Item 8. Financial Statements and Supplementary Data.

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Freeport-McMoRan Inc.’s (the Company’s) management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) under the Securities Exchange Act of 1934 as a process designed by, or under the supervision of, the Company’s principal executive and principal financial officers and effected by the Company’s Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

• Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the Company’s assets;

• Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

• Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our management, including our principal executive officer and principal financial officer, assessed the effectiveness of our internal control over financial reporting as of the end of the fiscal year covered by this annual report on Form 10-K. In making this assessment, our management used the criteria set forth in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). Based on its assessment, management concluded that, as of December 31, 2024, our Company’s internal control over financial reporting is effective based on the COSO criteria.

Ernst & Young LLP, an independent registered public accounting firm, who audited the Company’s consolidated financial statements included in this Form 10-K, has issued an attestation report on the Company’s internal control over financial reporting, which is included herein.

/s/ Kathleen L. Quirk						/s/ Maree E. Robertson
Kathleen L. Quirk						Maree E. Robertson
President and						Executive Vice President and
Chief Executive Officer						Chief Financial Officer

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

Freeport-McMoRan Inc.

Opinion on Internal Control Over Financial Reporting

We have audited Freeport-McMoRan Inc.’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Freeport-McMoRan Inc. (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, equity and cash flows for each of the three years in the period ended December 31, 2024, and the related notes and our report dated February 14, 2025 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Phoenix, Arizona

February 14, 2025

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

Freeport-McMoRan Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Freeport-McMoRan Inc. (the Company) as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, equity and cash flows for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February 14, 2025 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

			Tax Contingencies
Description of the Matter			As discussed in Note 10 to the consolidated financial statements, the Company operates in multiple tax jurisdictions, and its income tax returns are subject to examination by tax authorities in those jurisdictions who may challenge any tax position on these returns. Uncertainty in a tax position may arise because tax laws are subject to interpretation. The Company uses significant judgment, specifically as it relates to Peru and Indonesia, to determine whether, based on the technical merits, a tax position is more likely than not to be sustained upon examination by taxing authorities.

			Auditing management’s tax positions involved significant auditor judgment, because management’s tax positions require a high degree of judgment and are based on interpretations of tax laws and legal rulings.

How We Addressed the Matter in Our Audit			We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s accounting process for tax contingencies. This included testing controls over management’s review of the technical merits of tax positions and disputed tax assessments, including the process to measure the financial statement impact of these tax matters.
			Our audit procedures included, among others, evaluating the Company’s accounting for these tax positions by using our knowledge of and experience with the application of respective tax laws by the relevant tax authorities, and/or our understanding of the contractual arrangements with the applicable government, if the position is governed by a contract. We analyzed the Company’s assumptions and data used to determine the tax assessments and tested the accuracy of the calculations. We involved our tax professionals located in the respective jurisdictions to assess the technical merits of the Company’s tax positions and to evaluate the application of relevant tax laws in the Company’s recognition determination. We obtained and assessed the Company’s correspondence with the relevant tax authorities and, as applicable, third-party tax or legal opinions or other external correspondence and analyses. We also evaluated the adequacy of the Company’s disclosures included in Notes 9 and 10 in relation to these tax matters.
			Environmental Obligations
Description of the Matter			As discussed in Note 10 to the consolidated financial statements, the Company is subject to various national, state and local environmental laws and regulations that govern the protection of the environment, including remediation, restoration and reclamation of environmental contamination. Liabilities for environmental contingencies are recorded when it is probable that obligations have been incurred and the costs can be reasonably estimated. As of December 31, 2024, the Company’s consolidated environmental obligations totaled $2.0 billion.
			Auditing management’s accounting for environmental obligations was challenging because significant judgment is required by the Company to estimate the future costs to remediate the environmental matters. The significant judgment was primarily due to the inherent estimation uncertainty relating to the amount of future costs. Such uncertainties involve assumptions regarding the nature and extent of site contamination, the anticipated costs, scope and timing of remediation activities and required remediation methods under presently enacted laws and regulations, and allocation of costs among other potentially responsible parties.
How We Addressed the Matter in Our Audit			We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s measurement of the environmental obligations. For example, we tested controls over management’s review of the environmental obligations calculations and management’s assessment to evaluate key judgments and estimates affecting the environmental obligations.

			To test the Company’s measurement of the environmental obligations, among other procedures, we inspected correspondence with regulatory agencies, including correspondence related to remediation activities and methods and potentially responsible parties, obtained external legal counsel confirmation letters, and inspected environmental studies. Additionally, we tested the accuracy and completeness of the underlying data used in the Company’s analyses and tested the significant assumptions discussed above. We utilized our environmental professionals to search for new or contrary evidence related to the Company’s sites and to assist in evaluating the estimated future costs by comparing the estimated future costs to environmental permits, third party observable data such as vendor quotes, and to historical costs incurred for similar activities.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 2002.

Phoenix, Arizona

February 14, 2025

Freeport-McMoRan Inc.

CONSOLIDATED STATEMENTS OF INCOME

			Years Ended December 31,
			2024						2023						2022
			(In millions, except per share amounts)
Revenues			$	25,455					$	22,855					$	22,780
Cost of sales:
Production and delivery			15,554						13,627						13,070
Depreciation, depletion and amortization			2,241						2,068						2,019
Total cost of sales			17,795						15,695						15,089
Selling, general and administrative expenses			513						479						420
Exploration and research expenses			156						137						115
Environmental obligations and shutdown costs			127						319						121
Net gain on sales of assets			—						—						(2)
Total costs and expenses			18,591						16,630						15,743
Operating income			6,864						6,225						7,037
Interest expense, net			(319)						(515)						(560)
Net gain on early extinguishment of debt			—						10						31
Other income, net			362						286						207
Income before income taxes and equity in affiliated companies’ net earnings			6,907						6,006						6,715
Provision for income taxes			(2,523)						(2,270)						(2,267)
Equity in affiliated companies’ net earnings			15						15						31
Net income			4,399						3,751						4,479
Net income attributable to noncontrolling interests			(2,510)						(1,903)						(1,011)
Net income attributable to common stockholders			$	1,889					$	1,848					$	3,468
Net income per share attributable to common stockholders:
Basic			$	1.31					$	1.28					$	2.40
Diluted			$	1.30					$	1.28					$	2.39
Weighted-average common shares outstanding:
Basic			1,438						1,434						1,441
Diluted			1,445						1,443						1,451
Dividends declared per share of common stock			$	0.60					$	0.60					$	0.60

The accompanying Notes to Consolidated Financial Statements are an integral part of these consolidated financial statements.

Freeport-McMoRan Inc.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

			Years Ended December 31,
			2024						2023						2022
			(In millions)
Net income			$	4,399					$	3,751					$	4,479
Other comprehensive (loss) income, net of taxes:
Defined benefit plans:
Actuarial (losses) gains arising during the period, net of taxes			(44)						39						62
Prior service costs arising during the period			—						—						(1)
Amortization of unrecognized amounts included in net periodic benefit costs			3						5						8
Foreign exchange losses			(1)						—						(1)
Other comprehensive (loss) income			(42)						44						68
Total comprehensive income			4,357						3,795						4,547
Total comprehensive income attributable to noncontrolling interests			(2,508)						(1,901)						(1,011)
Total comprehensive income attributable to common stockholders			$	1,849					$	1,894					$	3,536

The accompanying Notes to Consolidated Financial Statements are an integral part of these consolidated financial statements.

Freeport-McMoRan Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

						Years Ended December 31,
						2024						2023						2022
						(In millions)
Cash flow from operating activities:
Net income						$	4,399					$	3,751					$	4,479
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization						2,241						2,068						2,019
Net charges for environmental and asset retirement obligations, including accretion						622						295						369
Payments for environmental and asset retirement obligations						(234)						(250)						(274)
Stock-based compensation						109						109						95
Talc-related litigation charges						—						65						—
Net charges for defined pension and postretirement plans						35						62						45
Pension plan contributions						(78)						(75)						(54)
Net gain on early extinguishment of debt						—						(10)						(31)
Deferred income taxes						(76)						182						36
Changes in deferred profit on PT Freeport Indonesia’s sales to PT Smelting						—						(112)						(14)
Charges for social investment programs at PT Freeport Indonesia						103						84						84
Payments for social investment programs at PT Freeport Indonesia						(54)						(44)						(11)
Impairment of oil and gas properties						69						67						—
Other, net						53						(33)						(3)
Changes in working capital and other:
Accounts receivable						460						166						56
Inventories						(638)						(873)						(573)
Other current assets						(41)						(29)						(12)
Accounts payable and accrued liabilities						143						(161)						(73)
Accrued income taxes and timing of other tax payments						47						17						(999)
Net cash provided by operating activities						7,160						5,279						5,139
Cash flow from investing activities:
Capital expenditures:
North America copper mines						(1,033)						(761)						(597)
South America operations						(375)						(368)						(304)
Indonesia operations						(2,908)						(3,411)						(2,381)
Molybdenum mines						(117)						(84)						(33)
Other						(375)						(200)						(154)
Proceeds from sales of assets						19						27						108
Acquisition of additional ownership interest in Cerro Verde						(210)						—						—
Loans to PT Smelting for expansion						(28)						(129)						(65)
Other, net						(1)						(30)						(14)
Net cash used in investing activities						(5,028)						(4,956)						(3,440)
Cash flow from financing activities:
Proceeds from debt						2,251						1,781						5,735
Repayments of debt						(2,731)						(2,980)						(4,515)
Finance lease payments						(41)						(3)						(7)
Cash dividends and distributions paid:
Common stock						(865)						(863)						(866)
Noncontrolling interests						(1,833)						(625)						(840)
Treasury stock purchases						(59)						—						(1,347)
Contributions from noncontrolling interests						—						50						189
Proceeds from exercised stock options						29						47						125
Payments for withholding of employee taxes related to stock-based awards						(35)						(50)						(55)
Debt financing costs						—						(7)						(42)
Net cash used in financing activities						(3,284)						(2,650)						(1,623)
Net (decrease) increase in cash, cash equivalents and restricted cash and cash equivalents						(1,152)						(2,327)						76
Cash, cash equivalents and restricted cash and cash equivalents at beginning of year						6,063						8,390						8,314
Cash, cash equivalents and restricted cash and cash equivalents at end of year						$	4,911					$	6,063					$	8,390

The accompanying Notes to Consolidated Financial Statements are an integral part of these consolidated financial statements.

Freeport-McMoRan Inc.

CONSOLIDATED BALANCE SHEETS

			December 31,
			2024						2023
			(In millions, except par value)
ASSETS
Current assets:
Cash and cash equivalents			$	3,923					$	4,758
Restricted cash and cash equivalents			888						1,208
Trade accounts receivable			578						1,209
Value added and other tax receivables			564						455
Inventories:
Product			3,038						2,472
Materials and supplies, net			2,382						2,169
Mill and leach stockpiles			1,388						1,419
Other current assets			535						375
Total current assets			13,296						14,065
Property, plant, equipment and mine development costs, net			38,514						35,295
Long-term mill and leach stockpiles			1,225						1,336
Other assets			1,813						1,810
Total assets			$	54,848					$	52,506
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities			$	4,057					$	3,729
Accrued income taxes			859						786
Current portion of environmental and asset retirement obligations			320						316
Dividends payable			219						218
Current portion of debt			41						766
Total current liabilities			5,496						5,815
Long-term debt, less current portion			8,907						8,656
Environmental and asset retirement obligations, less current portion			5,404						4,624
Deferred income taxes			4,376						4,453
Other liabilities			1,887						1,648
Total liabilities			26,070						25,196
Equity:
Stockholders’ equity:
Common stock, par value $0.10, 1,624 shares and 1,619 shares issued, respectively			162						162
Capital in excess of par value			23,797						24,637
Accumulated deficit			(170)						(2,059)
Accumulated other comprehensive loss			(314)						(274)
Common stock held in treasury – 187 shares and 184 shares, respectively, at cost			(5,894)						(5,773)
Total stockholders’ equity			17,581						16,693
Noncontrolling interests			11,197						10,617
Total equity			28,778						27,310
Total liabilities and equity			$	54,848					$	52,506

The accompanying Notes to Consolidated Financial Statements are an integral part of these consolidated financial statements.

Freeport-McMoRan Inc.

CONSOLIDATED STATEMENTS OF EQUITY

			Stockholders’ Equity
			Common Stock																		Accumulated Deficit						Accumu- lated Other Compre-hensive Loss						Common Stock Held in Treasury												Total Stock- holders’ Equity
			Number of Shares						At Par Value						Capital in Excess of Par Value												Number of Shares						At Cost									Non- controlling Interests						Total Equity
			(In millions)
Balance at January 1, 2022			1,603						$	160					$	25,875					$	(7,375)					$	(388)					146						$	(4,292)					$	13,980					$	9,039					$	23,019
Exercised and issued stock-based awards			10						1						131						—						—						—						—						132						—						132
Stock-based compensation, including the tender of shares			—						—						88						—						—						2						(62)						26						(11)						15
Treasury stock purchases			—						—						—						—						—						35						(1,347)						(1,347)						—						(1,347)
Dividends			—						—						(864)						—						—						—						—						(864)						(820)						(1,684)
Contributions from noncontrolling interests			—						—						92						—						—						—						—						92						97						189
Net income attributable to common stockholders			—						—						—						3,468						—						—						—						3,468						—						3,468
Net income attributable to noncontrolling interests			—						—						—						—						—						—						—						—						1,011						1,011
Other comprehensive income			—						—						—						—						68						—						—						68						—						68
Balance at December 31, 2022			1,613						161						25,322						(3,907)						(320)						183						(5,701)						15,555						9,316						24,871
Exercised and issued stock-based awards			6						1						68						—						—						—						—						69						—						69
Stock-based compensation, including the tender of shares			—						—						87						—						—						1						(72)						15						(1)						14
Dividends			—						—						(864)						—						—						—						—						(864)						(625)						(1,489)
Contributions from noncontrolling interests			—						—						24						—						—						—						—						24						26						50
Net income attributable to common stockholders			—						—						—						1,848						—						—						—						1,848						—						1,848
Net income attributable to noncontrolling interests			—						—						—						—						—						—						—						—						1,903						1,903
Other comprehensive income (loss)			—						—						—						—						46						—						—						46						(2)						44
Balance at December 31, 2023			1,619						162						24,637						(2,059)						(274)						184						(5,773)						16,693						10,617						27,310
Exercised and issued stock-based awards			5						—						56						—						—						1						—						56						—						56
Stock-based compensation, including the tender of shares			—						—						92						—						—						1						(62)						30						(4)						26
Treasury stock purchases			—						—						—						—						—						1						(59)						(59)						—						(59)
Acquisition of additional ownership interest in Cerro Verde			—						—						(125)						—						—						—						—						(125)						(90)						(215)
Dividends			—						—						(866)						—						—						—						—						(866)						(1,833)						(2,699)
Change in consolidated subsidiary ownership interests			—						—						3						—						—						—						—						3						(1)						2
Net income attributable to common stockholders			—						—						—						1,889						—						—						—						1,889						—						1,889
Net income attributable to noncontrolling interests			—						—						—						—						—						—						—						—						2,510						2,510
Other comprehensive loss			—						—						—						—						(40)						—						—						(40)						(2)						(42)
Balance at December 31, 2024			1,624						$	162					$	23,797					$	(170)					$	(314)					187						$	(5,894)					$	17,581					$	11,197					$	28,778

The accompanying Notes to Consolidated Financial Statements are an integral part of these consolidated financial statements.

Freeport-McMoRan Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation. The consolidated financial statements of Freeport-McMoRan Inc. (FCX) include the accounts of those subsidiaries where it directly or indirectly has more than 50% of the voting rights and/or has control over the subsidiary. As of December 31, 2024, the most significant entities that FCX consolidates include its 48.76%-owned subsidiary PT Freeport Indonesia (PT-FI) and its wholly owned subsidiary, Freeport Minerals Corporation (FMC). Refer to Note 2 for further discussion, including FCX’s conclusion to consolidate PT-FI.

FMC’s unincorporated joint venture at Morenci is reflected using the proportionate consolidation method (refer to Note 2). Investments in unconsolidated companies over which FCX has the ability to exercise significant influence, but does not control, are accounted for under the equity method and include PT-FI’s investment in PT Smelting (refer to Note 2). Investments in unconsolidated companies owned less than 20%, and for which FCX does not exercise significant influence, are recorded at (i) fair value for those that have a readily determinable fair value or (ii) cost, less any impairment, for those that do not have a readily determinable fair value. All significant intercompany transactions have been eliminated. Dollar amounts in tables are stated in millions, except per share amounts.

Business Segments. FCX has organized its mining operations into four primary divisions – North America copper mines, South America operations, Indonesia operations and Molybdenum mines, and operating segments that meet certain thresholds are reportable segments. FCX’s reportable segments include the Morenci and Cerro Verde copper mines, the integrated Indonesia operations (including the Grasberg minerals district and PT-FI’s new smelter and precious metals refinery (PMR) - collectively - PT-FI’s new downstream processing facilities), the Rod & Refining operations and Atlantic Copper Smelting & Refining (Atlantic Copper, S.L.U. (Atlantic Copper)). Refer to Note 14 for further discussion.

Use of Estimates. The preparation of FCX’s financial statements in conformity with accounting principles generally accepted in the United States (U.S.) requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. The more significant areas requiring the use of management estimates include mineral reserve estimation; asset lives for depreciation, depletion and amortization; environmental obligations; asset retirement obligations (AROs); estimates of recoverable copper in mill and leach stockpiles; deferred taxes and valuation allowances; reserves for contingencies and litigation; asset impairment, including estimates used to derive future cash flows associated with those assets; pension benefits; and valuation of derivative instruments. Actual results could differ from those estimates.

Functional Currency. The functional currency for the majority of FCX’s foreign operations is the U.S. dollar. For foreign subsidiaries whose functional currency is the U.S. dollar, monetary assets and liabilities denominated in the local currency are translated at current exchange rates, and non-monetary assets and liabilities, such as inventories, property, plant, equipment and mine development costs, are translated at historical exchange rates. Gains and losses resulting from translation of such account balances are included in other income, net, as are gains and losses from foreign currency transactions. Foreign currency net gains totaled $17 million in 2024, $20 million in 2023 and $9 million in 2022.

Cash and Cash Equivalents. Highly liquid investments purchased with maturities of three months or less are considered cash equivalents.

Restricted Cash and Cash Equivalents. Restricted cash and cash equivalents are classified as a current or long-term asset based on the timing and nature of when or how the cash is expected to be used or when the restrictions are expected to lapse. FCX’s restricted cash and cash equivalents are primarily related to a portion of PT-FI’s export proceeds required to be temporarily deposited in Indonesia banks for 90 days in accordance with Indonesia regulations, assurance bonds to support PT-FI’s commitment for smelter development in Indonesia, and guarantees and commitments for certain mine closure obligations. Refer to Notes 10 and 12 for further information.

Inventories. Inventories include product, materials and supplies, and mill and leach stockpiles. Inventories are stated at the lower of weighted-average cost or net realizable value (NRV).

Product. Product inventories represent copper, gold, and molybdenum products in various salable forms that are valued based on the weighted-average cost of source material plus applicable conversion costs at our processing facilities. Product inventories include labor and benefits, supplies, energy, depreciation, depletion, amortization, site overhead costs and other necessary costs associated with the extraction and processing of ore, such as mining, milling, smelting, leaching, solution extraction and electrowinning (SX/EW), refining, roasting and chemical processing. Product inventories exclude corporate general and administrative costs.

Materials and Supplies, net. Materials and supplies inventory of $2.4 billion at December 31, 2024, and $2.2 billion at December 31, 2023, is net of obsolescence reserves totaling $54 million at December 31, 2024, and $41 million at December 31, 2023.

Mill and Leach Stockpiles. Mill and leach stockpiles are work-in-process inventories for FCX’s mining operations. Estimated metals in stockpiles not expected to be recovered within the next 12 months are classified as long-term. Mill and leach stockpiles contain ore that has been extracted from an ore body and is available for metal recovery. Mill stockpiles contain sulfide ores, and recovery of metal is through milling, concentrating and smelting and refining or, alternatively, by concentrate leaching. Leach stockpiles contain oxide ores and certain secondary sulfide ores and recovery of metal is through exposure to acidic solutions that dissolve contained copper and deliver it in solution to extraction processing facilities (i.e., SX/EW). The recorded cost of mill and leach stockpiles includes mining and haulage costs incurred to deliver ore to stockpiles, depreciation, depletion, amortization and site overhead costs. Material is removed from the stockpiles at a weighted-average cost per pound. Each mine site maintains one work-in-process balance on a weighted-average cost basis for each process (i.e., leach, mill or concentrate leach) regardless of the number of stockpile systems at that site.

Because it is impracticable to determine copper contained in mill and leach stockpiles by physical count, reasonable estimation methods are employed. The quantity of material delivered to mill and leach stockpiles is based on surveyed volumes of mined material and daily production records. Sampling and assaying of blasthole cuttings determine the estimated copper grade of the material delivered to mill and leach stockpiles.

Expected copper recoveries for mill stockpiles are determined by metallurgical testing. The recoverable copper in mill stockpiles, once entered into the production process, can be produced into copper concentrate almost immediately.

