	377		$	84		$	461

Site production and delivery, before net noncash and other costs shown below	160			151			40			191
Cobalt credits^b	(56		)	—			—			—
Royalty on metals	8			7			1			8
Net cash costs	112			158			41			199
Depreciation, depletion and amortization	60			49			11			60
Noncash and other costs, net	4			3			1			4
Total costs	176			210			53			263
Revenue adjustments, primarily for pricing on prior period open sales	—			—			3			3
Other non-inventoriable costs	(12		)	(10		)	(2		)	(12		)
Gross profit	$	189		$	157		$	32		$	189

Reconciliation to Amounts Reported
	Revenues			Production and Delivery			Depreciation, Depletion and Amortization
Totals presented above	$	461		$	191		$	60
Royalty on metals	(8		)	N/A			N/A
Net noncash and other costs	N/A			4			N/A
Revenue adjustments, primarily for pricing on prior period open sales	3			N/A			N/A
Other non-inventoriable costs	N/A			12			N/A
Eliminations and other	—			(1		)	—
Africa mining	456			206			60
North America copper mines	2,098			1,001			153
South America mining	1,918			765			120
Indonesia mining	2,386			902			120
Molybdenum	600			375			25
Rod & Refining	2,202			2,188			4
Atlantic Copper Smelting & Refining	1,249			1,233			19
Corporate, other & eliminations	(2,682		)	(2,702		)	19
As reported in FCX’s consolidated financial statements	$	8,227		$	3,968		$	520


a.	Includes adjustments for point-of-sale transportation costs as negotiated in customer contracts.


b.	Net of cobalt downstream processing and freight costs.

Table of Contents

Henderson Molybdenum Mine Product Revenues and Production Costs


	Three Months Ended March 31,								Three Months Ended June 30,
(In millions)	2011			2010					2011			2010
Revenues, excluding adjustments	$	172		$	139				$	164		$	177

Site production and delivery, before net noncash
and other costs shown below		52			42
Site production and delivery, before net noncash and other costs shown below									50			48
Treatment charges and other		9			10				8			11
Net cash costs		61			52				58			59
Depreciation, depletion and amortization		9			8				8			8
Noncash and other costs, net		-			1				1			—
Total costs		70			61				67			67
Gross profita	$	102		$	78				$	97		$	110

Reconciliation to Amounts Reported				Production			Depreciation,		Revenues			Production and Delivery			Depreciation, Depetion and Amortization
				and			Depletion and
		Revenues		Delivery			Amortization
Three Months Ended March 31, 2011
Three Months Ended June 30, 2011
Totals presented above	$	172		$	52		$	9	$	164		$	50		$	8
Treatment charges and other per above		(9	)		N/A			N/A
Net noncash and other costs per above		N/A			-			N/A
Treatment charges and other									(8		)	N/A			N/A
Net noncash and other costs									N/A			1			N/A
Henderson mine		163			52			9	156			51			8
Other molybdenum operations and eliminationsb		211			188			5	257			235			8
Molybdenum		374			240			14	413			286			16
North America copper mines		1,348			575			58	1,547			659			71
South America mining		1,402			411			57	1,448			441			66
Indonesia mining		1,730			526			57	1,564			518			60
Africa mining		309			124			28	378			156			38
Rod & Refining		1,487			1,481			2	1,427			1,421			2
Atlantic Copper Smelting & Refining		762			763			10	653			685			9
Corporate, other & eliminations		(1,703	)		(1,743	)		6	(1,616		)	(1,609		)	5
As reported in FCX’s consolidated financial statements	$	5,709		$	2,377		$	232	$	5,814		$	2,557		$	267

Three Months Ended March 31, 2010
Three Months Ended June 30, 2010
Totals presented above	$	139		$	42		$	8	$	177		$	48		$	8
Treatment charges and other per above		(10	)		N/A			N/A
Net noncash and other costs per above		N/A			1			N/A
Treatment charges and other									(11		)	N/A			N/A
Net noncash and other costs									N/A			—			N/A
Henderson mine		129			43			8	166			48			8
Other molybdenum operations and eliminationsb		146			142			5	159			142			4
Molybdenum		275			185			13	325			190			12
North America copper mines		1,054			464			82	1,044			537			71
South America mining		1,069			376			61	849			389			59
Indonesia mining		1,459			475			63	927			427			57
Africa mining		249			110			30	207			96			30
Rod & Refining		1,073			1,067			2	1,129			1,121			2
Atlantic Copper Smelting & Refining		633			628			10	616			605			9
Corporate, other & eliminations		(1,449	)		(1,387	)		10	(1,233		)	(1,313		)	9
As reported in FCX’s consolidated financial statements	$	4,363		$	1,918		$	271	$	3,864		$	2,052		$	249


a.	Gross profit reflects sales of Henderson ~~products~~production based on volumes produced at market-based pricing. On a consolidated basis, the Molybdenum division includes profits on sales as they are made to third parties and realizations based on actual contract terms. As a result, the actual gross profit realized will differ from the amounts reported in this table.


b.	Primarily includes amounts associated with the molybdenum sales company, which includes sales of molybdenum produced by our North and South America copper mines.

