TENKE

FUNGURUMEMiningAnAffiliate of Freeport -McMoRan Copper & Gold

Tenke Fungurume Mining has invested more

than $ 3 billion in its copper and cobalt

operations in the Katanga Provinceof the Democratic Republic of

Congo (DRC ). It is the largest

private investment in the

country's history andan investment in the

futureofthe DRC.

ANINVESTMENTINTHE FUTURE OF THE

DEMOCRATIC REPUBLIC OF CONGO

TENKE FUNGURUMEMINING ( ) the largest copperproducer in the DemocraticRepublic of Congo (DRC), and theworld's premier cobalt producer. TFM began producing copper at itsoperationsin Katanga Province in 2009. The project offers a vitalsource of revenuefor regional and national development. TFM'soperationswere designed and constructedusing leading LOCATION 110 miles northwest of

edge technology and following international best Lubumbashi , Katanga Province, in the southeast of

practice standards for environmental management ,the DRC, on a concession of approximately

1,600squarekilometersoccupationalsafety and socialresponsibility.

In2013, TFM completedits second phase OWNERSHIP » Freeport-McMoran Copper & Gold Inc., 56 %expansion project, which included

optimizing the current plant and » Lundin Mining Corp., %

increasing mine , mill and La Générale des Carriéres et des Mines (Gécamines), 20%

processing capacity.

INVESTMENT TenkeFungurumeMining has investedmorethan US$3 billion in the projectand in

local and regionaldevelopmentinitiatives.

ECONOMIC BENEFITS Tenke Fungurume Mining has paid more than US $795 million in taxes , duties and otherpayments to the Government of the Democratic Republic of Congo since construction began in 2006 through the first half of

2013. More than 50% of the economic benefits of the project will remain in the DRC through taxes , royalties and dividends .

PRODUCTS Tenke FungurumeMiningproducescoppercathodesand cobalt hydroxide. Theseproductsare essentialbuildingblocksfor the globaleconomy. Our customersarethe industriesthat wirethe world and buildthe infrastructurethat surroundsus . Our metals

productsare vital to transportation, communications, construction, computers, medicalscienceandmanyemergingtechnologies.

MININGMETHOD Open-pit mining involvessurfaceminers, hydraulicshovels, front-end loadersand haultrucks. Followingcompletionof the Phase expansion, the mining rate is expectedto approximate140,000metrictons per day. Miningis conductedatfive open-pit

deposits, includingTenke, Kwatebala, Fwaulu, Shimbidiand Kabwemines.

ORE PROCESSING Mined ore is delivered to the processing plant , where it is crushed in a 24 ft. Semi - Autogenous Grinding (SAG ) mill

and sent through a multi -phase process to extract copper and cobalt . Process steps include agitated leaching , thickening and Counter

Current Decantation (CCD ). Solution Extraction / Electrowinning ( SX /EW ) is employed to produce copper sheets known as electrolytic copper

cathodes . Cobalt extraction involves a three -stage purification process to produce the product cobalt hydroxide .

METALS PRODUCTION As a result of the Phase expansion , the mill has a design capacity of 14,000 metric tons of ore per day,enabling an increase in copper production by 68,000 metric tons ( 150 million pounds ) to approximately 200,000 metric tons(430 million pounds) per year.

EXPLORATIONPOTENTIAL Drilling, explorationand metallurgicaltestingis being conductedto fully evaluatethe potentialof the

mineralsdistrict. Theseanalyses are being incorporatedinto future plans to evaluate opportunitiesfor expansion.

TenkeFungurumeOperations

AN INVESTMENT INTHE FUTURE

is committed

to managing the mine in away that benefits the local community,promotes good governance , respects local culture ,

minimizes disruption to the ecosystem and supports the evolutionof the country toward sound mineral development We view our project as aninvestment in the future of the Democratic Republic of Congo .

EMPLOYMENT

» hasapproximately3,400 full time employeesand approximately3,900contractors

» 98% of employeesare DRC citizens

» TFM prioritizes hiring local residents

» TFM'spolicyisto hire the mostqualifiedindividual, but in casesofequalqualificationor for non-andsemi- skilled positions, local residentsare

prioritized

» Employmentpoliciesare widelycommunicatedand compensationis competitivecomparedto other miningcompaniesin the DRC, and it far

average local wages

» supportscollectivebargaining, with 100% of fulltime employeescoveredby a collectivelaboragreement

EMPLOYEE HEALTH AND SAFETY

Nothing is more important than the health and safety of our workforce , our families and our communities . Everyone is responsible for safety inoperations . Our approach is to continuously improve our performance through implementing robust management systems and providing industryleading training , safety incentive and occupational health programs in line with our Safety and Health Policy.