Expected copper recoveries for leach stockpiles are determined using small-scale laboratory tests, small- to large-scale column testing (which simulates the production process), historical trends and other factors, including mineralogy of the ore and rock type. Total copper recovery in leach stockpiles can vary significantly from a low percentage to more than 80% depending on several variables, including processing methodology, processing variables, mineralogy and particle size of the rock. For newly placed material on active stockpiles, as much as 80% of the total copper recovery may occur during the first year, and the remaining copper may be recovered over many years.

Process rates and copper recoveries for mill and leach stockpiles are monitored regularly, and recovery estimates are adjusted annually based on new information and as related technology and processing methods change. Recovery adjustments will typically result in a future impact to the value of the material removed from the stockpiles at a revised weighted-average cost per pound of recoverable copper. For example, an increase in recovery rates increases recoverable copper in the leach stockpiles resulting in a lower weighted-average cost per pound of recoverable copper and a decrease in recovery rates decreases recoverable copper in the leach stockpiles and results in a higher weighted-average cost per pound of recoverable copper.

Based on an annual review of mill and leach stockpiles, FCX increased its estimated consolidated recoverable copper in certain leach stockpiles, net of joint venture interests, by 164 million pounds in 2024 and 73 million pounds in 2023. These revised estimates did not have a material impact on the weighted-average cost per pound of recoverable copper or FCX’s consolidated site production and delivery costs in 2024 or 2023.

Property, Plant, Equipment and Mine Development Costs. Property, plant, equipment and mine development costs are carried at cost. Mineral exploration costs, as well as drilling and other costs incurred for the purpose of converting mineral resources to proven and probable mineral reserves or identifying new mineral resources at development or production stage properties, are charged to expense as incurred. Development costs are capitalized beginning after proven and probable mineral reserves have been established. Development costs include costs incurred resulting from mine pre-production activities undertaken to gain access to proven and probable mineral reserves, including shafts, adits, drifts, ramps, permanent excavations, infrastructure and removal of overburden. For underground mines certain costs related to panel development, such as undercutting and drawpoint development, are also capitalized as mine development costs until production reaches sustained design capacity for the mine. After reaching design capacity, the underground mine transitions to the production phase and panel development costs are allocated to inventory and included as a component of production and delivery costs. Additionally, interest expense allocable to the cost of developing mines and to constructing new facilities is capitalized until assets are ready for their intended use.

Expenditures for replacements and improvements are capitalized. Costs related to periodic scheduled maintenance (i.e., turnarounds) are charged to expense as incurred. Depreciation for mining and milling life-of-mine assets, infrastructure and other common costs is determined using the unit-of-production (UOP) method based on total estimated recoverable proven and probable copper reserves (for primary copper mines) and proven and probable molybdenum reserves (for primary molybdenum mines). Development costs and acquisition costs for proven and probable mineral reserves that relate to a specific ore body are depreciated using the UOP method based on estimated recoverable proven and probable mineral reserves for the ore body benefited. Depreciation, depletion and amortization using the UOP method is recorded upon extraction of the recoverable copper or molybdenum from the ore body or production of finished goods (as applicable), at which time it is allocated to inventory cost and then included as a component of production and delivery costs. Other assets are depreciated on a straight-line basis over estimated useful lives for the related assets of up to 50 years for buildings and 3 to 50 years for machinery and equipment, and mobile equipment.

Included in property, plant, equipment and mine development costs is value beyond proven and probable mineral reserves (VBPP), primarily resulting from FCX’s acquisition of FMC. The concept of VBPP may be interpreted differently by different mining companies. FCX’s VBPP is attributable to (i) measured and indicated mineral resources that FCX believes could be brought into production with the establishment or modification of required permits and should market conditions and technical assessments warrant, (ii) inferred mineral resources and (iii) exploration potential.

Carrying amounts assigned to VBPP are not charged to expense until the VBPP becomes associated with additional proven and probable mineral reserves and the reserves are produced or the VBPP is determined to be impaired. Additions to proven and probable mineral reserves for properties with VBPP will carry with them the value assigned to VBPP at the date acquired, less any impairment amounts. Refer to Note 3 for further discussion.

Impairment of Long-Lived Mining Assets. FCX assesses the carrying values of its long-lived mining assets for impairment when events or changes in circumstances indicate that the related carrying amounts of such assets may not be recoverable. In evaluating long-lived mining assets for recoverability, estimates of pre-tax undiscounted future cash flows of FCX’s individual mines are used. An impairment is considered to exist if total estimated undiscounted future cash flows are less than the carrying amount of the asset. Once it is determined that an impairment exists, an impairment loss is measured as the amount by which the asset carrying value exceeds its fair value. The estimated undiscounted cash flows used to assess recoverability of long-lived assets and to measure the fair value of FCX’s mining operations are derived from current business plans, which are developed using near-term price forecasts reflective of the current price environment and management’s projections for long-term average metal prices. In addition to near- and long-term metal price assumptions, other key assumptions include estimates of commodity-based and other input costs; proven and probable mineral reserves estimates, including the timing and cost to develop and produce the reserves; VBPP estimates; and the use of appropriate discount rates in the measurement of fair value. FCX believes its estimates and models used to determine fair value are similar to what a market participant would use. As quoted market prices are unavailable for FCX’s individual mining operations, fair value is determined through the use of after-tax discounted estimated future cash flows (i.e., Level 3 measurement).

Deferred Mining Costs. Stripping costs (i.e., the costs of removing overburden and waste material to access mineral deposits) incurred during the production phase of an open-pit mine are considered variable production costs and are included as a component of inventory produced during the period in which stripping costs are incurred. Major development expenditures, including stripping costs to prepare unique and identifiable areas outside the current mining area for future production that are considered to be pre-production mine development, are capitalized and amortized using the UOP method based on estimated recoverable proven and probable mineral reserves for the ore body benefited. However, where a second or subsequent pit or major expansion is considered to be a continuation of existing mining activities, stripping costs are accounted for as a current production cost and a component of the associated inventory.

Environmental Obligations. Environmental expenditures are charged to expense or capitalized, depending upon their future economic benefits. Accruals for such expenditures are recorded when it is probable that obligations have been incurred and the costs can be reasonably estimated. Environmental obligations attributed to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) or analogous state programs are considered probable when a claim is asserted, or is probable of assertion, and FCX, or any of its subsidiaries, have been associated with the site. Other environmental remediation obligations are considered probable based on specific facts and circumstances. FCX’s estimates of these costs are based on an evaluation of various factors, including currently available facts, existing technology, presently enacted laws and regulations, remediation experience, whether or not FCX is a potentially responsible party (PRP) and the ability of other PRPs to pay their allocated portions. With the exception of those obligations assumed in the acquisition of FMC that were initially recorded at estimated fair values (refer to Note 10 for further discussion), environmental obligations are recorded on an undiscounted basis. Where the available information is sufficient to estimate the amount of the obligation, that estimate has been used. Where the information is only sufficient to establish a range of probable liability and no point within the range is more likely than any other, the lower end of the range has been used. Possible recoveries of some of these costs from other parties are not recognized in the consolidated financial statements until they become probable. Legal costs associated with environmental remediation (such as fees to third-party legal firms for work relating to determining the extent and type of remedial actions and the allocation of costs among PRPs) are included as part of the estimated obligation.

Environmental obligations assumed in the 2007 acquisition of FMC, which were initially recorded at fair value and estimated on a discounted basis, are accreted to full value over time through charges to interest expense. Adjustments arising from changes in amounts and timing of estimated costs and settlements may result in increases and decreases in these obligations and are calculated in the same manner as they were initially estimated. Unless these adjustments qualify for capitalization, changes in environmental obligations are charged to operating income when they occur.

FCX performs a comprehensive review of its environmental obligations annually and also reviews changes in facts and circumstances associated with these obligations at least quarterly.

Asset Retirement Obligations. FCX records the fair value of estimated AROs associated with tangible long-lived assets in the period incurred. AROs associated with long-lived assets are those for which there is a legal obligation to settle under existing or enacted law, statute, written or oral contract or by legal construction. These obligations, which are initially estimated based on discounted cash flow estimates, are accreted to full value over time through charges to production and delivery costs. In addition, asset retirement costs (ARCs) are capitalized as part of the related asset’s carrying value and are depreciated over the asset’s useful life.

For mining operations, reclamation costs for disturbances are recognized as an ARO and as a related ARC in the period of the disturbance and depreciated primarily on a UOP basis. FCX’s AROs for mining operations consist primarily of costs associated with mine reclamation and closure activities. These activities, which are site specific, generally include costs for earthwork, revegetation, water treatment and demolition.

For non-operating properties and operating mines whose reclamation-related assets have been fully depreciated, changes to the ARO are recorded in production and delivery costs.

At least annually, FCX reviews its ARO estimates for changes in the projected timing of certain reclamation and closure/restoration costs, changes in cost estimates and additional AROs incurred during the period. Refer to Note 10 for further discussion.

Revenue Recognition. FCX recognizes revenue for its products upon transfer of control in an amount that reflects the consideration it expects to receive in exchange for those products. Transfer of control is in accordance with the terms of customer contracts, which is generally upon shipment or delivery of the product. While payment terms vary by contract, terms generally include payment to be made within 30 days, but not longer than 60 days. Certain of FCX’s concentrate and cathode sales contracts also provide for provisional pricing, which is accounted for as an embedded derivative (refer to Note 12 for further discussion). For provisionally priced sales, 90% to 100% of the provisional invoice amount is collected upon shipment or within 20 days, and final balances are settled in a contractually specified future month (generally one to four months from the shipment date) based on quoted monthly average copper settlement prices on the London Metal Exchange (LME) or the Commodity Exchange Inc. (COMEX), and quoted monthly average London Bullion Market Association (London) PM gold prices.

FCX’s product revenues are also recorded net of treatment charges, royalties and export duties. Moreover, because a portion of the metals contained in copper concentrate is unrecoverable as a result of the smelting process, FCX’s revenues from concentrate sales are also recorded net of allowances based on the quantity and value of these unrecoverable metals. These allowances are a negotiated term of FCX’s contracts and vary by customer. Treatment and refining charges represent payments or price adjustments to smelters and refiners that are generally fixed. Refer to Note 14 for a summary of revenue by product type.

Gold sales are priced according to individual contract terms, generally the average London PM gold price for a specified month near the month of shipment.

The majority of FCX’s molybdenum sales are priced based on the Platts Metals Daily Molybdenum Dealer Oxide weekly average price, plus conversion premiums for products that undergo additional processing, such as ferromolybdenum and molybdenum chemical products, for the month prior to the month of shipment.

Stock-Based Compensation. Compensation costs for share-based payments to employees are measured at fair value and charged to expense over the requisite service period for awards that are expected to vest. The fair value of stock options is determined using the Black-Scholes-Merton option valuation model. The fair value for stock-settled restricted stock units (RSUs) is based on FCX’s stock price on the date of grant. Shares of common stock are issued at the vesting date for stock-settled RSUs. The fair value of performance share units (PSUs) are determined using FCX’s stock price and a Monte-Carlo simulation model. The fair value for liability-classified awards (i.e., cash-settled RSUs) is remeasured each reporting period using FCX’s stock price. FCX has elected to recognize compensation costs for stock option awards that vest over several years on a straight-line basis over the vesting period, and for RSUs using the graded-vesting method over the vesting period. Refer to Note 8 for further discussion.

Earnings Per Share. FCX calculates its basic net income per share of common stock under the two-class method and calculates its diluted net income per share of common stock using the more dilutive of the two-class method or the treasury-stock method. Basic net income per share of common stock was computed by dividing net income attributable to common stockholders (after deducting undistributed dividends and earnings allocated to participating securities) by the weighted-average shares of common stock outstanding during the year. Diluted net income per share of common stock was calculated by including the basic weighted-average shares of common stock outstanding adjusted for the effects of all potential dilutive shares of common stock, unless their effect would be antidilutive.

Reconciliations of net income and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net income per share for the years ended December 31 follow:

			2024						2023						2022
Net income			$	4,399					$	3,751					$	4,479
Net income attributable to noncontrolling interests			(2,510)						(1,903)						(1,011)
Undistributed dividends and earnings allocated to participating securities			(6)						(6)						(7)
Net income attributable to common stockholders			$	1,883					$	1,842					$	3,461
(shares in millions)
Basic weighted-average shares of common stock outstanding			1,438						1,434						1,441
Add shares issuable upon exercise or vesting of dilutive stock options, PSUs and RSUs			7						9						10
Diluted weighted-average shares of common stock outstanding			1,445						1,443						1,451
Net income per share attributable to common stockholders:
Basic			$	1.31					$	1.28					$	2.40
Diluted			$	1.30					$	1.28					$	2.39

Outstanding stock options with exercise prices greater than the average market price of FCX’s common stock during the year are excluded from the computation of diluted net income per share of common stock. Excluded shares of common stock associated with outstanding stock options totaled less than 1 million shares in 2024 and 2023 and 1 million shares in 2022.

Global Intangible Low-Taxed Income (GILTI). FCX has elected to treat taxes due on future U.S. inclusions in taxable income related to GILTI as a current period expense when incurred.

New Accounting Standards. We did not adopt any new accounting standards in 2024 that had a material impact on our consolidated financial statements.

Segment Reporting. In November 2023, the Financial Accounting Standards Board (FASB) issued an accounting standards update (ASU) related to segment reporting that requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss, the title and position of the CODM, and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. This ASU is effective for FCX’s consolidated financial statements for the year ended December 31, 2024, and subsequent interim consolidated financial statements, and did not materially impact FCX’s segment reporting as presented within Note 14.

Income Taxes. In December 2023, the FASB issued an ASU requiring enhancements to disclosures related to income taxes, including the rate reconciliation and information on income taxes paid. This ASU is effective for FCX’s consolidated financial statements for the year ended December 31, 2025.

Disaggregation of Expenses. In November 2024, the FASB issued an ASU requiring entities to provide disaggregated disclosures of specified categories of expenses that are included in relevant line items on the face of the income statement, including: purchases of inventory, employee compensation, depreciation, intangible asset amortization and depletion. This ASU is effective for FCX’s consolidated financial statements for the year ended December 31, 2027, and subsequent interim consolidated financial statements.

Subsequent Events. FCX evaluated events after December 31, 2024, and through the date the consolidated financial statements were issued, and determined any events or transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these consolidated financial statements.

NOTE 2. OWNERSHIP IN SUBSIDIARIES AND JOINT VENTURES

Ownership in Subsidiaries. FCX owns 100% of FMC. FMC produces copper and molybdenum from mines in North America and South America. At December 31, 2024, FMC’s operating mines in North America were Morenci, Bagdad, Safford (including Lone Star), Sierrita and Miami located in Arizona; Tyrone and Chino located in New Mexico; and Henderson and Climax located in Colorado. FMC has a 72% interest in Morenci (refer to “Joint Ventures. Sumitomo and SMM Morenci, Inc.”) and owns 100% of the other North America mines. At December 31,

2024, operating mines in South America were Cerro Verde (55.08% owned - refer to “Cerro Verde” below) located in Peru and El Abra (51% owned) located in Chile. At December 31, 2024, FMC’s net assets totaled $17.4 billion and its accumulated deficit totaled $13.5 billion. FCX had no loans to FMC outstanding at December 31, 2024 and 2023.

FCX owns 48.76% of PT-FI (refer to “PT-FI Divestment” below). At December 31, 2024, PT-FI’s net assets totaled $16.6 billion and its retained earnings totaled $12.1 billion. FCX had no loans to PT-FI outstanding at December 31, 2024 and 2023.

FCX owns 100% of Atlantic Copper (FCX’s smelting and refining unit in Spain). At December 31, 2024, Atlantic Copper’s net assets totaled $132 million and its accumulated deficit totaled $407 million. FCX had loans to Atlantic Copper outstanding totaling $644 million at December 31, 2024, and $611 million at December 31, 2023.

Cerro Verde. In September 2024, FCX purchased 5.3 million shares of Cerro Verde common stock for a total cost of $210 million, increasing FCX’s ownership interest in Cerro Verde to 55.08% from 53.56%. As a result of the transaction, the carrying value of Cerro Verde’s noncontrolling interest was reduced by $90 million, with $125 million recorded to capital in excess to par value, including a $5 million deferred tax impact.

PT-FI Divestment. On December 21, 2018, FCX completed the transaction with the Indonesia government regarding PT-FI’s long-term mining rights and share ownership (the 2018 Transaction). Pursuant to the divestment agreement and related documents, PT Mineral Industri Indonesia (MIND ID), an Indonesia state-owned enterprise, acquired all of Rio Tinto plc’s (Rio Tinto) interests associated with its joint venture with PT-FI (the former Rio Tinto Joint Venture) and 100% of FCX’s interests in PT Indonesia Papua Metal Dan Mineral (PTI).

In connection with the 2018 Transaction, PT-FI acquired all of the common stock of PT Rio Tinto Indonesia that held the former Rio Tinto Joint Venture interest. After the 2018 Transaction, MIND ID’s (26.24%) and PTI’s (25.00%) collective share ownership of PT-FI totals 51.24% and FCX’s share ownership totals 48.76%. The arrangements provide for FCX and the other pre-transaction PT-FI shareholders (i.e., MIND ID) to retain the economics of the revenue and cost sharing arrangements under the former Rio Tinto Joint Venture. As a result, FCX’s economic interest, including the attribution of net income or loss and dividends paid, in PT-FI approximated 81% through 2022 and is 48.76% in 2023 and thereafter (see “Attribution of PT-FI Net Income or Loss” below).

FCX, PT-FI, PTI and MIND ID entered into a shareholders agreement (the PT-FI Shareholders Agreement), which includes provisions related to the governance and management of PT-FI. FCX considered the terms of the PT-FI Shareholders Agreement and related governance structure, including whether MIND ID has substantive participating rights, and concluded that FCX has retained control and would continue to consolidate PT-FI in its financial statements following the 2018 Transaction. Among other terms, the governance arrangements under the PT-FI Shareholders Agreement transfers control over the management of PT-FI’s mining operations to an operating committee, which is controlled by FCX. Additionally, as discussed above, the existing PT-FI shareholders retained the economics of the revenue and cost sharing arrangements under the former Rio Tinto Joint Venture, so that FCX’s economic interest in the project through 2041 will not be significantly affected by the 2018 Transaction. FCX believes its conclusion to continue to consolidate PT-FI in its financial statements is in accordance with the U.S. Securities and Exchange Commission (SEC) Regulation S-X, Rule 3A-02 (a), which provides for situations in which consolidation of an entity, notwithstanding the lack of majority ownership, is necessary to present fairly the financial position and results of operations of the registrant, because of the existence of a parent-subsidiary relationship by means other than recorded ownership of voting stock.

Attribution of PT-FI Net Income or Loss. FCX concluded that the attribution of PT-FI’s net income or loss from December 21, 2018 (the date of the divestment transaction), through December 31, 2022 (the Initial Period), should be based on FCX’s and MIND ID’s economic interest, as previously discussed. PT-FI’s cumulative net income during the Initial Period totaled $6.0 billion, of which $4.9 billion was attributed to FCX.

Beginning January 1, 2023, the attribution of PT-FI’s net income or loss is based on equity ownership percentages (48.76% for FCX, 26.24% for MIND ID and 25.00% for PTI), except for net income in 2023 associated with the sale of approximately 190,000 ounces of gold because PT-FI did not achieve the Gold Target (as defined in the PT-FI Shareholders Agreement), and net income in 2024 associated with the closure of its 2021 corporate income tax audit and resolution of the framework for Indonesia disputed tax matters (refer to Note 9), which were attributed approximately 81% to FCX. For all of its other partially owned consolidated subsidiaries, FCX attributes net income or loss based on equity ownership percentages.

Joint Ventures.

Sumitomo and SMM Morenci, Inc. FMC owns a 72% undivided interest in Morenci via an unincorporated joint venture. The remaining 28% is owned by Sumitomo (15%) and SMM Morenci, Inc. (13%). Each partner takes in kind its share of Morenci’s production. FMC purchased 15 million pounds during 2024 and 46 million pounds during 2023 of Morenci’s copper cathode from Sumitomo and SMM Morenci, Inc. at market prices for $63 million and $177 million, respectively. FMC had receivables from Sumitomo and SMM Morenci, Inc. totaling $23 million at December 31, 2024, and $17 million at December 31, 2023.

PT Smelting. PT Smelting is an Indonesia company that owns a copper smelter and refinery in Gresik, Indonesia. In 1996, PT-FI entered into a joint venture and shareholder agreement with Mitsubishi Materials Corporation (MMC) to jointly construct the PT Smelting facilities. PT Smelting commenced operations in 1999. In December 2023, PT Smelting completed the expansion of its capacity by 30% to process approximately 1.3 million metric tons of copper concentrate per year. The project was funded by PT-FI with loans totaling $254 million that converted to equity effective June 30, 2024, increasing PT-FI’s common stock ownership in PT Smelting to 66% from 39.5%. MMC owns the remaining 34% of PT Smelting’s outstanding common stock and serves as the operator of the facilities.

