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DEBT
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Debt DEBT
FCX’s debt at December 31, 2021, included additions of $9 million ($10 million at December 31, 2020) for unamortized fair value adjustments, and is net of reductions of $86 million ($85 million at December 31, 2020) for unamortized net discounts and unamortized debt issuance costs. The components of debt follow:
 December 31,
 20212020
Revolving credit facility$— $— 
Senior notes and debentures:  
Issued by FCX:
3.55% Senior Notes due 2022— 523 
3.875% Senior Notes due 2023995 994 
4.55% Senior Notes due 2024728 728 
5.00% Senior Notes due 2027594 593 
4.125% Senior Notes due 2028693 691 
4.375% Senior Notes due 2028643 642 
5.25% Senior Notes due 2029593 593 
4.25% Senior Notes due 2030593 592 
4.625% Senior Notes due 2030841 840 
5.40% Senior Notes due 2034742 742 
5.450% Senior Notes due 20431,846 1,845 
Issued by FMC:
71/8% Debentures due 2027
115 115 
9½% Senior Notes due 2031123 124 
61/8% Senior Notes due 2034
117 117 
PT-FI Term Loan432 — 
Cerro Verde Term Loan325 523 
Other 70 49 
Total debt9,450 9,711 
Less current portion of debt(372)(34)
Long-term debt$9,078 $9,677 

Revolving Credit Facility. At December 31, 2021, FCX had no borrowings outstanding and $8 million in letters of credit issued under its revolving credit facility, resulting in availability of approximately $3.5 billion, of which approximately $1.5 billion could be used for additional letters of credit. Availability under FCX’s revolving credit facility consists of $3.28 billion maturing April 2024 and $220 million maturing April 2023. For PT-FI, $500 million of FCX’s revolving credit facility is available.

FCX’s revolving credit facility contains customary affirmative covenants and representations, and also contains a number of negative covenants that, among other things, restrict, subject to certain exceptions, the ability of FCX’s subsidiaries that are not borrowers or guarantors to incur additional indebtedness (including guarantee obligations) and FCX’s or its subsidiaries’ abilities to: create liens on assets; enter into sale and leaseback transactions; engage in mergers, liquidations and dissolutions; and sell assets. FCX’s revolving credit facility also contains financial ratios governing maximum total leverage and minimum interest expense coverage. At December 31, 2021, FCX was in compliance with its revolving credit facility covenants.

In December 2021, Freeport-McMoRan Oil & Gas LLC, a 100-percent-owned subsidiary of FCX Oil & Gas LLC (FM O&G) and indirect subsidiary of FCX, was released as co-borrower from FCX’s revolving credit facility and released as guarantor from all of the indentures relating to FCX’s outstanding senior notes.

Interest on loans made under the revolving credit facility is, at the option of FCX, determined based on the adjusted London Interbank Offered rate (LIBOR) or the alternate base rate (each as defined in the revolving credit facility) plus a spread to be determined by reference to FCX’s credit ratings.

Certain of FCX’s debt agreements, including its revolving credit facility, reference LIBOR which is being phased out and replaced with alternative reference rates. FCX does not expect the transition from LIBOR and other interbank offered rates to have a material impact on its consolidated financial results.
Senior Notes. In December 2021, FCX redeemed all of its outstanding $524 million aggregate principal amount of 3.55% Senior Notes due 2022, at a redemption price equal to 100 percent of the principal amount of the notes outstanding, plus accrued and unpaid interest.

In July 2020, FCX completed the sale of $650 million of 4.375% Senior Notes due 2028 and $850 million of 4.625% Senior Notes due 2030 for proceeds, net of underwriting fees, totaling $1.485 billion. Interest on these senior notes is payable semiannually on February 1 and August 1 of each year. FCX used $1.4 billion of the net proceeds from this offering to purchase a portion of its outstanding 3.55% Senior Notes due 2022, 3.875% Senior Notes due 2023 and 4.55% Senior Notes due 2024, and the payment of accrued and unpaid interest, premiums, fees and expenses in connection with these transactions. The remaining net proceeds from this offering were used for general corporate purposes.

