8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  October 21, 2009

FREEPORT-McMoRan COPPER & GOLD INC.

(Exact name of registrant as specified in its charter)

Delaware	1-9916	74-2480931
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

One North Central Avenue
Phoenix, AZ	85004-4414
(Address of principal executive offices)	(Zip Code)

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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.  Results of Operations and Financial Condition.

Freeport-McMoRan Copper & Gold Inc. (FCX) issued a press release dated October 21, 2009, announcing its third-quarter and nine-month 2009 results and supplementary schedules (see exhibit 99.1) and presented slides on its web site that accompanied its October 21, 2009, earnings conference call (see exhibit 99.2).

Item 8.01.  Other Events.

FCX also issued a press release dated October 21, 2009, announcing that its Board of Directors has reinstated an annual cash dividend on its common stock of $0.60 per share.  The Board would declare a quarterly dividend of $0.15 per share, with the initial dividend expected to be paid on February 1, 2010 (see exhibit 99.3).

Item 9.01.  Financial Statements and Exhibits.

(d)  Exhibits.

The Exhibits included as part of this Current Report are listed in the attached Exhibit Index.

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:  October 21, 2009

Freeport-McMoRan Copper & Gold Inc.

Exhibit Index

Exhibit

Number

99.1	Press release dated October 21, 2009, titled “Freeport-McMoRan Copper & Gold Inc. Reports Third-Quarter and Nine-Month 2009 Results” and supplementary schedules.
99.2	Slides presented in conjunction with October 21, 2009, FCX third-quarter 2009 earnings conference call conducted via the internet.
99.3	Press release dated October 21, 2009, titled “Freeport-McMoRan Copper & Gold Inc. Reinstates Annual Cash Dividend on Common Stock of $0.60 per Share.”

EX-99.1

One North Central Avenue  §  Phoenix, AZ  85004	Financial Contacts:		Media Contact:
	Kathleen L. Quirk (602) 366-8016	David P. Joint (504) 582-4203	William L. Collier (504) 582-1750

Freeport-McMoRan Copper & Gold Inc. Reports

Third-Quarter and Nine-Month 2009 Results

§   Net income attributable to common stock for third-quarter 2009 was $925 million, $2.07 per share, compared with $523 million, $1.31 per share, for third-quarter 2008.  Net income attributable to common stock for the first nine months of 2009 was $1.6 billion, $3.70 per share, compared with $2.6 billion, $6.20 per share, for the first nine months of 2008.

§   Consolidated sales from mines for third-quarter 2009 totaled 1.0 billion pounds of copper, 706 thousand ounces of gold and 16 million pounds of molybdenum, compared with 1.0 billion pounds of copper, 307 thousand ounces of gold and 19 million pounds of molybdenum for third-quarter 2008.

§   Consolidated sales from mines for the year 2009 are expected to approximate 4.0 billion pounds of copper, 2.5 million ounces of gold and 56 million pounds of molybdenum, including 915 million pounds of copper, 425 thousand ounces of gold and 14 million pounds of molybdenumfor fourth-quarter 2009.

§   Consolidated unit net cash costs (net of by-product credits and excluding Tenke Fungurume) averaged $0.50 per pound for third-quarter 2009, compared with $1.29 per pound for third-quarter 2008.  Assuming average prices of $1,000 per ounce for gold and $10 per pound for molybdenum for the fourth quarter of 2009, consolidated unit net cash costs are estimated to average approximately $0.60 per pound for the year 2009.

§   Operating cash flows totaled $2.0 billion for third-quarter 2009 and $2.9 billion for the first nine months of 2009.  Using estimated sales volumes and assuming average prices of $2.75 per pound for copper, $1,000 per ounce for gold and $10 per pound for molybdenum for the fourth quarter of 2009, operating cash flows for the year 2009 are estimated to exceed $4.0 billion, net of $0.3 billion in working capital requirements.

§   Capital expenditures totaled $244 million for third-quarter 2009 and $1.1 billion for the first nine months of 2009.  FCX currently expects capital expenditures to approximate $1.4 billion for the year 2009, including $0.6 billion for sustaining capital and $0.8 billion for major projects.

§   At September 30, 2009, total debt approximated $6.6 billion and consolidated cash approximated $2.3 billion.  During the third quarter of 2009, FCX repaid $340 million of debt through the redemption of its 6⅞% Senior Notes due 2014 and made open market purchases totaling $191 million for its 8.25% and 8.375% senior notes.  Since September 30, 2009, FCX has made additional open-market debt purchases totaling $107 million.  These transactions reduced total debt by $638 million and will result in annual interest cost savings approximating $48 million.

§   Conversion of Preferred Stock.  During the third quarter of 2009, FCX called for redemption its5½% Convertible Perpetual Preferred Stock.  Holders of $831 million of FCX’s preferred stock converted their shares of preferred stock into 17.9 million common shares.  Annual preferred dividend savings approximate $46 million.

§   Common Stock Dividend.  FCX announced that its Board of Directors has reinstated an annual cash dividend on its common stock of $0.60 per share.  The Board would declare a quarterly dividend of $0.15 per share, with the initial dividend expected to be paid on February 1, 2010.

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PHOENIX, AZ, October 21, 2009 – Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) reported third-quarter 2009 net income attributable to common stock of $925 million, $2.07 per share, compared with $523 million, $1.31 per share, for the third quarter of 2008.  For the nine months ended September 30, 2009, FCX reported net income attributable to common stock of $1.6 billion, $3.70 per share, compared with $2.6 billion, $6.20 per share, in the 2008 nine-month period.

James R. Moffett, Chairman of the Board, and Richard C. Adkerson, President and Chief Executive Officer, said, “Our third-quarter results reflect strong operating performance, high volumes from our Grasberg mine and improved commodity prices for our products – copper, gold and molybdenum.  We are benefiting from improvements in our cost structure, particularly at our North America mines.  We are positioned to pursue additional investments and growth opportunities within our existing asset base, when economies in the developed countries recover.  Our strong performance in 2009 has enabled our Board to reinstate a cash dividend for our shareholders.  We will continue to focus our cash flows on strengthening our balance sheet, investing in our future growth and providing cash returns to shareholders.”

SUMMARY FINANCIAL AND OPERATING DATA

	Third Quarter				Nine Months
	2009		2008		2009		2008
Financial Data (in millions, except per share amounts)
Revenuesa	$4,144		$4,616		$10,430		$15,729
Operating income	$2,084		$1,133		$4,264		$5,582
Net income	$1,203		$742		$2,222		$3,531
Net income attributable to common stockb	$925	c	$523		$1,556	c	$2,592
Diluted net income per share of common stock	$2.07	c	$1.31		$3.70	c	$6.20
Diluted weighted-average common shares outstandingd	472		447		428		449
Operating cash flows	$1,954	e	$1,545	e	$2,850	e	$3,169	e
Capital expenditures	$244		$766		$1,138		$1,929
FCX Operating Data
Copper (millions of recoverable pounds)
Production	1,015		1,024		3,125		2,845
Sales, excluding purchased metal	1,000		1,016		3,122		2,869
Average realized price per pound	$2.75		$3.14		$2.35		$3.43
Site production and delivery unit costs per poundf	$1.15		$1.66		$1.08		$1.58
Unit net cash costs per poundf	$0.50		$1.29		$0.53		$1.21
Gold (thousands of recoverable ounces)
Production	708		300		2,105		825
Sales, excluding purchased metal	706		307		2,088		852
Average realized price per ounce	$987		$869		$944		$897
Molybdenum (millions of recoverable pounds)
Production	15		21		42		57
Sales, excluding purchased metal	16		19		42		59
Average realized price per pound	$13.95		$32.11		$11.93		$31.78

a.   Includes impacts of adjustments to provisionally priced concentrate and cathode sales recognized in prior periods (see discussion beginning on page 8).

b.   After noncontrolling interests and preferred dividends.

c.   Includes losses on early extinguishment of debt totaling $31 million ($28 million to net income attributable to common stock or $0.06 per share in third-quarter 2009 and $0.07 per share in the first nine months of 2009).

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d.   As applicable, diluted shares reflect the assumed conversion of FCX’s 5½% Convertible Perpetual Preferred Stock and 6¾% Mandatory Convertible Preferred Stock.  See footnote d on page IV.  In addition, the 2009 periods include 26.8 million shares of common stock sold in February 2009.

e.   Includes working capital sources (uses) of $450 million in third-quarter 2009, $568 million in third-quarter 2008, $(523) million in the first nine months of 2009 and $(1.5) billion in the first nine months of 2008.

f.   Reflects per pound weighted average site production and delivery unit costs and unit net cash costs, net of by-product credits and excluding Tenke Fungurume which is currently in start up.  For reconciliations of unit costs per pound by operating division to production and delivery costs reported in FCX’s consolidated financial statements, refer to the supplemental schedule, “Product Revenues and Production Costs,” beginning on page VII, which is available on FCX’s web site, “www.fcx.com.”

OPERATIONS

Consolidated.  Third-quarter 2009 consolidated copper sales of 1.0 billion pounds approximated third-quarter 2008 copper sales and were higher than the July 2009 estimate of 910 million pounds.  The variance to the previous estimate primarily reflects accelerated mining of a high-grade section in the Grasberg open pit previously forecast to be mined in future periods.

Third-quarter 2009 consolidated gold sales of 706 thousand ounces were significantly higher than third-quarter 2008 gold sales of 307 thousand ounces and the July 2009 estimate of 550 thousand ounces, reflecting accelerated mining of a high-grade section in the Grasberg open pit.

Consolidated molybdenum sales of 16 million pounds in the third quarter of 2009 were lower than third-quarter 2008 sales of 19 million pounds but were slightly higher than the July 2009 estimate of 15 million pounds.  The decline from the year-ago period reflects reduced demand for molybdenum in the metallurgical and chemical sectors.

Consolidated unit site production and delivery costs, excluding Tenke Fungurume, averaged $1.15 per pound of copper in third-quarter 2009, 31 percent lower than third-quarter 2008 unit costs of $1.66 per pound.  Third-quarter 2009 unit net cash costs, after by-product credits, of $0.50 per pound were significantly lower than the year-ago period of $1.29 per pound.  The improved unit cost performance primarily reflects higher ore grades at Grasberg, reduced operating rates at North America mining operations to lower production of high-cost incremental volumes, achievement of cost savings initiatives and operating efficiencies, and lower energy and other commodity-based input costs.

Assuming average prices of $2.75 per pound for copper, $1,000 per ounce for gold and $10 per pound for molybdenum for the fourth quarter of 2009, unit net cash costs are expected to average approximately $0.60 per pound for the year 2009.  Because of the impact of projected lower fourth-quarter 2009 copper and gold sales volumes from Grasberg, average unit net cash costs of $0.85 per pound for fourth-quarter 2009 are expected to be higher than third-quarter 2009 unit net cash costs.  FCX will incorporate Tenke Fungurume in its consolidated unit net cash cost disclosures upon completion of ramp-up activities, expected in 2010.

North America Copper Mines.  FCX operates five open-pit copper mines in North America (Morenci, Sierrita, Bagdad and Safford in Arizona and Tyrone in New Mexico).  By-product molybdenum is produced primarily at Sierrita and Bagdad.  All of the North America mining operations are wholly owned, except for Morenci.  FCX records its 85 percent joint venture interest in Morenci using the proportionate consolidation method.

	Third Quarter				Nine Months
North America Copper Mining Operations	2009		2008		2009		2008
Copper (millions of recoverable pounds)
Production		290		374		851		1,051
Sales, excluding purchased metal		303		361		885		1,047
Average realized price per pound	$	2.69	$	3.42	$	2.15	$	3.56
Molybdenum (millions of recoverable pounds)a
Production		7		7		20		22

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	Third Quarter						Nine Months
North America Copper Mining Operations	2009			2008			2009			2008
Unit net cash costs per pound of copper:
Site production and delivery, after adjustments	$	1.22		$	2.07		$	1.26		$	1.86
By-product credits, primarily molybdenum		(0.29	)		(0.65	)		(0.23	)		(0.71	)
Treatment charges		0.08			0.09			0.09			0.09
Unit net cash costsb	$	1.01		$	1.51		$	1.12		$	1.24

a.   Represents by-product production.  Sales of by-product molybdenum are reflected in the molybdenum division discussion on page 8.

b.   For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX’s consolidated financial statements, refer to the supplemental schedule, “Product Revenues and Production Costs,” beginning on page VII, which is available on FCX’s web site, “www.fcx.com.”

Consolidated copper sales in North America totaled 303 million pounds in the third quarter of 2009, 16 percent lower than third-quarter 2008 sales.  FCX continues to operate at reduced rates at certain of its North America copper mines in response to reduced demand for copper in the western world.

For the year 2009, FCX expects sales from North America copper mines to approximate 1.2 billion pounds of copper, compared with 1.4 billion pounds of copper for 2008.  By-product molybdenum production is expected to approximate 26 million pounds in 2009, compared with 30 million pounds in 2008.  North America copper production in 2010 is currently expected to approximate 1.0 billion pounds, reflecting impacts of reduced 2009 mining activities on 2010 leaching operations.

North America unit site production and delivery costs were significantly lower in the 2009 periods as compared with the 2008 periods primarily because of cost reduction and efficiency efforts, including the impact of lower operating rates and reduced input costs, primarily for energy.  These decreases were partly offset by changes in inventory, reflecting the impact of historical production in inventory with a higher cost basis.  Molybdenum by-product credits were significantly lower in the 2009 periods compared with the 2008 periods primarily because of lower molybdenum prices.