FCX has determined that PT Smelting is a variable interest entity, however, as mutual consent of both PT-FI and MMC is required to make the decisions that most significantly impact the economic performance of PT Smelting, PT-FI is not the primary beneficiary. As PT-FI has the ability to exercise significant influence over PT Smelting, PT-FI is continuing to account for its investment in PT Smelting under the equity method (refer to Note 4).

PT-FI’s maximum exposure to loss is its investment in PT Smelting (refer to Note 4). PT-FI’s equity in PT Smelting’s earnings totaled $8 million in 2024, $10 million in 2023 and $24 million in 2022.

Beginning January 1, 2023, PT-FI’s commercial arrangement with PT Smelting changed from a copper concentrate sales agreement to a tolling arrangement. Under this arrangement, PT-FI pays PT Smelting a tolling fee to smelt and refine its copper concentrate and PT-FI retains title to all products for sale to third parties (i.e., there are no further sales from PT-FI to PT Smelting). PT-FI recorded tolling-related charges of $326 million in 2024 and $183 million in 2023.

NOTE 3. PROPERTY, PLANT, EQUIPMENT AND MINE DEVELOPMENT COSTS, NET

The components of net property, plant, equipment and mine development costs follow:

			December 31,
			2024						2023
Proven and probable mineral reserves			$	7,159					$	7,160
VBPP			358						359
Mine development and other			12,828						12,265
Buildings and infrastructure			10,667						10,165
Machinery and equipment			16,337						15,246
Mobile equipment			5,597						4,986
Construction in progress			9,364						6,945
Oil and gas properties			27,485						27,441
Total			89,795						84,567
Accumulated depreciation, depletion and amortizationa			(51,281)						(49,272)
Property, plant, equipment and mine development costs, net			$	38,514					$	35,295

a.Includes accumulated amortization for oil and gas properties of $27.4 billion at December 31, 2024 and 2023.

FCX recorded $1.6 billion for VBPP in connection with its 2007 acquisition of FMC (excluding $0.6 billion associated with mining operations that were subsequently sold) and transferred $0.8 billion to proven and probable mineral reserves through 2024 (approximately $1 million in both 2024 and 2023). Cumulative impairments of and adjustments to VBPP total $0.5 billion, which were primarily recorded in 2008.

Capitalized interest, which primarily related to FCX’s mining operations’ capital projects, including the construction and development of PT-FI’s new downstream processing facilities, totaled $391 million in 2024, $267 million in 2023 and $150 million in 2022.

During the three-year period ended December 31, 2024, no material impairments of FCX’s long-lived mining assets were recorded.

NOTE 4. OTHER ASSETS

The components of other assets follow:

			December 31,
			2024						2023
Intangible assetsa			$	428					$	422
Legally restricted trust assetsb			217						212
Disputed tax assessments:c
Cerro Verde			275						274
PT-FI			10						10
Investments:
PT Smeltingd			354						123
Fixed income, equity securities and other			102						84
Restricted time depositse			100						97
Cloud computing arrangements			151						76
Long-term receivable for taxesf			43						70
Long-term employee receivables			24						26
Prepaid rent and deposits			9						39
Loans to PT Smelting for expansiond			—						233
Contingent consideration associated with sales of assetsg			—						38
Other			100						106
Total other assets			$	1,813					$	1,810

a.Indefinite-lived intangible assets totaled $214 million at December 31, 2024 and 2023. Definite-lived intangible assets totaled $214 million at December 31, 2024, and $208 million at December 31, 2023, which were net of accumulated amortization totaling $46 million and $43 million, respectively.

b.Reflects amounts held in trusts for AROs related to properties in New Mexico (refer to Note 10).

c.Refer to Note 10.

d.Refer to Note 2.

e.Relates to PT-FI’s regulatory commitments (refer to Notes 10 and 12).

f.Includes tax overpayments and refunds not expected to be realized within the next 12 months.

g.Refer to Note 13.

NOTE 5. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

The components of accounts payable and accrued liabilities follow:

			December 31,
			2024						2023
Accounts payable			$	2,789					$	2,466
Salaries, wages and other compensation			361						343
Accrued interesta			135						146
Pension, postretirement, postemployment and other employee benefitsb			128						129
Leasesb,c			98						84
Deferred revenue			91						161
Accrued taxes, other than income taxes			81						88
Community development programs			75						58
PT-FI administrative fined			59						55
PT-FI contingenciese			49						67
MIND ID indemnificationf			49						—
Litigation accruals			34						51
Other			108						81
Total accounts payable and accrued liabilities			$	4,057					$	3,729

a.Third-party interest paid, net of capitalized interest, was $206 million in 2024, $419 million in 2023 and $417 million in 2022.

b.Refer to Note 7 for long-term portion.

c.Refer to Note 11.

d.Refer to Note 10.

e.Primarily reflects Indonesia tax matters. Refer to Note 10.

f.Refer to Note 11. At December 31, 2023, the MIND ID indemnification balance was included in other long-term liabilities (refer to Note 7).

NOTE 6. DEBT

FCX’s debt at December 31, 2024, is net of reductions of $58 million ($67 million at December 31, 2023) for unamortized net discounts and unamortized debt issuance costs. The components of debt follow:

			December 31,
			2024						2023
Revolving credit facilities:
FCX			$	—					$	—
PT-FI			250						—
Cerro Verde			—						—
Senior notes and debentures:
Issued by FCX:
4.55% Senior Notes due 2024			—						730
5.00% Senior Notes due 2027			449						448
4.125% Senior Notes due 2028			484						483
4.375% Senior Notes due 2028			431						430
5.25% Senior Notes due 2029			469						468
4.25% Senior Notes due 2030			447						446
4.625% Senior Notes due 2030			589						588
5.40% Senior Notes due 2034			724						723
5.450% Senior Notes due 2043			1,688						1,689
Issued by PT-FI:
4.763% Senior Notes due 2027			747						746
5.315% Senior Notes due 2032			1,491						1,490
6.200% Senior Notes due 2052			745						744
Issued by FMC:
7 1/8% Debentures due 2027			115						115
9 1/2% Senior Notes due 2031			119						121
6 1/8% Senior Notes due 2034			119						118
Other			81						83
Total debt			8,948						9,422
Less current portion of debt			(41)						(766)
Long-term debt			$	8,907					$	8,656

Revolving Credit Facilities.

FCX. FCX and PT-FI have a $3.0 billion, unsecured revolving credit facility that matures in October 2027. Under the terms of the revolving credit facility, FCX may obtain loans and issue letters of credit in an aggregate amount of up to $3.0 billion, with a $1.5 billion sublimit on the issuance of letters of credit and a $500 million limit on PT-FI’s borrowing capacity. At December 31, 2024, there were no borrowings and $7 million in letters of credit issued under FCX’s revolving credit facility. Interest on loans made under the revolving credit facility may, at the option of FCX or PT-FI, be determined based on the Secured Overnight Financing Rate (SOFR) plus a spread to be determined by reference to a grid based on FCX’s credit rating.

The revolving credit facility contains customary affirmative covenants and representations, and also contains various negative covenants that, among other things and subject to certain exceptions, restrict the ability of FCX’s subsidiaries that are not borrowers or guarantors to incur additional indebtedness (including guarantee obligations) and the ability of FCX or FCX’s subsidiaries to: create liens on assets; enter into sale and leaseback transactions; engage in mergers, liquidations and dissolutions; and sell assets. In addition, the revolving credit facility contains a total leverage ratio financial covenant.

PT-FI. At December 31, 2024, PT-FI had $250 million in borrowings outstanding under its $1.75 billion senior unsecured revolving credit facility that matures in November 2028. PT-FI’s revolving credit facility is available for its general corporate purposes, including to fund PT-FI’s projects related to its new downstream processing facilities. Interest on loans made under PT-FI’s revolving credit facility are determined based on the SOFR plus a margin.

PT-FI’s revolving credit facility contains customary affirmative covenants and representations and also contains standard negative covenants that, among other things, restrict, subject to certain exceptions, the ability of PT-FI to incur additional indebtedness; create liens on assets; enter into sale and leaseback transactions; sell assets; and modify or amend the shareholders agreement or related governance structure. The credit facility also contains

financial covenants governing maximum total leverage and minimum interest expense coverage and other covenants addressing certain environmental and social compliance requirements.

Cerro Verde. At December 31, 2024, Cerro Verde had no borrowings outstanding under its $350 million senior unsecured revolving credit facility that matures in May 2027. Cerro Verde’s revolving credit facility contains customary representations and affirmative and negative covenants.

At December 31, 2024, FCX, PT-FI and Cerro Verde were in compliance with their respective credit facility’s covenants.

Senior Notes.

FCX. In November 2024, FCX repaid $0.7 billion for the balance of its maturing 4.55% Senior Notes.

In 2023, FCX purchased $0.2 billion aggregate principal amount of its senior notes in open-market transactions for a total cost of $0.2 billion and recorded gains on early extinguishment of debt of $10 million. In 2022, FCX purchased $1.1 billion aggregate principal amount of its senior notes in open market transactions for a total cost of $1.0 billion and recorded gains on early extinguishment of debt of $44 million. FCX has not purchased senior notes in open-market transactions since July 2023.

The senior notes listed below are redeemable in whole or in part, at the option of FCX, at specified redemption prices prior to the dates stated below and beginning on the dates stated below at 100% of principal.

Debt Instrument						Date
5.00% Senior Notes due 2027						September 1, 2025
4.125% Senior Notes due 2028						March 1, 2026
4.375% Senior Notes due 2028						August 1, 2026
5.25% Senior Notes due 2029						September 1, 2027

The senior notes listed below are redeemable in whole or in part, at the option of FCX, at a make-whole redemption price prior to the dates stated below, at specified redemption prices beginning on the dates stated below, and at 100% of principal two years before maturity.

Debt Instrument						Date
4.25% Senior Notes due 2030						March 1, 2025
4.625% Senior Notes due 2030						August 1, 2025

The senior notes listed below are redeemable in whole or in part, at the option of FCX, at a make-whole redemption price prior to the dates stated below and beginning on the dates stated below at 100% of principal.

Debt Instrument						Date
5.40% Senior Notes due 2034						May 14, 2034
5.450% Senior Notes due 2043						September 15, 2042

FCX’s senior notes contain limitations on liens and rank equally with FCX’s other existing and future unsecured and unsubordinated indebtedness.

PT-FI. In April 2022, PT-FI completed the sale of $3.0 billion aggregate principal amount of unsecured senior notes, consisting of $750 million of 4.763% Senior Notes due 2027, $1.5 billion of 5.315% Senior Notes due 2032 and $750 million of 6.200% Senior Notes due 2052. PT-FI used $0.6 billion of the net proceeds to repay the borrowings under its term loan and recorded a loss on early extinguishment of debt of $10 million in 2022. PT-FI used the remaining net proceeds to finance its downstream processing facilities.

The senior notes listed below are redeemable in whole or in part, at the option of PT-FI, at a make-whole redemption price prior to the dates stated below and beginning on the dates stated below at 100% of principal.

Debt Instrument						Date
4.763% Senior Notes due 2027						March 14, 2027
5.315% Senior Notes due 2032						January 14, 2032
6.200% Senior Notes due 2052						October 14, 2051

Maturities. Maturities of debt instruments based on the principal amounts outstanding at December 31, 2024, total $41 million in 2025, $5 million in 2026, $1.3 billion in 2027, $1.2 billion in 2028, $477 million in 2029 and $6.0 billion thereafter.

NOTE 7. OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS

The components of other liabilities follow:

			December 31,
			2024						2023
Leasesa			$	692					$	347
Pension, postretirement, postemployment and other employment benefitsb			689						704
Litigation accruals			163						163
Provision for tax positions			136						174
Social investment programs			111						79
Indemnification of MIND IDa			—						75
Other			96						106
Total other liabilities			$	1,887					$	1,648

a.Refer to Note 5 for current portion and Note 11 for further discussion.

b.Refer to Note 5 for current portion.

Pension Plans. Following is a discussion of FCX’s pension plans.

FMC Plans. FMC has U.S. trusteed, non-contributory pension plans covering some U.S. employees and some employees of its international subsidiaries hired before 2007. The applicable FMC plan design determines the manner in which benefits are calculated for any particular group of employees. Benefits are calculated based on final average monthly compensation and years of service or based on a fixed amount for each year of service. Non-bargained FMC employees hired after December 31, 2006, are not eligible to participate in the FMC U.S. pension plan. Effective September 1, 2020, the FMC Retirement Plan, the largest FMC plan, was amended such that participants no longer accrue any additional benefits.

FCX’s funding policy for these plans provides that contributions to pension trusts shall be at least equal to the minimum funding requirements of the Employee Retirement Income Security Act of 1974, as amended, for U.S. plans; or, in the case of international plans, the minimum legal requirements that may be applicable in the various countries. Additional contributions also may be made from time to time.

FCX’s primary investment objectives for the FMC plan assets held in a master trust (Master Trust) are to maintain funds sufficient to pay all benefit and expense obligations when due, minimize the volatility of the plan’s funded status to the extent practical, and to maintain prudent levels of risk consistent with the plan’s investment policy. The FMC plan assets are invested in a risk-mitigating portfolio, which is allocated among multiple fixed income managers. The current target allocation of the portfolio is long-duration credit (50%); long-duration U.S. government/credit (20%); core fixed income (22%); long-term U.S. Treasury Separate Trading of Registered Interest and Principal Securities (7%); and cash equivalents (1%).

The expected rate of return on plan assets is evaluated at least annually, taking into consideration asset allocation, historical and expected future performance on the types of assets held in the Master Trust, and the current economic environment. Based on these factors, FCX expects the pension assets will earn an average of 5.20% per annum beginning January 1, 2025, which is based on the target asset allocation and long-term capital market return expectations.

For estimation purposes, FCX assumes the long-term asset mix for these plans generally will be consistent with the current mix. Changes in the asset mix could impact the amount of recorded pension costs, the funded status of the

plans and the need for future cash contributions. A lower-than-expected return on assets also would decrease plan assets and increase the amount of recorded pension costs in future years. When calculating the expected return on plan assets, FCX uses the market value of assets.

Among the assumptions used to estimate the pension benefit obligation is a discount rate used to calculate the present value of expected future benefit payments for service to date. The discount rate assumption for FCX’s U.S. plans is designed to reflect yields on high-quality, fixed-income investments for a given duration. The determination of the discount rate for these plans is based on expected future benefit payments together with the Mercer Yield Curve – Above Mean. The Mercer Yield Curve – Above Mean is constructed from the bonds in the Mercer Pension Discount Curve that have a yield higher than the regression mean yield curve. The Mercer Yield Curve – Above Mean consists of spot (i.e., zero coupon) interest rates at one-half-year increments for each of the next 30 years and is developed based on pricing and yield information for high-quality corporate bonds. Changes in the discount rate are reflected in FCX’s benefit obligation and, therefore, in future pension costs.

SERP Plan. FCX has an unfunded Supplemental Executive Retirement Plan (SERP) for its Chairman of the Board. The SERP provides for retirement benefits payable in the form of a joint and survivor annuity, life annuity or an equivalent lump sum. The participant has elected to receive an equivalent lump sum payment. The payment will equal a percentage of the participant’s highest average compensation for any consecutive three-year period during the five years immediately preceding the completion of 25 years of credited service. The SERP benefit will be reduced by the value of all benefits from current and former retirement plans (qualified and nonqualified) sponsored by FCX, by FM Services Company, FCX’s wholly owned subsidiary, or by any predecessor employer (including FCX’s former parent company), except for benefits produced by accounts funded exclusively by deductions from the participant’s pay.

PT-FI Plan. PT-FI has a defined benefit pension plan denominated in Indonesia rupiah covering substantially all of its Indonesia national employees. PT-FI funds the plan and invests the assets in accordance with Indonesia pension guidelines. The pension obligation was valued at an exchange rate of 16,081 rupiah to one U.S. dollar on December 31, 2024, and 15,339 rupiah to one U.S. dollar on December 31, 2023. Indonesia labor laws require that companies provide a minimum severance to employees upon employment termination based on the reason for termination and the employee’s years of service. PT-FI’s pension benefit obligation includes benefits determined in accordance with this law. PT-FI’s expected rate of return on plan assets is evaluated at least annually, taking into consideration its long-range estimated return for the plan based on the asset mix. Based on these factors, PT-FI expects its pension assets will earn an average of 7% per annum beginning January 1, 2025. The discount rate assumption for PT-FI’s plan is based on the Indonesia Government Security Yield Curve. Changes in the discount rate are reflected in PT-FI’s benefit obligation and, therefore, in future pension costs.

Plan Information. FCX uses a measurement date of December 31 for its plans. Information for qualified and non-qualified plans where the projected benefit obligations and the accumulated benefit obligations exceed the fair value of plan assets follows:

			December 31,
			2024						2023
Projected and accumulated benefit obligation			$	1,734					$	1,828
Fair value of plan assets			1,379						1,475

Information on the qualified and non-qualified FCX (FMC and SERP plans) and PT-FI plans as of December 31 follows:

			FCX												PT-FI
			2024						2023						2024						2023
Change in benefit obligation:
Benefit obligation at beginning of year			$	1,880					$	1,884					$	221					$	215
Service cost			16						15						12						11
Interest cost			93						98						14						14
Actuarial (gains) losses			(76)						15						(3)						3
Foreign exchange losses (gains)			—						1						(11)						4
Benefits and administrative expenses paid			(133)						(133)						(23)						(27)
Other			—						—						3						1
Benefit obligation at end of year			1,780						1,880						213						221
Change in plan assets:
Fair value of plan assets at beginning of year			1,537						1,483						203						205
Actual return on plan assets			(31)						121						1						11
Employer contributionsa			63						65						14						9
Foreign exchange gains (losses)			—						1						(10)						4
Benefits and administrative expenses paid			(133)						(133)						(23)						(26)
Fair value of plan assets at end of year			1,436						1,537						185						203
Funded status			$	(344)					$	(343)					$	(28)					$	(18)
Accumulated benefit obligation			$	1,780					$	1,878					$	165					$	182
Weighted-average assumptions used to determine benefit obligations:
Discount rate			5.67		%				5.15		%				7.00		%				6.75		%
Rate of compensation increase			N/A						N/A						4.00		%				4.00		%
Balance sheet classification of funded status:
Other assets			$	11					$	9					$	—					$	—
Accounts payable and accrued liabilities			(3)						(3)						—						—
Other liabilities			(352)						(349)						(28)						(18)
Total			$	(344)					$	(343)					$	(28)					$	(18)

a.Employer contributions for 2025 are currently expected to approximate $64 million for the FCX plans and $11 million for the PT-FI plan (based on a December 31, 2024, exchange rate of 16,081 Indonesia rupiah to one U.S. dollar).

The actuarial gain of $76 million in 2024 and loss of $15 million in 2023 for the FCX pension plans primarily resulted from the changes in the discount rate, which were 5.67% at December 31, 2024, 5.15% at December 31, 2023, and 5.41% at December 31, 2022.

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

			2024						2023						2022
Weighted-average assumptions:a
Discount rate			5.15		%				5.41		%				2.85		%
Expected return on plan assets			5.75		%				5.00		%				3.00		%
Service cost			$	16					$	15					$	15
Interest cost			93						98						71
Expected return on plan assets			(86)						(72)						(62)
Amortization of net actuarial losses			13						15						15
Net periodic benefit cost			$	36					$	56					$	39

a.The assumptions shown relate only to the FMC Retirement Plan.

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

			2024						2023						2022
Weighted-average assumptions:
Discount rate			6.75		%				7.00		%				6.50		%
Expected return on plan assets			7.00		%				7.00		%				7.00		%
Rate of compensation increase			4.00		%				4.00		%				4.00		%
Service cost			$	12					$	11					$	12
Interest cost			14						14						14
Expected return on plan assets			(13)						(14)						(15)
Amortization of prior service cost			—						2						1
Amortization of net actuarial gains			(1)						(1)						(1)
Special termination benefit			—						1						2
Net periodic benefit cost			$	12					$	13					$	13

The service cost component of net periodic benefit cost is included in operating income, and the other components are included in other income, net in the consolidated statements of income.

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

			2024												2023
			Before Taxes						After Taxes and Noncontrolling Interests						Before Taxes						After Taxes and Noncontrolling Interests
Net actuarial losses			$	421					$	289					$	382					$	257
Prior service costs			(4)						(4)						(1)						(2)
			$	417					$	285					$	381					$	255

Plan assets are classified within a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1), then to prices derived using significant observable inputs (Level 2) and the lowest priority to prices derived using significant unobservable inputs (Level 3).