Table of Contents

Henderson Molybdenum Mine Product Revenues and Production Costs (continued)



	Six Months Ended June 30,
(In millions)	2011			2010
Revenues, excluding adjustments	$	336		$	316

Site production and delivery, before net noncash and other costs shown below	102			90
Treatment charges and other	17			21
Net cash costs	119			111
Depreciation, depletion and amortization	17			16
Noncash and other costs, net	1			1
Total costs	137			128
Gross profit^a	$	199		$	188

Reconciliation to Amounts Reported	Revenues			Production and Delivery			Depreciation, Depetion and Amortization
Six Months Ended June 30, 2011
Totals presented above	$	336		$	102		$	17
Treatment charges and other	(17		)	N/A			N/A
Net noncash and other costs	N/A			1			N/A
Henderson mine	319			103			17
Other molybdenum operations and eliminations^b	468			423			13
Molybdenum	787			526			30
North America copper mines	2,895			1,234			129
South America mining	2,850			852			123
Indonesia mining	3,294			1,044			117
Africa mining	687			280			66
Rod & Refining	2,914			2,902			4
Atlantic Copper Smelting & Refining	1,415			1,448			19
Corporate, other & eliminations	(3,319		)	(3,352		)	11
As reported in FCX’s consolidated financial statements	$	11,523		$	4,934		$	499

Six Months Ended June 30, 2010
Totals presented above	$	316		$	90		$	16
Treatment charges and other	(21		)	N/A			N/A
Net noncash and other costs	N/A			1			N/A
Henderson mine	295			91			16
Other molybdenum operations and eliminations^b	305			284			9
Molybdenum	600			375			25
North America copper mines	2,098			1,001			153
South America mining	1,918			765			120
Indonesia mining	2,386			902			120
Africa mining	456			206			60
Rod & Refining	2,202			2,188			4
Atlantic Copper Smelting & Refining	1,249			1,233			19
Corporate, other & eliminations	(2,682		)	(2,702		)	19
As reported in FCX’s consolidated financial statements	$	8,227		$	3,968		$	520


a.	Gross profit reflects sales of Henderson production based on volumes produced at market-based pricing. On a consolidated basis, the Molybdenum division includes profits on sales as they are made to third parties and realizations based on actual contract terms. As a result, the actual gross profit realized will differ from the amounts reported in this table.


b.	Primarily includes amounts associated with the molybdenum sales company, which includes sales of molybdenum produced by our North and South America copper mines.

Table of Contents

CAUTIONARY STATEMENT

Our discussion and analysis contains forward-looking statements in which we discuss factors we believe may affect our future performance. Forward-looking statements are all statements other than statements of historical facts, such as those statements regarding projected ore grades and milling rates, projected production and sales volumes, projected unit net cash costs, projected operating cash flows, projected capital expenditures, exploration efforts and results, mine production and development plans, the impact of deferred intercompany profits on earnings, liquidity, other financial commitments and tax rates, the impact of copper, gold, molybdenum and cobalt price changes, potential prepayments of debt, future dividend payments and potential share purchases. The words “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” “intends,” “likely,” “will,” “should,” “to be,” and any similar expressions are intended to identify those assertions as forward-looking statements. The declaration of dividends is at the discretion of our Board and will depend on our financial results, cash requirements, future prospects, and other factors deemed relevant by the Board.

~~In making any forward-looking statements, we believe that the expectations are based on reasonable assumptions.~~ We caution readers that ~~those~~forward-looking statements are not guarantees of future performance and our actual results may differ materially from those anticipated, projected or assumed in the forward-looking statements. Important factors that can cause our actual results to differ materially from those anticipated in the forward-looking statements include commodity prices, mine sequencing, production rates, industry risks, regulatory changes, political risks, the potential effects of violence in Indonesia, the resolution of administrative disputes in the Democratic Republic of Congo, weather-related risks, labor relations, including the resolution of labor negotiations in Indonesia, environmental risks, litigation results, currency translation risks and other factors described in more detail under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2010, filed with the SEC as updated by our subsequent filings with the SEC.

Investors are cautioned that many of the assumptions on which our forward-looking statements are based are likely to change after our forward-looking statements are made, including for example commodity prices, which we cannot control, and production volumes and costs, some aspects of which we may or may not be able to control. Further, we may make changes to our business plans that could or will affect our results. We caution investors that we do not intend to update our forward-looking statements notwithstanding any changes in our assumptions, changes in our business plans, our actual experience, or other changes, and we undertake no obligation to update any forward-looking statements more frequently than quarterly.

