Freeport updates on impacts from PT-FI labor strike

(September 21, 2011)-- Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) is providing this update on the status of PT Freeport Indonesia?s (PT-FI) Grasberg operations in Papua, Indonesia following a labor strike which began on September 15, 2011.

PT-FI is negotiating a two-year extension of its bi-annual Collective Labor Agreement which is scheduled for renewal on September 30, 2011. On September 15, 2011, PT-FI?s union workforce, which includes approximately 8,000 hourly employees, commenced a 30-day strike. There is no legal basis for the strike under Indonesian law.

PT-FI is committed to work in good faith with union leaders and representatives of the mediation team appointed by the Government of Indonesia to reach agreement on the new labor agreement and to restore normal operations. The compensation package being proposed by PT-FI is highly competitive and includes a substantial increase in base compensation, an enhanced bonus program, attractive retirement benefits and other benefits for the employees and their families.

The strike has limited mining, milling and concentrate shipping activities at PT-FI. Approximately 50% of the workforce, primarily contractors and non-union staff employees, have reported to work and are maintaining critical operations so that full operations can resume quickly upon conclusion of the strike. PT-FI is developing revised operating plans, which will be implemented during the strike, to begin increasing mining and milling rates with a reduced workforce.

The estimated impact of the work stoppage to aggregate daily production, including joint venture interests, approximates 3 million pounds of copper and 5 thousand ounces of gold for each day of the work stoppage. PT-FI is seeking to minimize the production and cost impacts associated with the strike.

FCX?s consolidated third quarter sales estimates, reported in July 2011, of 940 million pounds of copper and 415 thousand ounces of gold are expected to be unfavorably impacted by the strike. FCX will provide updated estimates as additional information becomes available about the duration of the strike and PT-FI?s mitigation efforts, including the effect of revised operating plans. (ends)