Based on current operating plans and assuming achievement of current sales estimates, an average molybdenum price of $10 per pound for the fourth quarter of 2009 and estimates for commodity-based input costs, FCX estimates that average unit net cash costs, including molybdenum credits, for its North America copper mines would approximate $1.12 per pound of copper for the year 2009.  Unit net cash costs for the year 2009 would change by approximately $0.003 per pound for each $1 per pound change in the average price of molybdenum for the fourth quarter of 2009.

Development Activities.  FCX is initiating activities to restart copper production at the Miami mine in Arizona.  These activities will improve efficiencies of ongoing reclamation projects associated with historical mining operations at the site.  During the approximate five-year mine life, FCX expects to ramp up production to approximately 100 million pounds of copper per year by the second half of 2011.  This project, which was initially expected to require a $100 million investment, was deferred in late 2008 in response to market conditions.  FCX intends to transfer existing mining equipment from other North American sites to reduce the investment in the project to approximately $40 million.  Operating plans at the other North American sites continue to be reviewed and additional adjustments will be made in response to changes in market conditions.

South America Copper Mines.  FCX operates four copper mines in South America – Cerro Verde in Peru and Candelaria, Ojos del Salado and El Abra in Chile.  FCX owns a 53.56 percent interest in Cerro Verde, an open-pit mine currently producing both electrowon copper cathodes and copper concentrates.  FCX owns 80 percent of the Candelaria and Ojos del Salado mining complexes, which include the Candelaria open-pit and underground mines and the Ojos del Salado underground mines.  These mines use common processing facilities to produce copper concentrates.  FCX owns a 51 percent interest in El Abra, an open-pit mine producing electrowon copper cathodes.  All operations in South America are consolidated in FCX’s financial statements.

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	Third Quarter						Nine Months
South America Copper Mining Operations	2009			2008			2009			2008
Copper (millions of recoverable pounds)
Production		340			394			1,046			1,116
Sales		327			391			1,040			1,122
Average realized price per pound	$	2.79		$	3.02		$	2.43		$	3.38
Gold (thousands of recoverable ounces)
Production		22			32			69			83
Sales		20			30			68			83
Average realized price per ounce	$	976		$	856		$	935		$	891
Unit net cash costs per pound of copper:
Site production and delivery, after adjustments	$	1.14		$	1.22		$	1.05		$	1.15
By-product credits, primarily gold		(0.10	)		(0.15	)		(0.11	)		(0.13	)
Treatment charges		0.15			0.09			0.15			0.16
Unit net cash costsa	$	1.19		$	1.16		$	1.09		$	1.18

a.   For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX’s consolidated financial statements, refer to the supplemental schedule, “Product Revenues and Production Costs,” beginning on page VII, which is available on FCX’s web site, “www.fcx.com.”

Consolidated copper sales in South America totaled 327 million pounds in the third quarter of 2009, 16 percent lower than third-quarter 2008 sales, primarily reflecting lower ore grades at Candelaria and downtime for mill maintenance at Cerro Verde.

For the year 2009, FCX expects South America sales of 1.4 billion pounds of copper and 100 thousand ounces of gold, compared with 1.5 billion pounds of copper and 116 thousand ounces of gold for 2008.  Projected sales volumes for the year 2009 are lower than the year 2008 because of the impact of lower ore grades at Candelaria.

South America unit site production and delivery costs were slightly lower in the 2009 periods as compared with the 2008 periods primarily because of lower input costs, primarily for energy.  Treatment charges were higher in the third quarter of 2009 compared with the third quarter of 2008 because the year-ago period was reduced by prior period adjustments related to the significant decline of copper prices in the third quarter of 2008.

Assuming achievement of current sales estimates and estimates for commodity-based input costs, FCX estimates that average unit net cash costs, including gold credits, for its South America copper mines would approximate $1.11 per pound of copper for the year 2009.

Development Activities.  FCX is resuming construction activities associated with the development of the sulfide ore at El Abra.  The project, which had been deferred as a result of market conditions at the end of 2008, involves the development of a large sulfide deposit that will extend the mine life by over ten years.  Production from the sulfide ore of approximately 300 million pounds of copper per year is expected to replace the current oxide copper production that is expected to decline over the next several years.  The project will utilize a portion of the existing facilities to process the additional sulfide ore.  The capital investment for this project is expected to total $600 million through 2015, including $450 million for the initial phase of the project that is expected to be completed in 2012.

FCX has also commenced a project to optimize throughput at the existing Cerro Verde concentrator operations.  The project is expected to increase mill throughput from 108,000 metric tons of ore per day to 120,000 metric tons per day, resulting in incremental annual production of approximately 30 million pounds of copper.  The capital investment for this project is expected to total approximately $50 million.  FCX continues to study the potential for a major expansion at Cerro Verde.

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Indonesia Mining.  Through its 90.64 percent owned and wholly consolidated subsidiary PT Freeport Indonesia (PT-FI), FCX operates the world’s largest copper and gold mine in terms of reserves at its Grasberg operations in Papua, Indonesia.

	Third Quarter						Nine Months
Indonesia Mining Operations	2009			2008			2009			2008
Copper (millions of recoverable pounds)
Production		331			256			1,138			678
Sales		330			264			1,131			700
Average realized price per pound	$	2.77		$	2.94		$	2.41		$	3.33
Gold (thousands of recoverable ounces)
Production		685			264			2,033			731
Sales		683			271			2,015			757
Average realized price per ounce	$	988		$	870		$	944		$	897
Unit net cash (credits) costs per pound of
copper:
Site production and delivery, after adjustments	$	1.10		$	1.76		$	0.98		$	1.84
Gold and silver credits		(2.10	)		(0.93	)		(1.74	)		(1.04	)
Treatment charges		0.24			0.24			0.22			0.28
Royalties		0.12			0.12			0.10			0.12
Unit net cash (credits) costsa	$	(0.64	)	$	1.19		$	(0.44	)	$	1.20

a.   For a reconciliation of unit net cash (credits) costs per pound to production and delivery costs applicable to sales reported in FCX’s consolidated financial statements, refer to the supplemental schedule, “Product Revenues and Production Costs,” beginning on page VII, which is available on FCX’s web site, “www.fcx.com.”

Indonesia copper and gold sales in the third quarter of 2009 were significantly higher than in the third quarter of 2008 as a result of mining of a higher ore grade section in the Grasberg open pit, including accelerated mining of a higher grade section previously scheduled to be mined in future periods.  At the Grasberg mine, the sequencing in mining areas with varying ore grades causes fluctuations in the timing of ore production, resulting in varying quarterly and annual sales of copper and gold.

FCX expects Indonesia sales of 1.4 billion pounds of copper and 2.4 million ounces of gold for the year 2009, compared with 1.1 billion pounds of copper and 1.2 million ounces of gold for 2008.  Gold sales for 2009 are expected to be 100 thousand ounces higher than the July 2009 estimate because of the accelerated mining of a section of the Grasberg mine previously expected to be mined in 2010.  Copper and gold sales volumes in the fourth quarter of 2009 are expected to be lower than third-quarter 2009 volumes because of mine sequencing.

PT-FI’s unit net cash (credits) costs, including gold and silver credits, averaged a net credit of $0.64 per pound of copper for the third quarter of 2009, compared with a net cost of $1.19 per pound for the third quarter of 2008.  The lower unit net cash costs in the 2009 periods primarily reflected higher copper and gold volumes.  Unit site production and delivery costs will vary with fluctuations in production volumes because of the primarily fixed nature of PT-FI’s cost structure.

Assuming achievement of current 2009 sales estimates, average gold prices of $1,000 per ounce for the fourth quarter of 2009 and current estimates for energy, currency exchange rates and other cost factors, FCX expects PT-FI’s average unit net cash costs per pound to approximate a net credit of $0.33 per pound for the year 2009.  Fourth-quarter 2009 unit net cash costs are expected to be higher than third-quarter and year-to-date 2009 average unit net cash costs because of lower projected sales volumes.  Unit net cash costs for 2009 would change by approximately $0.015 per pound for each $50 per ounce change in the average price of gold for the fourth quarter of 2009.

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Africa Mining.  FCX holds an effective 57.75 percent interest in the Tenke Fungurume copper and cobalt mining concessions in the Katanga province of the Democratic Republic of Congo (DRC) and is the operator of the project.Construction activities on the initial project are substantially complete.  Copper cathode production commenced in March 2009 and achieved targeted rates in September.  The cobalt plant and sulphuric acid plant were commissioned in the third quarter and start-up issues are being addressed.  The current operations are designed to produce 250 million pounds of copper and 18 million pounds of cobalt per year.  The following table presents Tenke Fungurume’s operating results for the periods ended September 30, 2009:

	Third		Nine
Africa Mining Operations	Quarter		Months
Copper (millions of recoverable pounds)
Production		54		90
Sales		40		66
Average realized price per pound	$	2.76	$	2.57

The high grades of copper and cobalt in the ore at Tenke Fungurume are expected to result in an attractive cost structure once the full operation reaches design capacity.  Upon reaching design capacity in the copper and cobalt circuits and assuming average cobalt prices of $10 per pound, average unit net cash costs are targeted to be $0.50 per pound of copper or lower.  Each $2 per pound change in average prices of cobalt would impact unit net cash costs by $0.12 per pound of copper.  Costs in the initial operations will be higher as start-up issues are addressed.  FCX will incorporate Tenke Fungurume in its unit net cash cost disclosures upon completion of ramp-up activities, expected in 2010.

FCX continues to engage in drilling activities, exploration analyses and metallurgical testing to evaluate the potential of the highly prospective district at Tenke Fungurume and expects its ore reserves to increase significantly over time.  These analyses are being incorporated in future plans to evaluate opportunities for expansion.  FCX plans to commence a feasibility study in the fourth quarter of 2009 to evaluate a second phase of the project, which would include optimizing the current plant and potentially increasing capacity by 50 percent.

The project was designed and constructed in a world-class fashion, using modern technology and following international standards for environmental management, occupational safety and social responsibility.  The facilities include impermeable lined tailing storage and waste-water treatment ponds, the first of their kind in the region.  FCX has made significant investments in infrastructure in the region that will have lasting benefits to the country, including upgrading a national road and the regional power generation and transmission systems.  FCX’s social and community development programs include development of local micro-enterprise businesses, agricultural capacity-building initiatives, malaria abatement programs, additional potable water wells, new medical facilities and several new schools.  The project will continue to provide important benefits to the Congolese through employment and the provision of local services and to the DRC government through substantial tax, royalty and dividend payments.

FCX is continuing to work cooperatively with the DRC government to resolve the ongoing contract review.  FCX believes its contract is fair and equitable, complies with Congolese law and is enforceable without modification.  The review process has not affected the development schedule or current operations.

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Molybdenum.  FCX is the world’s largest producer of molybdenum.  FCX conducts molybdenum mining operations at its wholly owned Henderson underground mine in Colorado and sells by-product molybdenum primarily from its North America copper mines.

	Third Quarter		Nine Months
Molybdenum Mining Operations	2009	2008	2009	2008
Molybdenum (millions of recoverable pounds)
Productiona	8	13	21	33
Sales, excluding purchased metalb	16	19	42	59
Average realized price per pound	$13.95	$32.11	$11.93	$31.78
Unit net cash costs per pound of
molybdenumc	$4.69	$4.90	$5.34	$4.99

a.   Amounts reflect production at the Henderson molybdenum mine.

b.   Includes sales of molybdenum produced as a by-product at the North and South America copper mines.

c.   For a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in FCX’s consolidated financial statements, refer to the supplemental schedule, “Product Revenues and Production Costs,” beginning on page VII, which is available on FCX’s web site, “www.fcx.com.”

In the third quarter of 2009, consolidated molybdenum sales from the Henderson mine and by-product mines totaled 16 million pounds, 16 percent lower than third-quarter 2008 sales.  Molybdenum markets have been significantly affected by the downturn in global economic conditions; as a result, FCX continues to operate its Henderson primary molybdenum mine at 60 percent of capacity.  However, molybdenum prices in recent months have improved from the $9.50 per pound level at the start of 2009.  FCX has restarted the molybdenum circuit at the Cerro Verde mine, which produced 3 million pounds in 2008, and will continue to review and adjust its operating plans to reflect market conditions.

For the year 2009, FCX expects molybdenum sales from its mines to approximate 56 million pounds, compared with 71 million pounds in 2008.  The weekly average Metals Week Molybdenum Dealer Oxide price as of October 20, 2009, was $12.25 per pound.

Unit net cash costs were lower in the third quarter of 2009 compared with the third quarter of 2008 primarily because of cost reduction efforts, partly offset by lower volumes.  Unit net cash costs were higher in the first nine months of 2009 compared with the first nine months of 2008, primarily because of lower volumes.  Assuming achievement of current 2009 sales estimates, FCX estimates 2009 average unit net cash costs for its Henderson mine will approximate $5.60 per pound of molybdenum.

EXPLORATION ACTIVITIES

FCX is conducting exploration activities near its existing mines with a focus on opportunities to expand reserves that will support additional future production capacity in the large mineral districts where it currently operates.  Significantly expanded drilling activities during 2007 and 2008 were successful in providing significant reserve additions and in identifying potential additional ore adjacent to existing ore bodies.  Results indicate opportunities for significant future potential reserve additions at Morenci, Sierrita and Bagdad in North America; Cerro Verde in South America and in the Tenke Fungurume district.

Exploration spending in 2009 is estimated to approximate $75 million, compared with $248 million in 2008.  FCX continues to analyze exploratory data gained through the core drilling previously undertaken in addition to conducting new activities.

