EMPLOYEE BENEFITS (Tables)

12 Months Ended

Dec. 31, 2012

Employee Benefits [Abstract]

Schedule of Net Periodic Benefit Cost Not yet Recognized [Table Text Block]

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

	2012						2011
	Before Taxes			After Taxes and Noncontrolling Interests			Before Taxes			After Taxes and Noncontrolling Interests
Prior service credits	$	(2	)	$	(1	)	$	(2	)	$	(1	)
Net actuarial loss	705			429			642			390
	$	703		$	428		$	640		$	389

Schedule of defined benefit plans disclosure

Information on the postretirement benefit plans as of December 31 follows:

	2012			2011
Change in benefit obligation:
Benefit obligation at beginning of year	$	223		$	240
Service cost	1			1
Interest cost	9			11
Actuarial losses (gains)	2			(7		)
Benefits paid, net of employee and joint venture partner
contributions, and Medicare Part D subsidy	(22		)	(22		)
Benefit obligation at end of year	213			223
Change in plan assets:
Fair value of plan assets at beginning of year	—			—
Employer and partner contributions	25			25
Employee contributions	10			12
Benefits paid	(35		)	(37		)
Fair value of plan assets at end of year	—			—
Funded status	$	(213	)	$	(223	)
Discount rate assumption	3.50		%	4.20		%
Balance sheet classification of funded status:
Accounts payable and accrued liabilities	$	(21	)	$	(23	)
Other liabilities	(192		)	(200		)
Total	$	(213	)	$	(223	)

The expected benefit payments for FCX’s (including FMC’s plans and FCX’s SERP, director and excess benefits plans) and PT Freeport Indonesia’s pension plans follow:

	FCX		PT Freeport Indonesiaa
2013	$	89	$	14
2014	141		10
2015	92		11
2016	95		11
2017	98		15
2018 through 2022	536		130

a. Based on a December 31, 2012, exchange rate of 9,622 Indonesian rupiah to one U.S. dollar.

FCX uses a measurement date of December 31 for its plans. Information for those plans where the accumulated benefit obligations exceed the plan assets follows:

	December 31,
	2012		2011
Projected benefit obligation	$	2,247	$	2,055
Accumulated benefit obligation	2,031		1,874
Fair value of plan assets	1,443		1,261

Information on the FCX (including FMC’s plans and FCX’s SERP, director and excess benefits plans), PT Freeport Indonesia and Atlantic Copper plans as of December 31 follows:

	FCX						PT Freeport Indonesia						Atlantic Copper
	2012			2011			2012			2011			2012			2011
Change in benefit obligation:
Benefit obligation at beginning
of year	$	1,791		$	1,598		$	206		$	135		$	65		$	71
Service cost	27			24			17			13			—			—
Interest cost	79			83			14			11			2			3
Actuarial losses	142			172			25			55			—			—
Foreign exchange losses (gains)	1			(1		)	(13		)	(1		)	—			(1		)
Benefits paid	(86		)	(85		)	(9		)	(7		)	(7		)	(8		)
Benefit obligation at end of year	1,954			1,791			240			206			60			65
Change in plan assets:
Fair value of plan assets at
beginning of year	1,141			1,112			107			97			26			23
Actual return on plan assets	140			88			12			9			—			—
Employer contributionsa	105			26			26			9			9			11
Foreign exchange losses	—			—			(6		)	(1		)	(1		)	—
Benefits paid	(86		)	(85		)	(9		)	(7		)	(7		)	(8		)
Fair value of plan assets at end
of year	1,300			1,141			130			107			27			26
Funded status	$	(654	)	$	(650	)	$	(110	)	$	(99	)	$	(33	)	$	(39	)
Accumulated benefit obligation	$	1,842		$	1,701		$	136		$	115		$	60		$	65
Weighted-average assumptions
used to determine benefit obligations:
Discount rateb	4.10		%	4.60		%	6.25		%	7.00		%	6.77		%	6.77		%
Rate of compensation increasec	3.75		%	3.75		%	8.00		%	8.00		%	NA			NA
Balance sheet classification of
funded status:
Other assets	$	7		$	6		$	—		$	—		$	—		$	—
Accounts payable and
accrued liabilities	(4		)	(4		)	—			—			—			—
Other liabilities	(657		)	(652		)	(110		)	(99		)	(33		)	(39		)
Total	$	(654	)	$	(650	)	$	(110	)	$	(99	)	$	(33	)	$	(39	)

a. Employer contributions for 2013 are expected to approximate $27 million for the FCX plans, $27 million for the PT Freeport Indonesia plan (based on a December 31, 2012, exchange rate of 9,622 Indonesian rupiah to one U.S. dollar) and $9 million for the Atlantic Copper plan (based on a December 31, 2012, exchange rate of $1.32 per euro).

b. The discount rate shown in 2012 and 2011 for the FCX plans related to all plans except the SERP plan. The SERP plan’s discount rate in 2012 and 2011 was 4.00 percent.

c. The rate of compensation increase shown for the FCX plans related only to the FMC plans.

