Introduction

Freeport-McMoRan Inc. (FCX) recognizes that public policy decisions can significantly affect our operations, future business opportunities, employees, shareholders and the communities in which FCX operates. For this reason, we exercise our right and responsibility to participate in public policy matters by following public matters that are important to us and interacting, where appropriate, with elected and appointed government officials, regulators and their staff. FCX is committed to the highest level of ethical and legal conduct regarding its political activity and spending practices and to rigorous compliance with applicable laws and regulations.

This statement sets forth FCX’s practices regarding political activity and spending, and applies to FCX and its affiliated political action committees (“PACs”).

Direct Political Activity

FCX strongly believes that citizen involvement is essential to a vibrant and successful democracy. We provide non-partisan voter education materials to our employees that are relevant to the sustainability of our business and the jobs it creates, and we encourage our employees and their families to vote. We do not compensate or reimburse any individual employee for personal political contributions the employee may make.

FCX sponsors a federal PAC, the Freeport-McMoRan Inc. Citizenship Committee, as well as PACs in states in which we operate. All FCX-affiliated PACs are fully compliant with the applicable laws and regulations, and their activity is bipartisan. As allowed by law, FCX provides administrative resources to FCX-affiliated PACs and otherwise supports them. Political spending by these PACs is solely funded by voluntary individual contributions.

FCX may also fund other political activity as permitted by law, and all such funding will be disclosed annually on this webpage.

Participation in Trade Associations

FCX is a member of various trade associations and other organizations that provide information and assistance with policy issues of concern to FCX. When we fund a trade association, we do so because we believe the association generally represents our best interests, although we may not support an association’s position on every issue.

Non-U.S. Activities

In addition to operating in the United States, we have significant operations in Chile, Indonesia, Spain and Peru, and other operations elsewhere in the world. We work cooperatively with local, regional and national governments wherever we have operations. From time to time, issues may arise in these jurisdictions that affect our operations. After careful consideration and approval of senior management, FCX may engage in dialogue with government officials on issues that affect our business goals and objectives, and the jobs that are thereby created. We engage in non-partisan political activity and spending outside of the United States as permitted by, and in strict compliance with, applicable laws and regulations, including the U.S. Foreign Corrupt Practices Act.

Guiding Principles and Practices

FCX's political spending reflects our interests as a company and not those of any individual director, officer or employee. No political spending is given in anticipation of, in recognition of, or in return for any official act.

PACs 
Employee contributions to any FCX-affiliated PAC are completely voluntary, and no employee is required or coerced to make any contribution or to engage in personal political activities. The spending decisions of FCX-affiliated PACs are authorized by committees composed of company managers, none of whom are registered lobbyists. It is our practice that PAC contributions are sent directly to the candidate's official campaign committee office address.

FCX-affiliated PACs only make political contributions to candidates who we believe have integrity and have demonstrated a commitment to ethical political conduct. We also consider the geographical area of the candidate’s representation, the candidate’s position or voting record on key issues affecting our industry and FCX, the candidate’s legislative leadership positions and the candidate’s potential to become a future legislative leader. We also may support the most pro-business candidate in any given state or district. The management committee of each FCX-affiliated PAC considers all these factors in deciding to make a political contribution.

Direct Corporate Contributions 
FCX's practice is to not make corporate contributions to candidate political committees or to non-candidate political committees which may be given to candidates. In making decisions regarding non-candidate political committees or independent expenditure committees, FCX considers similar factors used by the FCX-affiliated PACs. Relating to possible funding support for or in opposition to ballot measures, our primary considerations would be the potential impact of the measure on FCX, its operations and the communities in which we operate.

Oversight of Political Activity and Spending Practices

FCX’s political activity and spending practices are overseen and approved by senior management. The Corporate Responsibility Committee (formerly the Public Policy Committee) of the FCX Board of Directors reviews annually this statement and our political activity and spending practices. This political spending includes any payments to trade associations and tax-exempt organizations that would reasonably be expected to be used for political purposes. FCX political spending is subject to legal review and outside audit.

Disclosure of Political Spending

Our practice is to make information concerning all political contributions by FCX and FCX-affiliated PACs publicly available by annually posting our political contributions here and those of FCX-affiliated PACs here. More specifically, we publicly disclose our political spending, if any, to:

• Candidates, political parties and other “527” organizations, including recipient names and contribution amounts.
• Independent political expenditures made in support of or in opposition to a candidate or political party.
• Payments to trade associations that would reasonably be expected to be used for political purposes.
• Payments to tax-exempt organizations, such as those organized under Internal Revenue Code 501(c)(4), that would reasonably be expected to be used for political purposes.
• Payments made directly or indirectly to influence the outcome of state and local ballot measures.

We also provide links here to disclosure reports filed with public agencies for FCX-affiliated PACs prior to the adoption of this statement in 2012.