PROVISIONAL PRICING AND OTHER

For the first nine months of 2009, approximately 56 percent of FCX’s mined copper was sold in concentrate, 23 percent as cathode and 21 percent as rod (principally from North America operations).  Under the long-established structure of sales agreements prevalent in the industry, substantially all of

8

FCX’s concentrate and cathode sales are provisionally priced at the time of shipment.  The provisional prices are finalized in a contractually specified future period (generally one to four months from the shipment date) primarily based on quoted London Metal Exchange (LME) prices.  Because a significant portion of FCX’s concentrate and cathode sales in any quarterly period usually remain subject to final pricing, the quarter-end forward price is a major determinant of recorded revenues and the average recorded copper price for the period.

At June 30, 2009, 434 million pounds of copper (net of intercompany sales, forward sales contracts and noncontrolling interests) were provisionally priced at an average of $2.25 per pound.  Adjustments to the June 30, 2009, provisionally priced copper sales (net of forward copper sales contracts) resulted in an increase to consolidated revenues of $237 million ($116 million to net income attributable to common stock or $0.25 per share) in the third quarter of 2009, compared with a decrease of $280 million ($126 million to net income attributable to common stock or $0.28 per share) in the third quarter of 2008.  Adjustments to prior year provisionally priced copper sales in the first nine months of 2009 resulted in an increase to consolidated revenues of $132 million ($61 million to net income attributable to common stock or $0.14 per share) in the 2009 nine-month period, compared with an increase of $268 million ($114 million to net income attributable to common stock or $0.25 per share) in the 2008 nine-month period.

LME copper prices averaged $2.65 per pound during the third quarter of 2009, compared with FCX’s recorded average price of $2.75 per pound.  Approximately half of FCX’s consolidated copper sales during the third quarter were provisionally priced at the time of shipment and are subject to final pricing over the next several months.  At September 30, 2009, FCX had copper sales of 398 million pounds of copper (net of intercompany sales and noncontrolling interests) priced at an average of $2.79 per pound, subject to final pricing over the next several months.  Each $0.05 change in the price from the September 30, 2009, price for provisionally priced sales would have an approximate $13 million effect on FCX’s 2009 net income attributable to common stock.  The LME closing settlement price for copper on October 20, 2009, was $2.92 per pound.

FCX defers recognizing profits on PT-FI’s and its South America sales to Atlantic Copper and on 25 percent of PT-FI’s sales to PT Smelting, PT-FI’s 25 percent-owned Indonesian smelting unit, until final sales to third parties occur.  Changes in these net deferrals resulted in reductions to FCX’s net income attributable to common stock totaling $29 million, $0.06 per share, in the third quarter of 2009 and $124 million, $0.29 per share, in the first nine months of 2009.  For the 2008 periods, changes in these net deferrals resulted in additions to FCX’s net income attributable to common stock of $33 million, $0.07 per share, in both the third quarter and in the first nine months of 2008.  At September 30, 2009, FCX’s net deferred profits on PT-FI and South America concentrate inventories at Atlantic Copper and PT Smelting to be recognized in future periods’ net income attributable to common stock totaled $152 million.

CASH, DEBT and EQUITY

At September 30, 2009, FCX had consolidated cash of $2.3 billion.  Net of noncontrolling interests’ share, taxes and other costs, cash available to parent company is $1.7 billion as shown below (in millions):

	September 30,
	2009
Cash at domestic companies	$	709	a
Cash at international operations		1,560
Total consolidated cash		2,269
Less: Noncontrolling interests’ share		(405	)
Cash, net of noncontrolling interests’ share		1,864
Withholding taxes and other		(185	)
Net cash available to parent company	$	1,679

a.   Includes cash at FCX’s parent and North America mining operations.

9

At September 30, 2009, FCX had $6.6 billion in debt.  FCX had no borrowings and $73 million of letters of credit issued under its revolving credit facilities, resulting in total availability of approximately $1.4 billion at September 30, 2009.

During the third quarter of 2009 and through October 20, 2009, FCX repaid $638 million in debt through the redemption of its 6⅞%Senior Notes due 2014 and open-market purchases of its 8.25% Senior Notes due 2015 and 8.375% Senior Notes due 2017 at a cost of $672 million.  Annual interest cost savings associated with these transactions approximate $48 million.  Losses on early extinguishments of debt totaled $31 million ($28 million to net income attributable to common stock or $0.06 per share in the third quarter of 2009 and $0.07 per share in the first nine months of 2009) for the third-quarter transactions and are expected to approximate $10 million ($9 million to net income attributable to common stock in the fourth quarter of 2009) for the recent October transactions.  FCX may consider additional opportunities to prepay debt in advance of scheduled maturities.

FCX’s debt maturities through 2011 are indicated in the table below (in millions).

2009	$	26
2010		20
2011		119
Total 2009 - 2011	$	165

In September 2009, FCX called for redemption its remaining shares of 5½% Convertible Perpetual Preferred Stock.  Of the 831,554 shares outstanding at the time of the call, 830,529 shares converted into 17.9 million shares of FCX common stock and the remaining 1,025 shares were redeemed for approximately $1 million cash.  The conversions and redemptions of these preferred shares will result in preferred dividend savings of approximately $46 million per year.

At September 30, 2009, FCX had 430 million common shares outstanding.  Assuming conversion of FCX’s 6¾% Mandatory Convertible Preferred Stock, which automatically convert on May 1, 2010, FCX would have between 469 million and 477 million common shares outstanding (depending on the applicable market price of FCX’s common stock).

OUTLOOK

Projected sales volumes for 2009 approximate 4.0 billion pounds of copper, 2.5 million ounces of gold and 56 million pounds of molybdenum, including 915 million pounds of copper, 425 thousand ounces of gold and 14 million pounds of molybdenum in the fourth quarter of 2009.  The achievement of FCX’s sales estimates will be dependent on the achievement of targeted mining rates, the successful operation of production facilities, the impact of weather conditions and other factors.

Operating cash flows totaled $2.0 billion for the third quarter of 2009 and $2.9 billion for the first nine months of 2009.  Using estimated sales volumes for 2009 and assuming average prices of $2.75 per pound of copper, $1,000 per ounce of gold and $10 per pound of molybdenum for the fourth quarter of 2009, FCX’s consolidated operating cash flows, net of an estimated $0.3 billion of working capital requirements, are estimated to exceed $4.0 billion in 2009.  Working capital requirements principally reflect final settlements with customers in early 2009 of prior year provisionally priced sales.  The impact of price changes on FCX’s operating cash flows over the fourth quarter of 2009 would approximate $80 million for each $0.10 per pound change for copper, $30 million for each $50 per ounce change for gold and $5 million for each $1 per pound change for molybdenum.

Capital expenditures totaled $244 million for the third quarter of 2009 and $1.1 billion for the first nine months of 2009.  FCX’s capital expenditures are currently estimated to approximate $1.4 billion for 2009 and $1.4 billion for 2010.  Capital expenditures for major projects in 2009 are expected to approximate $0.8 billion, which primarily includes Tenke Fungurume (substantially all of which has been funded through September 30, 2009) and underground development activities at Grasberg.  Capital expenditures for major projects in 2010 are expected to approximate $0.7 billion, which primarily includes underground development activities at Grasberg and the sulfide ore project at El Abra.  Capital spending plans will continue to be reviewed and adjusted in response to changes in market conditions and other factors.

10

FINANCIAL POLICY

FCX has a long-standing tradition of seeking to build shareholder values through pursuing development projects with high rates of return and returning cash to shareholders through common stock dividends and share purchases.  FCX is committed to maintaining a strong balance sheet.

FCX announced separately today that its Board has reinstated an annual cash dividend on its common stock of $0.60 per share.  The Board would declare a quarterly dividend of $0.15 per share, with the initial dividend expected to be paid on February 1, 2010.  The Board will continue to review FCX’s financial policy on an ongoing basis.

-----------------------------------------------------------------------

FCX is a leading international mining company with headquarters in Phoenix, Arizona.  FCX operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum.  FCX has a dynamic portfolio of operating, expansion and growth projects in the copper industry and is the world’s largest producer of molybdenum.

The company’s portfolio of assets includes the Grasberg mining complex, the world’s largest copper and gold mine in terms of recoverable reserves, significant mining operations in the Americas, including the large scale Morenci and Safford minerals districts in North America and the Cerro Verde and El Abra operations in South America, and the Tenke Fungurume minerals district in the DRC.  Additional information about FCX is available on FCX’s web site at “www.fcx.com.”

Cautionary Statement and Regulation G Disclosure:This press release contains forward-looking statements in which we discuss factors we believe may affect our performance in the future.  Forward-looking statements are all statements other than historical facts, such as statements regarding projected ore grades and milling rates, projected sales volumes, projected unit net cash costs, projected operating cash flows, projected capital expenditures, the impact of copper, gold, molybdenum and cobalt price changes, and potential prepayments of debt, future dividend payments and open market purchases of FCX common stock.  The declaration and payment of dividends is at the discretion of FCX’s Board of Directors and will depend on FCX’s financial results, cash requirements, future prospects, and other factors deemed relevant by the Board.  Accuracy of the forward-looking statements depends on assumptions about events that change over time and is thus susceptible to periodic change based on actual experience and new developments.  FCX cautions readers that it assumes no obligation to update the forward-looking statements in this press release and does not intend to update the forward-looking statements more frequently than quarterly.  Additionally, important factors that might cause future results to differ from results anticipated by forward-looking statements include mine sequencing, production rates, industry risks, commodity prices, political risks, the potential effects of the recent violence in Indonesia, potential outcomes of the contract review process in the Democratic Republic of Congo, weather-related risks, labor relations, currency translation risks and other factors described in FCX's Annual Report on Form 10-K for the year ended December 31, 2008, filed with the Securities and Exchange Commission (SEC) as updated by our subsequent filings with the SEC.

This press release also contains certain financial measures such as unit net cash costs per pound of copper and per pound of molybdenum.  As required by SEC Regulation G, reconciliations of these measures to amounts reported in FCX’s consolidated financial statements are in the supplemental schedule, “Product Revenues and Production Costs,” beginning on page VII, which is available on FCX’s web site, “www.fcx.com.”

A copy of this release is available on FCX’s web site at www.fcx.com.  A conference call with securities analysts about third-quarter 2009 results is scheduled for today at 10:00 a.m. Eastern Time.  The conference call will be broadcast on the Internet along with slides.  Interested parties may listen to the conference call live and view the slides by accessing “www.fcx.com”.  A replay of the webcast will be available through Friday, November 20, 2009.

# # #

11

FREEPORT-McMoRan COPPER & GOLD INC.
SELECTED OPERATING DATA
	Three Months Ended September 30,
COPPER	Production				Sales
(millions of recoverable pounds)	2009		2008		2009		2008
MINED COPPER (FCX’s net interest in %)
North America
Morenci (85%)	107	a	163	a	114	a	160	a
Bagdad (100%)	59		59		59		57
Sierrita (100%)	41		46		44		45
Safford (100%)	48		43		46		33
Tyrone (100%)	22		21		23		19
Chino (100%)	9		36		12		42
Miami (100%)	4		5		4		4
Other (100%)	-		1		1		1
Total North America	290		374		303		361
South America
Cerro Verde (53.56%)	161		174		157		173
Candelaria/Ojos del Salado (80%)	88		128		80		122
El Abra (51%)	91		92		90		96
Total South America	340		394		327		391
Indonesia
Grasberg (90.64%)	331	b	256	b	330	b	264	b
Africa
Tenke Fungurume (57.75%)	54		-		40		-
Consolidated	1,015		1,024		1,000		1,016
Less noncontrolling participants’ share	191		176		180		176
Net	824		848		820		840
Consolidated sales from mines					1,000		1,016
Purchased copper					47		122
Total consolidated sales					1,047		1,138
Average realized price per pound					$2.75		$3.14
GOLD
(thousands of recoverable ounces)
MINED GOLD (FCX’s net interest in %)
North America (100%)	1		4		3		6
South America (80%)	22		32		20		30
Indonesia (90.64%)	685	b	264	b	683	b	271	b
Consolidated	708		300		706		307
Less noncontrolling participants’ share	69		31		69		31
Net	639		269		637		276
Consolidated sales from mines					706		307
Purchased gold					-	c	-	c
Total consolidated sales					706		307
Average realized price per ounce					$987		$869
MOLYBDENUM
(millions of recoverable pounds)
MINED MOLYBDENUM (FCX’s net interest in %)
Henderson (100%)	8		13		N/A		N/A
By-product – North America (100%)	7	a	7	a	N/A		N/A
By-product – Cerro Verde (53.56%)	-		1		N/A		N/A
Consolidated	15		21		16		19
Less noncontrolling participants’ share	-		-	c	-	c	-	c
Net	15		21		16		19
Consolidated sales from mines					16		19
Purchased molybdenum					1		2
Total consolidated sales					17		21
Average realized price per pound					$13.95		$32.11
a.Amounts are net of Morenci’s joint venture partner’s 15 percent interest.
b.Amounts are net of Grasberg’s joint venture partner’s interest, which varies in accordance with the terms of the joint venture agreement.
c.Amount rounds to less than 1 million.