The weighted-average assumptions used to determine net periodic benefit cost and the components of net periodic benefit cost for FCX’s pension plans (FMC’s plans and FCX’s SERP, director and excess benefits plans) for the years ended December 31 follow:

	2012			2011			2010
Weighted-average assumptions:
Discount rate:
FMC plans	4.60		%	5.40		%	5.80		%
FCX SERP	4.00		%	4.00		%	4.00		%
Expected return on plan assetsa	7.50		%	8.00		%	8.50		%
Rate of compensation increasea	3.75		%	3.75		%	4.25		%
Service cost	$	27		$	24		$	26
Interest cost	79			83			82
Expected return on plan assets	(86		)	(86		)	(87		)
Amortization of prior service cost	(1		)	(1		)	(1		)
Amortization of net actuarial losses	33			19			22
Net periodic benefit cost	$	52		$	39		$	42

a. The assumptions shown relate only to the FMC plans.

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

	2012			2011			2010
Weighted-average assumptions:
Discount rate	7.00		%	8.50		%	10.50		%
Expected return on plan assets	9.25		%	9.25		%	8.25		%
Rate of compensation increase	8.00		%	8.00		%	8.00		%
Service cost	$	17		$	13		$	8
Interest cost	14			11			8
Expected return on plan assets	(9		)	(9		)	(7		)
Amortization of prior service cost	1			1			1
Amortization of net actuarial loss	7			3			—
Net periodic benefit cost	$	30		$	19		$	10

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

	2012			2011			2010
Weighted-average assumptions:
Discount rate	4.20		%	4.90		%	5.20		%
Service cost	$	1		$	1		$	1
Interest cost	9			11			13
Net periodic benefit cost	$	10		$	12		$	14

The assumed medical-care trend rates at December 31 follow:

	2012		2011
Medical-care cost trend rate assumed for
the next year	7.75	%	8.00	%
Rate to which the cost trend rate is assumed
to decline (the ultimate trend rate)	4.25	%	4.50	%
Year that the rate reaches the ultimate trend rate	2027		2026

Schedule of fair value of financial assets for pension and postretirement benefits

A summary of the fair value hierarchy for pension plan assets associated with the FCX plans follows:

	Fair Value at December 31, 2012
	Total			Level 1		Level 2		Level 3
Commingled/collective funds:
Global equity	$	481		$	—	$	481	$	—
U.S. real estate securities	61			—		61		—
U.S. small-cap equity	52			—		52		—
Real estate property	41			—		—		41
Short-term investments	40			—		40		—
Open-ended mutual funds:
Government bonds	48			48		—		—
Emerging markets equity	41			41		—		—
Corporate bonds	23			23		—		—
Mutual funds:
Foreign bonds	54			54		—		—
Emerging markets bond	37			37		—		—
Emerging markets equity	28			28		—		—
Fixed income:
Government bonds	241			—		241		—
Corporate bonds	82			—		82		—
Private equity investments	45			—		—		45
Other investments	33			1		32		—
Total investments	1,307			$	232	$	989	$	86
Cash and receivables	5
Payables	(12		)
Total pension plan net assets	$	1,300

	Fair Value at December 31, 2011
	Total			Level 1		Level 2		Level 3
Commingled/collective funds:
Global equity	$	408		$	—	$	408	$	—
U.S. real estate securities	52			—		52		—
U.S. small-cap equity	45			—		45		—
Real estate property	35			—		—		35
Short-term investments	22			—		22		—
Open-ended mutual funds:
Government bonds	50			50		—		—
Emerging markets equity	36			36		—		—
Corporate bonds	22			22		—		—
Mutual funds:
Foreign bonds	43			43		—		—
Emerging markets bond	32			32		—		—
Emerging markets equity	24			24		—		—
Fixed income:
Government bonds	233			—		233		—
Corporate bonds	73			—		73		—
Private equity investments	50			—		—		50
Other investments	23			—		23		—
Total investments	1,148			$	207	$	856	$	85
Cash and receivables	6
Payables	(13		)
Total pension plan net assets	$	1,141

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

	Fair Value at December 31, 2012
	Total		Level 1		Level 2		Level 3
Common stocks	$	32	$	32	$	—	$	—
Government bonds	27		27		—		—
Mutual funds	10		10		—		—
Total investments	69		$	69	$	—	$	—
Cash and receivablesa	61
Total pension plan net assets	$	130

	Fair Value at December 31, 2011
	Total		Level 1		Level 2		Level 3
Common stocks	$	29	$	29	$	—	$	—
Government bonds	22		22		—		—
Total investments	51		$	51	$	—	$	—
Cash and receivablesa	56
Total pension plan net assets	$	107

a. Cash consisted primarily of short-term time deposits.

Summary of changes in the fair value of level 3 pension plan assets

A summary of changes in the fair value of FCX’s Level 3 pension plan assets for the years ended December 31 follow:

	Private Equity Investments			Real Estate Property		Total
Balance at January 1, 2011	$	46		$	28	$	74
Actual return on plan assets:
Realized (losses) gains	(2		)	2		—
Net unrealized gains related to
assets still held at the end of the year	5			5		10
Purchases	5			—		5
Settlements, net	(4		)	—		(4		)
Balance at December 31, 2011	50			35		85
Actual return on plan assets:
Realized gains	—			2		2
Net unrealized (losses) gains related to
assets still held at the end of the year	(5		)	4		(1		)
Purchases	4			—		4
Settlements, net	(4		)	—		(4		)
Balance at December 31, 2012	$	45		$	41	$	86