A summary of the fair value for pension plan assets, including those measured at net asset value (NAV) as a practical expedient, associated with the FCX plans follows:

			Fair Value at December 31, 2024
			Total						NAV						Level 1						Level 2						Level 3
Commingled/collective funds:
Fixed income securities			$	395					$	395					$	—					$	—					$	—
Short-term investments			37						37						—						—						—
Fixed income:
Corporate bonds			624						—						—						624						—
Government bonds			238						—						—						238						—
Private equity investments			68						68						—						—						—
Other investments			57						—						1						56						—
Total investments			1,419						$	500					$	1					$	918					$	—
Cash and receivables			20
Payables			(3)
Total pension plan net assets			$	1,436

			Fair Value at December 31, 2023
			Total						NAV						Level 1						Level 2						Level 3
Commingled/collective funds:
Fixed income securities			$	417					$	417					$	—					$	—					$	—
Short-term investments			24						24						—						—						—
Fixed income:
Corporate bonds			677						—						—						677						—
Government bonds			276						—						—						276						—
Private equity investments			67						67						—						—						—
Other investments			63						—						1						62						—
Total investments			1,524						$	508					$	1					$	1,015					$	—
Cash and receivables			17
Payables			(4)
Total pension plan net assets			$	1,537

Following is a description of the pension plan asset categories included in the above tables and the valuation techniques used to measure fair value. There have been no changes to the techniques used to measure fair value.

Commingled/collective funds are managed by several fund managers and are valued at the NAV per unit of the fund. For most of these funds, the majority of the underlying assets are actively traded securities. These funds primarily require up to a two-business-day notice for redemptions.

Fixed income investments include corporate and government bonds held directly by the Master Trust. Fixed income securities are valued using a bid-evaluation price or a mid-evaluation price and, as such, are classified within Level 2 of the fair value hierarchy. A bid-evaluation price is an estimated price at which a dealer would pay for a security. A mid-evaluation price is the average of the estimated price at which a dealer would sell a security and the estimated price at which a dealer would pay for a security. These evaluations are based on quoted prices, if available, or models that use observable inputs.

Private equity investments are valued at NAV using information from general partners and have inherent restrictions on redemptions that may affect the ability to sell the investments at their NAV in the near term.

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

			Fair Value at December 31, 2024
			Total						Level 1						Level 2						Level 3
Government bonds			$	96					$	96					$	—					$	—
Common stocks			53						53						—						—
Mutual funds			12						12						—						—
Total investments			161						$	161					$	—					$	—
Cash and receivablesa			24
Total pension plan net assets			$	185

			Fair Value at December 31, 2023
			Total						Level 1						Level 2						Level 3
Government bonds			$	102					$	102					$	—					$	—
Common stocks			67						67						—						—
Mutual funds			12						12						—						—
Total investments			181						$	181					$	—					$	—
Cash and receivablesa			22
Total pension plan net assets			$	203

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

Following is a description of the valuation techniques used for pension plan assets measured at fair value associated with the PT-FI plan. There have been no changes to the techniques used to measure fair value.

Government bonds, common stocks and mutual funds are valued at the closing price reported on the active market on which the individual securities are traded and, as such, are classified within Level 1 of the fair value hierarchy.

The techniques described above may produce a fair value calculation that may not be indicative of NRV or reflective of future fair values. Furthermore, while FCX believes its valuation techniques are appropriate and consistent with those used by other market participants, the use of different techniques or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The expected benefit payments for FCX’s and PT-FI’s pension plans follow:

			FCX						PT-FIa
2025			$	126					$	14
2026			190						27
2027			129						29
2028			129						31
2029			129						28
2030 through 2034			633						133

a.Based on a December 31, 2024, exchange rate of 16,081 Indonesia rupiah to one U.S. dollar.

Postretirement and Other Benefits. FCX also provides postretirement medical and life insurance benefits for certain U.S. employees and, in some cases, employees of certain international subsidiaries. These postretirement benefits vary among plans, and many plans require contributions from retirees. The expected cost of providing such postretirement benefits is accrued during the years employees render service.

The benefit obligation (funded status) for the postretirement medical and life insurance benefit plans consisted of a current portion of $5 million (included in accounts payable and accrued liabilities) and a long-term portion of $31 million (included in other liabilities) at December 31, 2024, and a current portion of $5 million and a long-term portion of $34 million at December 31, 2023.

FCX has a number of postemployment plans covering severance, long-term disability income, continuation of health and life insurance coverage for disabled employees or other welfare benefits. The accumulated postemployment benefit obligation consisted of a current portion of $7 million (included in accounts payable and accrued liabilities) and a long-term portion of $43 million (included in other liabilities) at December 31, 2024, and a current portion of $7 million and a long-term portion of $46 million at December 31, 2023.

FCX also sponsors a retirement savings plan for most of its U.S. employees. The plan allows employees to contribute a portion of their income in accordance with specified guidelines. The savings plan is a qualified 401(k) plan for all U.S. salaried and non-bargained hourly employees. Participants exercise control and direct the investment of their contributions and account balances among various investment options under the plan. FCX contributes to the plan and matches a percentage of employee contributions up to certain limits. For employees whose eligible compensation exceeds certain levels, FCX provides a nonqualified unfunded defined contribution plan, which had a liability balance of $69 million at December 31, 2024, and $62 million at December 31, 2023, all of which was included in other liabilities.

The costs charged to operations for the employee savings plan totaled $131 million in 2024, $119 million in 2023 and $101 million in 2022. FCX has other employee benefit plans, certain of which are related to FCX’s financial results, which are recognized in operating costs.

NOTE 8. STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

FCX’s authorized shares of capital stock consists of 3.0 billion shares of common stock and 50 million shares of preferred stock.

Financial Policy. FCX’s financial policy, which was adopted by its Board of Directors (Board) in 2021, includes a base dividend and a performance-based payout framework, whereby up to 50% of available cash flows generated after planned capital spending and distributions to noncontrolling interests is allocated to shareholder returns and the balance to debt reduction and investments in value enhancing growth projects, subject to FCX maintaining its net debt at a level not to exceed the net debt target of $3.0 billion to $4.0 billion (excluding net project debt for PT-FI’s new downstream processing facilities). The Board reviews the structure of the performance-based payout framework at least annually.

Under its $5.0 billion share repurchase program, FCX has acquired a total of 49.0 million shares of common stock for a cost of $1.9 billion ($38.64 average cost per share), including 1.2 million shares of its common stock for a total cost of $59 million in 2024 and 35.1 million shares of its common stock for a total cost of $1.3 billion in 2022 (no purchases were made in 2023). As of February 14, 2025, FCX has $3.1 billion available for repurchases under the program.

On December 18, 2024, FCX declared quarterly cash dividends totaling $0.15 per share on its common stock (including a $0.075 per share base dividend and $0.075 per share variable dividend), which were paid on February 3, 2025, to common stockholders of record as of January 15, 2025.

The declaration and payment of dividends (base or variable) and timing and amount of any share repurchases are at the discretion of FCX’s Board and management, respectively, and are subject to a number of factors, including not exceeding FCX’s net debt target, capital availability, FCX’s financial results, cash requirements, global economic conditions, changes in laws, contractual restrictions and other factors deemed relevant by FCX’s Board or management, as applicable. FCX’s share repurchase program may be modified, increased, suspended or terminated at any time at the Board’s discretion.

Accumulated Other Comprehensive Loss. A summary of changes in the balances of each component of accumulated other comprehensive loss, net of tax, follows:

			Defined Benefit Plans												Translation Adjustment						Total
Balance at January 1, 2022			$	(398)											$	10					$	(388)
Amounts arising during the perioda,b			61												—						61
Amounts reclassifiedc			7												—						7
Balance at December 31, 2022			(330)												10						(320)
Amounts arising during the perioda,b			41												—						41
Amounts reclassifiedc			5												—						5
Balance at December 31, 2023			(284)												10						(274)
Amounts arising during the perioda,b			(44)												—						(44)
Amounts reclassifiedc			4												—						4
Balance at December 31, 2024			$	(324)											$	10					$	(314)

a.Includes net actuarial gains (loss), net of noncontrolling interest, totaling $59 million for 2022, $38 million for 2023 and $(46) million for 2024.

b.Includes tax benefits totaling $2 million for 2022, 2023 and 2024.

c.Includes amortization primarily related to actuarial losses, net of taxes of less than $1 million for 2022, 2023 and 2024.

Stock Award Plans. FCX currently has awards outstanding under various stock-based compensation plans. The stockholder-approved 2016 Stock Incentive Plan (the 2016 Plan) provides for the issuance of stock options, stock appreciation rights, restricted stock, RSUs, PSUs and other stock-based awards for up to 72 million common shares. As of December 31, 2024, 15.0 million shares were available for grant under the 2016 Plan, and no shares were available under other plans.

Stock-Based Compensation Cost. Compensation cost charged against earnings for stock-based awards for the years ended December 31 follows:

			2024						2023						2022
Selling, general and administrative expenses			$	65					$	64					$	57
Production and delivery			44						45						38
Total stock-based compensation			109						109						95
Tax benefit and noncontrolling interests’ sharea			(4)						(5)						(4)
Impact on net income			$	105					$	104					$	91

a. Charges in the U.S. are not expected to generate a future tax benefit.

Stock Options. Stock options granted under the plans generally expire 10 years after the date of grant and vest in one-third annual increments beginning one year from the date of grant. The award agreements provide that participants will receive the following year’s vesting upon retirement. Therefore, on the date of grant, FCX accelerates one year of amortization for retirement-eligible employees. The award agreements also provide for accelerated vesting upon certain qualifying terminations of employment within one year following a change of control. FCX has not granted stock options since 2021.

A summary of stock options outstanding as of December 31, 2024, and activity during the year ended December 31, 2024, follows:

			Number of Options						Weighted- Average Exercise Price Per Share						Weighted- Average Remaining Contractual Term (years)						Aggregate Intrinsic Value
Balance at January 1			8,749,933						$	15.63
Exercised			(3,140,886)						18.13
Balance at December 31			5,609,047						14.22						4.1						$	134
Vested and exercisable at December 31			5,609,047						14.22						4.1						$	134

The total intrinsic value of options exercised was $95 million during 2024, $52 million during 2023 and $148 million during 2022. The total fair value of options vested was less than $1 million during 2024, $3 million during 2023 and $23 million during 2022.

Stock-Settled PSUs and RSUs. Since 2014, FCX’s executive officers received annual grants of PSUs that vest after a three-year performance period. The total grant date target shares related to the PSU grants were 0.4 million for each of 2024, 2023 and 2022, of which the executive officers will earn (i) between 0% and 200% of the target shares based on achievement of financial metrics and (ii) may be increased or decreased up to 25% of the target shares based on FCX’s total shareholder return compared to the total shareholder return of a peer group. PSU awards for FCX’s executive officers who are retirement-eligible are non-forfeitable. As such, FCX charges the estimated fair value of the non-forfeitable PSU awards to expense at the time the financial and operational metrics are established, which is typically grant date. The fair value of PSU awards for FCX’s executive officers who are not retirement-eligible are charged to expense over the performance period.

FCX grants RSUs that vest over a period of three years or at the end of three years to certain employees. Some award agreements allow for participants to receive the following year’s vesting upon retirement. Therefore, on the date of grant of these RSU awards, FCX accelerates one year of amortization for retirement-eligible employees. FCX also grants RSUs to its directors, which vest on the first anniversary of the date of grant. The fair value of the RSUs is amortized over the vesting period or the period until the director becomes retirement eligible, whichever is shorter. Upon a director’s retirement, all of their unvested RSUs immediately vest. For retirement-eligible directors, the fair value of RSUs is recognized in earnings on the date of grant.

The award agreements provide for accelerated vesting of all RSUs held by directors if there is a change of control (as defined in the award agreements) and for accelerated vesting of all RSUs held by employees if they experience a qualifying termination within one year following a change of control. Dividends attributable to RSUs and PSUs accrue and are paid if the awards vest. A summary of outstanding stock-settled RSUs and PSUs as of December 31, 2024, and activity during the year ended December 31, 2024, follows:

			Number of Awards						Weighted-Average Grant-Date Fair Value Per Award						Aggregate Intrinsic Value
Balance at January 1			5,699,575						$	37.23
Granted			2,262,830						39.46
Vested			(2,224,239)						34.37
Forfeited			(15,082)						41.00
Balance at December 31			5,723,084						39.21						$	218

The total fair value of stock-settled RSUs and PSUs granted was $92 million during 2024, $93 million during 2023 and $83 million during 2022. The total intrinsic value of stock-settled RSUs and PSUs vested was $84 million during 2024, $136 million during 2023 and $138 million during 2022. As of December 31, 2024, FCX had $27 million of total unrecognized compensation cost related to unvested stock-settled RSUs and PSUs expected to be recognized over approximately 1.1 years.

Cash-Settled RSUs. Cash-settled RSUs are similar to stock-settled RSUs but are settled in cash rather than in shares of common stock. These cash-settled RSUs generally vest over three years of service. Some award agreements allow for participants to receive the following year’s vesting upon retirement. Therefore, on the date of grant of these cash-settled RSU awards, FCX accelerates one year of amortization for retirement-eligible employees. The cash-settled RSUs are classified as liability awards, and the fair value of these awards is remeasured each reporting period until the vesting dates. The award agreements for cash-settled RSUs provide for accelerated vesting upon certain qualifying terminations of employment within one year following a change of control.

Dividends attributable to cash-settled RSUs accrue and are paid if the awards vest. A summary of outstanding cash-settled RSUs as of December 31, 2024, and activity during the year ended December 31, 2024, follows:

			Number of Awards						Weighted-Average Grant-Date Fair Value Per Award						Aggregate Intrinsic Value
Balance at January 1			858,741						$	40.23
Granted			626,050						39.58
Vested			(398,727)						38.19
Forfeited			(22,578)						40.72
Balance at December 31			1,063,486						40.60						$	40

The total grant-date fair value of cash-settled RSUs was $25 million during 2024, $24 million during 2023 and $15 million during 2022. The intrinsic value of cash-settled RSUs vested was $15 million during 2024, $20 million during 2023 and $26 million during 2022. The accrued liability associated with cash-settled RSUs consisted of a current portion of $22 million (included in accounts payable and accrued liabilities) and a long-term portion of $8 million (included in other liabilities) at December 31, 2024, and a current portion of $19 million and a long-term portion of $7 million at December 31, 2023.

Other Information. The following table includes amounts related to exercises of stock options and vesting of RSUs and PSUs during the years ended December 31:

			2024						2023						2022
FCX shares tendered or withheld to pay the exercise
price and/or the statutory withholding taxesa			1,505,675						1,633,519						1,511,072
Cash received from stock option exercises			$	29					$	47					$	125
Actual tax benefit realized for tax deductions			$	5					$	4					$	13
Amounts FCX paid for employee taxes			$	35					$	50					$	55

a.Under terms of the related plans, upon exercise of stock options, vesting of stock-settled RSUs and payout of PSUs, employees may tender or have withheld FCX shares to pay the exercise price and/or required withholding taxes.

NOTE 9. INCOME TAXES

Geographic sources of (losses) income before income taxes and equity in affiliated companies’ net earnings for the years ended December 31 follow:

			2024						2023						2022
U.S.			$	(547)					$	68					$	840
Foreign			7,454						5,938						5,875
Total			$	6,907					$	6,006					$	6,715

Income taxes are provided on the earnings of FCX’s material foreign subsidiaries under the assumption that these earnings will be distributed. FCX has not provided deferred income taxes for other differences between the book and tax carrying amounts of its investments in material foreign subsidiaries as FCX considers its ownership positions to be permanent in duration, and quantification of the related deferred tax liability is not practicable.

FCX’s provision for income taxes for the years ended December 31 follows:

			2024						2023						2022
Current income taxes:
Federal			$	36					$	5					$	—
State			(1)						(6)						1
Foreign			(2,635)						(2,087)						(2,232)
Total current			(2,600)						(2,088)						(2,231)
Deferred income taxes:
Federal			1						(50)						(149)
State			(1)						(3)						(6)
Foreign			74						(320)						(144)
Total deferred			74						(373)						(299)
Adjustments			—						6						1
Operating loss carryforwards			3						185						262
Provision for income taxes			$	(2,523)					$	(2,270)					$	(2,267)

A reconciliation of the U.S. federal statutory tax rate to FCX’s effective income tax rate for the years ended December 31 follows:

			2024												2023												2022
			Amount						%						Amount						%						Amount						%
U.S. federal statutory tax rate			$	(1,450)					(21)		%				$	(1,261)					(21)		%				$	(1,410)					(21)		%
Foreign tax credit expiration/ limitationa			(1,053)						(15)						(289)						(5)						(50)						(1)
Valuation allowancea			898						13						119						2						65						—
Withholding and other impacts on
foreign earnings			(753)						(11)						(615)						(10)						(673)						(10)
Effect of foreign rates different than the U.S.
federal statutory rate			(373)						(6)						(313)						(5)						(314)						(5)
PT-FI historical tax disputesb			185						2						—						—						(8)						—
Percentage depletion			123						2						183						3						189						3
State income taxes			(52)						(1)						3						—						(41)						—
Non-deductible permanent differences			(41)						—						(68)						(1)						(29)						—
Uncertain tax positions			5						—						(28)						(1)						(17)						—
Other items, net			(12)						—						(1)						—						21						—
Provision for income taxes			$	(2,523)					(37)		%				$	(2,270)					(38)		%				$	(2,267)					(34)		%

a.Refer to “Valuation Allowances” below.

b.Refer to “Indonesia Tax Matters” below.

FCX paid federal, state and foreign income taxes totaling $2.8 billion in 2024, $2.1 billion in 2023 and $3.1 billion in 2022. FCX received refunds of federal, state and foreign income taxes totaling $248 million in 2024, less than $1 million in 2023 and $46 million in 2022.

The components of deferred taxes follow:

			December 31,
			2024						2023
Deferred tax assets:
Net operating losses			$	1,814					$	1,761
Accrued expenses			1,657						1,390
Foreign tax credits			184						1,228
Employee benefit plans			76						78
Other			214						215
Deferred tax assets			3,945						4,672
Valuation allowances			(2,984)						(3,894)
Net deferred tax assets			961						778
Deferred tax liabilities:
Property, plant, equipment and mine development costs			(4,193)						(4,118)
Undistributed earnings			(981)						(911)
Other			(155)						(195)
Total deferred tax liabilities			(5,329)						(5,224)
Net deferred tax liabilities			$	(4,368)					$	(4,446)

Tax Attributes. At December 31, 2024, FCX had (i) U.S. foreign tax credits of $0.2 billion that will expire between 2025 and 2034, (ii) U.S. federal net operating losses (NOLs) of $6.0 billion, of which $0.7 billion can be carried forward indefinitely, with the remainder primarily expiring between 2036 and 2037, (iii) U.S. state NOLs of $10.6 billion, of which $3.5 billion can be carried forward indefinitely, with the remainder primarily expiring between 2025 and 2044, and (iv) Atlantic Copper NOLs of $0.5 billion that can be carried forward indefinitely.

Valuation Allowances. On the basis of available information at December 31, 2024, including positive and negative evidence, FCX has provided valuation allowances for certain of its deferred tax assets where it believes it is more-likely-than-not that some portion or all of such assets will not be realized. Valuation allowances totaled $3.0 billion at December 31, 2024, and covered all of FCX’s U.S. foreign tax credits and U.S. federal NOLs, substantially all of its U.S. state and foreign NOLs, as well as a portion of its U.S. federal, state and foreign deferred tax assets.

The valuation allowance related to FCX’s U.S. foreign tax credits totaled $0.2 billion at December 31, 2024. FCX has operations in tax jurisdictions where statutory income taxes and withholding taxes are in excess of the U.S. federal income tax rate. Valuation allowances are recognized on foreign tax credits for which no benefit is expected to be realized.

The valuation allowance related to FCX’s U.S. federal, state and foreign NOLs totaled $1.8 billion and other deferred tax assets totaled $1.0 billion at December 31, 2024. NOLs and deferred tax assets represent future deductions for which a benefit will only be realized to the extent these deductions offset future income. FCX develops an estimate of which future tax deductions will be realized and recognizes a valuation allowance to the extent these deductions are not expected to be realized in future periods.

Valuation allowances will continue to be carried on U.S. foreign tax credits, U.S. federal, state and foreign NOLs and U.S. federal, state and foreign deferred tax assets, until such time that (i) FCX generates taxable income against which any of the assets, credits or NOLs can be used, (ii) forecasts of future income provide sufficient positive evidence to support reversal of the valuation allowances or (iii) FCX identifies a prudent and feasible means of securing the benefit of the assets, credits or NOLs that can be implemented.

The $0.9 billion net decrease in the valuation allowances during 2024 is primarily related to a decrease for expirations of U.S. foreign tax credits.

U.S. Inflation Reduction Act of 2022. The provisions of the U.S. Inflation Reduction Act of 2022 (the Act) became applicable to FCX on January 1, 2023. The Act includes, among other provisions, a new Corporate Alternative Minimum Tax (CAMT) of 15% on the adjusted financial statement income (AFSI) of corporations with average annual AFSI exceeding $1.0 billion over a three-year period.

In September 2024, the Internal Revenue Service (IRS) issued proposed regulations that provide guidance on the application of CAMT, which are not final and subject to change. Based on the proposed guidance released by the IRS, FCX determined that the provisions of the Act did not impact its financial results for the years 2024 or 2023.

Pillar Two of the Global Anti-Base Erosion Rules. In 2021, the Organisation for Economic Co-operation and Development (OECD) published a framework for Pillar Two of the Global Anti-Base Erosion Rules, which was designed to coordinate participating jurisdictions in updating the international tax system to ensure that large multinational companies pay a minimum level of income tax. Recommendations from the OECD regarding a global minimum income tax and other changes are being considered and/or implemented in jurisdictions where FCX operates. At current metals market prices, FCX does not expect enactment of the recommended framework in jurisdictions where it operates to materially impact its financial results.

