FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2012

Financial Instruments [Abstract]

Unrealized gains (losses) for derivative financial instruments that are designated and qualify as fair value hedge transactions and for the related hedged item

A summary of gains (losses) recognized in revenues for derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions, along with the unrealized gains (losses) on the related hedged item (firm sales commitments) for the years ended December 31 follows:

	2012			2011			2010
Unrealized gains (losses):
Derivative financial instruments	$	15		$	(28	)	$	7
Hedged item	(15		)	28			(7		)
Realized gains (losses):
Matured derivative financial instruments	(2		)	(28		)	37

Realized and unrealized gains (losses) for derivative financial instruments that do not qualify as hedge transactions

A summary of the realized and unrealized gains (losses) recognized in income before income taxes and equity in affiliated companies’ net earnings for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, for the years ended December 31 follows:

	2012		2011			2010
Embedded derivatives in provisional sales contractsa	$	77	$	(519	)	$	619
Embedded derivatives in provisional purchase contractsb	—		—			(2		)
Copper forward contractsb	15		(2		)	(30		)

a. Amounts recorded in revenues.

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

Fair Values of Unsettled Derivative Financial Instruments

A summary of the fair values of unsettled derivative financial instruments recorded on the consolidated balance sheets follows:

	December 31,
	2012		2011
Derivatives designated as hedging instruments
Commodity contracts:
Copper futures and swap contracts:a
Asset positionb	$	5	$	3
Liability positionc	1		13

Derivatives not designated as hedging instruments
Commodity contracts:
Embedded derivatives in provisional sales/purchase contracts:d
Asset position	$	36	$	72
Liability position	27		82
Copper forward contracts:
Asset positionb	—		2

a. FCX had paid $7 million to brokers at December 31, 2012, and $31 million at December 31, 2011, for margin requirements (recorded in other current assets). In addition, FCX held $3 million in margin funding from customers at December 31, 2011(recorded in accounts payable and accrued liabilities).

b. Amounts recorded in other current assets.

c. Amounts recorded in accounts payable and accrued liabilities.

d. Amounts are recorded by counterparty either as a net accounts receivable or a net accounts payable.

Schedule of Derivative Instruments

A summary of FCX’s embedded derivatives at December 31, 2012, follows:

	Open	Average Price Per Unit				Maturities
	Positions	Contract		Market		Through
Embedded derivatives in provisional sales contracts:
Copper (millions of pounds)	541	$	3.57	$	3.59	May 2013
Gold (thousands of ounces)	104	1,703		1,666		April 2013
Embedded derivatives in provisional purchase contracts:
Copper (millions of pounds)	203	3.61		3.59		March 2013