I

FREEPORT-McMoRan COPPER & GOLD INC.
SELECTED OPERATING DATA (continued)
	Nine Months Ended September 30,
COPPER	Production				Sales
(millions of recoverable pounds)	2009		2008		2009		2008
MINED COPPER (FCX’s net interest in %)
North America
Morenci (85%)	323	a	464	a	349	a	478	a
Bagdad (100%)	169		165		166		164
Sierrita (100%)	125		136		127		132
Safford (100%)	131		89		125		66
Tyrone (100%)	64		52		63		49
Chino (100%)	27		127		42		139
Miami (100%)	12		14		12		14
Other (100%)	-		4		1		5
Total North America	851		1,051		885		1,047
South America
Cerro Verde (53.56%)	497		519		498		522
Candelaria/Ojos del Salado (80%)	282		325		275		326
El Abra (51%)	267		272		267		274
Total South America	1,046		1,116		1,040		1,122
Indonesia
Grasberg (90.64%)	1,138	b	678	b	1,131	b	700	b
Africa
Tenke Fungurume (57.75%)	90		-		66		-
Consolidated	3,125		2,845		3,122		2,869
Less noncontrolling participants’ share	563		503		550		507
Net	2,562		2,342		2,572		2,362
Consolidated sales from mines					3,122		2,869
Purchased copper					138		423
Total consolidated sales					3,260		3,292
Average realized price per pound					$2.35		$3.43
GOLD
(thousands of recoverable ounces)
MINED GOLD (FCX’s net interest in %)
North America (100%)	3		11		5		12
South America (80%)	69		83		68		83
Indonesia (90.64%)	2,033	b	731	b	2,015	b	757	b
Consolidated	2,105		825		2,088		852
Less noncontrolling participants’ share	204		85		203		87
Net	1,901		740		1,885		765
Consolidated sales from mines					2,088		852
Purchased gold					-	c	1
Total consolidated sales					2,088		853
Average realized price per ounce					$944		$897
MOLYBDENUM
(millions of recoverable pounds)
MINED MOLYBDENUM (FCX’s net interest in %)
Henderson (100%)	21		33		N/A		N/A
By-product – North America (100%)	20	a	22	a	N/A		N/A
By-product – Cerro Verde (53.56%)	1		2		N/A		N/A
Consolidated	42		57		42		59
Less noncontrolling participants’ share	1		1		1		1
Net	41		56		41		58
Consolidated sales from mines					42		59
Purchased molybdenum					4		6
Total consolidated sales					46		65
Average realized price per pound					$11.93		$31.78
a.Amounts are net of Morenci’s joint venture partner’s 15 percent interest.
b.Amounts are net of Grasberg’s joint venture partner’s interest, which varies in accordance with the terms of the joint venture agreement.
c.Amount rounds to less than 1 million.

II

FREEPORT-McMoRan COPPER & GOLD INC.
SELECTED OPERATING DATA (continued)
	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2009	2008	2009	2008
100% North America Copper Mines Operating Data
Solution Extraction/Electrowinning (SX/EW) Operations
Leach ore placed in stockpiles (metric tons per day)	519,200	1,067,000	580,200	1,100,300
Average copper ore grade (percent)	0.30	0.23	0.30	0.22
Copper production (millions of recoverable pounds)	216	251	639	683
Mill Operations
Ore milled (metric tons per day)	166,300	247,900	172,500	249,800
Average ore grades (percent):
Copper	0.32	0.40	0.33	0.40
Molybdenum	0.03	0.02	0.03	0.02
Copper recovery rate (percent)	86.8	83.5	85.7	83.1
Production (millions of recoverable pounds):
Copper	93	151	270	450
Molybdenum (by-product)	7	7	20	22
100% South America Copper Mines Operating Data
SX/EW Operations
Leach ore placed in stockpiles (metric tons per day)	251,500	273,400	254,100	279,600
Average copper ore grade (percent)	0.46	0.45	0.45	0.44
Copper production (millions of recoverable pounds)	142	139	420	418
Mill Operations
Ore milled (metric tons per day)	174,200	189,800	181,000	179,300
Average ore grades (percent):
Copper	0.66	0.78	0.67	0.75
Molybdenum	0.02	0.02	0.02	0.02
Copper recovery rate (percent)	89.0	87.8	89.4	89.5
Production (millions of recoverable pounds):
Copper	198	255	626	698
Molybdenum	-	1	1	2
100% Indonesia Mining Operating Data
Ore milled (metric tons per day)	241,200	193,000	238,800	185,400
Average ore grades:
Copper (percent)	0.90	0.82	1.04	0.76
Gold (grams per metric ton)	1.33	0.61	1.32	0.59
Recovery rates (percent):
Copper	90.7	89.8	90.7	89.8
Gold	84.7	78.0	83.5	78.6
Production (recoverable):
Copper (millions of pounds)	385	274	1,298	725
Gold (thousands of ounces)	799	264	2,267	731
100% Africa Mining Operating Data
Ore milled (metric tons per day)	7,900	-	7,100	-
Average copper ore grade (percent)	3.66	-	3.44	-
Copper recovery rate (percent)	89.3	-	90.5	-
Copper production (millions of recoverable pounds)	54	-	90	-
100% Primary Molybdenum Operating Data
Henderson Molybdenum Mine Operations
Ore milled (metric tons per day)	17,600	27,800	14,800	26,500
Average molybdenum ore grade (percent)	0.26	0.25	0.26	0.23
Molybdenum production (millions of recoverable pounds)	8	13	21	33

III

FREEPORT-McMoRan COPPER & GOLD INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2009			2008			2009			2008
	(In Millions, Except Per Share Amounts)
Revenues	$	4,144	a	$	4,616	a	$	10,430	a	$	15,729	a
Cost of sales:
Production and delivery		1,715			2,857			5,086			8,294
Depreciation, depletion and amortization		252			442			740			1,322
Lower of cost or market inventory adjustments		-			17	b		19	b		22	b
Total cost of sales		1,967			3,316			5,845			9,638
Selling, general and administrative expenses		74			90			225			300
Exploration and research expenses		19			77			73			209
Restructuring and other charges		-			-			23	c		-
Total costs and expenses		2,060			3,483			6,166			10,147
Operating income		2,084			1,133			4,264			5,582
Interest expense, net		(162	)		(139	)		(451	)		(444	)
Losses on early extinguishment of debt		(31	)		-			(31	)		(6	)
Other income and expense, net		(7	)		(14	)		(24	)		10
Income before income taxes and equity in affiliated companies’
net earnings		1,884			980			3,758			5,142
Provision for income taxes		(684	)		(240	)		(1,557	)		(1,627	)
Equity in affiliated companies’ net earnings		3			2			21			16
Net income		1,203			742			2,222			3,531
Net income attributable to noncontrolling interests		(224	)		(155	)		(492	)		(748	)
Preferred dividends		(54	)		(64	)		(174	)		(191	)
Net income attributable to FCX common stockholders	$	925		$	523		$	1,556		$	2,592
Net income per share attributable to FCX common stockholders:
Basic	$	2.23		$	1.37		$	3.80		$	6.78
Diluted	$	2.07	d	$	1.31	d	$	3.70	d	$	6.20	d
Weighted-average common shares outstanding:
Basic		416			382			409			383
Diluted		472	d		447	d		428	d		449	d
Dividends declared per share of common stock	$	-		$	0.50		$	-		$	1.375

a.   Includes positive (negative) adjustments to provisionally priced copper sales recognized in prior periods, totaling $237 million in third-quarter 2009, $(280) million in third-quarter 2008, $132 million in the 2009 nine-month period and $268 million in the 2008 nine-month period.

b.   Relates to copper inventories for the 2008 periods and molybdenum inventories for the 2009 nine-month period.

c.   Relates to contract cancellation costs and staff reductions primarily at the Morenci mine, partially offset by gains related to pension and postretirement special benefits and curtailments.

d.   Reflects assumed conversion of FCX’s 5½% Convertible Perpetual Preferred Stock, resulting in the exclusion of dividends totaling $5 million in third-quarter 2009, $15 million in third-quarter 2008, $28 million in the 2009 nine-month period and $45 million in the 2008 nine-month period.  Also includes assumed conversion of FCX’s 6¾% Mandatory Convertible Preferred Stock, reflecting exclusion of dividends totaling $48 million in third-quarter 2009, $49 million in third-quarter 2008 and $146 million in the 2008 nine-month period.  The 6¾% Mandatory Convertible Preferred Stock was not dilutive for the nine months ended September 30, 2009, because the dilution threshold for the nine-month period is $3.72 per share. The assumed conversions result in the inclusion of 53 million common shares in third-quarter 2009, 17 million common shares in the 2009 nine-month period and 63 million common shares in each of the 2008 periods.  In addition, the 2009 periods include 26.8 million common shares sold in February 2009.

IV

FREEPORT-McMoRan COPPER & GOLD INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
	September 30,			December 31,
	2009			2008
	(In Millions)
ASSETS
Current assets:
Cash and cash equivalents	$	2,269		$	872
Trade accounts receivable		1,292			374
Income tax receivables		390			611
Other accounts receivable		174			227
Product inventories and materials and supplies, net		2,314			2,192
Mill and leach stockpiles		602			571
Other current assets		365			386
Total current assets		7,406			5,233
Property, plant, equipment and development costs, net		16,075			16,002
Long-term mill and leach stockpiles		1,294			1,145
Intangible assets, net		342			364
Trust assets		140			142
Other assets		448			467
Total assets	$	25,705		$	23,353
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	1,986		$	2,766
Accrued income taxes		940			163
Current portion of reclamation and environmental liabilities		187			162
Current portion of long-term debt and short-term borrowings		44			67
Total current liabilities		3,157			3,158
Long-term debt, less current portion:
Senior notes		6,350	a		6,884
Project financing, equipment loans and other		228			250
Revolving credit facility		-			150
Total long-term debt, less current portion		6,578			7,284
Deferred income taxes		2,660			2,339
Reclamation and environmental liabilities, less current portion		2,006			1,951
Other liabilities		1,370			1,520
Total liabilities		15,771			16,252
Equity:
FCX stockholders’ equity:
5½% Convertible Perpetual Preferred Stock		-			832
6¾% Mandatory Convertible Preferred Stock		2,875			2,875
Common stock		55			51
Capital in excess of par value		15,627			13,989
Accumulated deficit		(6,711	)		(8,267	)
Accumulated other comprehensive loss		(224	)		(305	)
Common stock held in treasury		(3,413	)		(3,402	)
Total FCX stockholders’ equity		8,209			5,773
Noncontrolling interests		1,725			1,328
Total equity		9,934			7,101
Total liabilities and equity	$	25,705		$	23,353

a.   On August 20, 2009, FCX redeemed the outstanding $340 million balance of its 6⅞% Senior Notes due 2014 for $352 million (equal to a redemption price of 103.438 percent).  During the third quarter of 2009, FCX purchased in the open market $99 million of its 8.25% Senior Notes due 2015 for $107 million (an average purchase price of 107.454 percent) and $92 million of its 8.375% Senior Notes due 2017 for $99 million (an average purchase price of 107.302 percent).  From October 1 through October 20, 2009, FCX purchased in the open market $42 million of its 8.25% Senior Notes for $45 million (an average purchase price of 107.640 percent) and $65 million of its 8.375% Senior Notes for $69 million (an average purchase price of 107.282 percent).

V

FREEPORT-McMoRan COPPER & GOLD INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
	Nine Months Ended
	September 30,
	2009			2008
	(In Millions)
Cash flow from operating activities:
Net income	$	2,222		$	3,531
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation, depletion and amortization		740			1,322
Lower of cost or market inventory adjustments		19			22
Stock-based compensation		75			113
Charges for reclamation and environmental liabilities, including accretion		150			141
Losses on early extinguishment of debt		31			6
Deferred income taxes		(32	)		(347	)
Intercompany profit on PT Freeport Indonesia sales to PT Smelting		47			(5	)
Increase in long-term mill and leach stockpiles		(68	)		(167	)
Changes in other assets and liabilities		136			35
Amortization of intangible assets/liabilities and other, net		53			59
(Increases) decreases in working capital:
Accounts receivable		(754	)		(198	)
Inventories		(176	)		(567	)
Other current assets		88			(58	)
Accounts payable and accrued liabilities		(518	)		(152	)
Accrued income and other taxes		913			(424	)
Settlement of reclamation and environmental liabilities		(76	)		(142	)
Net cash provided by operating activities		2,850			3,169
Cash flow from investing activities:
Capital expenditures:
North America copper mines		(121	)		(498	)
South America copper mines		(129	)		(229	)
Indonesia		(186	)		(332	)
Africa		(577	)		(698	)
Other		(125	)		(172	)
Proceeds from the sale of assets and other, net		(8	)		58
Net cash used in investing activities		(1,146	)		(1,871	)
Cash flow from financing activities:
Net proceeds from sale of common stock		740			-
Proceeds from revolving credit facility and other debt		307			183
Repayments of revolving credit facility and other debt		(1,066	)		(198	)
Purchases of FCX common stock		-			(500	)
Cash dividends paid:
Common stock		-			(504	)
Preferred stock		(181	)		(191	)
Noncontrolling interests		(149	)		(714	)
Net (payments for) proceeds from stock-based awards		(9	)		22
Excess tax benefit from stock-based awards		2			25
Contributions from noncontrolling interests		54			155
Bank fees and other		(5	)		-
Net cash used in financing activities		(307	)		(1,722	)
Net increase (decrease) in cash and cash equivalents		1,397			(424	)
Cash and cash equivalents at beginning of year		872			1,626
Cash and cash equivalents at end of period	$	2,269		$	1,202

VI

FREEPORT-McMoRan COPPER & GOLD INC.

PRODUCT REVENUES AND PRODUCTION COSTS

PRODUCT REVENUES AND UNIT NET CASH COSTS

Unit net cash costs per pound of copper and per pound of molybdenum are measures intended to provide investors with information about the cash-generating capacity of FCX’s mining operations expressed on a basis relating to the primary metal product for the respective operations.  FCX uses this measure for the same purpose and for monitoring operating performance by its mining operations.  This information differs from measures of performance determined in accordance with U.S. generally accepted accounting principles (GAAP) 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 FCX’s measures may not be comparable to similarly titled measures reported by other companies.