Indonesia Tax Matters. During 2024, in conjunction with closure of PT-FI’s 2021 corporate income tax audit and resolution of Indonesia disputed tax matters, PT-FI recorded credits to net income of $215 million, including $199 million to provision for income taxes, $8 million to production and delivery and $8 million to interest expense, net.

Peru Tax Matters. Cerro Verde’s current mining stability agreement subjects it to a stable income tax rate of 32% through the expiration of the agreement on December 31, 2028. The enacted tax rate on dividend distributions, which is not stabilized by the agreement, is 5%.

Chile Tax Matters. Under the US-Chilean Tax Treaty, which became effective in 2024, FCX’s share of income from El Abra is subject to an income tax rate of 35%.

Effective January 1, 2024, mining royalty taxes in Chile consist of two main components: (i) profitability-based mining royalty rates on a sliding scale of 8% to 26% (depending on a defined operational margin) and (ii) an additional ad valorem royalty tax based on 1% of sales.

Uncertain Tax Positions. Tax positions reflected in the consolidated financial statements are, based on their technical merits, more-likely-than-not to be sustained upon examination by taxing authorities or have otherwise been effectively settled. Such tax positions reflect the largest amount of benefit, determined on a cumulative probability basis, that is more-likely-than-not to be realized upon settlement with the applicable taxing authority with full knowledge of all relevant information. FCX’s policy associated with uncertain tax positions is to record accrued

interest in interest expense and accrued penalties in other income, net, rather than in the provision for income taxes.

A summary of the activities associated with FCX’s reserve for unrecognized tax benefits for the years ended December 31 follows.

			2024						2023						2022
Balance at beginning of year			$	720					$	810					$	808
Additions:
Prior year tax positions			13						27						26
Current year tax positions			10						28						25
Decreases:
Prior year tax positions			(54)						(13)						(12)
Settlements with taxing authorities			(492)						(132)						(37)
Lapse of statute of limitations			(36)						—						—
Balance at end of year			$	161					$	720					$	810

The total amount of accrued interest and penalties associated with unrecognized tax benefits was $264 million at December 31, 2024, primarily relating to unrecognized tax benefits associated with royalties and the timing of advance payments, $536 million at December 31, 2023, and $551 million at December 31, 2022. Amounts include unpaid items on the consolidated balance sheet of $26 million at December 31, 2024, $33 million at December 31, 2023, and $36 million at December 31, 2022. Benefits (charges) for interest and penalties related to unrecognized tax benefits totaled $8 million in 2024, $(153) million in 2023 and $(7) million in 2022.

The reserve for unrecognized tax benefits of $161 million at December 31, 2024, included $153 million ($52 million net of income tax benefits and valuation allowances) that, if recognized, would reduce FCX’s provision for income taxes. Changes in the reserve for unrecognized tax benefits associated with current and prior-year tax positions were primarily related to uncertainties associated with FCX’s tax treatment of cost recovery methods, various non-deductible costs, and royalties and other mining taxes. There continues to be uncertainty related to the timing of settlements with taxing authorities, but if additional settlements are agreed upon during the year 2025, FCX could experience a change in its reserve for unrecognized tax benefits.

FCX or its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The tax years for FCX’s major tax jurisdictions that remain subject to examination are as follows:

Jurisdiction						Years Subject to Examination						Additional Open Years
U.S. Federal						—						2021-2024
Indonesia						2017, 2020						2022-2024
Peru						2020-2021						2017-2019, 2022-2024
Chile						2023						2021-2022, 2024

NOTE 10. CONTINGENCIES

Environmental. FCX’s operations are subject to various environmental laws and regulations that govern the generation, storage, treatment, transportation and disposal of hazardous substances; solid waste disposal; air emissions; wastewater discharges; remediation, restoration and reclamation of environmental contamination, including mine closures and reclamation; protection of endangered and threatened species and designation of critical habitats; and other related matters. FCX subsidiaries that operate in the U.S. also are subject to potential liabilities arising under CERCLA and similar state laws that impose responsibility on current and previous owners and operators of a facility for the remediation of hazardous substances released from the facility into the environment, including damages to natural resources, in some cases irrespective of when the damage to the environment occurred or who caused it. Remediation liability also extends to persons who arranged for the disposal of hazardous substances or transported the hazardous substances to a disposal site selected by the transporter. These liabilities are often shared on a joint and several basis, meaning that each responsible party is fully responsible for the remediation if some or all of the other historical owners or operators no longer exist, do not have the financial ability to respond or cannot be found. As a result, because of FCX’s acquisition of FMC, many of the subsidiary companies FCX now owns are responsible for a wide variety of environmental remediation projects throughout the U.S., and FCX expects to spend substantial sums annually for many years to address those

remediation issues. Certain FCX subsidiaries have been advised by the U.S. Environmental Protection Agency (EPA), the Department of the Interior, the Department of Agriculture and various state agencies that, under CERCLA or similar state laws and regulations, they may be liable for costs of responding to environmental conditions at a number of sites that have been or are being investigated to determine whether releases of hazardous substances have occurred and, if so, to develop and implement remedial actions to address environmental concerns. FCX is also subject to claims where the release of hazardous substances is alleged to have caused natural resource damages (NRD) and to litigation by individuals allegedly exposed to hazardous substances. As of December 31, 2024, FCX had more than 80 active remediation projects, including NRD claims, in 20 U.S. states. The largest obligations discussed below account for approximately 85% of the total balance at December 31, 2024.

A summary of changes in FCX’s estimated environmental obligations for the years ended December 31 follows:

			2024						2023						2022
Balance at beginning of year			$	1,939					$	1,740					$	1,664
Accretion expensea			131						119						110
Net additionsb			82						195						43
Spending			(112)						(115)						(77)
Balance at end of year			2,040						1,939						1,740
Less current portion			(131)						(131)						(125)
Long-term portion			$	1,909					$	1,808					$	1,615

a.Represents accretion of the fair value of environmental obligations assumed in the acquisition of FMC, which were determined on a discounted cash flow basis.

b.Primarily reflects revisions for changes in the anticipated scope and timing of projects. See further discussion below.

Estimated future environmental cash payments (on an undiscounted and de-escalated basis) total $4.4 billion, including $131 million in 2025, $111 million in 2026, $122 million in 2027, $112 million in 2028, $77 million in 2029 and $3.8 billion thereafter. The amount and timing of these estimated payments will change as a result of changes in regulatory requirements, changes in scope and timing of remediation activities, the settlement of environmental matters and as actual spending occurs.

At December 31, 2024, FCX’s environmental obligations totaled $2.0 billion, including $1.9 billion recorded on a discounted basis for those obligations assumed in the FMC acquisition at fair value. FCX estimates it is reasonably possible that these obligations could range between $3.9 billion and $5.1 billion on an undiscounted and de-escalated basis.

At December 31, 2024, the most significant environmental obligations were associated with the Pinal Creek site in Arizona; the Newtown Creek site in New York City; historical smelter sites principally located in Arizona, Indiana, Kansas, Missouri, New Jersey, Oklahoma and Pennsylvania; and uranium mining sites in the western U.S. The recorded environmental obligations for these sites totaled $1.7 billion at December 31, 2024. FCX may also be subject to litigation brought by private parties, regulators and local governmental authorities related to these historical sites. A discussion of these sites follows.

Pinal Creek. The Pinal Creek site was listed under the Arizona Department of Environmental Quality’s (ADEQ) Water Quality Assurance Revolving Fund program in 1989 for contamination in the shallow alluvial aquifers within the Pinal Creek drainage near Miami, Arizona. Since that time, environmental remediation has been performed by members of the Pinal Creek Group, consisting of Freeport-McMoRan Miami Inc. (Miami), an indirect wholly owned subsidiary of FCX, and two other companies. Pursuant to a 2010 settlement agreement, Miami agreed to take full responsibility for future groundwater remediation at the Pinal Creek site, with limited exceptions. Remediation work consisting of groundwater extraction and treatment plus source control capping is expected to continue for many years. During 2023, FCX recorded adjustments to the Pinal Creek environmental obligation totaling $61 million associated with a refined engineering scope and cost estimate for work to be completed within the next several years. FCX’s environmental liability balance for this site was $517 million at December 31, 2024.

Newtown Creek. From the 1930s until 1964, Phelps Dodge Refining Corporation (PDRC), an indirect wholly owned subsidiary of FCX, operated a copper smelter, and from the 1930s until 1984, a copper refinery, on the banks of Newtown Creek (the creek), which is a 3.5-mile-long waterway that forms part of the boundary between Brooklyn and Queens in New York City. Heavy industrial uses on and around the creek and discharges from the City of New York’s sewer system over more than a century resulted in significant environmental contamination of the waterway. In 2010, EPA designated the creek as a Superfund site and identified PDRC, four other companies and the City of

New York as potentially responsible parties (PRPs). The following year, PDRC and the four other companies (the Newtown Creek Group, NCG) and the City of New York entered an Administrative Order on Consent to perform a remedial investigation/feasibility study (RI/FS) to assess the nature and extent of environmental contamination in the creek and identify remedial options. EPA approved the final RI report in April 2023. The NCG’s FS work is ongoing. EPA currently expects to approve the final FS report by April 2028, although this timeframe may be further extended. EPA is also considering performing the FS evaluation and remedy selection by creek segment. At the agency’s request, the NCG prepared a focused feasibility study (FFS) for an early action remediation project focusing on the East Branch tributary of the creek. EPA approved the FFS report and, in January 2025, the agency issued a record of decision selecting an interim remedy for the East Branch. EPA has identified 30 PRPs for the site, including the NCG members and New York City, and invited all PRPs to participate in performing the East Branch remedial design. During 2023, FCX recorded adjustments to Newtown Creek environmental obligations totaling $64 million based on updated cost estimates from the draft early action FFS and no further adjustment was considered necessary based on the issuance of the 2025 record of decision. FCX’s environmental liability balance for this site was $452 million at December 31, 2024. The scope and design of the site remedy (or remedies), final costs of the site investigation and remediation, and allocation of costs among PRPs are uncertain and subject to change. Changes to the overall cost of this remedial obligation and the portion ultimately allocated to PDRC could be material to FCX.

Historical Smelter Sites. FCX subsidiaries and their predecessors at various times owned or operated copper, zinc and lead smelters or refineries in states including Arizona, Indiana, Kansas, Missouri, New Jersey, Oklahoma and Pennsylvania. For some of these former processing sites, certain FCX subsidiaries have been advised by EPA or state agencies that they may be liable for costs of investigating and, if appropriate, remediating environmental conditions associated with these former processing facilities. At other sites, certain FCX subsidiaries have entered into state voluntary remediation programs to investigate and, if appropriate, remediate on-site and off-site conditions associated with the facilities. The historical processing sites are in various stages of assessment and remediation. At some of these sites, disputes with local residents and elected officials regarding alleged health effects or the effectiveness of remediation efforts have resulted in litigation of various types, and similar litigation at other sites is possible.

From 1920 until 1986, United States Metals Refining Company (USMR), an indirect wholly owned subsidiary of FCX, owned and operated a copper smelter and refinery in the Borough of Carteret, New Jersey. Since the early 1980s, the site has been the subject of environmental investigation and remediation, under the direction and supervision of the New Jersey Department of Environmental Protection (NJDEP). On-site contamination is in the later stages of remediation. In 2012, after receiving a request from NJDEP, USMR also began investigating and remediating off-site properties, which is ongoing. As a result of off-site soil sampling in public and private areas near the former Carteret smelter, FCX established an environmental obligation for known and potential off-site environmental remediation; that work has been essentially completed at the end of 2024. Assessments of sediments in the adjacent Arthur Kill and possible remedial actions could result in additional adjustments to the related environmental obligation in future periods.

In January 2024, the EPA released guidance lowering the recommended screening levels for investigating lead-contaminated soils from 400 to 200 parts per million (ppm) or 100 ppm where there are other sources of lead exposure (such as lead-based paint that is common in older homes). Screening levels can be used to establish cleanup levels by some agencies and more stringent cleanup levels often lead to higher costs through exponential volume increases due to resulting expanded project footprints. In January 2025, EPA published its final toxicological assessment for inorganic arsenic, which may be used to calculate cleanup levels at state and federal remediation sites and may lead to regulatory guidance, rulemaking and other regulatory activities. FCX is working with state agencies to understand possible ramifications of this guidance on its projects. This EPA guidance and future changes to EPA’s lead and arsenic cleanup levels could result in increases to FCX’s environmental obligations for ongoing residential property cleanup projects near former smelter sites.

FCX’s environmental liability balance for historical smelter sites, including in the Borough of Carteret, New Jersey, was $266 million at December 31, 2024.

Uranium Mining Sites. During a period between 1940 and the early 1980s, certain FCX subsidiaries and their predecessors were involved in uranium exploration and mining in the western U.S., primarily on federal and tribal lands in the Four Corners region of the Southwest. Similar exploration and mining activities by other companies have also caused environmental impacts warranting remediation.

In 2017, the Department of Justice, EPA, Navajo Nation, and two FCX subsidiaries reached an agreement regarding the financial contribution of the U.S. Government and the FCX subsidiaries and the scope of the environmental investigation and remediation work for 94 former uranium mining sites on tribal lands. Under the terms of the Consent Decree executed in May 2017, and approved by the U.S. District Court for the District of Arizona, the U.S. contributed $335 million into a trust fund to cover the government’s initial share of the costs, and

FCX’s subsidiaries are proceeding with the environmental investigation and remediation work at the 94 sites. The program is expected to take more than 20 years to complete. The Consent Decree excluded 23 former uranium mine sites at which an FCX subsidiary may also be potentially liable, but for which the U.S. recovered funds as part of a larger bankruptcy settlement with Tronox. In 2021, EPA informed an FCX subsidiary as well as two other federal entities that it does not expect to have funds sufficient to remediate all of the sites covered by the Tronox bankruptcy settlement. Based on information from EPA, it is currently considered unlikely that EPA will deplete the Tronox settlement funds in the near-term.

FCX is also conducting site surveys of historical uranium mining claims associated with FCX subsidiaries on non-tribal federal lands in the Four Corners region. Under a memorandum of understanding with the U.S. Bureau of Land Management (BLM), site surveys are being performed on approximately 15,000 mining claims, ranging from undisturbed claims to claims with mining features. Based on these surveys, BLM has issued no further action determinations for certain undisturbed claims. A similar agreement is in place with the U.S. Forest Service for mine features on U.S. Forest Service land. Either BLM or the U.S. Forest Service may request additional assessment or remediation activities for other claims with mining features. FCX will update this obligation when it has a sufficient number of remedy decisions from the BLM or the U.S. Forest Service to support a reasonably certain range of outcomes. FCX expects it will take several years to complete this work.

FCX’s environmental liability balance for the uranium mining sites was $473 million at December 31, 2024.

AROs. FCX’s ARO estimates are reflected on a third-party cost basis and are based on FCX’s legal obligation to retire tangible, long-lived assets. A summary of changes in FCX’s AROs for the years ended December 31 follows:

			2024						2023						2022
Balance at beginning of year			$	3,001					$	3,043					$	2,716
Liabilities incurred			16						18						9
Revisions to cash flow estimates and settlements, net			635			a			54						381			a
Accretion expense			154						20			b			134
Spending			(122)						(134)						(197)
Balance at end of year			3,684						3,001						3,043
Less current portion			(189)						(185)						(195)
Long-term portion			$	3,495					$	2,816					$	2,848

a.Primarily reflects adjustments for oil and gas properties, Sierrita, PT-FI, Climax and Henderson for the year 2024, and PT-FI, Morenci and Bagdad for the year 2022. See further discussion below.

b.Includes a $112 million adjustment at PT-FI to correct certain inputs in the historical PT-FI ARO model.

ARO costs may increase or decrease significantly in the future as a result of changes in regulations, changes in engineering designs and technology, permit modifications or updates, changes in mine plans, settlements, inflation or other factors and as reclamation (concurrent with mining operations or post mining) spending occurs. ARO activities and expenditures for mining operations generally are made over an extended period of time commencing near the end of the mine life; however, certain reclamation activities may be accelerated if legally required or if determined to be economically beneficial. For ARO activities and expenditures for oil and gas operations, the methods used or required to plug and abandon non-producing oil and gas wellbores; remove platforms, tanks, production equipment and flow lines; and restore wellsites could change over time.

Financial Assurance. New Mexico, Arizona, Colorado and other states, as well as U.S. regulations governing mine operations on federal land, require financial assurance to be provided for the estimated costs of mine reclamation and closure, including groundwater quality protection programs. FCX has satisfied financial assurance requirements by using a variety of mechanisms, primarily involving parent company performance guarantees and financial capability demonstrations, but also trust funds, surety bonds, letters of credit and other collateral. The applicable regulations specify financial strength tests that are designed to confirm a company’s or guarantor’s financial capability to fund estimated reclamation and closure costs. The amount of financial assurance FCX subsidiaries are required to provide will vary with changes in laws, regulations, reclamation and closure requirements, and cost

estimates. At December 31, 2024, FCX’s financial assurance obligations associated with these U.S. mine closure and reclamation/restoration costs totaled $2.0 billion, of which $1.2 billion was in the form of guarantees issued by FCX and FMC. At December 31, 2024, FCX had trust assets totaling $0.2 billion (included in other assets), which are legally restricted to be used to satisfy its financial assurance obligations for its mining properties in New Mexico. In addition, FCX subsidiaries have financial assurance obligations for their oil and gas properties associated with plugging and abandoning wells and facilities totaling $0.7 billion. Where oil and gas guarantees associated with the Bureau of Ocean Energy Management do not include a stated cap, the amounts reflect management’s estimates of the potential exposure.

New Mexico Environmental and Reclamation Programs. FCX’s New Mexico operations are regulated under the New Mexico Water Quality Act and regulations adopted by the Water Quality Control Commission. In connection with discharge permits, the New Mexico Environment Department (NMED) has required each of these operations to submit closure plans for NMED’s approval. The closure plans must include measures to assure meeting applicable groundwater quality standards following the closure of discharging facilities and to abate groundwater or surface water contamination to meet applicable standards. FCX’s New Mexico operations also are subject to regulation under the 1993 New Mexico Mining Act (the Mining Act) and the related rules that are administered by the Mining and Minerals Division of the New Mexico Energy, Minerals and Natural Resources Department. Under the Mining Act, mines are required to obtain approval of reclamation plans. The agencies approved updates to the closure plan and financial assurance instruments and completed a permit renewal for Chino in 2020 and Tyrone in 2021. At December 31, 2024, FCX had accrued reclamation and closure costs of $553 million for its New Mexico operations. Additional accruals may be required based on the state’s periodic review of FCX’s updated closure plans and any resulting permit conditions, and the amount of those accruals could be material.

Arizona Environmental and Reclamation Programs. FCX’s Arizona operations are subject to regulatory oversight by the ADEQ. ADEQ has adopted regulations for its aquifer protection permit (APP) program that require permits for, among other things, certain facilities, activities and structures used for mining, leaching, concentrating and smelting, and require compliance with aquifer water quality standards during operations and closure. An application for an APP requires a proposed closure strategy that will meet applicable groundwater protection requirements following cessation of operations and an estimate of the implementation cost, with a more detailed closure plan required at the time operations cease. A permit applicant must demonstrate its financial ability to meet the closure costs approved by ADEQ. Closure costs for facilities covered by APPs are required to be updated every six years and financial assurance mechanisms are required to be updated every two years. During 2022, the Morenci and Bagdad mines increased their AROs by $118 million and $65 million, respectively, associated with their updated closure strategies and plans for stockpiles and tailings impoundments that were submitted to ADEQ for approval. In accordance with FCX’s commitment to the Global Industry Standard on Tailings Management (the Tailings Standard), in 2024 Sierrita revised its closure plan and cost estimates resulting in a $157 million increase in its AROs. FCX will continue evaluating and, as necessary, updating its closure plans and closure cost estimates at other Arizona sites, and any such updates may also result in increased costs that could be significant.

Portions of Arizona mining facilities that operated after January 1, 1986, also are subject to the Arizona Mined Land Reclamation Act (AMLRA). AMLRA requires reclamation to achieve stability and safety consistent with post-mining land use objectives specified in a reclamation plan. Reclamation plans must be approved by the Arizona State Mine Inspector (ASMI) and must include an estimate of the cost to perform the reclamation measures specified in the plan along with financial assurance. In 2023, the ASMI requested updates to reclamation cost estimates and associated financial assurance for FCX’s Arizona mine sites, and in 2024, FCX submitted updated closure scopes of work and associated costs for Miami, Bagdad and Morenci. FCX will continue to evaluate options for future reclamation and closure activities at its operating and non-operating sites, which are likely to result in adjustments to FCX’s AROs, and those adjustments could be material.

At December 31, 2024, FCX had accrued reclamation and closure costs of $837 million for its Arizona operations and facilities.