I~~tem 3.~~ ~~Quantitative and Qualitative Disclosures About Market Risk.~~


Item 3.	Quantitative and Qualitative Disclosures About Market Risk.

There have been no material changes in our market risks during the three months ended ~~March 31, 2011.~~June 30, 2011. For additional information on market risks, refer to “Disclosures About Market Risks” included in Part II, Item 7A of our annual report on Form 10-K for the year ended December 31, ~~2010.~~2010. For projected sensitivities of our operating cash flow to changes in commodity prices, refer to “Outlook” in Part I, Item 2 of this quarterly report on Form 10-Q; for projected sensitivities of our provisionally priced copper sales to changes in commodity prices refer to “Consolidated Results – Revenues” in Part I, Item 2 of this quarterly report on Form 10-Q.

I~~tem 4.~~ ~~Controls and Procedures.~~


Item 4.	Controls and Procedures.

(a)

Evaluation of disclosure controls and procedures. Our chief executive officer and chief financial officer, with the participation of management, have evaluated the effectiveness of our “disclosure controls and procedures” (as defined in Rules 13a-15(e) and 15(d)-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this quarterly report on Form 10-Q. Based on their evaluation, they have concluded that our disclosure controls and procedures are effective as of the end of the period covered by this report.

(b)

Changes in internal control. ~~There has been no change~~ During the three months ended June 30, 2011, we implemented the general ledger and certain other portions of a new enterprise resource planning (ERP) information technology system at our North America mining operations. This implementation is the initial phase of a project to establish the ERP system at all our operations over an approximate two-year period in order to upgrade our information technology infrastructure and enhance operating efficiency and effectiveness. A program to train employees and appropriately modify, test and monitor system results and the related internal controls was conducted in this initial implementation and is ongoing. Accordingly, our system of internal control over financial reporting ~~that occurred during~~for the ~~quarter ended March 31, 2011, that~~corporate operations and impacted operating business units has ~~materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.~~been updated.

Other than the change referred to in the immediate preceding paragraph, there has been no change in our internal control over financial reporting that occurred during the quarter ended June 30, 2011, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Table of Contents

P~~ART II. OTHER INFORMATION~~


Part II.	OTHER INFORMATION

It~~em 1.~~ ~~Legal Proceedings.~~


Item 1.	Legal Proceedings.

We are involved in various legal proceedings that arise in the ordinary course of our business or are associated with environmental issues arising from legacy operations conducted over the years by Phelps Dodge Corporation and its affiliates. We are also involved from time to time in other reviews, investigations and proceedings by government agencies, some of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. There have been no new material legal proceedings ~~and no material changes to~~since the information included in Part I, Item 3. “Legal Proceedings,” of our annual report on Form 10-K for the year ended December 31, 2010. Management does not believe, based on currently available information, that the outcome of any proceeding reported in “Legal Proceedings” in our annual report on Form 10-K for the year ended December 31, 2010, will have a material adverse effect on our financial condition, although individual 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.

The following presents updates to litigation and environmental proceedings, which were reported in Part I, Item 3. "Legal Proceedings" of our annual report on Form 10-K for the year ended December 31, 2010:

Litigation

It~~em 1A.~~ Blackwell, Oklahoma Litigation~~Risk Factors.~~. Information regarding this legal proceeding is incorporated by reference to Part I, Item 3. “Legal Proceedings” of our annual report on Form 10-K for the year ended December 31, 2010. On July 27, 2011, the court granted plaintiffs' motion for class certification in the matter Coffey, et al., v. Freeport-McMoRan Copper & Gold, Inc., et al., Kay County, Oklahoma District Court, Case No. CJ-2008-68.

~~There~~Environmental Proceedings

Newtown Creek. Information regarding this legal proceeding is incorporated by reference to Part I, Item 3. "Legal Proceedings" of our annual report on Form 10-K for the year ended December 31, 2010. Effective July 18, 2011, Phelps Dodge Refining Company, five other parties, and the U.S. Environmental Protection Agency (EPA) have entered an Administrative Order on Consent (AOC) for performing the Remedial Investigation/Feasibility Study of the creek and reimbursing EPA for its oversight costs. Efforts to identify other potentially responsible parties are continuing.

Arizona Department of Environmental Quality - Morenci. Information regarding this legal proceeding is incorporated by reference to Part I, Item 3. "Legal Proceedings" of our annual report on Form 10-K for the year ended December 31, 2010. On June 28, 2011, Morenci signed a consent judgment with the State of Arizona formalizing the agreed-upon settlement for $75,000 and a community service project with a value estimated at $75,000. The consent judgment will become final when it has been ~~no material changes~~entered by the Maricopa County Superior Court.


Item 1A.	Risk Factors.

Operational Risks

Labor unrest and activism could disrupt our operations and may adversely affect our business, financial condition, results of operations and prospects.