Freeport - Safe Production " philosophy is demonstrated by the integration of safety practices in all aspects of our operational activities .

Independent health and safety audits are conducted at TFM every two years according to the Freeport-McMoran Health and Safety Audit Protocol .

TRAINING AND DEVELOPMENT PROGRAMS

The Training and Development Department's primary responsibility is to prepare theCompany's workforce to meet the skill and knowledge requirements of the Company'soperations . The Department has a second objective , which is to provide technicaltraining opportunities for local community members , such that the Company willhaveaccess to ever more skilled personnel from the local community for the life of the mineand beyond.

INVESTMENTS IN INFRASTRUCTURE

Though constructed for needs, the project has undertaken several significant

infrastructure improvements which will bring benefits at the provincial and nationallevels.

REHABILITATIONOF N'SEKEPOWERSTATION

TEM has investedUS $215 millionto renovatethe regionalhydro- electric power

station, includinginstallationof two transformersand the replacementand upgrade oftransmission lines and substations.

ROAD REHABILITATION

TEM contributed to major repairson the provincial highwaybetweenthe towns of

Fungurumeand Likasi in Katanga Province. Ongoing activitiesfocus on

maintenancework , including dust controlon major roads in the concession.

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SUSTAINABLE DEVELOPMENT

PROGRAMS

The concession has a host community comprised of an estimated 225,000 residents living in two urban centers which includes over 100 ruralvillages and settlements . working toward sustainable development in the mine's local concession and in the broader Democratic Republic ofCongo . The Company's efforts to fulfill its commitments are highly participatory and programs are focused on improving quality -of -life indicators firstdeveloped during the 2006 socio - economic baseline survey.

COMMUNITY DEVELOPMENT

The social development strategy includes the following aspects :

» Alignment of TFM programs with local, provincial and national developmentpriorities

>> Addressing basic community needs and infrastructure such as potable

water access to health care, basic education and economic development

» Creating employment opportunities and income generation for non-employeesthroughskillstraining, micro-credit facilities and agriculture

extensionsupport

» Building capacity among local community in partnership with

government and local NGOs for long-term ownership and sustainability

» Establishingthe life-of-mine SocialCommunityFund at a fundinglevel

equivalentto 0.3% of annual net metal revenuesEDUCATION

constructed six schools and refurbishedone and provides financial assistance for the running of six of these schools, serving the resettlementvillages and the urban centers of Tenke and Fungurume. This includes facilitating schooling for over 12,000 students and providing full scholarships to

72 concession students to attend the Mutoshi Technical Institute in Kolwezi. The schools are managed in partnership with local education providers.

SMALL AND MEDIUM ENTERPRISES ( SMEs )

community investment strategy includes providing members of the local community with opportunities to generate income through localbusiness development . Community Development team works with NGOs and other community and government institutions on programsincluding:

» In 2012, TFM procured$ 373 million in goods andservices from suppliersand contractors in

Katanga Province

:

Top: CommunityDevelopmentTeam

Bottom: Capacityprogramfor localentrepreneurs

3

COMMUNITYHEALTH

partneredwith local, provincialand national agenciesand organizationsto improvehealth in its area of operationthrough a comprehensiveCommunityHealthAction Plan( CHAP) . The programwas developed based on the results

of an extensivecommunityhealth baselinestudy in 2008.Elementsinclude:

CLEAN WATER AND SANITATION

baseline study revealed that waterborne

illness, lack of access to clean water and poor sanitationwere primarycauses of disease in the region. The company and its partners have addressed theseproblems through a number of clean water and sanitation initiatives, which have producedthe following results:

Constructionof 91 wells in 64 rural villages within the concession, and five outside theconcession in Bunkeya

Distributionof 2.3 million liters of potable water per day to residents in Fungurume viawater taps

Supportedthe establishmentof ACCEFFungurumeWaterManagementCommittee, a

watercooperativeoverseeingwaterdistributionin Fungurume

» Organization, assistance and capacity building for village - based water managementcommittees including the training of artisanal repair persons

Education and capacity building efforts to support community -participatoryconstruction of household/ shared pit latrines, hand-washing stations and waste

disposal pits to benefit morethan 2,400 households within the concession

These programshave resulted in the certificationof 30 communities as villages' to support the National Ministryof Health'sinitiativefor

Villages, Communities and Schools' . In 2013, GBCHealthrecognized achievementin communityclean water and sanitationas a wayto addressroot causes ofdiseaseand illness.

