EX-95.1 7 q219exhibit951.htm EXHIBIT 95.1 Exhibit


Exhibit 95.1

Mine Safety and Health Administration (MSHA) Safety Data

FCX's U.S. mining operations are subject to regulations issued by MSHA under the U.S. Federal Mine Safety and Health Act of 1977 (the Mine Act). MSHA inspects our U.S. mines on a regular basis and issues various citations and orders when it believes a violation has occurred under the Mine Act. Whenever MSHA issues a citation or order, it also generally proposes a civil penalty, or fine, related to the alleged violation. Citations or orders can be contested and appealed, and as part of that process, are often reduced in severity and amount, and are sometimes dismissed. The number of citations, orders and proposed assessments varies depending on the size and type (underground or surface) of the mine, among other factors.

The following disclosures have been provided pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Act).

Mine Safety Data. Following provides additional information about references used in the following table to describe the categories of violations, orders or citations issued by MSHA under the Mine Act:

Section 104 S&S Citations: Citations issued by MSHA under Section 104(a) of the Mine Act for violations of health or safety standards that could significantly and substantially contribute to a serious injury if left unabated.

Section 104(b) Orders: Orders issued under Section 104(b) of the Mine Act, which represent a failure to abate a citation under Section 104(a) within the period prescribed by MSHA. This results in an order of immediate withdrawal from the area of the mine affected by the condition until MSHA determines that the violation has been abated.

Section 104(d) Citations and Orders: Citations and orders issued by MSHA under Section 104(d) of the Mine Act for unwarrantable failure to comply with mandatory health or safety standards. These types of violations could significantly and substantially contribute to a serious injury; however, the conditions do not cause imminent danger (refer to discussion of imminent danger orders below).

Section 110(b)(2) Violations: Flagrant violations identified by MSHA under Section 110(b)(2) of the Mine Act. The term flagrant with respect to a violation is defined as “a reckless or repeated failure to make reasonable efforts to eliminate a known violation of a mandatory health or safety standard that substantially and proximately caused, or reasonably could have expected to cause, death or serious bodily injury.”

Section 107(a) Orders: Orders issued by MSHA under Section 107(a) of the Mine Act for situations in which MSHA determined an imminent danger existed. Orders issued under Section 107(a) of the Mine Act require the operator of the mine to cause all persons (except authorized persons) to be withdrawn from the mine until the imminent danger and the conditions that caused such imminent danger cease to exist.







The following table details the violations, citations and orders issued to us by MSHA during the three months ended June 30, 2019:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Potential
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
to Have
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pattern of
 
Pattern of
 
 
 
 
 
 
 
 
Section
 
 
 
 
 
 
 
 
 
Violations
 
Violation
 
 
 
 
Section
 
Section
 
104(d)
 
Section
 
Section
 
 
 
Mining
 
Under
 
Under
 
 
 
 
104 S&S
 
104(b)
 
Citations
 
110(b)(2)
 
107(a)
 
Proposed
 
Related
 
Section
 
Section
 
 
 
 
Citations
 
Orders
 
and Orders
 
Violations
 
Orders
 
Assessments(2)
 
Fatalities
 
104(e)
 
104(e)
Mine ID(1)
 
Mine or Operation Name
 
(#)
 
(#)
 
(#)
 
(#)
 
(#)
 
($)
 
(#)
 
(yes/no)
 
(yes/no)
0200137
 
Freeport-McMoRan Bagdad Inc. (Bagdad)
 
7

 

 

 

 

 
22,062

 

 
No
 
No
2900708
 
Freeport-McMoRan Chino Mines Company (Chino)
 
2

 

 
1

 

 

 
20,165

 

 
No
 
No
0200112
 
Freeport-McMoRan Miami Inc (Miami)
 

 

 

  

 

 

 

 
No
 
No
0200024
 
Freeport-McMoRan Morenci Inc (Morenci)
 

 

 

  

 

 
1,086

 

 
No
 
No
0203131
 
Freeport-McMoRan Safford Inc (Safford)
 
5

 

 

  

 

 
12,607

 

 
No
 
No
0200144
 
Freeport-McMoRan Sierrita Inc (Sierrita)
 
10

 

 

  

 

 
66,133

 

 
No
 
No
2900159
 
Tyrone Mine (Tyrone)
 

 

 

  

 

 

 

 
No
 
No
0500790
 
Henderson Operations (Henderson)
 
1

 

 

 

 

 
1,375

 

 
No
 
No
0502256
 
Climax Mine (Climax)
 

 

 

  

 

 

 

 
No
 
No
 
 
Freeport-McMoRan Cobre Mining Company:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2900725
 
Open Pit & Continental Surf Comp
 

 

 

  

 

 

 

 
No
 
No
2900731
 
Continental Mill Complex
 

 

 

   

 

 

 