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

In both the by-product and the co-product method calculations, FCX shows adjustments to copper revenues for prior period open sales as separate line items.  Because the copper pricing adjustments do not result from current period sales, FCX has reflected these separately from revenues on current period sales.  Noncash and nonrecurring costs consist of items such as stock-based compensation costs, lower of cost or market inventory adjustments, write-offs of equipment or unusual charges.  They are removed from site production and delivery costs in the calculation of unit net cash costs.  As discussed above, gold, molybdenum and other metal revenues at copper mines are reflected as credits against site production and delivery costs in the by-product method.

VII

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
North America Copper Mines Product Revenues and Production Costs and Unit Net Cash Costs
Three Months Ended September 30, 2009
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Molybdenum a		Other b		Total
Revenues, excluding adjustments shown below	$	813		$	813		$	87	$	13	$	913
Site production and delivery, before net noncash
and nonrecurring costs shown below		370			331			43		7		381
By-product creditsa		(89	)		-			-		-		-
Treatment charges		24			24			-		-		24
Net cash costs		305			355			43		7		405
Depreciation, depletion and amortization		66			62			3		1		66
Noncash and nonrecurring costs, net		20			19			1		-		20
Total costs		391			436			47		8		491
Revenue adjustments, primarily for hedging		6			6			-		-		6
Idle facility and other non-inventoriable costs		(22	)		(22	)		-		-		(22	)
Gross profit	$	406		$	361		$	40	$	5	$	406
Copper sales (in million pounds)		302			302
Molybdenum sales (in million pounds)c								7
Gross profit per pound of copper and molybdenum:
Revenues, excluding adjustments shown below	$	2.69		$	2.69		$	13.58
Site production and delivery, before net noncash
and nonrecurring costs shown below		1.22			1.10			6.71
By-product credits		(0.29	)		-			-
Treatment charges		0.08			0.08			-
Unit net cash costs		1.01			1.18			6.71
Depreciation, depletion and amortization		0.22			0.20			0.53
Noncash and nonrecurring costs, net		0.07			0.07			0.05
Total unit costs		1.30			1.45			7.29
Revenue adjustments, primarily for hedging		0.02			0.02			-
Idle facility and other non-inventoriable costs		(0.07	)		(0.07	)		-
Gross profit per pound	$	1.34		$	1.19		$	6.29
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	913		$	381		$	66
Net noncash and nonrecurring costs per above		N/A			20			N/A
Treatment charges per above		N/A			24			N/A
Revenue adjustments, primarily for
hedging per above		6			N/A			N/A
Eliminations and other		1			26			4
North America copper mines		920			451			70
South America copper mines		1,018			379			67
Indonesia mining		1,656			369			64
Africa mining		113			89			20
Molybdenum		258			177			13
Rod & Refining		963			957			2
Atlantic Copper Smelting & Refining		495			493			9
Corporate, other & eliminations		(1,279	)		(1,200	)		7
As reported in FCX’s consolidated financial statements	$	4,144		$	1,715		$	252
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.
c.Reflects molybdenum produced by the North America copper mines.

VIII

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
North America Copper Mines Product Revenues and Production Costs and Unit Net Cash Costs
Three Months Ended September 30, 2008
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Molybdenum a			Other b		Total
Revenues, excluding adjustments shown below	$	1,236		$	1,236		$	231		$	22	$	1,489
Site production and delivery, before net noncash
and nonrecurring costs shown below		747			648			105			11		764
By-product creditsa		(236	)		-			-			-		-
Treatment charges		32			31			-			1		32
Net cash costs		543			679			105			12		796
Depreciation, depletion and amortization		188			167			19			2		188
Noncash and nonrecurring costs, net		33			31			1			1		33
Total costs		764			877			125			15		1,017
Revenue adjustments, primarily for hedging		(83	)		(83	)		-			-		(83	)
Idle facility and other non-inventoriable costs		(16	)		(15	)		(1	)		-		(16	)
Gross profit	$	373		$	261		$	105		$	7	$	373
Copper sales (in million pounds)		361			361
Molybdenum sales (in million pounds)c								7
Gross profit per pound of copper and molybdenum:
Revenues, excluding adjustments shown below	$	3.42		$	3.42		$	33.47
Site production and delivery, before net noncash
and nonrecurring costs shown below		2.07			1.79			15.30
By-product credits		(0.65	)		-			-
Treatment charges		0.09			0.09			-
Unit net cash costs		1.51			1.88			15.30
Depreciation, depletion and amortization		0.52			0.46			2.75
Noncash and nonrecurring costs, net		0.09			0.09			0.14
Total unit costs		2.12			2.43			18.19
Revenue adjustments, primarily for hedging		(0.23	)		(0.23	)		-
Idle facility and other non-inventoriable costs		(0.04	)		(0.04	)		(0.03	)
Gross profit per pound	$	1.03		$	0.72		$	15.25
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	1,489		$	764		$	188
Net noncash and nonrecurring costs per above		N/A			33			N/A
Treatment charges per above		N/A			32			N/A
Revenue adjustments, primarily for
hedging per above		(83	)		N/A			N/A
Eliminations and other		(4	)		18			6
North America copper mines		1,402			847	d		194
South America copper mines		1,008			497			123
Indonesia mining		802			470			52
Africa mining		-			-			1
Molybdenum		683			417			52
Rod & Refining		1,485			1,478			2
Atlantic Copper Smelting & Refining		625			611			9
Corporate, other & eliminations		(1,389	)		(1,446	)		9
As reported in FCX’s consolidated financial statements	$	4,616		$	2,874	d	$	442
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.
c.Reflects molybdenum produced by the North America copper mines.
d.Includes lower of cost or market copper inventory adjustments of $17 million.

IX

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
North America Copper Mines Product Revenues and Production Costs and Unit Net Cash Costs
Nine Months Ended September 30, 2009
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Molybdenum a		Other b		Total
Revenues, excluding adjustments shown below	$	1,908		$	1,908		$	206	$	29	$	2,143
Site production and delivery, before net noncash
and nonrecurring costs shown below		1,116			1,027			107		15		1,149
By-product creditsa		(202	)		-			-		-		-
Treatment charges		74			73			-		1		74
Net cash costs		988			1,100			107		16		1,223
Depreciation, depletion and amortization		197			188			7		2		197
Noncash and nonrecurring costs, net		107			105			2		-		107
Total costs		1,292			1,393			116		18		1,527
Revenue adjustments, primarily for hedging		94			94			-		-		94
Idle facility and other non-inventoriable costs		(84	)		(84	)		-		-		(84	)
Gross profit	$	626		$	525		$	90	$	11	$	626
Copper sales (in million pounds)		885			885
Molybdenum sales (in million pounds)c								20
Gross profit per pound of copper and molybdenum:
Revenues, excluding adjustments shown below	$	2.15		$	2.15		$	10.52
Site production and delivery, before net noncash
and nonrecurring costs shown below		1.26			1.16			5.46
By-product credits		(0.23	)		-			-
Treatment charges		0.09			0.09			-
Unit net cash costs		1.12			1.25			5.46
Depreciation, depletion and amortization		0.22			0.21			0.37
Noncash and nonrecurring costs, net		0.12			0.12			0.08
Total unit costs		1.46			1.58			5.91
Revenue adjustments, primarily for hedging		0.11			0.11			-
Idle facility and other non-inventoriable costs		(0.09	)		(0.09	)		-
Gross profit per pound	$	0.71		$	0.59		$	4.61
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	2,143		$	1,149		$	197
Net noncash and nonrecurring costs per above		N/A			107			N/A
Treatment charges per above		N/A			74			N/A
Revenue adjustments, primarily for
hedging per above		94			N/A			N/A
Eliminations and other		4			135			12
North America copper mines		2,241			1,465			209
South America copper mines		2,604			1,112			201
Indonesia mining		4,388			1,134			207
Africa mining		170			197			37
Molybdenum		590			477	d		35
Rod & Refining		2,329			2,314			6
Atlantic Copper Smelting & Refining		1,202			1,205			26
Corporate, other & eliminations		(3,094	)		(2,799	)		19
As reported in FCX’s consolidated financial statements	$	10,430		$	5,105	d	$	740
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.
c.Reflects molybdenum produced by the North America copper mines.
d.Includes lower of cost or market molybdenum inventory adjustments of $19 million.

X

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
North America Copper Mines Product Revenues and Production Costs and Unit Net Cash Costs
Nine Months Ended September 30, 2008
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Molybdenum a			Other b		Total
Revenues, excluding adjustments shown below	$	3,721		$	3,721		$	720		$	59	$	4,500
Site production and delivery, before net noncash
and nonrecurring costs shown below		1,936			1,684			265			26		1,975
By-product creditsa		(740	)		-			-			-		-
Treatment charges		100			97			-			3		100
Net cash costs		1,296			1,781			265			29		2,075
Depreciation, depletion and amortization		551			490			56			5		551
Noncash and nonrecurring costs, net		83			79			3			1		83
Total costs		1,930			2,350			324			35		2,709
Revenue adjustments, primarily for hedging		(28	)		(28	)		-			-		(28	)
Idle facility and other non-inventoriable costs		(43	)		(42	)		(1	)		-		(43	)
Gross profit	$	1,720		$	1,301		$	395		$	24	$	1,720
Copper sales (in million pounds)		1,044			1,044
Molybdenum sales (in million pounds)c								22
Gross profit per pound of copper and molybdenum:
Revenues, excluding adjustments shown below	$	3.56		$	3.56		$	33.01
Site production and delivery, before net noncash
and nonrecurring costs shown below		1.86			1.61			12.14
By-product credits		(0.71	)		-			-
Treatment charges		0.09			0.09			-
Unit net cash costs		1.24			1.70			12.14
Depreciation, depletion and amortization		0.53			0.47			2.57
Noncash and nonrecurring costs, net		0.08			0.08			0.15
Total unit costs		1.85			2.25			14.86
Revenue adjustments, primarily for hedging		(0.03	)		(0.03	)		-
Idle facility and other non-inventoriable costs		(0.04	)		(0.04	)		(0.03	)
Gross profit per pound	$	1.64		$	1.24		$	18.12
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	4,500		$	1,975		$	551
Net noncash and nonrecurring costs per above		N/A			83			N/A
Treatment charges per above		N/A			100			N/A
Revenue adjustments, primarily for
hedging per above		(28	)		N/A			N/A
Eliminations and other		(3	)		58			14
North America copper mines		4,469			2,216	d		565
South America copper mines		4,043			1,391			380
Indonesia mining		2,870			1,308			145
Africa mining		-			12			3
Molybdenum		2,117			1,298			160
Rod & Refining		4,856			4,831			5
Atlantic Copper Smelting & Refining		2,014			1,960			27
Corporate, other & eliminations		(4,640	)		(4,700	)		37
As reported in FCX’s consolidated financial statements	$	15,729		$	8,316	d	$	1,322
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.
c.Reflects molybdenum produced by the North America copper mines.
d.Includes lower of cost or market copper inventory adjustments of $22 million.

XI

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
South America Copper Mines Product Revenues and Production Costs and Unit Net Cash Costs
Three Months Ended September 30, 2009
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Other a		Total
Revenues, excluding adjustments shown below	$	912		$	912		$	33	$	945
Site production and delivery, before net noncash
and nonrecurring costs shown below		372			357			15		372
By-product credits		(33	)		-			-		-
Treatment charges		50			50			-		50
Net cash costs		389			407			15		422
Depreciation, depletion and amortization		67			65			2		67
Noncash and nonrecurring costs, net		4			4			-		4
Total costs		460			476			17		493
Revenue adjustments, primarily for pricing
on prior period open sales		123			123			-		123
Other non-inventoriable costs		(8	)		(8	)		-		(8	)
Gross profit	$	567		$	551		$	16	$	567
Copper sales (in million pounds)		327			327
Gross profit per pound of copper:
Revenues, excluding adjustments shown below	$	2.79		$	2.79
Site production and delivery, before net noncash
and nonrecurring costs shown below		1.14			1.09
By-product credits		(0.10	)		-
Treatment charges		0.15			0.15
Unit net cash costs		1.19			1.24
Depreciation, depletion and amortization		0.20			0.20
Noncash and nonrecurring costs, net		0.01			0.02
Total unit costs		1.40			1.46
Revenue adjustments, primarily for pricing
on prior period open sales		0.37			0.37
Other non-inventoriable costs		(0.03	)		(0.02	)
Gross profit per pound	$	1.73		$	1.68
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	945		$	372		$	67
Net noncash and nonrecurring costs per above		N/A			4			N/A
Less: Treatment charges per above		(50	)		N/A			N/A
Revenue adjustments, primarily for pricing on prior
period open sales per above		123			N/A			N/A
Eliminations and other		-			3			-
South America copper mines		1,018			379			67
North America copper mines		920			451			70
Indonesia mining		1,656			369			64
Africa mining		113			89			20
Molybdenum		258			177			13
Rod & Refining		963			957			2
Atlantic Copper Smelting & Refining		495			493			9
Corporate, other & eliminations		(1,279	)		(1,200	)		7
As reported in FCX’s consolidated financial statements	$	4,144		$	1,715		$	252
a.Includes gold and silver product revenues and production costs.