MALARIACONTROLAND PREVENTION

TFM launched an integrated malaria control program in 2008 to reduce the

incidence of the disease in the concession area . Program elements across theconcession include :

» Indoor residual spraying of houses, distribution and installation of more than

45,000insecticide-treatedbed nets

» Rivercleaninganddrainageimprovementsto control mosquitobreeding

» Prompttesting, diagnosis and treatment at clinics, schools and via mobilehealth program

Communitybased diagnosisand treatmentof Malariain two healthareasof

the Fungurume Health Zone

conductsa malaria prevalencesurveyamong local school children twice a

year (wet and dry seasons) to monitorthe impactof the program. October2012

survey resultsat the end of the dry seasonindicateda decreaseof71 percent

comparedto the 2007 baselinesurvey.

Photos:

Top : Clean Water Initiative provides potable water tothousands of residents across themining concession

Bottom : TFM's Malaria Control and Prevention Program hasprovided more than 45,000 insecticide-treated bed nets

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SUSTAINABLE DEVELOPMENT

PROGRAMS

SUPPORT FOR THE FUNGURUME HEALTH ZONE

, in partnership with the Fungurume Health Zone and its primary health contractorInternational SOS provides ongoing support and capacity building for local and regionalhealth centers . Programs include :

Construction of a new Community Health Clinic in Tenke

» Supportfor the DipetaClinic in Fungurume

Provision of a Mobile Health Clinic serving rural villages

» Implementation of a comprehensive HIV / AIDS program: awareness , prevention , careand support programs in partnership with USAID and PATH

Equipping of health facilities in cooperation with our partner Project CURE

AGRICULTURE DEVELOPMENT

TEM initiatives include creating opportunities and better yields for local farmers whilehelping to stabilize prices and improve regional food security and income at household level .

agronomists and third -party consultants provide ongoing training and support forlocalfarmers

» TFM offers credit facilities for purchasing fertilizer and improved seed varieties, resultingin a tripling of crop yields

SOCIALCOMMUNITYFUND

The Social Community Fund is registered as a DRC non- profit organization , and providescommunity grants to support development projects solicited from the community. Fundedby 0.3 % of net sales ,the Fund is governed by a Board of Directors comprised of ,Government and Community representatives . The Fund is managed by a Secretariat , who

consults a 40-member Stakeholder Forum on community development needs, priorities andproject funding decisions . Since its inception , the Fund has allocated nearly $10.7 million

to projects and spent approximately $5.2 million on projects such as: the construction ofseven new schools and the rehabilitation of an existing school including donating furniturefor the schools , construction of community centers and of health facilities in areas withoutcoverage , donation of an ambulance and hearse for the Fungurume Health Zone , drilling of

wells , rehabilitation of both agricultural and urban roads, capacity-building and training forthe members of the Stakeholder forum as well as traditional leaders and innovative pilot

projects for fish farming , maize production and riverside vegetable farming .

Photos

Top: TFM provides ongoing support for public healthfacilities across the concession areaMiddle: TFM agriculture support initiatives createopportunitiesfor better yields for local farmers

Bottom: One of many local schools recentlyrehabilitatedthrough the TFM Social Community Fund

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product control and

CONFLICT MINERALS custody procedures includea system for tracking copper

recognizes the international concern over and cobalt products from thetrade in mineralsthat are being sold in the DRC by rebel mine to the customer

groups and used to buy weapons to support regional militaryconflicts and acts of violence against civilians . The minerals commonly

referred to as “ conflict minerals , include tin, tantalum, tungsten and gold.a copper and cobalt mine, and copper and cobalt are not classified as " conflict mineralsunder the Dodd -Frank Act , OECD guidelines and other similar initiatives. maintainsproduct control and custody procedures to ensure that it mines , processes and sells only thoseminerals that originate in the Company's mining concession . These procedures include specificactions , in coordination with governmental authorities , to return and track ore mined illegallyon the concession by artisanal miners.The product control and custody procedures alsoinclude a system in place for tracking copper and cobalt products from the mine to the point oftransfer to the customer.