As further described in Part 1. Items 1 and 2. “Business and Properties” in our annual report on Form 10-K for the year ended December 31, 2010, we are party to labor agreements with various unions that represent employees at our operations. Labor agreements are generally negotiated on a periodic basis, and the risk exists that labor agreements may not be renewed on reasonably satisfactory terms to us or at all. We cannot predict what issues may be raised by the collective bargaining units representing our employees and, if raised, whether negotiations concerning those issues will be successfully concluded. Our production and sales volumes could be significantly reduced and our business, financial condition and results of operations adversely affected by significant reductions in productivity or protracted work stoppages at one or more of our operations. Additionally, if we enter into a new labor agreement with any union that significantly increases our labor costs relative to our ~~risk factors during~~competitors, our ability to compete may be materially adversely affected.

During July 2011, PT Freeport Indonesia union workers commenced an eight-day labor strike, which led to a temporary suspension of mining, milling and concentrate shipments. On July 11, 2011, PT Freeport Indonesia reached an agreement with the ~~three months ended March 31,~~union to end the strike and operations have resumed. PT Freeport Indonesia has commenced negotiations with the union for

Table of Contents

its bi-annual renewal of the collective labor agreement, which is scheduled for renewal in October 2011.

If we do not successfully negotiate new collective bargaining agreements with our union workers, including those employed by PT Freeport Indonesia, we may incur prolonged strikes and other work stoppages at our mining operations.

For additional information on risk factors, refer to Part I, Item 1A. “Risk Factors” in our annual report on Form 10-K for the year ended December 31, ~~2010.~~

2010I~~tem 2.~~ ~~Unregistered Sales of Equity Securities and Use of Proceeds.~~.

~~(c)~~
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.


(c)	The following table sets forth information with respect to shares of Freeport-McMoRan Copper & Gold Inc. (FCX) common stock purchased by us during the three months ended ~~March 31, 2011:~~June 30, 2011:

(c) Total Number of (d) Maximum Number
(a) Total Number (b) Average Shares Purchased as Part of Shares That May
of Shares Price Paid of Publicly Announced Yet Be Purchased Under
Period
Purchaseda
Per Share
Plans or Programsb

the Plans or Programsb
January 1-31, 2011 - $ - - 23,685,500
February 1-28, 2011 328,497 $ 56.26 - 23,685,500
March 1-31, 2011 - $ - - 23,685,500
Total 328,497 $ 56.26 - 23,685,500

a.
	~~Consists~~
Period		(a) Total Number of ~~shares repurchased under FCX’s applicable stock incentive plans, which were repurchased to satisfy tax obligations on restricted stock awards and to cover~~Shares Purchased	(b) Average Price Paid Per Share	(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs^a	(d) Maximum Number of Shares That May Yet Be Purchased Under the ~~cost of option exercises.~~Plans or Programs^a
Period			(b) Average Price Paid Per Share
April 1-30, 2011		—	—	—	23,685,500
May 1-31, 2011		—	—	—	23,685,500
June 1-30, 2011		—	—	—	23,685,500
Total		—	—	—	23,685,500

b.
a.	On July 21, 2008, our Board of Directors approved an increase in our open-market share purchase program for up to 30 million shares. There have been no purchases under this program since 2008. This program does not have an expiration date.

I~~tem 4.~~ ~~Mine Safety Disclosure.~~


Item 4.	Mine Safety Disclosure.

The safety and health of all ~~our~~ employees ~~are of the~~is our highest priority. Management believes that safety and health considerations are integral to, and compatible with, all other functions in the organization and that proper safety and health management will enhance production and reduce costs. Our approach towards the health and safety of our workforce is to continuously improve performance through implementing robust management systems and providing adequate training, safety incentive and occupational health programs. Refer to Exhibit 99.1 for mine safety disclosures required ~~to be disclosed~~ in accordance with Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

I~~tem 6.~~ ~~Exhibits.~~


Item 6.	Exhibits.

The exhibits to this report are listed in the Exhibit Index beginning on Page E-1 hereof.

Table of Contents

F~~REEPORT-McMoRan~~FREEPORT-McMoRan COPPER & GOLD INC.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



	FREEPORT-McMoRan COPPER & GOLD INC.

	By:	/s/ C. Donald Whitmire, Jr.
		C. Donald Whitmire, Jr.
		Vice President and
		Controller – Financial Reporting
		(authorized signatory and
		Principal Accounting Officer)

Date: August 5, 2011

Table of Contents

FREEPORT-McMoRan COPPER & GOLD INC.

