SUPPLEMENTARY MINERAL RESERVE INFORMATION (UNAUDITED)

Recoverable proven and probable reserves have been calculated as of December 31, 2018, in accordance with Industry Guide 7 as required by the Securities Exchange Act of 1934. FCX’s proven and probable reserves may not be comparable to similar information regarding mineral reserves disclosed in accordance with the guidance in other countries. Proven and probable reserves were determined by the use of mapping, drilling, sampling, assaying and evaluation methods generally applied in the mining industry, as more fully discussed below. The term “reserve,” as used in the reserve data presented here, means that part of a mineral deposit that can be economically and legally extracted or produced at the time of the reserve determination. The term “proven reserves” means reserves for which (i) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes; (ii) grade and/or quality are computed from the results of detailed sampling; and (iii) the sites for inspection, sampling and measurements are spaced so closely and the geologic character is sufficiently defined that size, shape, depth and mineral content of reserves are well established. The term “probable reserves” means reserves for which quantity and grade are computed from information similar to that used for proven reserves but the sites for sampling are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven reserves, is high enough to assume continuity between points of observation.

FCX’s reserve estimates are based on the latest available geological and geotechnical studies. FCX conducts ongoing studies of its ore bodies to optimize 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 reserves at December 31, 2018, were determined using $2.50 per pound for copper in North America and South America and $2.00 per pound for copper in Indonesia, $1,000 per ounce for gold and $10 per pound for molybdenum. Reserves for Indonesia would not significantly change if assessed under a long-term price of $2.50 per pound of copper as PT-FI’s reserve plan is mill-constrained by the term of its IUPK, which contains rights to extend mining rights through 2041.

For the three-year period ended December 31, 2018, LME copper settlement prices averaged $2.65 per pound, LBMA gold prices averaged $1,259 per ounce and the weekly average price for molybdenum quoted by Metals Week averaged $8.85 per pound.

The recoverable proven and probable reserves presented in the table below represent the estimated metal quantities from which FCX expects to be paid after application of estimated metallurgical recovery rates and smelter recovery rates, where applicable. Recoverable reserves are that part of a mineral deposit that FCX estimates can be economically and legally extracted or produced at the time of the reserve determination.



	Estimated Recoverable Proven and Probable Mineral Reserves
	at December 31, 2018
	Copper^a (billion pounds)		Gold (million ounces)		Molybdenum (billion pounds)
North America	49.9		0.6		3.06
South America	33.5		—		0.72
Indonesia	36.2	^b	30.2	^b	—
Consolidated^c	119.6		30.8		3.78

Net equity interest^d	86.8		17.0		3.44


a.	Estimated consolidated recoverable copper reserves included 2.0 billion pounds in leach stockpiles and 0.6 billion pounds in mill stockpiles.


b.	Includes 13.0 billion pounds of copper and 10.1 million ounces of gold associated with PT-FI's acquisition of the Rio Tinto Joint Venture interest. Estimated recoverable proven and probable reserves from Indonesia reflect estimates of minerals that can be recovered through 2041. Refer to Note 13 for discussion of PT-FI’s IUPK.

Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America (refer to Note 3 for further discussion). Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of 393.1 million ounces of silver, which were determined using $15 per ounce and include 55.7 million ounces associated with PT-FI's acquisition of the Rio Tinto Joint Venture interest.

Net equity interest reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership (refer to Note 3 for further discussion of FCX’s ownership in subsidiaries). FCX's net equity interest for estimated metal quantities in Indonesia reflects approximately 81 percent from 2019 through 2022 and 48.76 percent from 2023 through 2041. Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of 269.3 million ounces of silver.



	Estimated Recoverable Proven and Probable Mineral Reserves
	at December 31, 2018
		Average Ore Grade Per Metric Ton^a					Recoverable Proven and Probable Reserves^b
	Ore^a (million metric tons)	Copper (%)	Gold (grams)		Molybdenum (%)		Copper (billion pounds)	Gold (million ounces)	Molybdenum (billion pounds)
North America
Developed and producing:
Morenci	4,619	0.24	—		—	^c	15.6	—	0.18
Sierrita	3,369	0.23	—	^c	0.02		14.0	0.2	1.42
Bagdad	2,426	0.32	—	^c	0.02		14.7	0.1	0.74
Safford, including Lone Star^d	839	0.44	—		—		6.2	—	—
Chino, including Cobre	395	0.46	0.03		0.01		3.4	0.3	0.01
Climax	168	—	—		0.15		—	—	0.52
Henderson	71	—	—		0.17		—	—	0.24
Tyrone	55	0.25	—		—		0.3	—	—
Miami	—	—	—		—		0.1	—	—

South America
Developed and producing:
Cerro Verde	4,324	0.35	—		0.01		29.6	—	0.72
El Abra	705	0.42	—		—		3.9	—	—

Indonesia^e
Developed and producing:
Deep Mill Level Zone	432	0.92	0.76		—		7.6	8.4	—
Deep Ore Zone	51	0.50	0.57		—		0.5	0.8	—
Big Gossan	57	2.30	1.02		—		2.6	1.3	—
Grasberg open pit	5	1.26	1.98		—		0.2	0.4	—

Under development:
Grasberg Block Cave	963	0.96	0.72		—		17.2	14.1	—

Undeveloped:
Kucing Liar	349	1.24	1.03		—		8.1	5.2	—
Total 100% basis	18,828						124.0	30.8	3.83
Consolidated^f							119.6	30.8	3.78
FCX’s equity share^g							86.8	17.0	3.44


a.	Excludes material contained in stockpiles.


b.	Includes estimated recoverable metals contained in stockpiles.


c.	Amounts not shown because of rounding.


d.	The Lone Star oxide project is under development.


e.	Estimated recoverable proven and probable reserves from Indonesia reflect estimates of minerals that can be recovered through 2041. Refer to Note 13 for discussion of PT-FI’s IUPK.


f.	Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America. Refer to Note 3 for further discussion.


g.	Net equity interest reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership. FCX's net equity interest for estimated metal quantities in Indonesia reflects an approximate 81 percent from 2019 through 2022 and 48.76 percent from 2023 through 2041. Refer to Note 3 for further discussion of FCX’s ownership in subsidiaries.