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601083464

ILLEGALARTISANAL MINING

Artisanal mining is widespread throughout the DRC, and these activities occur on the concession, where such activities are illegal under DRC

law. The greatest risks arising from artisanal mining remain safety and security of our employees and the local population, including the illegal minersthemselves. TFM engages with authorities and local communities to stem illegal mining, including the installation of control measures at the entry andexit points of the concession to interdict shipments of illegal product. long-term strategy in relationto artisanal mining continues to be support for

economic development and job creation in the region to provide communities with other opportunities for income generation.

HUMANRIGHTS

TEM does not tolerate human rights transgressions . TFM is committed to conducting its

operations in a manner consistent with the Universal Declaration of Human Rights andthe Voluntary Principles on Security and Human Rights . The Voluntary Principles serve as

the cornerstone of human rights and security program providing guidance for its

operations as well as a mechanism to promote engagement , awareness , and respect forhuman rights in the communities where the Company operates .

provides human rights education and training to its own employees and contractors who

are obligated to comply with the Human Rights Policy . In coordination with The United

Nations Organization Stabilization Mission in the DRC ( MONUSCO ), conducts ongoingsecurity and human rights training sessions with representatives of civil society, local and

territorial police forces , the Mines Police , and TFM employees to promote capacity buildingand awareness .

RESETTLEMENT

Due to the recentexpansionat accessto new land results in impactsto farmlandand households, and in many cases economic and/ or physicaldisplacementcannotbe avoided. developsand implementsa communityResettlementAction Plan ( RAP) for eachmine expansionsite. Theare basedon DRC law and InternationalFinanceCorporationperformancestandards, and also undergo an annual independentreview. Since theresettlementof three villages, composedof 374 households, and compensationand relocationof farmland associatedwith developmentof the Kwatebalaorebody in 2009, expansionof the plant and mining operationsto the TenkeFwaulu ore depositshas led to additionalphysicalresettlementof 70 residenthouseholds. These householdswere relocatedin 2011 and 2012. The RAP

program includes not only improvedhousing, but also livelihoodrestorationforany householdthat was economicallydisplaced, accessto clean water, healthcenters and schools. In addition, with the Tenke- Fwauluexpansion, nearly200farmerswere relocatedand entered into an livelihoodrestorationprogram.

Photos:

Middle: Human Rights training in coordination with MONUSCO

Bottom: The Joli Site relocation village near Tenke

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ENVIRONMENTAL

PROGRAMS

committed to preserving and enhancing biodiversity in theareas in which we operate , and has focused on minimizing impacts ,impact mitigation and continuous improvement of environmentalperformance. works with local communities as well as worldexperts to understand local flora and fauna and to enhance efforts to

preserve biodiversity

Environmental management is based on the objective of minimizing

environmental impacts through the use of risk management strategies ,and on compliance with regulatory requirements and voluntarycommitments . The environmental program at TFM aims to reduce oreliminate negative impacts and support biodiversity programs.has invested more than US $50 million in environmental protection.

BIODIVERSITYACTION PLAN

The BiodiversityAction Plan presents operationaland monitoringmeasuresto minimize the potential for impacts to flora by use of thefollowing tools

Conservationzones Nurseries

Artificialengineered' habitats banks

The Biodiversity Action Plan has been implemented with leading

scientists from Gembloux University in Belgium and faculty of theUniversity of Lubumbashi. Many endemic floral species have beensalvaged and transplanted from active ore bodies to conservation

areas, to an engineered ecosystem or to seed banks located withinthe DRC and internationally .

Other Environmental Management Program elements address :

Air quality and noise

» Storm water management

» Surface and groundwater quality

conservationand erosion control

management

Photos:

Top: Conservation of endemic plant habitat

Middle: Meteorological monitoring at the Kwatebala Mine

Bottom: TFM installed a permanent synthetic liner beneathits tailings storage facility, which was a first of its kind ata base metals mine in Africa

Tenke FungurumeMiningSARL

Luano CityRoute de l'AéroportLubumbashi, KatangaDRC

Email: TFMCommunications@fmi.com

www.fcx.com

TENKE

FUNGURUMEMiningAnAffiliate ofFreeport-McMoRan Copper & Gold SEPTEMBER 2013