XII

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
South America Copper Mines Product Revenues and Production Costs and Unit Net Cash Costs
Three Months Ended September 30, 2008
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Other a			Total
Revenues, excluding adjustments shown below	$	1,181		$	1,181		$	62		$	1,243
Site production and delivery, before net noncash
and nonrecurring costs shown below		476			453			27			480
By-product credits		(58	)		-			-			-
Treatment charges		36			36			-			36
Net cash costs		454			489			27			516
Depreciation, depletion and amortization		122			117			5			122
Noncash and nonrecurring costs, net		13			12			1			13
Total costs		589			618			33			651
Revenue adjustments, primarily for pricing
on prior period open sales		(198	)		(198	)		-			(198	)
Other non-inventoriable costs		(5	)		(4	)		(1	)		(5	)
Gross profit	$	389		$	361		$	28		$	389
Copper sales (in million pounds)		391			391
Gross profit per pound of copper:
Revenues, excluding adjustments shown below	$	3.02		$	3.02
Site production and delivery, before net noncash
and nonrecurring costs shown below		1.22			1.16
By-product credits		(0.15	)		-
Treatment charges		0.09			0.09
Unit net cash costs		1.16			1.25
Depreciation, depletion and amortization		0.32			0.30
Noncash and nonrecurring costs, net		0.03			0.03
Total unit costs		1.51			1.58
Revenue adjustments, primarily for pricing
on prior period open sales		(0.51	)		(0.51	)
Other non-inventoriable costs		(0.01	)		(0.01	)
Gross profit per pound	$	0.99		$	0.92
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	1,243		$	480		$	122
Net noncash and nonrecurring costs per above		N/A			13			N/A
Less: Treatment charges per above		(36	)		N/A			N/A
Revenue adjustments, primarily for pricing on prior
period open sales per above		(198	)		N/A			N/A
Eliminations and other		(1	)		4			1
South America copper mines		1,008			497			123
North America copper mines		1,402			847	b		194
Indonesia mining		802			470			52
Africa mining		-			-			1
Molybdenum		683			417			52
Rod & Refining		1,485			1,478			2
Atlantic Copper Smelting & Refining		625			611			9
Corporate, other & eliminations		(1,389	)		(1,446	)		9
As reported in FCX’s consolidated financial statements	$	4,616		$	2,874	b	$	442
a.Includes gold, silver and molybdenum product revenues and production costs.
b.Includes lower of cost or market copper inventory adjustments of $17 million.

XIII

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
South America Copper Mines Product Revenues and Production Costs and Unit Net Cash Costs
Nine Months Ended September 30, 2009
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Other a			Total
Revenues, excluding adjustments shown below	$	2,530		$	2,530		$	117		$	2,647
Site production and delivery, before net noncash
and nonrecurring costs shown below		1,088			1,026			68			1,094
By-product credits		(111	)		-			-			-
Treatment charges		152			152			-			152
Net cash costs		1,129			1,178			68			1,246
Depreciation, depletion and amortization		201			194			7			201
Noncash and nonrecurring costs, net		7			8			(1	)		7
Total costs		1,337			1,380			74			1,454
Revenue adjustments, primarily for pricing
on prior period open sales		108			108			-			108
Other non-inventoriable costs		(25	)		(21	)		(4	)		(25	)
Gross profit	$	1,276		$	1,237		$	39		$	1,276
Copper sales (in million pounds)		1,040			1,040
Gross profit per pound of copper:
Revenues, excluding adjustments shown below	$	2.43		$	2.43
Site production and delivery, before net noncash
and nonrecurring costs shown below		1.05			0.99
By-product credits		(0.11	)		-
Treatment charges		0.15			0.14
Unit net cash costs		1.09			1.13
Depreciation, depletion and amortization		0.19			0.19
Noncash and nonrecurring costs, net		0.01			0.01
Total unit costs		1.29			1.33
Revenue adjustments, primarily for pricing
on prior period open sales		0.11			0.11
Other non-inventoriable costs		(0.02	)		(0.02	)
Gross profit per pound	$	1.23		$	1.19
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	2,647		$	1,094		$	201
Net noncash and nonrecurring costs per above		N/A			7			N/A
Less: Treatment charges per above		(152	)		N/A			N/A
Revenue adjustments, primarily for pricing on prior
period open sales per above		108			N/A			N/A
Eliminations and other		1			11			-
South America copper mines		2,604			1,112			201
North America copper mines		2,241			1,465			209
Indonesia mining		4,388			1,134			207
Africa mining		170			197			37
Molybdenum		590			477	b		35
Rod & Refining		2,329			2,314			6
Atlantic Copper Smelting & Refining		1,202			1,205			26
Corporate, other & eliminations		(3,094	)		(2,799	)		19
As reported in FCX’s consolidated financial statements	$	10,430		$	5,105	b	$	740
a.Includes gold, silver and molybdenum product revenues and production costs.
b.Includes lower of cost or market molybdenum inventory adjustments of $19 million.

XIV

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
South America Copper Mines Product Revenues and Production Costs and Unit Net Cash Costs
Nine Months Ended September 30, 2008
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Other a			Total
Revenues, excluding adjustments shown below	$	3,794		$	3,794		$	167		$	3,961
Site production and delivery, before net noncash
and nonrecurring costs shown below		1,294			1,243			64			1,307
By-product credits		(154	)		-			-			-
Treatment charges		180			180			-			180
Net cash costs		1,320			1,423			64			1,487
Depreciation, depletion and amortization		379			365			14			379
Noncash and nonrecurring costs, net		69			68			1			69
Total costs		1,768			1,856			79			1,935
Revenue adjustments, primarily for pricing
on prior period open sales		232			232			-			232
Other non-inventoriable costs		(24	)		(22	)		(2	)		(24	)
Gross profit	$	2,234		$	2,148		$	86		$	2,234
Copper sales (in million pounds)		1,122			1,122
Gross profit per pound of copper:
Revenues, excluding adjustments shown below	$	3.38		$	3.38
Site production and delivery, before net noncash
and nonrecurring costs shown below		1.15			1.11
By-product credits		(0.13	)		-
Treatment charges		0.16			0.16
Unit net cash costs		1.18			1.27
Depreciation, depletion and amortization		0.34			0.32
Noncash and nonrecurring costs, net		0.06			0.06
Total unit costs		1.58			1.65
Revenue adjustments, primarily for pricing
on prior period open sales		0.21			0.21
Other non-inventoriable costs		(0.02	)		(0.03	)
Gross profit per pound	$	1.99		$	1.91
Reconciliation to Amounts Reported							Depreciation,
				Production			Depletion and
(In Millions)	Revenues			and Delivery			Amortization
Totals presented above	$	3,961		$	1,307		$	379
Net noncash and nonrecurring costs per above		N/A			69			N/A
Less: Treatment charges per above		(180	)		N/A			N/A
Revenue adjustments, primarily for pricing on prior
period open sales per above		232			N/A			N/A
Eliminations and other		30			15			1
South America copper mines		4,043			1,391			380
North America copper mines		4,469			2,216	b		565
Indonesia mining		2,870			1,308			145
Africa mining		-			12			3
Molybdenum		2,117			1,298			160
Rod & Refining		4,856			4,831			5
Atlantic Copper Smelting & Refining		2,014			1,960			27
Corporate, other & eliminations		(4,640	)		(4,700	)		37
As reported in FCX’s consolidated financial statements	$	15,729		$	8,316	b	$	1,322
a.Includes gold, silver and molybdenum product revenues and production costs.
b.Includes lower of cost or market copper inventory adjustments of $22 million.

XV

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Indonesia Mining Product Revenues and Production Costs and Unit Net Cash Costs
Three Months Ended September 30, 2009
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Gold			Silver			Total
Revenues, excluding adjustments shown below	$	917		$	917		$	678		$	17		$	1,612
Site production and delivery, before net noncash
and nonrecurring costs shown below		365			208			153			4			365
Gold and silver credits		(695	)		-			-			-			-
Treatment charges		79			45			33			1			79
Royalty on metals		39			22			17			-			39
Net cash (credits) costs		(212	)		275			203			5			483
Depreciation and amortization		64			37			27			-			64
Noncash and nonrecurring costs, net		4			2			2			-			4
Total (credits) costs		(144	)		314			232			5			551
Revenue adjustments, primarily for pricing on
prior period open sales		162			162			-			-			162
PT Smelting intercompany profit		(10	)		(5	)		(4	)		(1	)		(10	)
Gross profit	$	1,213		$	760		$	442		$	11		$	1,213
Sales
Copper (in million pounds)		330			330
Gold (in thousand ounces)								683
Silver (in thousand ounces)											1,105
Gross profit per pound of copper/per ounce of gold and silver:
Revenues, excluding adjustments shown below	$	2.77		$	2.77		$	987.55		$	15.54
Site production and delivery, before net noncash
and nonrecurring costs shown below		1.10			0.63			224.69			3.51
Gold and silver credits		(2.10	)		-			-			-
Treatment charges		0.24			0.13			48.33			0.76
Royalty on metals		0.12			0.07			24.24			0.38
Unit net cash (credits) costs		(0.64	)		0.83			297.26			4.65
Depreciation and amortization		0.20			0.11			39.82			0.62
Noncash and nonrecurring costs, net		0.01			0.01			2.42			0.04
Total unit (credits) costs		(0.43	)		0.95			339.50			5.31
Revenue adjustments, primarily for pricing on
prior period open sales		0.49			0.49			4.80			(0.02	)
PT Smelting intercompany profit		(0.02	)		(0.01	)		(5.65	)		(0.09	)
Gross profit per pound/ounce	$	3.67		$	2.30		$	647.20		$	10.12
Reconciliation to Amounts Reported				Production			Depreciation,
				and			Depletion and
(In Millions)	Revenues			Delivery			Amortization
Totals presented above	$	1,612		$	365		$	64
Net noncash and nonrecurring costs per above		N/A			4			N/A
Less:    Treatment charges per above		(79	)		N/A			N/A
Royalty on metals per above		(39	)		N/A			N/A
Revenue adjustments, primarily for pricing on
prior period open sales per above		162			N/A			N/A
Indonesia mining		1,656			369			64
North America copper mines		920			451			70
South America copper mines		1,018			379			67
Africa mining		113			89			20
Molybdenum		258			177			13
Rod & Refining		963			957			2
Atlantic Copper Smelting & Refining		495			493			9
Corporate, other & eliminations		(1,279	)		(1,200	)		7
As reported in FCX’s consolidated financial statements	$	4,144		$	1,715		$	252

XVI

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Indonesia Mining Product Revenues and Production Costs and Unit Net Cash Costs
Three Months Ended September 30, 2008
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Gold			Silver			Total
Revenues, excluding adjustments shown below	$	783		$	783		$	233		$	11		$	1,027
Site production and delivery, before net noncash
and nonrecurring costs shown below		466			355			106			5			466
Gold and silver credits		(244	)		-			-			-			-
Treatment charges		63			48			14			1			63
Royalty on metals		32			24			8			-			32
Net cash costs		317			427			128			6			561
Depreciation and amortization		52			40			12			-			52
Noncash and nonrecurring costs, net		4			3			1			-			4
Total costs		373			470			141			6			617
Revenue adjustments, primarily for pricing on
prior period open sales		(130	)		(130	)		-			-			(130	)
PT Smelting intercompany profit		10			8			2			-			10
Gross profit	$	290		$	191		$	94		$	5		$	290
Sales
Copper (in million pounds)		264			264
Gold (in thousand ounces)								271
Silver (in thousand ounces)											812
Gross profit per pound of copper/per ounce of gold and silver:
Revenues, excluding adjustments shown below	$	2.94		$	2.94		$	870.08		$	14.21
Site production and delivery, before net noncash
and nonrecurring costs shown below		1.76			1.34			390.55			6.18
Gold and silver credits		(0.93	)		-			-			-
Treatment charges		0.24			0.18			52.81			0.84
Royalty on metals		0.12			0.09			26.30			0.42
Unit net cash costs		1.19			1.61			469.66			7.44
Depreciation and amortization		0.20			0.15			44.45			0.70
Noncash and nonrecurring costs, net		0.02			0.02			3.70			0.06
Total unit costs		1.41			1.78			517.81			8.20
Revenue adjustments, primarily for pricing on
prior period open sales		(0.47	)		(0.47	)		(8.72	)		(0.57	)
PT Smelting intercompany profit		0.04			0.03			8.38			0.13
Gross profit per pound/ounce	$	1.10		$	0.72		$	351.93		$	5.57
Reconciliation to Amounts Reported				Production			Depreciation,
				and			Depletion and
(In Millions)	Revenues			Delivery			Amortization
Totals presented above	$	1,027		$	466		$	52
Net noncash and nonrecurring costs per above		N/A			4			N/A
Less:    Treatment charges per above		(63	)		N/A			N/A
Royalty on metals per above		(32	)		N/A			N/A
Revenue adjustments, primarily for pricing on
prior period open sales per above		(130	)		N/A			N/A
Indonesia mining		802			470			52
North America copper mines		1,402			847	a		194
South America copper mines		1,008			497			123
Africa mining		-			-			1
Molybdenum		683			417			52
Rod & Refining		1,485			1,478			2
Atlantic Copper Smelting & Refining		625			611			9
Corporate, other & eliminations		(1,389	)		(1,446	)		9
As reported in FCX’s consolidated financial statements	$	4,616		$	2,874	a	$	442
a.Includes lower of cost or market copper inventory adjustments of $17 million.