~~By:~~ ~~/s/ C. Donald Whitmire, Jr.~~

~~C. Donald Whitmire, Jr.~~

~~Vice President and~~

~~Controller – Financial Reporting~~

~~(authorized signatory and~~

~~Principal Accounting Officer)~~

~~Date: May 6, 2011~~

~~Table of Contents~~

F~~REEPORT-McMoRan COPPER & GOLD INC.~~
EXHIBIT INDEX
		Filed
Exhibit		with this	Incorporated by Reference
Number	Exhibit Title	Form 10-Q	Form	File No.	Date Filed
3.1	Composite Certificate of Incorporation of FCX.		10-Q	001-11307-01	~~08/06/~~8/6/2010
3.2	Amended and Restated By-Laws of FCX, as amended through February 2, 2010.		8-K	001-11307-01	~~02/05/~~2/5/2010
~~10.1~~	Credit Agreement dated as of March 30, 2011, among FCX, the Lenders party thereto, the Issuing Banks party thereto, JPMorgan Chase Bank, N.A. as Administrative Agent and Bank of America, N.A., as Syndication Agent.	X
10.2*	~~Amendment to Amended and Restated Executive Employment Agreement by and between Freeport-McMoRan Copper & Gold Inc. and Richard C. Adkerson.~~		~~8-K~~	~~001-11307-01~~	~~04/28/2011~~
10.3*	~~Amendment to Amended and Restated Executive Employment Agreement by and between Freeport-McMoRan Copper & Gold Inc. and Kathleen L. Quirk.~~		~~8-K~~	~~001-11307-01~~	~~04/28/2011~~
~~10.4~~	Addendum No. 1 to the Amended and Restated Shareholders Agreement dated as of September 28, 2005, among La Générale des Carrières et des Mines and TF Holdings Limited, Chui Ltd., Faru Ltd., Mboko Ltd., Mofia Ltd., Tembo Ltd., and Tenke Fungurume Mining S.A.R.L., dated as of December 11, 2010.	X
~~10.5~~	Addendum No. 1 to the Amended and Restated Mining Convention dated as of September 28, 2005, among the Democratic Republic of Congo, La Générale des Carrières et des Mines, TF Holdings Limited and Tenke Fungurume Mining S.A.R.L., dated as of December 11, 2010.	X
10.6*	~~FCX Director Compensation.~~	X
15.1	Letter from Ernst & Young LLP regarding unaudited interim financial statements.	X
31.1	Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d – 14(a).	X
31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d – 14(a).	X
32.1	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350.	X
32.2	Certification of Principal Financial Officer pursuant to 18 U.S.C Section 1350.	X
99.1	Mine Safety and Health Administration Safety Data.	X
101.INS	XBRL Instance Document.	X
101.SCH	XBRL Taxonomy Extension Schema.	X
101.CAL	XBRL Taxonomy Extension Calculation Linkbase.	X
101.DEF	XBRL Taxonomy Extension Definition Linkbase.	X
101.LAB	XBRL Taxonomy Extension Label Linkbase.	X
101.PRE	XBRL Taxonomy Extension Presentation Linkbase.	X

~~(*) Indicates management contract or compensatory plan or arrangement.~~

E-1



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended ~~March 31,~~June 30, 2011
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from		To
Commission File Number: 001-11307-01

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

333 North Central Avenue
Phoenix, AZ	85004-2189
(Address of principal executive offices)	(Zip Code)

(602) 366-8100
(Registrant's telephone number, including area code)




	Page

Part I. Financial Information	3

Item 1. Financial Statements:

Condensed Consolidated Balance Sheets (Unaudited)	3

Consolidated Statements of Income (Unaudited)	4

Consolidated Statements of Cash Flows (Unaudited)	5

Consolidated Statement of Equity (Unaudited)	6

Notes to Consolidated Financial Statements (Unaudited)	7

Report of Independent Registered Public Accounting Firm	17 18

Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations	18 19

Item 3. Quantitative and Qualitative Disclosures About Market Risk	52 63

Item 4. Controls and Procedures	52 63

Part II. Other Information	53 64

Item 1. Legal Proceedings	53 64

Item 1A. Risk Factors	53

~~Item 4. Mine Safety Disclosure~~64	53

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	53 65

Item ~~6. Exhibits~~4. Mine Safety Disclosure	53 65

~~Signature~~Item 6. Exhibits	54 65

Signature	66

Exhibit Index	E-1

	March 31,			December 31,
	2011			2010
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	4,090		$	3,738
Restricted cash for early extinguishment of debt		1,168			-
Trade accounts receivable		1,588			2,132
Other accounts receivable		311			293
Inventories:
Product		1,450			1,409
Materials and supplies, net		1,199			1,169
Mill and leach stockpiles		1,060			856
Other current assets		280			254
Total current assets		11,146			9,851
Property, plant, equipment and development costs, net		17,076			16,785
Long-term mill and leach stockpiles		1,402			1,425
Intangible assets, net		325			328
Other assets		1,059			997
Total assets	$	31,008		$	29,386

