EX-95.1 14 q416exhibit951.htm EXHIBIT 95.1
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.
Mine Safety Data. Following provides additional information about references used in the table below 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 year ended December 31, 2016:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 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) |  | 13 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 51,687 |  |  | — |  |  | No |  | No
2900708 |  | Freeport-McMoRan Chino Mines Company (Chino) |  | 18 |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 51,045 |  |  | — |  |  | No |  | No
0200112 |  | Freeport-McMoRan Miami Inc. (Miami) |  | 9 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 15,278 |  |  | — |  |  | No |  | No
0200024 |  | Freeport-McMoRan Morenci Inc. (Morenci) |  | 88 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 383,664 |  |  | — |  |  | No |  | No
0203131 |  | Freeport-McMoRan Safford Inc. (Safford) |  | 18 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 14,586 |  |  | — |  |  | No |  | No
0200144 |  | Freeport-McMoRan Sierrita Inc. (Sierrita) |  | 43 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 133,212 |  |  | — |  |  | No |  | No
2900159 |  | Tyrone Mine (Tyrone) |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 10,093 |  |  | — |  |  | No |  | No
0500790 |  | Henderson Operations (Henderson) |  | 3 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 13,041 |  |  | — |  |  | No |  | No
0502256 |  | Climax Mine (Climax) |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,379 |  |  | — |  |  | No |  | No
|  | Freeport-McMoRan Cobre Mining Company: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2900725 |  | Open Pit & Continental Surf Comp |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 100 |  |  | — |  |  | No |  | No
2900731 |  | Continental Mill Complex |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 145 |  |  | — |  |  | No |  | No
0201656 |  | Copper Queen Branch |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 114 |  |  | — |  |  | No |  | No
0202579 |  | Cyprus Tohono Corporation |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,416 |  |  | — |  |  | 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 February 15, 2017, for citations or orders issued by MSHA during the year ended December 31, 2016. FCX is contesting approximately $150 thousand of these proposed assessments.

Pending Legal Actions. The table below provides a summary of legal actions pending before the Federal Mine Safety and Health Review Commission (the Commission) involving FCX's U.S. mining operations as of December 31, 2016, as well as the aggregate number of legal actions instituted and resolved during the year 2016. 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 is an administrative proceeding that may be filed by an operator to challenge a civil penalty MSHA has proposed for an alleged violation contained in a citation or order. The validity of the citation may be challenged in this proceeding as well.

• | Discrimination Proceedings - Involves a miner's allegation that he or she has suffered adverse employment action because he or she engaged in 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 December 31, 20162 |  |  |  |  |
|  | 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 |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 2 |  |  | 13 |  |
0203131 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
0200144 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
2900159 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
0500790 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
0502256 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3 |  |
2900725 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
2900731 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |
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 December 31, 2016, and legal actions instituted during the year are based on the date that a docket number was assigned to the proceeding.

(3) | Legal actions resolved during the year 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.