XVII

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Indonesia Mining Product Revenues and Production Costs and Unit Net Cash Costs
Nine Months Ended September 30, 2009
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Gold			Silver			Total
Revenues, excluding adjustments shown below	$	2,730		$	2,730		$	1,908		$	57		$	4,695
Site production and delivery, before net noncash
and nonrecurring costs shown below		1,105			642			449			14			1,105
Gold and silver credits		(1,965	)		-			-			-			-
Treatment charges		248			144			101			3			248
Royalty on metals		113			66			46			1			113
Net cash (credits) costs		(499	)		852			596			18			1,466
Depreciation and amortization		207			121			84			2			207
Noncash and nonrecurring costs, net		29			17			12			-			29
Total (credits) costs		(263	)		990			692			20			1,702
Revenue adjustments, primarily for pricing on
prior period open sales		54			54			-			-			54
PT Smelting intercompany profit		(47	)		(27	)		(19	)		(1	)		(47	)
Gross profit	$	3,000		$	1,767		$	1,197		$	36		$	3,000
Sales
Copper (in million pounds)		1,131			1,131
Gold (in thousand ounces)								2,015
Silver (in thousand ounces)											4,054
Gross profit per pound of copper/per ounce of gold and silver:
Revenues, excluding adjustments shown below	$	2.41		$	2.41		$	944.05		$	13.94
Site production and delivery, before net noncash
and nonrecurring costs shown below		0.98			0.57			222.78			3.33
Gold and silver credits		(1.74	)		-			-			-
Treatment charges		0.22			0.12			49.92			0.75
Royalty on metals		0.10			0.06			22.92			0.34
Unit net cash (credits) costs		(0.44	)		0.75			295.62			4.42
Depreciation and amortization		0.18			0.11			41.81			0.63
Noncash and nonrecurring costs, net		0.03			0.02			5.89			0.09
Total unit (credits) costs		(0.23	)		0.88			343.32			5.14
Revenue adjustments, primarily for pricing on
prior period open sales		0.05			0.05			2.74			0.23
PT Smelting intercompany profit		(0.04	)		(0.02	)		(9.38	)		(0.14	)
Gross profit per pound/ounce	$	2.65		$	1.56		$	594.09		$	8.89
Reconciliation to Amounts Reported				Production			Depreciation,
				and			Depletion and
(In Millions)	Revenues			Delivery			Amortization
Totals presented above	$	4,695		$	1,105		$	207
Net noncash and nonrecurring costs per above		N/A			29			N/A
Less:    Treatment charges per above		(248	)		N/A			N/A
Royalty on metals per above		(113	)		N/A			N/A
Revenue adjustments, primarily for pricing on
prior period open sales per above		54			N/A			N/A
Indonesia mining		4,388			1,134			207
North America copper mines		2,241			1,465			209
South America copper mines		2,604			1,112			201
Africa mining		170			197			37
Molybdenum		590			477	a		35
Rod & Refining		2,329			2,314			6
Atlantic Copper Smelting & Refining		1,202			1,205			26
Corporate, other & eliminations		(3,094	)		(2,799	)		19
As reported in FCX’s consolidated financial statements	$	10,430		$	5,105	a	$	740
a.Includes lower of cost or market molybdenum inventory adjustments of $19 million.

XVIII

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Indonesia Mining Product Revenues and Production Costs and Unit Net Cash Costs
Nine Months Ended September 30, 2008
	By-Product			Co-Product Method
(In Millions)	Method			Copper			Gold		Silver		Total
Revenues, excluding adjustments shown below	$	2,344		$	2,344		$	686	$	40	$	3,070
Site production and delivery, before net noncash
and nonrecurring costs shown below		1,285			981			287		17		1,285
Gold and silver credits		(726	)		-			-		-		-
Treatment charges		195			149			44		2		195
Royalty on metals		87			67			19		1		87
Net cash costs		841			1,197			350		20		1,567
Depreciation and amortization		145			110			33		2		145
Noncash and nonrecurring costs, net		23			18			5		-		23
Total costs		1,009			1,325			388		22		1,735
Revenue adjustments, primarily for pricing on
prior period open sales		82			82			-		-		82
PT Smelting intercompany profit		5			4			1		-		5
Gross profit	$	1,422		$	1,105		$	299	$	18	$	1,422
Sales
Copper (in million pounds)		700			700
Gold (in thousand ounces)								757
Silver (in thousand ounces)										2,413
Gross profit per pound of copper/per ounce of gold and silver:
Revenues, excluding adjustments shown below	$	3.33		$	3.33		$	897.19	$	16.13
Site production and delivery, before net noncash
and nonrecurring costs shown below		1.84			1.40			379.34		6.93
Gold and silver credits		(1.04	)		-			-		-
Treatment charges		0.28			0.21			57.68		1.05
Royalty on metals		0.12			0.09			25.51		0.47
Unit net cash costs		1.20			1.70			462.53		8.45
Depreciation and amortization		0.21			0.16			42.89		0.78
Noncash and nonrecurring costs, net		0.03			0.03			6.85		0.13
Total unit costs		1.44			1.89			512.27		9.36
Revenue adjustments, primarily for pricing on
prior period open sales		0.13			0.13			9.05		0.43
PT Smelting intercompany profit		0.01			0.01			1.38		0.03
Gross profit per pound/ounce	$	2.03		$	1.58		$	395.35	$	7.23
Reconciliation to Amounts Reported				Production			Depreciation,
				and			Depletion and
(In Millions)	Revenues			Delivery			Amortization
Totals presented above	$	3,070		$	1,285		$	145
Net noncash and nonrecurring costs per above		N/A			23			N/A
Less:    Treatment charges per above		(195	)		N/A			N/A
Royalty on metals per above		(87	)		N/A			N/A
Revenue adjustments, primarily for pricing on
prior period open sales per above		82			N/A			N/A
Indonesia mining		2,870			1,308			145
North America copper mines		4,469			2,216	a		565
South America copper mines		4,043			1,391			380
Africa mining		-			12			3
Molybdenum		2,117			1,298			160
Rod & Refining		4,856			4,831			5
Atlantic Copper Smelting & Refining		2,014			1,960			27
Corporate, other & eliminations		(4,640	)		(4,700	)		37
As reported in FCX’s consolidated financial statements	$	15,729		$	8,316	a	$	1,322
a.Includes lower of cost or market copper inventory adjustments of $22 million.

XIX

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Henderson Molybdenum Mine Product Revenues and Production Costs and Unit Net Cash Costs
	Three Months Ended
	September 30,
(In Millions)	2009			2008
Revenues	$	111		$	394
Site production and delivery, before net noncash
and nonrecurring costs shown below		40			62
Net cash costs		40			62
Depreciation, depletion and amortization		8			53
Noncash and nonrecurring costs, net		1			5
Total costs		49			120
Gross profita	$	62		$	274
Molybdenum sales (in million pounds)		8			13
Gross profit per pound of molybdenum:
Revenues	$	13.05		$	31.21
Site production and delivery, before net noncash
and nonrecurring costs shown below		4.69			4.90
Unit net cash costs		4.69			4.90
Depreciation, depletion and amortization		1.00			4.20
Noncash and nonrecurring costs, net		0.02			0.39
Total unit costs		5.71			9.49
Gross profit per pound	$	7.34		$	21.72
Reconciliation to Amounts Reported
(In Millions)							Depreciation,
				Production			Depletion and
Three Months Ended September 30, 2009	Revenues			and Delivery			Amortization
Totals presented above	$	111		$	40		$	8
Net noncash and nonrecurring costs per above		N/A			1			N/A
Henderson mine		111			41			8
Other molybdenum operations and eliminationsb		147			136			5
Molybdenum		258			177			13
North America copper mines		920			451			70
South America copper mines		1,018			379			67
Indonesia mining		1,656			369			64
Africa mining		113			89			20
Rod & Refining		963			957			2
Atlantic Copper Smelting & Refining		495			493			9
Corporate, other & eliminations		(1,279	)		(1,200	)		7
As reported in FCX’s consolidated financial statements	$	4,144		$	1,715		$	252
Three Months Ended September 30, 2008
Totals presented above	$	394		$	62		$	53
Net noncash and nonrecurring costs per above		N/A			5			N/A
Henderson mine		394			67			53
Other molybdenum operations and eliminationsb		289			350			(1	)
Molybdenum		683			417			52
North America copper mines		1,402			847	c		194
South America copper mines		1,008			497			123
Indonesia mining		802			470			52
Africa mining		-			-			1
Rod & Refining		1,485			1,478			2
Atlantic Copper Smelting & Refining		625			611			9
Corporate, other & eliminations		(1,389	)		(1,446	)		9
As reported in FCX’s consolidated financial statements	$	4,616		$	2,874	c	$	442
a.Gross profit reflects sales of Henderson products based on volumes produced at market-based pricing.  On a consolidated basis, the Molybdenum segment 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 is included in Molybdenum operations.
c.Includes lower of cost or market copper inventory adjustments of $17 million.

XX

FREEPORT-McMoRan COPPER & GOLD INC.
PRODUCT REVENUES AND PRODUCTION COSTS (continued)
Henderson Molybdenum Mine Product Revenues and Production Costs and Unit Net Cash Costs
	Nine Months Ended
	September 30,
(In Millions)	2009			2008
Revenues	$	236		$	997
Site production and delivery, before net noncash
and nonrecurring costs shown below		111			164
Net cash costs		111			164
Depreciation, depletion and amortization		20			139
Noncash and nonrecurring costs, net		1			6
Total costs		132			309
Gross profita	$	104		$	688
Molybdenum sales (in million pounds)		21			33
Gross profit per pound of molybdenum:
Revenues	$	11.38		$	30.32
Site production and delivery, before net noncash
and nonrecurring costs shown below		5.34			4.99
Unit net cash costs		5.34			4.99
Depreciation, depletion and amortization		0.98			4.23
Noncash and nonrecurring costs, net		0.03			0.17
Total unit costs		6.35			9.39
Gross profit per pound	$	5.03		$	20.93
Reconciliation to Amounts Reported
(In Millions)							Depreciation,
				Production			Depletion and
Nine Months Ended September 30, 2009	Revenues			and Delivery			Amortization
Totals presented above	$	236		$	111		$	20
Net noncash and nonrecurring costs per above		N/A			1			N/A
Henderson mine		236			112			20
Other molybdenum operations and eliminationsb		354			365	c		15
Molybdenum		590			477			35
North America copper mines		2,241			1,465			209
South America copper mines		2,604			1,112			201
Indonesia mining		4,388			1,134			207
Africa mining		170			197			37
Rod & Refining		2,329			2,314			6
Atlantic Copper Smelting & Refining		1,202			1,205			26
Corporate, other & eliminations		(3,094	)		(2,799	)		19
As reported in FCX’s consolidated financial statements	$	10,430		$	5,105	c	$	740
Nine Months Ended September 30, 2008
Totals presented above	$	997		$	164		$	139
Net noncash and nonrecurring costs per above		N/A			6			N/A
Henderson mine		997			170			139
Other molybdenum operations and eliminationsb		1,120			1,128			21
Molybdenum		2,117			1,298			160
North America copper mines		4,469			2,216	d		565
South America copper mines		4,043			1,391			380
Indonesia mining		2,870			1,308			145
Africa mining		-			12			3
Rod & Refining		4,856			4,831			5
Atlantic Copper Smelting & Refining		2,014			1,960			27
Corporate, other & eliminations		(4,640	)		(4,700	)		37
As reported in FCX’s consolidated financial statements	$	15,729		$	8,316	d	$	1,322
a.Gross profit reflects sales of Henderson products based on volumes produced at market-based pricing.  On a consolidated basis, the Molybdenum segment 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 is included in Molybdenum operations.
c.Includes lower of cost or market molybdenum inventory adjustments of $19 million.
d.Includes lower of cost or market copper inventory adjustments of $22 million.

XXI

FREEPORT-McMoRan COPPER & GOLD INC.

PROVISION FOR INCOME TAXES

FCX’s third-quarter 2009 income tax provision resulted from taxes on international operations ($660 million) and U.S. operations ($24 million).  FCX’s income tax provision for the first nine months of 2009 resulted from taxes on international operations ($1.5 billion) and U.S. operations ($29 million).  FCX’s effective tax rate for 2009 has been highly sensitive to changes in commodity prices and the mix of income between U.S. and international operations.  Income taxes for FCX’s South America and Indonesia operations are recorded at the applicable statutory rates.  At certain commodity prices, FCX does not record a benefit for losses generated in the U.S. and those losses cannot be used to offset income generated from international operations.  The differences between FCX’s consolidated effective tax rates for the 2009 periods and the U.S. federal statutory rate of 35 percent were primarily attributable to the high proportion of income earned in Indonesia, which was taxed at an effective rate of 43 percent.

FCX’s third-quarter 2008 income tax provision resulted from taxes on international operations ($230 million) and U.S. operations ($10 million).  FCX’s income tax provision for the first nine months of 2008 resulted from taxes on international operations ($1.3 billion) and U.S. operations ($308 million).  The differences between FCX’s consolidated effective income tax rates for the 2008 periods and the U.S. federal statutory rate of 35 percent were primarily attributable to a U.S. benefit for percentage depletion, partly offset by withholding taxes and incremental U.S. income tax accrued on foreign earnings.

A summary of the approximate amounts in the calculation of FCX’s consolidated provision for income taxes for the three-month and nine-month periods ended September 30, 2009 and 2008 follows (in millions, except percentages):

	Three Months Ended September 30,
	2009							2008
					Income Tax							Income Tax
	Income			Effective	Provision			Income			Effective	Provision
	(Loss)a			Tax Rate	(Benefit)			(Loss)a			Tax Rate	(Benefit)
U.S.	$	183		13%	$	24		$	358		3%	$	10
South America		575		34%		197			387		28%		109
Indonesia		1,193		43%		508			271		42%		114
Africa		(25	)	12%		(3	)		-		30%		-
Eliminations and other		(42	)	N/A		(18	)		(36	)	N/A		(34	)
Annualized rate adjustmentb		N/A		N/A		(24	)		N/A		N/A		41
Consolidated FCX	$	1,884		36%c	$	684		$	980		24%	$	240

	Nine Months Ended September 30,
	2009							2008
					Income Tax							Income Tax
	Income			Effective	Provision			Income			Effective	Provision
	(Loss)a			Tax Rate	(Benefit)			(Loss)a			Tax Rate	(Benefit)
U.S.	$	(135	)	(21)%	$	29		$	1,649		19%	$	308
South America		1,269		33%		418			2,225		32%		717
Indonesia		2,952		43%		1,257			1,324		42%		558
Africa		(111	)	26%		(29	)		-		30%		-
Eliminations and other		(217	)	N/A		(74	)		(56	)	N/A		(15	)
Annualized rate adjustmentb		N/A		N/A		(44	)		N/A		N/A		59
Consolidated FCX	$	3,758		41%c	$	1,557		$	5,142		32%	$	1,627

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

b.   In accordance with applicable accounting rules, FCX adjusts its interim provision for income taxes to equal its estimated annualized tax rate.

c.   FCX’s estimated consolidated effective tax rate for 2009 will vary with commodity price changes and the mix of income from international and U.S. operations.  Following is a summary of FCX’s estimated annual and fourth quarter consolidated effective tax rates using projected sales volumes and based on various commodity price assumptions for the fourth quarter of 2009.