Colorado Reclamation Programs. FCX’s Colorado operations are regulated by the Colorado Mined Land Reclamation Act (Reclamation Act) and regulations promulgated thereunder, which are consistent with the Tailings Standard. Under the Reclamation Act, mines are required to obtain approval of plans for reclamation of lands affected by mining operations to be performed during mining or upon cessation of mining operations. In 2024, both Henderson and Climax updated cost estimates associated with reclamation plans under the Reclamation Act and recorded a total increase of $162 million to their related AROs.

In 2019, Colorado enacted legislation that requires proof of an end date for water treatment as a condition of permit authorizations for new mining operations and expansions beyond current permit authorizations. While this requirement does not apply to existing operations, it may lead to changes in long-term water management requirements at Climax and Henderson operations and their related AROs.

As of December 31, 2024, FCX had accrued reclamation and closure costs of $351 million for its Colorado operations.

Chile Reclamation and Closure Programs. El Abra is subject to regulation under the Mine Closure Law administered by the National Geology and Mining Service. In 2020, El Abra received approval of its updated closure plan and cost estimates, and in compliance with the requirement for five-year updates, El Abra expects to submit an updated plan with closure cost estimates in 2025. At December 31, 2024, FCX had accrued reclamation and closure costs of $105 million for its El Abra operation.

Peru Reclamation and Closure Programs. Cerro Verde is subject to regulation under the Mine Closure Law administered by the Peru Ministry of Energy and Mines (MINEM). Under the closure regulations, mines must submit a closure plan that includes the reclamation methods, closure cost estimates, methods of control and verification, closure and post-closure plans, and financial assurance. In compliance with the requirement for five-year updates, Cerro Verde submitted its updated closure plan and cost estimates and received approval from MINEM in December 2023. At December 31, 2024, FCX had accrued reclamation and closure costs of $230 million for its Cerro Verde operation.

Indonesia Reclamation and Closure Programs. The ultimate amount of reclamation and closure costs to be incurred at PT-FI’s operations will be determined based on applicable laws and regulations and PT-FI’s assessment of appropriate remedial activities under the circumstances, after consultation with governmental authorities, affected local residents and other affected parties and cannot currently be projected with precision. Some reclamation costs will be incurred during mining activities, while the remaining reclamation costs will be incurred after the end of mining activities, which are currently estimated to continue through 2041. In 2022, PT-FI recorded net increases to its ARO totaling $99 million related to higher estimated costs associated with West Wanagon slope stabilization remediation and increased reclamation activities and increased costs. In 2024, PT-FI recorded net increases to its ARO totaling $122 million primarily for revised reclamation plans for the Grasberg open pit area and adjustments resulting from a review and update of the PT-FI ARO model. At December 31, 2024, FCX had accrued reclamation and closure costs of $1.0 billion for its PT-FI operations.

Indonesia government regulations issued in 2010 require a company to provide a mine closure guarantee in the form of a time deposit placed in a state-owned bank in Indonesia. At December 31, 2024, PT-FI had restricted time deposits totaling $100 million for mine closure included in other assets.

Oil and Gas Properties. Substantially all of Freeport McMoRan Oil & Gas LLC’s (FM O&G’s), FCX’s subsidiary that holds its remaining oil and gas operations, oil and gas leases require that, upon termination of economic production, the working interest owners plug and abandon non-producing wellbores, remove equipment and facilities from leased acreage, and restore land in accordance with applicable local, state and federal laws. Following several sales transactions, FM O&G’s remaining operating areas primarily include offshore California and the Gulf of Mexico (GOM, also referred to as Gulf of America). FM O&G recorded increases to its ARO totaling $163 million in 2024 and $91 million in 2023. As of December 31, 2024, FM O&G AROs cover approximately 180 wells and 150 platforms and other structures and it had accrued reclamation and closure costs of $538 million.

FM O&G’s ARO adjustments for 2024 include $116 million associated with assumed oil and gas abandonment obligations resulting from bankruptcies of other companies and were charged to production and delivery costs. FM O&G, as a predecessor-in-interest in oil and natural gas leases, is in the chain of title with unrelated third parties either directly or by virtue of divestiture of certain oil and natural gas assets previously owned and assigned by its subsidiaries. Certain counterparties in these divestiture transactions or third parties in existing leases have filed for bankruptcy protection or undergone associated reorganizations and have not performed the required abandonment obligations. Accordingly, regulations or federal laws require that other working interest owners, including FM O&G, assume such obligations.

Litigation. In addition to the pending legal proceedings discussed below and above under “Environmental,” we are involved periodically in ordinary routine litigation incidental to our business, some of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. SEC regulations require us to disclose

environmental proceedings involving a governmental authority if we reasonably believe that such proceedings may result in monetary sanctions above a stated threshold. Pursuant to the SEC regulations, we use a threshold of $1 million for purposes of determining whether disclosure of any such environmental proceedings is required. Management does not believe, based on currently available information, that the outcome of any current pending legal proceeding will have a material adverse effect on FCX’s financial condition, although individual or cumulative outcomes could be material to FCX’s operating results for a particular period, depending on the nature and magnitude of the outcome and the operating results for the period.

Asbestos and Talc Claims. Since approximately 1990, various FCX affiliates have been named as defendants in a large number of lawsuits alleging personal injury from exposure to asbestos or talc allegedly contained in industrial products such as electrical wire and cable, raw materials such as paint and joint compounds, talc-based lubricants used in rubber manufacturing or from asbestos contained in buildings and facilities located at properties owned or operated by affiliates of FCX. Many of these suits involve a large number of codefendants. Based on litigation results to date and facts currently known, FCX believes that the amounts of any such losses, individually or in the aggregate, are not material to its consolidated financial statements. There can be no assurance that future developments will not alter this conclusion.

There has been a significant increase in the number of cases alleging the presence of asbestos contamination in talc-based cosmetic and personal care products and in cases alleging exposure to talc products that are not alleged to be contaminated with asbestos. The primary targets have been the producers of those products, but defendants in many of these cases also include talc miners. Cyprus Amax Minerals Company (CAMC), an indirect wholly owned subsidiary of FCX, and Cyprus Mines Corporation (Cyprus Mines), a wholly owned subsidiary of CAMC, are among those targets. Cyprus Mines was engaged in talc mining and processing from 1964 until 1992 when it exited its talc business by conveying it to a third party in two related transactions. Those transactions involved (1) a transfer by Cyprus Mines of the assets of its talc business to a newly formed subsidiary that assumed all pre-sale and post-sale talc liabilities, subject to limited reservations, and (2) a sale of the stock of that subsidiary to the third party. In 2011, the third party sold that subsidiary to Imerys Talc America (Imerys), an affiliate of Imerys S.A.

In accordance with the terms of the 1992 transactions and subsequent agreements, Cyprus Mines has contractual indemnification rights, subject to limited reservations, against Imerys, which historically acknowledged those indemnification obligations and took responsibility for all talc lawsuits against Cyprus Mines and CAMC tendered to it. However, in February 2019, Imerys filed for Chapter 11 bankruptcy protection, which triggered an immediate automatic stay under the federal bankruptcy code prohibiting any party from continuing or initiating litigation or asserting new claims against Imerys. As a result, Imerys stopped defending the talc lawsuits against Cyprus Mines and CAMC.

In January 2021, Imerys filed the form of a global settlement agreement to be entered into by CAMC, Cyprus Mines, FCX, Imerys and the other debtors, tort claimants’ committee and future claims representative in the Imerys bankruptcy. In accordance with the global settlement, among other things, (1) CAMC agreed to contribute a total of $130 million in cash to a settlement trust in seven annual installments, which will be guaranteed by FCX, and (2) CAMC and Cyprus Mines and their affiliates will contribute to the settlement trust all rights that they have to the proceeds of certain legacy insurance policies as well as indemnity rights they have against Johnson & Johnson. In accordance with the settlement, Cyprus Mines commenced its bankruptcy process in February 2021, with all talc lawsuits against CAMC, Cyprus Mines and FCX being stayed. The claimants failed to approve the Imerys bankruptcy plan in 2021, which resulted in a lengthy mediation process among the interested parties.

Mediation resulted in CAMC agreeing to contribute an additional $65 million over seven years to the claimant trust for a total contribution of $195 million. The claimants in both the Imerys and Cyprus Mines bankruptcy cases approved the global settlement in January 2025, which now remains subject to bankruptcy court approvals in both cases. There can be no assurance that the global settlement will be approved and successfully implemented.

At December 31, 2024, FCX had a litigation reserve of $195 million associated with the proposed settlement.

Tax Matters. FCX’s operations are in multiple jurisdictions where uncertainties arise in the application of complex tax regulations. Some of these tax regimes are defined by contractual agreements with the local government, while others are defined by general tax laws and regulations. FCX and its subsidiaries are subject to reviews of its income tax filings and other tax payments, and disputes can arise with the taxing authorities over the interpretation of its contracts or laws. The final taxes paid may be dependent upon many factors, including negotiations with taxing authorities. In certain jurisdictions, FCX pays a portion of the disputed amount before formally appealing an assessment. Such payment is recorded as a receivable if FCX believes the amount is collectible.

Peru Tax Matters. Cerro Verde has received assessments from the National Superintendency of Customs and Administration (SUNAT) for additional taxes, penalties and interest related to various audit exceptions for income and other taxes. Cerro Verde has filed or will file objections to the assessments because it believes it has properly determined and paid its taxes. A summary of these assessments follows:

Tax Year						Tax Assessment						Penalties and Interest						Total
2003 to 2008						$	32					$	112					$	144
2009						9						30						39
2010						8						69						77
2011 and 2012						5						36						41
2013						8						26						34
2014 to 2022						88						40						128
						$	150					$	313					$	463

As of December 31, 2024, Cerro Verde had paid $454 million of disputed tax assessments. A reserve has been applied against these payments totaling $179 million, resulting in a net receivable of $275 million (included in other assets), which Cerro Verde believes is collectible.

Cerro Verde’s income tax assessments, penalties and interest included in the table above totaled $397 million at December 31, 2024, of which $245 million has not been charged to expense.

Indonesia Tax Matters. PT-FI has received assessments from the Indonesia tax authorities for additional taxes and interest related to various audit exceptions for income and other taxes. PT-FI has filed objections to the assessments because it believes it has properly determined and paid its taxes. A summary of these assessments follows:

Tax Year						Tax Assessment						Penalties and Interest						Total
2005						$	61					$	29					$	90
2007						45						21						66
2013 and 2017						7						4						11
						$	113					$	54					$	167

As of December 31, 2024, PT-FI has paid $10 million on these disputed tax assessments (included in Other Assets), which PT-FI believes is collectible. The disputed tax assessments above include pending cases at the Indonesia Supreme Court related to withholding taxes for employees and other service providers for the years 2005 and 2007, which total $41 million (included in accounts payable and accrued liabilities) as of December 31, 2024.

PT-FI’s income tax assessments, penalties and interest included in the table above totaled $121 million at December 31, 2024, of which $117 million has not been charged to expense.

Indonesia Regulatory Matters.

Export Licenses. Current regulations in Indonesia prohibit exports of copper concentrate as of January 1, 2025. Pursuant to the terms of its special mining business license (IUPK) regarding force majeure events, PT-FI has requested approval from the Indonesia government to permit the export of copper concentrate in 2025 until the required repairs to its new smelter following the October 2024 fire incident and full ramp-up are complete.

Long-term Mining Rights. Pursuant to regulations issued during 2024, PT-FI is eligible to apply for an extension of its mining rights beyond 2041, provided certain conditions are met, including ownership of integrated downstream facilities that have entered the operational stage; domestic ownership of at least 51% and agreement with a state-owned enterprise for an additional 10% ownership; and commitments for additional exploration and increases in refining capacity, each as approved by the Ministry of Energy and Mineral Resources (MEMR). Application for extension may be submitted at any time up to one year prior to the expiration of PT-FI’s IUPK.

Administrative Fines. In June 2021, the MEMR, issued a ministerial decree for the calculation of an administrative fine for lack of smelter development in light of the COVID-19 pandemic, and in 2021, PT-FI recorded charges totaling $16 million for a potential settlement of the administrative fine. In January 2022, the Indonesia government submitted a new estimate of the administrative fine totaling $57 million, and in March 2022, PT-FI paid the administrative fine and recorded an additional charge of $41 million.

In May 2023, the MEMR issued a new decree prescribing a revised formula for administrative fines for delays in construction of smelting and refining facilities, taking into account allowances for certain delays associated with the COVID-19 pandemic as verified by a third-party. In mid-July 2023, PT-FI submitted its third-party verified calculation, which resulted in an accrual for a potential administrative fine of $55 million based on the formula prescribed by the decree related to the period from August 2020 through January 2022. In December 2024, the Indonesia government assessed PT-FI a $59 million administrative fine for delays in development of the new downstream processing facilities related to the period from August 2020 through January 2022. As a result, PT-FI increased its accrual by $4 million at December 31, 2024.

Smelter Assurance. The May 2023 decree issued by MEMR also required assurance in the form of an escrow account, which can be withdrawn if smelter development progress is at least 90% on June 10, 2024. During 2023, PT-FI deposited $10 million in a joint account with the Indonesia government while it continued to discuss the applicability of the May 2023 decree. At December 31, 2024, development of PT-FI’s new downstream processing facilities was complete; as such, PT-FI does not believe additional deposits are necessary. Refer to Note 12 for discussion of PT-FI’s assurance bonds to support its commitment for smelter development in Indonesia.

Export Proceeds. In accordance with a regulation issued by the Indonesia government in 2023, 30% of PT-FI’s gross export proceeds are being temporarily deposited into Indonesia banks for a period of 90 days before withdrawal. At December 31, 2024, FCX had $0.7 billion in current restricted cash and cash equivalents deposited in Indonesia banks in accordance with this regulation.

The Indonesia government is considering changes to this regulation, which could increase the amount and length of the requirement, but also allow withdrawals from the balances to fund business requirements. The details of the modifications have not been finalized.

Letters of Credit, Bank Guarantees and Surety Bonds. Letters of credit and bank guarantees totaled $638 million at December 31, 2024, primarily associated with reclamation and AROs, and copper concentrate shipments from PT-FI to Atlantic Copper as required by Indonesia regulations. In addition, FCX had surety bonds totaling $504 million at December 31, 2024, primarily associated with environmental obligations and AROs.

Insurance. FCX purchases a variety of insurance products to mitigate potential losses, which typically have specified deductible amounts or self-insured retentions and policy limits. FCX generally is self-insured for U.S. workers’ compensation but purchases excess insurance up to statutory limits. An actuarial analysis is performed twice a year on the various casualty insurance programs covering FCX’s U.S.-based mining operations, including workers’ compensation, to estimate expected losses. At December 31, 2024, FCX’s liability for expected losses under these insurance programs totaled $54 million, which consisted of a current portion of $14 million (included in accounts payable and accrued liabilities) and a long-term portion of $40 million (included in other liabilities). In addition, FCX has receivables of $18 million (a current portion of $9 million included in other accounts receivable and a long-term portion of $9 million included in other assets) for expected claims associated with these losses to be filed with insurance carriers.

NOTE 11. COMMITMENTS AND GUARANTEES

Leases. The components of FCX’s leases presented in the consolidated balance sheets as of December 31 follow:

			2024						2023
Lease right-of-use assets (included in property, plant, equipment and mine development costs, net)			$	853					$	448
Short-term lease liabilities (included in accounts payable and accrued liabilities)			$	98					$	84
Long-term lease liabilities (included in other liabilities)			692						347
Total lease liabilitiesa			$	790					$	431

a.Includes finance leases associated with PT-FI’s new downstream processing facilities, including for an oxygen plant ($217 million at December 31, 2024), shallow draft vessels ($119 million at December 31, 2024), land ($95 million at December 31, 2024, and $130 million at December 31, 2023) and wharf ($90 million at December 31, 2024, and $93 million at December 31, 2023).

Operating lease costs, primarily included in production and delivery expense in the consolidated statements of income, for the years ended December 31 follow:

						2024						2023						2022
Operating leases						$	44					$	48					$	46
Variable and short-term leases						146			a			126			a			84
Total operating lease costs						$	190					$	174					$	130

a.Includes $50 million in 2024 and $30 million in 2023 related to a variable lease component of PT-FI’s tolling arrangement with PT Smelting. Refer to Note 2 for additional discussion of PT-FI’s commercial arrangement with PT Smelting.

Total finance lease costs, including both depreciation and interest, were $24 million in 2024 and $6 million in 2023 and 2022.

FCX acquired right-of-use assets through lease arrangements of $482 million in 2024, $167 million in 2023 and $76 million in 2022. FCX payments included in operating cash flows for its lease liabilities totaled $61 million in 2024 and 2023 and $41 million in 2022. FCX payments included in financing cash flows for its lease liabilities totaled $41 million in 2024, $3 million in 2023 and $7 million in 2022. As of December 31, 2024, the weighted-average discount rate used to determine the lease liabilities was 4.9% (4.7% as of December 31, 2023) and the weighted-average remaining lease term was 15.0 years (13.1 years as of December 31, 2023).

The future minimum payments for leases presented in the consolidated balance sheet at December 31, 2024, follow:

2025			$	131
2026			96
2027			81
2028			67
2029			113
Thereafter			612
Total payments			1,100
Less amount representing interest			(310)
Present value of net minimum lease payments			790
Less current portion			(98)
Long-term portion			$	692

Contractual Obligations. At December 31, 2024, based on applicable prices on that date, FCX has unconditional purchase obligations (including take-or-pay contracts with terms less than one year) of $3.7 billion, primarily comprising the procurement of copper concentrate ($3.1 billion), electricity ($0.2 billion) and transportation services ($0.2 billion). Some of FCX’s unconditional purchase obligations are settled based on the prevailing market rate for the service or commodity purchased. In some cases, the amount of the actual obligation may change over time because of market conditions. Obligations for copper concentrate provide for deliveries of specified volumes to Atlantic Copper at market-based prices. Transportation obligations are primarily associated with contracted ocean freight agreements for our South America and Indonesia operations. Electricity obligations are primarily for long-term power purchase agreements in North America and contractual minimum demand at the South America mines.

FCX’s unconditional purchase obligations total $1.8 billion in 2025, $1.1 billion in 2026, $0.4 billion in 2027, $0.2 billion in 2028, $0.1 billion in 2029 and $0.1 billion thereafter. During the three-year period ended December 31, 2024, FCX fulfilled its minimum contractual purchase obligations.

IUPK – Indonesia. In December 2018, FCX completed the 2018 Transaction with the Indonesia government regarding PT-FI’s long-term mining rights and share ownership. Concurrent with the closing of the 2018 Transaction, the Indonesia government granted PT-FI an IUPK to replace its former contract of work. Under the terms of the IUPK, PT-FI was granted an extension of mining rights through 2031, with rights to extend mining rights through 2041, subject to PT-FI completing the development of additional smelting and refining capacity in Indonesia and fulfilling its defined fiscal obligations to the Indonesia government. The IUPK, and related documentation, contains legal and fiscal terms and is legally enforceable through 2041, assuming the additional extension is received. In addition, FCX, as a foreign investor, has rights to resolve investment disputes with the Indonesia government through international arbitration.

The key fiscal terms set forth in the IUPK include a 25% corporate income tax rate, a 10% profits tax on net income, and royalty rates of 4% for copper, 3.75% for gold and 3.25% for silver. PT-FI’s royalties charged against revenues totaled $433 million in 2024, $338 million in 2023 and $357 million in 2022.

Dividend distributions from PT-FI to FCX totaled $1.5 billion in 2024, $0.4 billion in 2023 and $2.5 billion in 2022, and are subject to a 10% withholding tax.

Export Duties. The IUPK required PT-FI to pay export duties of 5%, declining to 2.5% when smelter development progress exceeded 30% and eliminated when development progress for additional smelting and refining capacity in Indonesia exceeded 50%. In December 2022, PT-FI received approval, based on construction progress achieved, for a reduction in export duties from 5% to 2.5%, which was effective immediately. In March 2023, the Indonesia government further verified that construction progress of the new smelter exceeded 50% and PT-FI’s export duties were eliminated effective March 29, 2023.

In July 2023, the Ministry of Finance issued a revised regulation on duties for various exported products, including copper concentrates. Under the revised regulation PT-FI was assessed export duties for copper concentrates at 7.5% in the second half of 2023 (totaling $307 million). For 2024, the revised regulation assessed export duties for copper concentrates at 10% for companies with smelter progress of 70% to 90% and at 7.5% for companies with smelter progress exceeding 90%. As of December 31, 2023, construction progress of PT-FI’s smelter projects exceeded 90%; however, PT-FI was subject to the 10% export duty during 2024 until it received a revised concentrate export license. In July 2024, PT-FI was granted copper concentrate and anode slimes export licenses, which were valid through December 2024, subjecting PT-FI to a 7.5% export duty. PT-FI’s export duties totaled $457 million in 2024, $324 million in 2023 and $307 million in 2022.

Indemnification. The PT-FI divestment agreement, discussed in Note 2, provides that FCX will indemnify MIND ID and PTI from any losses (reduced by receipts) arising from any tax disputes of PT-FI disclosed to MIND ID in a Jakarta, Indonesia, tax court letter limited to PTI’s respective percentage share at the time the loss is finally incurred. Any net obligations arising from any tax settlement would be paid on December 21, 2025. FCX had accrued $49 million as of December 31, 2024, (included in accounts payable in the consolidated balance sheets) and $75 million as of December 31, 2023, (included in other long-term liabilities in the consolidated balance sheets) related to this indemnification.