In March 2020, FCX completed the sale of $700 million of 4.125% Senior Notes due 2028 and $600 million of 4.25% Senior Notes due 2030 for proceeds, net of underwriting fees, totaling $1.285 billion. Interest on these senior notes is payable semiannually on March 1 and September 1 of each year. FCX used a portion of the net proceeds from this offering to purchase a portion of its 4.00% Senior Notes due 2021 and its 3.55% Senior Notes due 2022 and the payment of accrued and unpaid interest, premiums, fees and expenses in connection with these transactions. In April 2020, FCX used the remaining net proceeds to fund the make-whole redemption of all of its remaining 4.00% Senior Notes due 2021 and the payment of accrued and unpaid interest, premiums, fees and expenses in connection with the transaction.

Listed below are the FCX senior notes, redeemed in full or purchased during the three-year period ended December 31, 2021.

Principal AmountNet AdjustmentsBook ValueRedemption/Tender ValueLoss
Year Ended December 31, 2021
FCX 3.55% Senior Notes due 2022$524 $— $524 $524 $— 
Year Ended December 31, 2020
FCX 4.00% Senior Notes due 2021$195 $(1)$194 $205 $11 
FCX 3.55% Senior Notes due 20221,356 (6)1,350 1,391 41 
FCX 3.875% Senior Notes due 2023927 (4)923 964 41 
FCX 4.55% Senior Notes due 2024120 (1)119 126 7 
Total$2,598 $(12)$2,586 $2,686 $100 
Year Ended December 31, 2019
FCX 3.100% Senior Notes due 2020$1,000 $(2)$998 $1,003 $5 
FCX 6.875% Senior Notes due 2023728 34 762 768 6 
FCX 4.00% Senior Notes due 2021405 (2)403 418 15 
FCX 3.55% Senior Notes due 202212 — 12 12 — 
Total$2,145 $30 $2,175 $2,201 $26 

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 percent of principal two years before maturity.

Debt InstrumentDate
5.00% Senior Notes due 2027September 1, 2022
4.125% Senior Notes due 2028March 1, 2023
4.375% Senior Notes due 2028August 1, 2023
5.25% Senior Notes due 2029September 1, 2024
4.25% Senior Notes due 2030March 1, 2025
4.625% Senior Notes due 2030August 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 percent of principal.
Debt InstrumentDate
3.875% Senior Notes due 2023December 15, 2022
4.55% Senior Notes due 2024August 14, 2024
5.40% Senior Notes due 2034May 14, 2034
5.450% Senior Notes due 2043September 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 Credit Facility. In July 2021, PT-FI entered into a $1.0 billion, five-year, unsecured credit facility (consisting of a $667 million term loan and a $333 million revolving credit facility) to fund project costs in connection with the PT Smelting expansion and construction of a precious metals refinery (PMR), and for PT-FI’s general corporate purposes. The term loan allows for borrowings up to $667 million within the first three years, and then amortizes in four installments, with 15 percent of the outstanding balance due in January 2025, 15 percent due in July 2025, 35 percent due in January 2026 and the remaining 35 percent due in July 2026. The $333 million revolving credit facility is available for drawings until June 2026. Amounts drawn under the credit facility bear interest at LIBOR plus a margin of 1.875% or 2.125%, as defined by the agreement.

PT-FI’s credit facility contains customary affirmative covenants and representations and also contains standard 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 ratios governing maximum total leverage and minimum interest expense coverage and certain environmental and social compliance requirements. At December 31, 2021, PT-FI was in compliance with its credit facility covenants.

As of December 31, 2021, $443 million ($432 million net of debt issuance costs) was drawn under the PT-FI Term Loan and no amounts were drawn under the revolving credit facility.

Cerro Verde Term Loan. Repayments of the Cerro Verde Term Loan totaled $200 million in 2021, $305 million in 2020 and $200 million in 2019, with the remaining balance of $325 million due on the maturity date of June 19, 2022. Interest under the Term Loan is based on LIBOR plus a spread based on Cerro Verde’s total net debt to EBITDA ratio as defined in the agreement. The interest rate on Cerro Verde’s Term Loan was 2.00 percent at December 31, 2021.

Cerro Verde Shareholder Loans. In December 2014, Cerro Verde entered into loan agreements with three of its shareholders for borrowings up to $800 million due June 2024. No amounts were outstanding at December 31, 2021 and 2020, and availability under these agreements totals $200 million at December 31, 2021.

Maturities.  Maturities of debt instruments based on the principal amounts and terms outstanding at December 31, 2021, total $372 million in 2022, $997 million in 2023, $735 million in 2024, $137 million in 2025, $314 million in 2026 and $7.0 billion thereafter.