Product Control at TFM

Freeport-McMoRan recognizes the international concern over trade in minerals referred to as “conflict minerals” (defined by Dodd-Frank as tin, tantalum, tungsten and gold) that are being mined in certain areas of the DRC. The company is also attentive to concerns of stakeholders and minerals value chain participants regarding responsible sourcing of metals, with a focus on potential and actual human rights impacts associated with unregulated and illegal artisanal mining of other minerals in the DRC.

TFM, an affiliate of Freeport-McMoRan, is an industrial copper and cobalt mine in southeastern DRC. While copper and cobalt mined at TFM are not classified as “conflict minerals” under Dodd-Frank, TFM is committed to apply a duty of care in product stewardship commensurate with its policy commitments and conditions in the DRC.

TFM implements robust product control and custody procedures to ensure that it mines, processes and sells only those minerals that originate within its mining concession. These procedures include specific actions to track illegally mined ore confiscated by government authorities within the TFM concession. TFM does not purchase ore that is not commercially mined by its own operations within its concession. TFM maintains a system to track its copper and cobalt products from its operations to the point of transfer to customers outside of the DRC.

TFM’s product control and custody procedures are designed to address Freeport-McMoRan’s policy commitments of ethical business practices and respect for human rights. Due to the importance of these procedures for the respect of human rights in the minerals value chain, Freeport-McMoRan contracted for and received independent assurance of TFM’s product control and custody procedures in April 2016 for the 2015 period.