Cobalt Business. In September 2021, FCX’s 56%-owned subsidiary, Koboltti Chemicals Holdings Limited (KCHL), completed the sale of its remaining cobalt business based in Kokkola, Finland (Freeport Cobalt) to Jervois Global Limited (Jervois) for $208 million (before post-closing adjustments), consisting of cash consideration of $173 million and 7% of Jervois common stock (valued at $35 million at the time of closing). In 2022, KCHL sold these shares for $60 million. In addition, KCHL has the right to receive contingent consideration through 2026 of up to $40 million based on the future performance of Freeport Cobalt. Any gain related to the contingent consideration will be recognized when received. Following this transaction, FCX no longer has cobalt operations.

Community Development Programs. FCX has adopted policies that govern its working and engagement relationships with the communities where it operates. These policies are designed to guide FCX’s practices and programs in a manner that respects and promotes basic human rights and the culture of the local people impacted by FCX’s operations. FCX continues to make significant expenditures on community development, education, health, training and cultural programs.

PT-FI provides funding and technical assistance to support various community development and empowerment programs in areas such as health, education, economic development and local infrastructure. In 1996, PT-FI established a social investment fund with the aim of contributing to social and economic development in the Mimika Regency. In 2019, a new foundation, the Amungme and Kamoro Community Empowerment Foundation (Yayasan Pemberdayaan Masyarakat Amungme dan Kamoro, or YPMAK) was established, and in 2020, PT-FI appointed YPMAK to assist in distributing a significant portion of PT-FI’s funding to support the development and empowerment of the local Indigenous Papuan people. YPMAK is governed by a Board of Governors consisting of seven representatives of Indigenous Kamoro-Amungme, PT-FI and Mind ID.

In addition, since 2001, PT-FI has voluntarily established and contributed to land rights trust funds administered by Amungme and Kamoro representatives that focus on socioeconomic initiatives, human rights and environmental issues.

PT-FI is committed to the continued funding of YPMAK programs and the land rights trust funds, as well as for other local-community development initiatives through the end of PT-FI's IUPK in support of public health, education, local economic development and empowerment. PT-FI recorded charges to production and delivery costs totaling $141 million in 2024 and $123 million in both 2023 and 2022 for social and economic development programs.

Guarantees. FCX provides certain financial guarantees (including indirect guarantees of the indebtedness of others) and indemnities.

Prior to its acquisition by FCX, FMC and its subsidiaries have, as part of merger, acquisition, divestiture and other transactions, from time to time, indemnified certain sellers, buyers or other parties related to the transaction from and against certain liabilities associated with conditions in existence (or claims associated with actions taken) prior to the closing date of the transaction. As part of these transactions, FMC indemnified the counterparty from and against certain excluded or retained liabilities existing at the time of sale that would otherwise have been transferred to the party at closing. These indemnity provisions generally now require FCX to indemnify the party against certain liabilities that may arise in the future from the pre-closing activities of FMC for assets sold or purchased. The indemnity classifications include environmental, tax and certain operating liabilities, claims or litigation existing at closing and various excluded liabilities or obligations. Most of these indemnity obligations arise from transactions that closed many years ago, and given the nature of these indemnity obligations, it is not possible to estimate the maximum potential exposure. Except as described in the following sentence, FCX does not consider any of such obligations as having a probable likelihood of payment that is reasonably estimable, and accordingly, has not recorded any obligations associated with these indemnities. With respect to FCX’s environmental indemnity obligations, any expected costs from these guarantees are accrued when potential environmental obligations are considered by management to be probable and the costs can be reasonably estimated.

NOTE 12. FINANCIAL INSTRUMENTS

FCX does not purchase, hold or sell derivative financial instruments unless there is an existing asset or obligation, or it anticipates a future activity that is likely to occur and will result in exposure to market risks, which FCX intends to offset or mitigate. FCX does not enter into any derivative financial instruments for speculative purposes, but has entered into derivative financial instruments in limited instances to achieve specific objectives. These objectives principally relate to managing risks associated with commodity price changes, foreign currency exchange rates and interest rates.

Commodity Contracts. From time to time, FCX has entered into derivative contracts to hedge the market risk associated with fluctuations in the prices of commodities it purchases and sells. Derivative financial instruments used by FCX to manage its risks do not contain credit risk-related contingent provisions.

A discussion of FCX’s derivative contracts and programs follows.

Derivatives Designated as Hedging Instruments – Fair Value Hedges

Copper Futures and Swap Contracts. Some of FCX’s U.S. copper rod and cathode customers request a fixed market price instead of the COMEX average copper price in the month of shipment. FCX hedges this price exposure in a manner that allows it to receive the COMEX average price in the month of shipment while the customers pay the fixed price they requested. FCX accomplishes this by entering into copper futures or swap contracts. Hedging gains or losses from these copper futures and swap contracts are recorded in revenues. FCX did not have any significant gains or losses resulting from hedge ineffectiveness during the three years ended December 31, 2024. At December 31, 2024, FCX held copper futures and swap contracts that qualified for hedge accounting for 109 million pounds at an average contract price of $4.31 per pound, with maturities through November 2026.

Summary of (Losses) Gains. A summary of realized and unrealized (losses) gains recognized in revenues for derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions, including on the related hedged item for the years ended December 31 follows:

			2024						2023						2022
Copper futures and swap contracts:
Unrealized (losses) gains:
Derivative financial instruments			$	(32)					$	3					$	(11)
Hedged item – firm sales commitments			32						(3)						11
Realized gains (losses):
Matured derivative financial instruments			29						(4)						(63)

Derivatives Not Designated as Hedging Instruments

Embedded Derivatives. Certain FCX sales contracts provide for provisional pricing primarily based on the LME copper price or the COMEX copper price and the London gold price at the time of shipment as specified in the contract. FCX receives market prices based on prices in the specified future month, which results in price fluctuations recorded in revenues until the date of settlement.

FCX records revenues and invoices customers at the time of shipment based on then-current LME or COMEX copper prices and the London gold price as specified in the contracts, which results in an embedded derivative (i.e., a pricing mechanism that is finalized after the time of delivery) that is required to be bifurcated from the host contract. The host contract is the sale of the metals contained in the concentrate, cathode or anode slimes at the then-current LME copper, COMEX copper or London gold prices. FCX applies the normal purchases and normal sales scope exception in accordance with derivatives and hedge accounting guidance to the host contract in its concentrate, cathode and anode slime sales agreements since these contracts do not allow for net settlement and always result in physical delivery. The embedded derivative does not qualify for hedge accounting and is adjusted to fair value through earnings each period, using the period-end LME or COMEX copper forward prices and the adjusted London gold price, until the date of final pricing. Similarly, FCX purchases copper under contracts that provide for provisional pricing. Mark-to-market price fluctuations from these embedded derivatives are recorded through the settlement date and are reflected in revenues for sales contracts and in inventory for purchase contracts.

A summary of FCX’s embedded derivatives at December 31, 2024, follows:

			Open						Average Price Per Unit												Maturities
			Positions						Contract						Market						Through
Embedded derivatives in provisional sales contracts:
Copper (millions of pounds)			282						$	4.16					$	3.96					May 2025
Gold (thousands of ounces)			125						2,646						2,625						February 2025
Embedded derivatives in provisional purchase contracts:
Copper (millions of pounds)			74						4.09						3.96						March 2025

Copper Forward Contracts. Atlantic Copper enters into copper forward contracts designed to hedge its copper price risk whenever its physical purchases and sales pricing periods do not match. These economic hedge transactions are intended to hedge against changes in copper prices, with the mark-to-market hedging gains or losses recorded in production and delivery costs. At December 31, 2024, Atlantic Copper held net copper forward sales contracts for 85 million pounds at an average contract price of $4.06 per pound, with maturities through February 2025.

Summary of Gains (Losses). A summary of the realized and unrealized gains (losses) recognized in operating income for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, for the years ended December 31 follows:

			2024						2023						2022
Embedded derivatives in provisional sales contractsa:
Copper			$	117					$	97					$	(479)
Gold and other metals			169						55						(12)
Copper forward contractsb			1						(6)						37

a.Amounts recorded in revenues.

b.Amounts recorded in cost of sales as production and delivery costs.

Unsettled Derivative Financial Instruments

A summary of the fair values of unsettled commodity derivative financial instruments follows:

			December 31,
			2024						2023
Commodity Derivative Assets:
Derivatives designated as hedging instruments:
Copper futures and swap contracts			$	—					$	4
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional sales/purchase contracts			10						76
Copper forward contracts			10						—
Total derivative assets			$	20					$	80

Commodity Derivative Liabilities:
Derivatives designated as hedging instruments:
Copper futures and swap contracts			$	28					$	—
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional sales/purchase contracts			60						23
Copper forward contracts			1						1
Total derivative liabilities			$	89					$	24

FCX’s commodity contracts have netting arrangements with counterparties with which the right of offset exists, and it is FCX’s policy to generally offset balances by contract on its balance sheet. FCX’s embedded derivatives on provisional sales/purchase contracts are netted with the corresponding outstanding receivable/payable balances.

A summary of these net unsettled commodity contracts in the balance sheet follows (there were no offsetting amounts at December 31, 2024 and 2023):

						Assets at December 31,												Liabilities at December 31,
						2024						2023						2024						2023
Amounts presented in balance sheet:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts						$	10					$	76					$	60					$	23
Copper derivatives						10						4						29						1
						$	20					$	80					$	89					$	24
Balance sheet classification:
Trade accounts receivable						$	—					$	76					$	53					$	2
Other current assets						10						4						—						—
Accounts payable and accrued liabilities						10						—						35						22
Other liabilities						—						—						1						—
						$	20					$	80					$	89					$	24

Credit Risk. FCX is exposed to credit loss when financial institutions with which it has entered into derivative transactions (commodity, foreign exchange and interest rate swaps) are unable to pay. To minimize the risk of such losses, FCX uses counterparties that meet certain credit requirements and periodically reviews the creditworthiness of these counterparties. As of December 31, 2024, the maximum amount of credit exposure associated with derivative transactions was $20 million.

Other Financial Instruments. Other financial instruments include cash, cash equivalents, restricted cash and cash equivalents, accounts receivable, investment securities, legally restricted trust assets, accounts payable and accrued liabilities, accrued income taxes, dividends payable and debt. The carrying value for these financial instruments classified as current assets or liabilities approximates fair value because of their short-term nature and generally negligible credit losses (refer to Note 13 for the fair values of investment securities, legally restricted funds and debt).

Cash, Cash Equivalents and Restricted Cash and Cash Equivalents. The following table provides a reconciliation of total cash, cash equivalents and restricted cash and cash equivalents presented in the consolidated statements of cash flows:

						December 31,
						2024						2023
Balance sheet components:
Cash and cash equivalentsa						$	3,923					$	4,758
Restricted cash and cash equivalents, currentb						888						1,208
Restricted cash and cash equivalents, long-term – included in other assets						100						97
Total cash, cash equivalents and restricted cash and cash equivalents presented in the consolidated statements of cash flows						$	4,911					$	6,063

a.Includes (i) time deposits of $0.1 billion at December 31, 2024, and $0.3 billion at December 31, 2023, and (ii) cash designated for PT-FI’s new downstream processing facilities totaling $0.2 billion at December 31, 2023.

b.Includes (i) $0.7 billion at December 31, 2024, and $1.1 billion at December 31, 2023, associated with 30% of PT-FI’s export proceeds required to be temporarily deposited in Indonesia banks for 90 days in accordance with a regulation issued by the Indonesia government and (ii) $0.1 billion at December 31, 2024 and 2023, in assurance bonds to support PT-FI’s commitment for its new downstream processing facilities.

NOTE 13. FAIR VALUE MEASUREMENT

Fair value accounting guidance includes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). FCX did not have any significant transfers in or out of Level 3 for 2024.

FCX’s financial instruments are recorded on the consolidated balance sheets at fair value except for contingent consideration associated with the sale of the Deepwater GOM oil and gas properties (which was recorded under the loss recovery approach) and debt. A summary of the carrying amount and fair value of FCX’s financial instruments (including those measured at NAV as a practical expedient), other than cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, accrued income taxes and dividends payable (refer to Note 12), follows:

			At December 31, 2024
			Carrying						Fair Value
			Amount						Total						NAV						Level 1						Level 2						Level 3
Assets
Investment securities:a,b
U.S. core fixed income fund			$	27					$	27					$	27					$	—					$	—					$	—
Equity securities			9						9						—						9						—						—
Total			36						36						27						9						—						—
Legally restricted funds:a
U.S. core fixed income fund			66						66						66						—						—						—
Government mortgage-backed securities			54						54						—						—						54						—
Government bonds and notes			34						34						—						—						34						—
Corporate bonds			31						31						—						—						31						—
Money market funds			19						19						—						19						—						—
Asset-backed securities			12						12						—						—						12						—
Collateralized mortgage-backed securities			1						1						—						—						1						—
Total			217						217						66						19						132						—
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross asset position			10						10						—						—						10						—
Copper forward contracts			10						10						—						4						6						—
Total			20						20						—						4						16						—
Contingent consideration for the sale of the Deepwater GOM oil and gas propertiesa			3						3						—						—						—						3

Liabilities
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross liability position			60						60						—						—						60						—
Copper futures and swap contracts			28						28						—						17						11						—
Copper forward contracts			1						1						—						1						—						—
Total			89						89						—						18						71						—
Long-term debt, including current portiond			8,948						8,807						—						—						8,807						—

			At December 31, 2023
			Carrying						Fair Value
			Amount						Total						NAV						Level 1						Level 2						Level 3
Assets
Investment securities:a,b
U.S. core fixed income fund			$	27					$	27					$	27					$	—					$	—					$	—
Equity securities			6						6						—						6						—						—
Total			33						33						27						6						—						—
Legally restricted funds:a
U.S. core fixed income fund			65						65						65						—						—						—
Government mortgage-backed securities			51						51						—						—						51						—
Government bonds and notes			37						37						—						—						37						—
Corporate bonds			29						29						—						—						29						—
Money market funds			17						17						—						17						—						—
Asset-backed securities			12						12						—						—						12						—
Collateralized mortgage-backed securities			1						1						—						—						1						—
Total			212						212						65						17						130						—
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross asset position			76						76						—						—						76						—
Copper futures and swap contracts			4						4						—						3						1						—
Total			80						80						—						3						77						—
Contingent consideration for the sale of the Deepwater GOM oil and gas propertiesa			50						42						—						—						—						42
Liabilities
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross liability position			23						23						—						—						23						—
Copper forward contracts			1						1						—						1						—						—
Total			24						24						—						1						23						—
Long-term debt, including current portiond			9,422						9,364						—						—						9,364						—

a.Current portion included in other current assets and long-term portion included in other assets.

b.Excludes amounts included in restricted cash and cash equivalents and other assets (which approximated fair value), primarily associated with (i) PT-FI’s export proceeds ($0.7 billion at December 31, 2024, and $1.1 billion at December 31, 2023), (ii) assurance bonds to support PT-FI’s commitment for new downstream processing facilities ($0.1 billion at December 31, 2024 and 2023) and (iii) PT-FI’s mine closure and reclamation guarantees ($0.1 billion at December 31, 2024 and 2023).

c.Refer to Note 12 for further discussion and balance sheet classifications.

d.Recorded at cost except for debt assumed in acquisitions, which are recorded at fair value at the respective acquisition dates.

Valuation Techniques. The U.S. core fixed income fund is valued at NAV. The fund strategy seeks total return consisting of income and capital appreciation primarily by investing in a broad range of investment-grade debt securities, including U.S. government obligations, corporate bonds, mortgage-backed securities, asset-backed securities and money market instruments. There are no restrictions on redemptions (which are usually within one business day of notice).

Equity securities are valued at the closing price reported on the active market on which the individual securities are traded and, as such, are classified within Level 1 of the fair value hierarchy.

Fixed income securities (government securities, corporate bonds, asset-backed securities and collateralized mortgage-backed securities) are valued using a bid-evaluation price or a mid-evaluation price. These evaluations are based on quoted prices, if available, or models that use observable inputs and, as such, are classified within Level 2 of the fair value hierarchy.

Money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets.

FCX’s embedded derivatives on provisional copper concentrate, copper cathode and gold purchases and sales are valued using quoted monthly LME or COMEX copper forward prices and the adjusted London gold prices at each reporting date based on the month of maturity (refer to Note 12 for further discussion); however, FCX’s contracts themselves are not traded on an exchange. As a result, these derivatives are classified within Level 2 of the fair value hierarchy.

FCX’s derivative financial instruments for copper futures and swap contracts and copper forward contracts that are traded on the respective exchanges are classified within Level 1 of the fair value hierarchy because they are valued using quoted monthly COMEX or LME prices at each reporting date based on the month of maturity (refer to Note 12 for further discussion). Certain of these contracts are traded on the over-the-counter market and are classified within Level 2 of the fair value hierarchy based on COMEX and LME forward prices.

In December 2016, FCX’s sale of its Deepwater GOM oil and gas properties included up to $150 million in contingent consideration (to be received over time) that was recorded at the total amount under the loss recovery approach. The fair value of this contingent consideration was calculated based on a discounted cash flow model using inputs that include third-party estimates for reserves, production rates and production timing, and discount rates. Because significant inputs are not observable in the market, the contingent consideration is classified within Level 3 of the fair value hierarchy. In third-quarter 2024, FCX determined that only $4 million of the remaining balance was collectible and recorded a net impairment of $32 million (consisting of a $42 million impairment to the contingent consideration receivable and an offsetting reduction of $10 million to the related overriding royalty interest payable).

Long-term debt, including current portion, is primarily valued using available market quotes and, as such, is classified within Level 2 of the fair value hierarchy.

The techniques described above may produce a fair value that may not be indicative of NRV or reflective of future fair values. Furthermore, while FCX believes its valuation techniques are appropriate and consistent with other market participants, the use of different techniques or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date. There have been no changes in the techniques used at December 31, 2024, as compared to those techniques used at December 31, 2023.

NOTE 14. BUSINESS SEGMENT INFORMATION

Product Revenues. FCX’s revenues attributable to the products it sold for the years ended December 31 follow:

			2024						2023						2022
Copper:
Cathode			$	8,316					$	6,629					$	5,134
Concentrate			6,726						7,127						9,650
Rod and other refined copper products			3,851						3,659						3,699
Purchased coppera			693						416						481
Gold			4,446						3,472						3,397
Molybdenum			1,801						2,006						1,416
Silver and other			631						585						688
Adjustments to revenues:
Royalty expenseb			(442)						(346)						(366)
Treatment charges			(396)						(538)						(503)
PT-FI export dutiesc			(457)						(307)						(325)
Revenues from contracts with customers			25,169						22,703						23,271
Embedded derivativesd			286						152						(491)
Total consolidated revenues			$	25,455					$	22,855					$	22,780

a.FCX purchases copper cathode primarily for processing by its Rod & Refining operations.

b.Reflects royalties on sales from PT-FI and Cerro Verde that will vary with the volume of metal sold and prices.

c.Refer to Note 11 for further discussion of PT-FI export duties. Amounts include credits (charges) of $17 million in 2023 and $(18) million in 2022 associated with adjustments to prior-period export duties.

d.Refer to Note 12 for discussion of embedded derivatives related to FCX’s provisionally priced concentrate and cathode sales contracts.

Geographic Area. Information concerning financial data by geographic area follows:

			December 31,
			2024						2023
Long-lived assets:a
Indonesia			$	22,580					$	20,602
U.S.			10,468						9,386
Peru			6,452						6,563
Chile			1,120						1,105
Other			496						355
Total			$	41,116					$	38,011

a.Excludes deferred tax assets and intangible assets.

			Years Ended December 31,
			2024						2023						2022
Revenues:a
U.S.			$	7,806					$	7,264					$	7,339
Japan			5,930						3,431						2,462
Switzerland			4,251						3,971						2,740
Singapore			1,116						1,178						1,492
Indonesia			1,108						767						3,026
Spain			1,052						1,251						1,174
China			743						1,081						929
Germany			500						714						632
Chile			451						428						383
France			306						226						177
Philippines			283						396						249
India			273						354						330
Egypt			239						229						149
South Korea			203						267						302
United Kingdom			115						171						355
Other			1,079						1,127						1,041
Total			$	25,455					$	22,855					$	22,780

a.Revenues are attributed to countries based on the location of the customer.

Major Customers and Affiliated Companies. Sales to MMC, PT-FI’s joint venture partner in PT Smelting, were 17% of FCX’s consolidated revenues in 2024 and totaled $4.4 billion in 2024, $2.0 billion in 2023 and $0.6 billion in 2022. Sales to PT Smelting were 13% of FCX’s consolidated revenues in 2022 and totaled $3.0 billion in 2022. Sales to PT Smelting totaled $27 million in 2023 (reflecting adjustments to prior period provisionally priced concentrate sales). MMC and PT Smelting are the only customers that accounted for 10% or more of FCX’s annual consolidated revenues during the three years ended December 31, 2024.