 
No
 
No
0201656
 
Copper Queen Branch
 

 

 

  

 

 

 

 
No
 
No
0202579
 
Cyprus Tohono Corporation
 
1

 

 

  

 

 
559

 

 
No
 
No
0203262
 
Twin Buttes Mine
 

 

 

 

 

 

 

 
No
 
No
2902395
 
Chieftain 2100 Screening Plant
 

 

 

 

 

 

 

 
No
 
No
0203254
 
Warrior 1800 Screening Plant
 

 

 

 

 

 

 

 
No
 
No
(1)
MSHA assigns an identification number to each mine or operation and may or may not assign separate identification numbers to related facilities.
(2)
Amounts represent the total dollar value of proposed assessments received on or before July 31, 2019, for citations or orders issued by MSHA during the three months ended June 30, 2019. FCX is not currently contesting any of these proposed assessments.

Pending Legal Actions. The following table provides a summary of legal actions pending before the Federal Mine Safety and Health Review Commission (the Commission) as of June 30, 2019, as well as the aggregate number of legal actions instituted and resolved during the second quarter of 2019. The Commission is an independent adjudicative agency established by the Mine Act that provides administrative trial and appellate review of legal disputes arising under the Mine Act. These cases may involve, among other questions, challenges by operators to citations, orders and penalties they have received from MSHA, or complaints of discrimination by miners under Section 105 of the Mine Act.






The following provides additional information of the types of proceedings that may be brought before the Commission:
Contest Proceedings - A contest proceeding may be filed by an operator to challenge the issuance of a citation or order issued by MSHA.
Civil Penalty Proceedings - A civil penalty proceeding may be filed by an operator to challenge a civil penalty MSHA has proposed for a violation contained in a citation or order. FCX does not institute civil penalty proceedings based solely on the assessment amount of proposed penalties. Any initiated adjudications described in the table below address substantive matters of law and policy instituted on conditions that are alleged to be in violation of mandatory standards or the Mine Act.
Discrimination Proceedings - Involves a miner's allegation that he or she has suffered adverse employment action because he or she engaged in an activity protected under the Mine Act, such as making a safety complaint. Also includes temporary reinstatement proceedings involving cases in which a miner has filed a complaint with MSHA stating that he or she has suffered discrimination and the miner has lost his or her position.
Compensation Proceedings - A compensation proceeding may be filed by miners entitled to compensation when a mine is closed by certain closure orders issued by MSHA. The purpose of the proceeding is to determine the amount of compensation, if any, due to miners idled by the orders.
Temporary Relief - Applications for temporary relief are applications filed under section 105(b)(2) of the Mine Act for temporary relief from any modification or termination of any order.
Appeals - An appeal may be filed by an operator to challenge judges decisions or orders to the commission, including petitions for discretionary review and review by the commission on its own motion.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Legal Actions Pending at June 30, 2019
 
 
 
 
 
 
 
Contest
 
Civil Penalty
 
Discrimination
 
Compensation
 
Temporary
 
 
 
 
 
Legal Actions
 
Legal Actions
 
 
 
Proceedings
 
Proceedings
 
Proceedings
 
Proceedings
 
Relief
 
Appeals
 
Total
 
Instituted(2)
 
Resolved(3)
 
Mine ID(1)
 
(#)
 
(#)
 
(#)
 
(#)
 
(#)
 
(#)
 
(#)
 
(#)
 
(#)
 
0200137
 

 

 

 

 

 

 

 

 

 
2900708
 

 

 

 

 

 

 

 

 

 
0200112
 

 

 

 

 

 

 

 

 

 
0200024
 
3

 

 

 

 

 

 
3

 
2

 
3

 
0203131
 

 

 

 

 

 

 

 

 

 
0200144
 

 

 

 

 

 

 

 

 

 
2900159
 

 

 

 

 

 

 

 

 

 
0500790
 

 

 

 

 

 

 

 

 

 
0502256
 

 

 

 

 

 

 

 

 

 
2900725
 

 

 

 

 

 

 

 

 

 
2900731
 

 

 

 

 

 

 

 

 

 
0201656
 

 

 

 

 

 

 

 

 

 
0202579
 

 

 

 

 

 

 

 

 

 
0203262
 

 

 

 

 

 

 

 

 

 
2902395
 

 

 

 

 

 

 

 

 

 
0203254
 

 

 

 

 

 

 

 

 

 
(1)
MSHA assigns an identification number to each mine or operation and may or may not assign separate identification numbers to related facilities. Refer to "Mine Safety Data" table for related mine or operation name.
(2)
Legal actions pending at June 30, 2019, and legal actions instituted during the second quarter of 2019 are based on the date that a docket number was assigned to the proceeding.
(3)
Legal actions resolved during the second quarter of 2019 are based on the date that the settlement motion resolving disputed matters is filed with the Commission, and the matter is effectively closed by MSHA.