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	2,318		$	2,441
Current portion of debt		1,170			95
Accrued income taxes		806			648
Dividends payable		239			240
Current portion of reclamation and environmental obligations		201			207
Rio Tinto share of joint venture cash flows		17			132
Total current liabilities		4,751			3,763
Long-term debt, less current portion		3,582			4,660
Deferred income taxes		3,056			2,873
Reclamation and environmental obligations, less current portion		2,065			2,071
Other liabilities		1,463			1,459
Total liabilities		14,917			14,826
Equity:
FCX stockholders’ equity:
Common stock		107			107
Capital in excess of par value		18,893			18,751
Accumulated deficit		(1,328	)		(2,590	)
Accumulated other comprehensive loss		(318	)		(323	)
Common stock held in treasury		(3,553	)		(3,441	)
Total FCX stockholders’ equity		13,801			12,504
Noncontrolling interests		2,290			2,056
Total equity		16,091			14,560
Total liabilities and equity	$	31,008		$	29,386



	June 30, 2011			December 31, 2010
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	4,378		$	3,738
Trade accounts receivable	1,533			2,132
Other accounts receivable	252			293
Inventories:
Product	1,399			1,409
Materials and supplies, net	1,277			1,169
Mill and leach stockpiles	1,072			856
Other current assets	262			254
Total current assets	10,173			9,851
Property, plant, equipment and development costs, net	17,500			16,785
Long-term mill and leach stockpiles	1,523			1,425
Intangible assets, net	323			328
Other assets	1,060			997
Total assets	$	30,579		$	29,386

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	2,343		$	2,441
Accrued income taxes	258			648
Dividends payable	239			240
Current portion of reclamation and environmental obligations	191			207
Rio Tinto's share of joint venture cash flows	70			132
Current portion of debt	5			95
Total current liabilities	3,106			3,763
Long-term debt, less current portion	3,537			4,660
Deferred income taxes	3,265			2,873
Reclamation and environmental obligations, less current portion	2,123			2,071
Other liabilities	1,446			1,459
Total liabilities	13,477			14,826
Equity:
FCX stockholders’ equity:
Common stock	107			107
Capital in excess of par value	18,942			18,751
Accumulated deficit	(672		)	(2,590		)
Accumulated other comprehensive loss	(316		)	(323		)
Common stock held in treasury	(3,553		)	(3,441		)
Total FCX stockholders’ equity	14,508			12,504
Noncontrolling interests	2,594			2,056
Total equity	17,102			14,560
Total liabilities and equity	$	30,579		$	29,386




~~Freeport-McMoRan Copper & Gold Inc.~~
~~(Exact name of registrant as specified in its charter)~~



	FCX Stockholders’ Equity
	Common Stock								Accumu- lated Other Compre- hensive Loss			Common Stock Held in Treasury				Total FCX Stock-holders' Equity
	Number of Shares	At Par Value		Capital in Excess of Par Value		Accumu- lated Deficit			Accumu- lated Other Compre- hensive Loss			Number of Shares	At Cost			Total FCX Stock-holders' Equity			Non- controlling Interests			Total Equity
	(In millions)
Balance at December 31, 2010	1,067	$	107	$	18,751	$	(2,590	)	$	(323	)	122	$	(3,441	)	$	12,504		$	2,056		$	14,560
Exercised and issued stock-based awards	4	—		42		—			—			—	—			42			—			42
Stock-based compensation	—	—		68		—			—			—	—			68			—			68
Tax benefit for stock-based awards	—	—		14		—			—			—	—			14			—			14
Tender of shares for stock-based awards	—	—		67		—			—			1	(112		)	(45		)	—			(45		)
Dividends on common stock	—	—		—		(949		)	—			—	—			(949		)	—			(949		)
Dividends and distributions to noncontrolling interests	—	—		—		—			—			—	—			—			(195		)	(195		)
Contributions from noncontrolling interests	—	—		—		—			—			—	—			—			13			13
Comprehensive income:
Net income	—	—		—		2,867			—			—	—			2,867			720			3,587
Other comprehensive income, net of taxes:
Translation adjustment	—	—		—		—			1			—	—			1			—			1
Defined benefit plans:
Amortization of unrecognized amounts									6							6						6
Other comprehensive income	—	—		—		—			7			—	—			7			—			7
Total comprehensive income	—	—		—		—			—			—	—			2,874			720			3,594
Balance at June 30, 2011	1,071	$	107	$	18,942	$	(672	)	$	(316	)	123	$	(3,553	)	$	14,508		$	2,594		$	17,102

	FCX Stockholders’ Equity
										Accumu-
										lated			Common Stock
	Common Stock									Other			Held in Treasury					Total FCX
	Number				Capital in		Accumu-			Compre-			Number					Stock-			Non-
	of		At Par		Excess of		lated			hensive			of		At			holders’			controlling			Total
	Shares		Value		Par Value		Deficit			Loss			Shares		Cost			Equity			Interests			Equity