Consolidated revenues include sales to the noncontrolling interest owners of FCX’s South America mining operations and Morenci’s joint venture partners totaling $1.6 billion in 2024, $1.4 billion in 2023 and $1.7 billion in 2022.

Labor Matters**.** As of December 31, 2024, approximately 28% of FCX’s global labor force was covered by collective labor agreements (CLAs), none of which will expire during 2025.

Business Segments. FCX has organized its mining operations into four primary divisions – North America copper mines, South America operations, Indonesia operations and Molybdenum mines, and operating segments that meet certain thresholds are reportable segments. Separately disclosed in the following tables are FCX’s reportable segments, which include the Morenci and Cerro Verde copper mines, the Indonesia operations (including the Grasberg minerals district and PT-FI’s new downstream processing facilities), the Rod & Refining operations and Atlantic Copper Smelting & Refining.

FCX's Chief Executive Officer is identified as its CODM under business segment reporting guidance. Operating income (loss) is the financial measure of profit or loss used by the CODM to review segment results, and the significant segment expenses reviewed by the CODM are consistent with the operating expense line items presented in FCX’s consolidated statements of income. The CODM uses operating income (loss) to assess segment performance against forecasted results and to allocate resources, including capital investment in mining operations and potential expansions.

The 2023 and 2022 tables have been adjusted to conform with the current year presentation, primarily for the combination of the Grasberg minerals district and PT-FI’s new downstream processing facilities. PT-FI’s new downstream processing facilities will exclusively receive concentrate from the Grasberg minerals district, which reflects PT-FI’s integrated and dependent operations within Indonesia (i.e., Indonesia operations). The PMR will receive anode slimes from the smelter and from PT Smelting. FCX's CODM makes executive management decisions, including resource allocation and mine planning, for the Indonesia operations as a single business segment.

Intersegment sales between FCX’s business segments are based on terms similar to arm’s-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, the timing of sales to unaffiliated customers and transportation premiums.

FCX defers recognizing profits on intercompany sales to Atlantic Copper until final sales to third parties occur. Until December 31, 2022, FCX also deferred recognizing 39.5% of PT-FI’s sales to PT Smelting, until final sales to third parties occurred. Beginning in 2023, PT-FI’s commercial arrangement with PT Smelting changed to a tolling arrangement and there were no further sales from PT-FI to PT Smelting during 2023 and 2024. Quarterly variations in ore grades, the timing of intercompany shipments and changes in product prices result in variability in FCX’s net deferred profits and quarterly earnings.

FCX allocates certain operating costs, expenses and capital expenditures to its operating divisions and individual segments. However, not all costs and expenses applicable to an operation are allocated. U.S. federal and state income taxes are recorded and managed at the corporate level (included in Corporate, Other & Eliminations), whereas foreign income taxes are recorded and managed at the applicable country level. In addition, some selling, general and administrative costs are not allocated to the operating divisions or individual reportable 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 reportable segment would be if it was an independent entity.

North America Copper Mines. FCX operates seven open-pit copper mines in North America – Morenci, Safford (including Lone Star), Bagdad, Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico. The North America copper mines include open-pit mining, sulfide-ore concentrating, leaching and SX/EW operations. A majority of the copper produced at the North America copper mines is cast into copper rod by FCX’s Rod & Refining segment. In addition to copper, certain of FCX’s North America copper mines also produce molybdenum concentrate, gold and silver.

The Morenci open-pit mine, located in southeastern Arizona, produces copper cathode and copper concentrate. In addition to copper, the Morenci mine also produces molybdenum concentrate. During 2024, the Morenci mine produced 41% of FCX’s North America copper and 12% of FCX’s consolidated copper production.

South America Operations. South America operations includes two operating copper mines – Cerro Verde in Peru and El Abra in Chile. These operations include open-pit mining, sulfide-ore concentrating, leaching and SX/EW operations.

The Cerro Verde open-pit copper mine, located near Arequipa, Peru, produces copper cathode and copper concentrate. In addition to copper, the Cerro Verde mine also produces molybdenum concentrate and silver. During 2024, the Cerro Verde mine produced 81% of FCX’s South America copper and 23% of FCX’s consolidated copper production.

Indonesia Operations. Indonesia operations include PT-FI’s Grasberg minerals district that produces copper concentrate that contains significant quantities of gold and silver, and PT-FI’s new downstream processing facilities. During 2024, PT-FI’s Grasberg minerals district produced 43% of FCX’s consolidated copper production and 99% of FCX’s consolidated gold production.

Molybdenum Mines. Molybdenum mines include the wholly owned Henderson underground mine and Climax open-pit mine, both in Colorado. The Henderson and Climax mines produce high-purity, chemical-grade molybdenum concentrate, which is typically further processed into value-added molybdenum chemical products.

Rod & Refining. The Rod & Refining segment consists of copper conversion facilities located in North America, and includes a refinery and two rod mills, which are combined in accordance with segment reporting aggregation guidance. These operations process copper produced at FCX’s North America copper mines and purchased copper into copper cathode and rod. At times these operations refine copper and produce copper rod for customers on a toll basis. Toll arrangements require the tolling customer to deliver appropriate copper-bearing material to FCX’s facilities for processing into a product that is returned to the customer, who pays FCX for processing its material into the specified products.

Atlantic Copper Smelting & Refining. Atlantic Copper smelts and refines copper concentrate and markets refined copper and precious metals in slimes. During 2024, Atlantic Copper purchased 2% of its concentrate requirements from FCX’s North America copper mines, 15% from FCX’s South America operations and 13% from FCX’s Indonesia operations, with the remainder purchased from unaffiliated third parties.

Corporate, Other & Eliminations. Corporate, Other & Eliminations consists of FCX’s other mining, oil and gas operations and other corporate and elimination items, which include the Miami smelter, molybdenum conversion facilities in the U.S. and Europe, certain non-operating copper mines in North America (Ajo, Bisbee and Tohono in Arizona) and other mining support entities.

Financial Information by Business Segment

			North America Copper Mines																		South America Operations
																																																																					Atlantic																								Corporate,
																																																																					Copper																								Other
																											Cerro																		Indonesia												Molybdenum						Rod &						Smelting																								& Elimi-						FCX
			Morenci												Other						Total						Verde						Other						Total						Operations												Mines						Refining						& Refining																								nations						Total
Year Ended December 31, 2024
Revenues:
Unaffiliated customers			$	101											$	79					$	180					$	3,618					$	915					$	4,533					$	9,774											$	—					$	6,196					$	3,009																							$	1,763		a			$	25,455
Intersegment			2,246												3,814						6,060						638						—						638						544												592						43						8																								(7,885)						—
Production and delivery			1,826												3,170						4,996						2,529			b			701						3,230						3,368			c									530						6,206						2,912																								(5,688)			d			15,554			e
Depreciation, depletion and amortization			187												252						439						380						66						446						1,193												73						4						28																								58						2,241
Selling, general and administrative expenses			2												2						4						8						—						8						127												—						—						28																								346						513
Exploration and research expenses			17												27						44						12						4						16						8												—						—						—																								88						156
Environmental obligations and shutdown costs			—												—						—						—						—						—						—												—						—						—																								127						127
Operating income (loss)			315												442						757						1,327						144						1,471						5,622												(11)						29						49																								(1,053)						6,864
Interest expense, net			—												1						1						21						—						21						28												—						—						36																								233						319
Other (expense) income, net			(1)												2						1						42						24						66						136												—						(1)						13																								147						362
Provision for (benefit from) income taxes			—												—						—						542						62						604						1,907			f									—						—						(11)																								23						2,523
Equity in affiliated companies’ net earnings			—												—						—						—						—						—						7												—						—						—																								8						15
Net income attributable to noncontrolling interests			—												—						—						412			g			67						479						2,022			h									—						—						—																								9						2,510
Net income attributable to common stockholders																																																																																																			1,889
Total assets at December 31, 2024			3,228												6,766						9,994						8,096						2,060						10,156						27,309												2,018						202						1,705																								3,464						54,848
Capital expenditures			184												849						1,033						293						82						375						2,908												117						35						142																								198						4,808

			North America Copper Mines																		South America Operations
																																																																					Atlantic																								Corporate,
																																																																					Copper																								Other
																											Cerro																		Indonesia												Molybdenum						Rod &						Smelting																								& Elimi-						FCX
			Morenci												Other						Total						Verde						Other						Total						Operations												Mines						Refining						& Refining																								nations						Total
Year Ended December 31, 2023
Revenues:
Unaffiliated customers			$	91											$	152					$	243					$	3,330					$	824					$	4,154					$	7,816		i									$	—					$	5,886					$	2,791																							$	1,965		a			$	22,855
Intersegment			2,328												3,745						6,073						787						—						787						621												677						40						19																								(8,217)						—
Production and delivery			1,730												3,048						4,778						2,529						710						3,239						2,570			c									439						5,901						2,718																								(6,018)			d			13,627			e
Depreciation, depletion and amortization			175												243						418						395						64						459						1,028												66						5						28																								64						2,068
Selling, general and administrative expenses			2												2						4						9						—						9						129												—						—						28																								309						479
Exploration and research expenses			11												39						50						10						4						14						2												—						—						—																								71						137
Environmental obligations and shutdown costs			(1)												28						27						—						—						—						—												—						—						—																								292			j			319
Operating income (loss)			502												537						1,039						1,174						46						1,220						4,708												172						20						36																								(970)						6,225
Interest expense, net			—												1						1						77			k			—						77						35												—						—						31																								371						515
Net gain on early extinguishment of debt			—												—						—						—						—						—						—												—						—						—																								10						10
Other (expense) income, net			(5)												3						(2)						(13)			k			11						(2)						122												(1)						(2)						(8)																								179						286
Provision for (benefit from) income taxes			—												—						—						495						17						512						1,774												—						—						—																								(16)						2,270
Equity in affiliated companies’ net earnings			—												—						—						—						—						—						10												—						—						—																								5						15
Net income (loss) attributable to noncontrolling interests			—												—						—						300			g			36						336						1,614			h									—						—						—																								(47)						1,903
Net income attributable to common stockholders																																																																																																			1,848
Total assets at December 31, 2023			3,195												5,996						9,191						8,120						1,930						10,050						25,548												1,782						172						1,326																								4,437						52,506
Capital expenditures			232												529						761						271						97						368						3,324												84						13						64																								210						4,824

Financial Information by Business Segment (continued)

			North America Copper Mines																		South America Operations
																																																																					Atlantic																								Corporate,
																																																																					Copper																								Other
																											Cerro																		Indonesia												Molybdenum						Rod &						Smelting																								& Elimi-						FCX
			Morenci												Other						Total						Verde						Other						Total						Operations												Mines						Refining						& Refining																								nations						Total
Year Ended December 31, 2022
Revenues:
Unaffiliated customers			$	175											$	253					$	428					$	3,444					$	768					$	4,212					$	8,028		i									$	—					$	6,281					$	2,439																							$	1,392		a			$	22,780
Intersegment			2,514												3,768						6,282						506						—						506						398												565						31						4																								(7,786)						—
Production and delivery			1,550												2,827						4,377						2,369						705						3,074						2,686			c									359						6,330						2,452			l																					(6,208)			d			13,070			e
Depreciation, depletion and amortization			177												233						410						357						51						408						1,025												74						5						27																								70						2,019
Selling, general and administrative expenses			2												3						5						8						—						8						117												—						—						25																								265						420
Exploration and research expenses			2												45						47						5						4						9						—												3						—						—																								56						115
Environmental obligations and shutdown costs			(5)												1						(4)						—						—						—						—												—						—						—																								125						121
Net gain on sales of assets			—												—						—						—						—						—						—												—						—						—																								(2)						(2)
Operating income (loss)			963												912						1,875						1,211						8						1,219						4,598												129						(23)						(61)																								(700)						7,037
Interest expense, net			1												1						2						15						—						15						38												—						—						15																								490						560
Net (loss) gain on early extinguishment of debt			—												—						—						—						—						—						(11)												—						—						—																								42						31
Other (expense) income, net			(2)												(30)						(32)						13						4						17						120												—						(1)						13																								90						207
Provision for (benefit from) income taxes			—												—						—						461						(8)						453						1,820												—						—						(1)																								(5)						2,267
Equity in affiliated companies’ net earnings			—												—						—						—						—						—						24												—						—						—																								7						31
Net income attributable to noncontrolling interests			—												—						—						372			g			35						407						592			h									—						—						—																								12						1,011
Net income attributable to common stockholders																																																																																																			3,468
Total assets at December 31, 2022			3,052												5,552						8,604						8,398						1,873						10,271						22,727												1,697						183						1,262																								6,349						51,093
Capital expenditures			263												334						597						164						140						304						2,382												33						9						76																								68						3,469

a.Includes revenues from FCX’s molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.

b.Includes nonrecurring labor-related charges totaling $97 million associated with Cerro Verde’s new CLAs with its two unions.

c.Includes charges for administrative fines of $4 million in 2024, $55 million in 2023 and $41 million in 2022. Also includes charges (credits) totaling $144 million in 2024, $(112) million in 2023 and $116 million in 2022 associated with ARO adjustments. Refer to Note 10 for further discussion.

d.Includes oil and gas charges totaling $217 million in 2024, $70 million in 2023 and $6 million in 2022 related to asset impairments and adjustments to AROs, including assumed abandonment obligations resulting from bankruptcies of other companies.

e.Includes metals inventory adjustments of $91 million in 2024, $14 million in 2023, and $29 million in 2022.

f.Includes a net benefit to income taxes totaling $182 million associated with the closure of PT-FI’s 2021 corporate income tax audit and resolution of the framework for Indonesia disputed tax matters. Refer to Note 9 for further discussion.

g.Beginning in September 2024, FCX’s interest in Cerro Verde is 55.08%, and prior to September 2024 was 53.56%.

h.Beginning January 1, 2023, FCX’s economic and ownership interest in PT-FI is 48.76% except for net income associated with the settlement of historical tax matters in 2024 and approximately 190 thousand ounces of gold sales in 2023, which were attributed based on the economic interests prior to January 1, 2023 (i.e., approximate 81% to FCX and 19% to MIND ID). Refer to Note 2 for further discussion.

i.Includes sales to PT Smelting totaling $27 million in 2023 (reflecting adjustments to prior period provisionally priced concentrate sales), and $3.0 billion in 2022.

j.Includes a charge of $65 million associated with an adjustment to the proposed settlement of talc-related litigation.

k.Interest expense, net includes $74 million of charges associated with contested tax rulings issued by the Peru Supreme Court, partly offset by a $13 million credit for the settlement of interest on Cerro Verde’s historical profit sharing liability. Other (expense) income, net includes a charge of $69 million associated with contested tax rulings issued by the Peru Supreme Court.

l.Includes maintenance charges and idle facility costs associated with a major maintenance turnaround at Atlantic Copper totaling $41 million.

NOTE 15. SUPPLEMENTARY MINERAL RESERVE INFORMATION (UNAUDITED)

Recoverable proven and probable mineral reserves as of December 31, 2024, have been prepared using industry accepted practice and conform to the disclosure requirements under Subpart 1300 of SEC Regulation S-K. FCX’s proven and probable mineral reserves may not be comparable to similar information regarding mineral reserves disclosed in accordance with the guidance in other countries. Proven and probable mineral reserves were determined by the use of mapping, drilling, sampling, assaying and evaluation methods generally applied in the mining industry. Mineral reserves, as used in the reserve data presented here, mean an estimate of tonnage and grade of measured and indicated mineral resources that, in the opinion of the qualified person, can be the basis of an economically viable project. Proven mineral reserves are the economically mineable part of a measured mineral resource. To classify an estimate as a proven mineral reserve, the qualified person must possess a high degree of confidence of tonnage, grade and quality. Probable mineral reserves are the economically mineable part of an indicated or, in some cases, a measured mineral resource. The qualified person’s level of confidence will be lower in determining a probable mineral reserve than it would be in determining a proven mineral reserve. To classify an estimate as a probable mineral reserve, the qualified person’s confidence must still be sufficient to demonstrate that extraction is economically viable considering reasonable investment and market assumptions.

FCX’s mineral reserve estimates are based on the latest available geological and geotechnical studies. FCX conducts ongoing studies of its ore bodies to evaluate economic values and to manage risk. FCX revises its mine plans and estimates of proven and probable mineral reserves as required in accordance with the latest available studies.

Estimated recoverable proven and probable mineral reserves at December 31, 2024, were determined using metals price assumptions of $3.25 per pound for copper, $1,600 per ounce for gold and $12.00 per pound for molybdenum. For the three-year period ended December 31, 2024, LME copper settlement prices averaged $4.00 per pound, London PM gold prices averaged $2,044 per ounce and the weekly average price for molybdenum quoted by Platts Metals Daily averaged $21.41 per pound.

The recoverable proven and probable mineral reserves presented in the table below represent the estimated metal quantities from which FCX expects to be paid after application of estimated metallurgical recoveries and smelter recoveries, where applicable.

			Estimated Recoverable Proven and Probable Mineral Reserves
			at December 31, 2024
			Copper****a (billion pounds)						Gold (million ounces)						Molybdenum (billion pounds)
North America			41.6						0.6						2.51
South America			28.4						—						0.66
Indonesiab			27.0						22.4						—
Consolidated basisc			97.0						23.0						3.16
Net equity interestb,d			70.2						11.5						2.87

Note: Totals may not foot because of rounding.

a.Estimated consolidated recoverable copper reserves included 1.4 billion pounds in leach stockpiles and 0.3 billion pounds in mill stockpiles.

b.Estimated recoverable proven and probable mineral reserves from Indonesia reflect estimates of minerals that can be recovered through 2041. As a result, PT-FI’s current long-term mine plan and planned operations are based on the assumption that PT-FI will abide by the terms and conditions of the IUPK and will be granted the 10-year extension from 2031 through 2041 (refer to Note 11 for discussion of PT-FI’s IUPK). As a result, PT-FI will not mine all of these mineral reserves during the initial term of the IUPK. Prior to the end of 2031, PT-FI expects to mine 40% of its recoverable proven and probable mineral reserves at December 31, 2024, representing 45% of FCX’s net equity share of recoverable copper reserves and 44% of FCX’s net equity share of recoverable gold reserves in Indonesia.

c.Consolidated mineral reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America (refer to Note 2 for further discussion). Excluded from the table above were FCX’s estimated recoverable proven and probable mineral reserves of 318 million ounces of silver, which were determined using $20 per ounce.

d.Net equity interest mineral reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership (refer to Note 2 for further discussion of FCX’s ownership in subsidiaries). Excluded from the table above were FCX’s estimated recoverable proven and probable mineral reserves of 213 million ounces of silver.

									Estimated Recoverable Proven and Probable Mineral Reserves
									at December 31, 2024
									Orea (million metric tons)												Average Ore Grade Per Metric Tona																		Recoverable Proven and Probable Mineral Reservesb
			FCX’s Interest						FCX’s Interest						100% Basis						Copper (%)						Gold (grams)						Molybdenum (%)						Copper (billion pounds)						Gold (million ounces)						Molybdenum (billion pounds)
North America
Production stage:
Morenci			72%						2,739						3,804						0.21						—						—			c			11.1						—						0.17
Sierrita			100%						2,206						2,206						0.23						—			c			0.03						9.4						0.1						0.96
Bagdad			100%						2,430						2,430						0.35						—			c			0.02						15.8						0.2						0.86
Safford, including Lone Star			100%						746						746						0.43						—						—						5.1						—						—
Chino, including Cobre			100%						370						370						0.45						0.04						—						3.0						0.4						—
Climax			100%						141						141						—						—						0.15						—						—						0.42
Henderson			100%						44						44						—						—						0.16						—						—						0.14
Tyrone			100%						69						69						0.19						—						—						0.3						—						—
Miami			100%						—						—						—						—						—						0.1						—						—
South America
Production stage:
Cerro Verde			55.08%						2,145						3,894						0.34						—						0.01						25.2						—						0.66
El Abra			51%						312						611						0.43						—						—						3.1						—						—
Indonesia****d
Production stage:
Grasberg Block Cave			48.76%						351						719						0.99						0.66						—						13.4						10.3						—
Deep Mill Level Zone			48.76%						159						326						0.74						0.60						—						4.4						4.9						—
Big Gossan			48.76%						23						48						2.23						0.95						—						2.2						1.0						—
Development stage:
Kucing Liar			48.76%						180						369						1.10						0.94						—						7.1						6.2						—
Total 100% basis															15,779																								100.1						23.0						3.21
Consolidated basis****e															14,714																								97.0						23.0						3.16
FCX’s net equity interest****f															11,916																								70.2						11.5						2.87

Note: Totals may not foot because of rounding.

a.Excludes material contained in stockpiles.

b.Includes estimated recoverable metals contained in stockpiles.

c.Amounts not shown because of rounding.

d.Estimated recoverable proven and probable mineral reserves from Indonesia reflect estimates of minerals that can be recovered through 2041. Refer to Note 11 for discussion of PT-FI’s IUPK.

e.Consolidated mineral reserves represent estimated metal quantities after reduction for Morenci’s joint venture partner interests (refer to Note 2 for further discussion).

f.Net equity interest mineral reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership (refer to Note 2 for further discussion of FCX’s ownership in subsidiaries).