						Estimated	Estimated
	Copper		Gold		Molybdenum	Annual Effective	Fourth Quarter
	(per pound)		(per ounce)		(per pound)	Tax Rate	Tax Rate
$	2.25	$	1,000	$	10	44%	57%
$	2.75	$	1,000	$	10	42%	44%
$	3.25	$	1,000	$	10	41%	41%

XXII

FREEPORT-McMoRan COPPER & GOLD INC.

BUSINESS SEGMENTS

FCX has organized its mining operations into five primary divisions – North America copper mines, South America copper mines, 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.  Further discussion of the reportable segments included in FCX’s primary operating divisions, as well as FCX’s other reportable segments – Rod & Refining and Atlantic Copper Smelting & Refining – follows.

North America Copper Mines.  FCX currently has five operating copper mines in North America – Morenci, Sierrita, Bagdad, Safford and Tyrone.  The North America mines division includes the Morenci copper mine as a reportable segment.  Other North America copper mines include FCX’s other southwestern U.S. copper mines including mines on care-and-maintenance status.  In addition to copper, the Sierrita and Bagdad mines produce molybdenum concentrates as a by-product.

South America Copper Mines.  FCX has four operating copper mines in South America – Cerro Verde in Peru, and Candelaria, Ojos del Salado and El Abra in Chile.  The South America copper mines division includes the Cerro Verde copper mine as a reportable segment.  Other South America copper mines include FCX’s Chilean copper mines.  In addition to copper, the Candelaria and Ojos del Salado mines produce gold and silver as by-products.

Indonesia.  Indonesia mining includes PT Freeport Indonesia’s Grasberg minerals district.  PT Freeport Indonesia produces copper concentrates, which contain significant quantities of gold and silver.

Africa.  Africa mining includes the Tenke Fungurume copper and cobalt mine.  The Tenke Fungurume mine produces copper cathode and cobalt hydroxide.  Copper cathode production commenced in March 2009 and the cobalt plant and sulphuric acid plant were commissioned in the third quarter of 2009.

Molybdenum.  The Molybdenum segment includes the Henderson molybdenum mine in Colorado and related conversion facilities.  The Molybdenum segment also includes a sales company that purchases and sells molybdenum from the Henderson mine as well as from the North and South America copper mines that produce molybdenum as a by-product.

Rod & Refining.  The Rod & Refining segment consists of copper conversion facilities located in North America, including a refinery, three rod mills and a specialty copper products facility.  This segment processes copper produced at FCX’s North America mines and purchased copper into copper cathode, rod and custom copper shapes.  At times this segment refines copper and produces copper rod and shapes for customers on a toll basis.

Atlantic Copper Smelting & Refining.  Atlantic Copper, FCX’s wholly owned smelting unit in Spain, smelts and refines copper concentrates and markets refined copper and precious metals in slimes.

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 mine or operation.  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.

XXIII

FREEPORT-McMoRan COPPER & GOLD INC.
BUSINESS SEGMENTS
(continued)
(in millions)	North America Copper Mines						South America Copper Mines						Indonesia			Africa
																							Atlantic
																							Copper			Corporate,
			Other				Cerro		Other										Molyb-		Rod &		Smelting			Other &			FCX
Three Months Ended September 30, 2009	Morenci		Mines		Total		Verde		Mines		Total		Grasberg			Tenke			denum		Refining		& Refining			Eliminations			Total
Revenues:
Unaffiliated customers	$	18	$	25	$	43	$	386	$	546	$	932	$	1,348	a	$	113		$	258	$	955	$	495		$	-		$	4,144
Intersegment		299		578		877		83		3		86		308			-			-		8		-			(1,279	)		-
Production and delivery		148		303		451		154		225		379		369			89			177		957		493			(1,200	)		1,715
Depreciation, depletion and amortization		36		34		70		37		30		67		64			20			13		2		9			7			252
Selling, general and administrative expenses		-		-		-		-		-		-		24			-			2		-		4			44			74
Exploration and research expenses		-		-		-		-		-		-		-			-			1		-		-			18			19
Operating income (loss)		133		266		399		278		294		572		1,199			4			65		4		(11	)		(148	)		2,084
Interest expense, net		1		3		4		-		-		-		2			5			-		-		1			150			162
Provision for (benefit from) income taxes		-		-		-		85		112		197		508			(3	)		-		-		-			(18	)		684
Total assets at September 30, 2009		1,977		4,012		5,989		4,259		2,426		6,685		5,446			3,318			1,771		321		1,069			1,106			25,705
Capital expenditures		8		13		21		13		5		18		58			119			11		2		11			4			244
Three Months Ended September 30, 2008
Revenues:
Unaffiliated customers	$	86	$	97	$	183	$	315	$	578	$	893	$	754	a	$	-		$	683	$	1,477	$	625		$	1		$	4,616
Intersegment		425		794		1,219		94		21		115		48			-			-		8		-			(1,390	)		-
Production and delivery		347		483		830		161		336		497		470			-			417		1,478		611			(1,446	)		2,857
Depreciation, depletion and amortization		81		113		194		42		81		123		52			1			52		2		9			9			442
Lower of cost or market inventory adjustments		-		17		17		-		-		-		-			-			-		-		-			-			17
Selling, general and administrative expenses		-		-		-		-		-		-		20			-			3		-		4			63			90
Exploration and research expenses		-		-		-		-		-		-		-			-			-		-		-			77			77
Operating income (loss)		83		278		361		206		182		388		260			(1	)		211		5		1			(92	)		1,133
Interest expense, net		1		3		4		-		4		4		(1	)		-			-		1		3			128			139
Provision for income taxes		-		-		-		56		53		109		114			-			-		-		-			17			240
Goodwill at September 30, 2008		1,912		2,299		4,211		763		366		1,129		-			2			703		-		-			3			6,048
Total assets at September 30, 2008		7,130		12,222		19,352		4,933		4,350		9,283		4,121			2,254			4,181		493		856			1,466			42,006
Capital expenditures		85		110		195		26		37		63		109			314			60		2		7			16			766
a.Includes PT Freeport Indonesia’s sales to PT Smelting totaling $514 million in third-quarter 2009 and $376 million in third-quarter 2008.

XXIV

FREEPORT-McMoRan COPPER & GOLD INC.
BUSINESS SEGMENTS
(continued)
(in millions)	North America Copper Mines								South America Copper Mines						Indonesia			Africa
																											Atlantic
																											Copper			Corporate,
			Other						Cerro		Other										Molyb-			Rod &			Smelting			Other &			FCX
Nine Months Ended September 30, 2009	Morenci		Mines			Total			Verde		Mines		Total		Grasberg			Tenke			denum			Refining			& Refining			Eliminations			Total
Revenues:
Unaffiliated customers	$	57	$	75		$	132		$	974	$	1,349	$	2,323	$	3,698	a	$	170		$	590		$	2,309		$	1,202		$	6		$	10,430
Intersegment		745		1,364			2,109			230		51		281		690			-			-			20			-			(3,100	)		-
Production and delivery		482		983			1,465			456		656		1,112		1,134			197	b		458			2,314			1,205			(2,799	)		5,086
Depreciation, depletion and amortization		106		103			209			112		89		201		207			37			35			6			26			19			740
Lower of cost or market inventory adjustments		-		-			-			-		-		-		-			-			19			-			-			-			19
Selling, general and administrative expenses		-		-			-			-		-		-		64			-			9			-			11			141			225
Exploration and research expenses		-		-			-			-		-		-		-			-			1			-			-			72			73
Restructuring and other chargesc		26		(2	)		24			-		-		-		-			-			(1	)		(2	)		-			2			23
Operating income (loss)		188		355			543			636		655		1,291		2,983			(64	)		69			11			(40	)		(529	)		4,264
Interest expense, net		3		9			12			-		1		1		3			8			-			-			3			424			451
Provision for (benefit from) income taxes		-		-			-			199		219		418		1,257			(29	)		-			-			-			(89	)		1,557
Capital expenditures		42		79			121			83		46		129		186			577			71			8			23			23			1,138
Nine Months Ended September 30, 2008
Revenues:
Unaffiliated customers	$	343	$	314		$	657		$	1,572	$	2,078	$	3,650	$	2,452	a	$	-		$	2,117		$	4,832		$	2,014		$	7		$	15,729
Intersegment		1,391		2,421			3,812			275		118		393		418			-			-			24			-			(4,647	)		-
Production and delivery		929		1,265			2,194			530		861		1,391		1,308			12			1,298			4,831			1,960			(4,700	)		8,294
Depreciation, depletion and amortization		242		323			565			131		249		380		145			3			160			5			27			37			1,322
Lower of cost or market inventory adjustments		-		22			22			-		-		-		-			-			-			-			-			-			22
Selling, general and administrative expenses		-		-			-			-		-		-		104			-			14			-			18			164			300
Exploration and research expenses		-		-			-			-		-		-		-			-			1			-			-			208			209
Operating income (loss)		563		1,125			1,688			1,186		1,086		2,272		1,313			(15	)		644			20			9			(349	)		5,582
Interest expense, net		2		8			10			2		2		4		2			-			-			3			9			416			444
Provision for income taxes		-		-			-			383		334		717		558			-			-			-			-			352			1,627
Capital expenditures		244		254			498			88		141		229		332			698			104			6			19			43			1,929
a.Includes PT Freeport Indonesia’s sales to PT Smelting totaling $1.3 billion in the first nine months of 2009 and $1.2 billion in the first nine months of 2008.
b.Includes charges totaling $50 million associated with Tenke Fungurume’s project start-up costs.
c.The following table summarizes restructuring and other charges:
Restructuring charges	$	25	$	4		$	29		$	-	$	-	$	-	$	-		$	-		$	1		$	-		$	-		$	2		$	32
Special retirement benefits and curtailments		1		(6	)		(5	)		-		-		-		-			-			(2	)		(2	)		-			-			(9	)
Restructuring and other charges	$	26	$	(2	)	$	24		$	-	$	-	$	-	$	-		$	-		$	(1	)	$	(2	)	$	-		$	2		$	23

XXV

EX-99.2

EX-99.3

One North Central Avenue  §  Phoenix, AZ  85004	Financial Contacts:		Media Contact:
	Kathleen L. Quirk (602) 366-8016	David P. Joint (504) 582-4203	William L. Collier (504) 582-1750

Freeport-McMoRan Copper & Gold Inc. Reinstates

Annual Cash Dividend on Common Stock of $0.60 per Share

PHOENIX, AZ, October 21, 2009 – Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) announced today that its Board of Directors has reinstated an annual cash dividend on its common stock of $0.60 per share.  The Board would declare a quarterly dividend of $0.15 per share, with the initial dividend expected to be paid on February 1, 2010.

James R. Moffett, Chairman of the Board and Richard C. Adkerson, FCX’s President and Chief Executive Officer, said: “Our Board’s action to reinstate the common stock dividend reflects improved global market conditions and our strong operating performance. The aggressive steps we have taken in the last twelve months to adjust our operating and capital plans in response to changing economic conditions, combined with improved prices for the commodities we produce, have strengthened our financial and liquidity position.  This is enabling us to continue to strengthen our balance sheet, invest in attractive growth projects as economic conditions warrant and now to return to our tradition of providing cash returns to shareholders.”

The declaration and payment of dividends is at the discretion of the Board and will depend on the company's financial results, cash requirements, future prospects, and other factors deemed relevant by the Board.

FCX has 430 million common shares outstanding.  Assuming conversion of FCX’s 6¾% Mandatory Convertible Preferred Stock, which automatically convert on May 1, 2010, FCX would have between 469 million and 477 million common shares outstanding (depending on the applicable market price of FCX’s common stock).

FCX is a leading international mining company with headquarters in Phoenix, Arizona.  FCX operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum.  FCX has a dynamic portfolio of operating, expansion and growth projects in the copper industry and is the world’s largest producer of molybdenum.

The company’s portfolio of assets includes the Grasberg mining complex, the world’s largest copper and gold mine in terms of recoverable reserves, significant mining operations in the Americas, including the large scale Morenci and Safford minerals districts in North America and the Cerro Verde and El Abra operations in South America, and the Tenke Fungurume minerals district in the Democratic Republic of Congo.  Additional information about FCX is available on FCX’s web site at www.fcx.com.

Cautionary Statement.  This press release contains forward-looking statements in which we discuss factors we believe may affect our performance in the future.  Forward-looking statements are all statements other than historical facts, such as statements regarding timing of dividend payments.  The declaration and payment of dividends is at the discretion of FCX's Board of Directors and will depend on FCX's financial results, cash requirements, future prospects, and other factors deemed relevant by the Board.Additionally, important factors that might cause future results to differ from results anticipated by forward-looking statements include mine sequencing, production rates, industry risks, commodity prices, political risks, the potential effects of the recent violence in Indonesia, potential outcomes of the contract review process in the Democratic Republic of Congo, weather-related risks, labor relations, currency translation risks and other factors described in FCX's Annual Report on Form 10-K for the year ended December 31, 2008, filed with the Securities and Exchange Commission, as updated by our subsequent filings with the SEC.

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