	(In millions)
Balance at December 31, 2010		1,067	$	107	$	18,751	$	(2,590	)	$	(323	)		122	$	(3,441	)	$	12,504		$	2,056		$	14,560
Exercised and issued stock-based
awards		3		-		24		-			-			-		-			24			-			24
Stock-based compensation		-		-		45		-			-			-		-			45			-			45
Tax benefit for stock-based awards		-		-		6		-			-			-		-			6			-			6
Tender of shares for stock-based
awards		-		-		67		-			-			1		(112	)		(45	)		-			(45	)
Dividends on common stock		-		-		-		(237	)		-			-		-			(237	)		-			(237	)
Dividends and distributions to
noncontrolling interests		-		-		-		-			-			-		-			-			(133	)		(133	)
Contributions from noncontrolling
interests		-		-		-		-			-			-		-			-			5			5
Comprehensive income:
Net income		-		-		-		1,499			-			-		-			1,499			362			1,861
Other comprehensive income,
net of taxes:
Unrealized gains on securities		-		-		-		-			1			-		-			1			-			1
Translation adjustment		-		-		-		-			1			-		-			1			-			1
Defined benefit plans:
Amortization of unrecognized
amounts		-		-		-		-			3			-		-			3			-			3
Other comprehensive income		-		-		-		-			5			-		-			5			-			5
Total comprehensive income		-		-		-		-			-			-		-			1,504			362			1,866
Balance at March 31, 2011		1,070	$	107	$	18,893	$	(1,328	)	$	(318	)		123	$	(3,553	)	$	13,801		$	2,290		$	16,091


a.	All outstanding 6¾% Mandatory Convertible Preferred Stock automatically converted on May 1, 2010, into FCX common stock.

b.
b.	Potential additional shares of common stock that were anti-dilutive totaled approximately ~~two million for first-quarter 2011 and approximately five million for first-quarter 2010.~~three million.


4.	INVENTORIES, INCLUDING LONG-TERM MILL AND LEACH STOCKPILES


a.	Primarily includes molybdenum concentrates, and copper concentrates, anodes, cathodes and rod.

b.
b.	Materials and supplies inventory is net of obsolescence reserves totaling ~~$25~~$23 million at ~~March 31,~~June 30, 2011, and ~~$26~~$26 million at December 31, ~~2010.~~2010.



	June 30, 2011		December 31, 2010
Current:
Mill stockpiles	$	5	$	35
Leach stockpiles	1,067		821
Total current mill and leach stockpiles	$	1,072	$	856
Long-term:^a
Mill stockpiles	$	503	$	470
Leach stockpiles	1,020		955
Total long-term mill and leach stockpiles	$	1,523	$	1,425


a.	Metals in stockpiles not expected to be recovered within the next 12 months.


1.	GENERAL INFORMATION


2.	EARNINGS PER SHARE


3.	PENSION AND POSTRETIREMENT BENEFITS


5.	INCOME TAXES

		Average Price
	Open	Per Unit				Maturities
	Positions	Contract		Market		Through
Embedded derivatives in provisional
sales contracts:
Copper (millions of pounds)	653	$	4.28	$	4.27	September 2011
Gold (thousands of ounces)	194		1,402		1,436	June 2011
Embedded derivatives in provisional
purchase contracts:
Copper (millions of pounds)	115		4.33		4.27	May 2011
Molybdenum (thousands of pounds)	24		15.04		14.69	April 2011



	Open	Average Price Per Unit				Maturities
	Positions	Contract		Market		Through
Embedded derivatives in provisional sales contracts:
Copper (millions of pounds)	646	$	4.16	$	4.27	December 2011
Gold (thousands of ounces)	163	1,522		1,508		September 2011
Embedded derivatives in provisional purchase contracts:
Copper (millions of pounds)	196	4.14		4.28		October 2011

a.
a.	FCX had paid $7$4 million at ~~March 31,~~June 30, 2011, and $3$3 million at December 31, 2010, for margin requirements (recorded in other current assets). In addition, FCX had received $8$8 million from a broker associated with margin requirements (recorded in accounts payable and accrued liabilities) at December 31, ~~2010.~~2010.


c.	Amounts recorded in accounts payable and accrued liabilities.


d.	Amounts recorded either as a net accounts receivable or a net accounts payable.


	Fair Value at March 31, 2011										Fair Value at June 30, 2011
	Total			Level 1			Level 2		Level 3		Total			Level 1			Level 2		Level 3
Assets
Cash equivalents:
Money market funds	$	3,793		$	3,793		$	-	$	-	$	4,112		$	4,112		$	—	$	—
Time deposits		208			208			-		-	190			190			—		—
Total cash equivalents		4,001			4,001			-		-	4,302			4,302			—		—

Restricted cash for early extinguishment of debt:
U.S. government treasury funds		1,168			1,168			-		-

Trust assets (current and long-term):
U.S. core fixed income funds		43			-			43		-	44			—			44		—
Government mortgage-backed securities		40			-			40		-	43			—			43		—
Corporate bonds		22			-			22		-	21			—			21		—
Asset-backed securities		19			-			19		-	18			—			18		—
Money market funds		12			12			-		-	12			12			—		—
Government bonds and notes		11			-			11		-	11			—			11		—
Municipal bonds		1			-			1		-	1			—			1		—
Total trust assets		148			12			136		-	150			12			138		—

Available-for-sale securities:
Time deposits		23			23			-		-	15			15			—		—
Equity securities		10			10			-		-	9			9			—		—
Money market funds		4			4			-		-	3			3			—		—
Total available-for-sale securities		37			37			-		-	27			27			—		—

Derivatives:
Embedded derivatives in provisional sales/purchases		58			58			-		-	85			85			—		—
Copper futures and swap contracts		6			6			-		-	10			10			—		—
Copper forward contracts		1			1			-		-
Total derivatives		65			65			-		-	95			95			—		—

Total assets	$	5,419		$	5,283		$	136	$	-	$	4,574		$	4,436		$	138	$	—

Liabilities
Derivatives:
Embedded derivatives in provisional sales/purchases	$	(52	)	$	(52	)	$	-	$	-	$	(43	)	$	(43	)	$	—	$	—
Copper forward contracts											(9		)	(9		)	—		—
Copper futures and swap contracts		(3	)		(3	)		-		-	(2		)	(2		)	—		—
Total derivative liabilities	$	(55	)	$	(55	)	$	-	$	-	$	(54	)	$	(54	)	$	—	$	—

	At March 31, 2011						At December 31, 2010
	Carrying			Fair			Carrying			Fair
	Amount			Value			Amount			Value
Cash and cash equivalentsa	$	4,090		$	4,090		$	3,738		$	3,738
Restricted cash for early extinguishment of debta		1,168			1,168			-			-
McMoRan Exploration Co. investmentb		496			658			500			623
Net embedded derivatives included in accounts
receivable or payablea		6			6			242			242
Trust assets (current and long-term)a, c		148			148			148			148
Available-for-sale securities (current and
long-term)a, c		37			37			34			34
Derivative assetsa, d		7			7			18			18
Derivatives included in accounts payable and
accrued liabilitiesa		(3	)		(3	)		(10	)		(10	)
Long-term debt (including amounts due
within one year)e		(4,752	)		(5,114	)		(4,755	)		(5,146	)

	Three Months Ended March 31, 2011						Three Months Ended March 31, 2010
					Operating						Operating
					Income						Income
		Revenues			(Loss)			Revenues			(Loss)
North America copper mines	$	1,348		$	714		$	1,054		$	508
South America mining		1,402			932			1,069			632
Indonesia mining		1,730			1,104			1,459			892
Africa mining		309			155			249			109
Molybdenum		374			115			275			73
Rod & Refining		1,487			4			1,073			4
Atlantic Copper Smelting & Refining		762			(19	)		633			(11	)
Corporate, other & eliminations		(1,703	)		(69	)		(1,449	)		(159	)
Total FCX	$	5,709		$	2,936		$	4,363		$	2,048


a.	Reflects molybdenum production from ~~our~~ Cerro ~~Verde copper mine.~~Verde. Sales of molybdenum are reflected in the Molybdenum division.


a.	Amounts represent the approximate average daily throughput processed at PT Freeport Indonesia’s mill facilities from each producing mine.


					Three Months Ended				Six Months Ended
	First Quarter				June 30,				June 30,
	2011		2010		2011		2010		2011		2010
Molybdenum (millions of recoverable pounds)
Productiona		10		9	9		11		19		20
Sales, excluding purchasesb		20		17	21		16		41		33
Average realized price per pound	$	18.10	$	15.09	$	18.16	$	18.18	$	18.13	$	16.62

Henderson molybdenum mine
Ore milled (metric tons per day)		23,400		23,200	22,000		22,800		22,700		23,000
Average molybdenum ore grade (percent)		0.24		0.23	0.24		0.25		0.24		0.24
Molybdenum production (millions of recoverable pounds)		10		9	9		11		19		20


b.	Includes sales of molybdenum produced at our North and South America copper mines.


b.	Reflects ~~molybdenum produced by~~production at the Henderson molybdenum mine.


a.	Includes cash at our parent company and other North America operations.

				(c) Total Number of	(d) Maximum Number
	(a) Total Number	(b) Average		Shares Purchased as Part	of Shares That May
	of Shares	Price Paid		of Publicly Announced	Yet Be Purchased Under
Period	Purchaseda	Per Share		Plans or Programsb	the Plans or Programsb
January 1-31, 2011	-	$	-	-	23,685,500
February 1-28, 2011	328,497	$	56.26	-	23,685,500
March 1-31, 2011	-	$	-	-	23,685,500
Total	328,497	$	56.26	-	23,685,500