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Safety and Health

Safety is integral to all Freeport-McMoRan operations, is the responsibility of all employees, and is managed by a formal structure starting with our Safety and Health Policy. Our board and senior management team believe that proper safety and health management enhances production and reduces costs – otherwise known to us as Safe Production. Our board also requires comprehensive audits to assure the safety management system is effective, weaknesses are identified and resources are applied to achieve the company’s policy objectives.

Our Health and Safety Management System consists of a framework for managing risks and compliance obligations. Our management system is certified in accordance with the internationally recognized OHSAS 18001 standard. OHSAS surveillance audits are conducted at our metal and mining operations on a yearly basis. Twenty-four OHSAS surveillance audits were conducted in 2015. Fatality prevention audits, conducted by an independent organization using experts within the mining sector, focus specifically on high-risk activities.

We draw no distinction between contractors and our own employees with regard to health and safety performance and reporting. The Freeport-McMoRan Contractor Safety Manual defines the minimal expectations and requirements for contractors working at our operations. Site-specific training is conducted with each contractor regarding health and safety matters specific to their work location, including task-specific hazard identification and control implementation. Training on regulatory-specific topics also occurs regularly.

We measure progress toward achieving our objective against regularly established benchmarks, including measuring company-wide Total Recordable Incident Rates (TRIR) across our businesses. Our TRIR, including contractors, was 0.56 per 200,000 man-hours worked in 2015, meeting our target. The company-wide TRIR in 2015 ties 2014 for the lowest in the company’s history. We worked 200.5 million hours in 2015 compared to 202.5 million hours in the prior year, and we recorded a total of 563 reportable injuries in 2015 compared to 567 in 2014.

Safety and Health Summary Data
Including Contractors
2011
2012
2013*
2014*
2015*
Workplace Fatalities
5
6
35
7
3
Total Recordable Incident Rate
0.61
0.58
0.74
0.56
0.56
Occupational Illness Cases
16
25
41
46
43

* Includes FM O&G
TRIR = [(Fatalities + Lost Time Incidents + Restricted Duty Incidents + Medical Treatment) x 200,000] / Total Hours Worked

Occupational Health Freeport-McMoRan operations maintain comprehensive occupational health programs to assess the risk of exposure to occupational health hazards and identify controls for those risks. Our Field Guide for Occupational Health and Industrial Hygiene defines occupational exposure limits, standards and practices that apply globally. Workplace job tasks includes an evaluation of physical hazards, as well as the potential consequences related to occupational illness. In 2015, a Physical Demands Analysis Project continued to target recognition and management of risks relevant to conditions such as fatigue; heat stress; evaluation of fitness for duty; and to track specific indicators for specific exposures such as silica, noise, and heavy metals. Recent software system updates enables electronic management of data to expedite response to events and to monitor trends and patterns.

There were 43 occupational illness cases reported at our operations in 2015. These cases reflect the number of workforce members involved, not the number of events (which were essentially unchanged from the prior year.) Heat stress continues to be challenging, particularly where day-to-day temperature variability occurs. Ongoing efforts are in place to remind workers to anticipate and proactively manage the effects of heat. An increase in hearing losses have been observed, due in part to length of service factors. Occupational illness cases are evaluated using root cause analysis with preventative measures identified and implemented to prevent reoccurrence.

2015 Safety Data
Including Contractors
Division
Fatalities
Lost Time Incident Rate (LTIR)
Total Recordable Incident Rate (TRIR)
Occupational Illness Rate (OIR)
FM PTFI
2
0.10
0.26
0.00
FM Americas
1
0.80
1.10
0.11
FM Africa
0
0.11
0.24
0.00
FM Mininga
0
0.28
0.51
0.00
Climax Moly
0
0.92
1.32
0.26
FM Smelting Rod & Refining
0
0.99
1.28
0.59
FM Otherb
0
0.44
0.63
0.00
FM Oil and Gas
0
0.39
0.67
0.00
Freeport-McMoRan (company-wide)
3
0.35
0.56
0.04

TRIR = [(Fatalities + Lost Time Incidents + Restricted Duty Incidents + Medical Treatment) x 200,000] / Hours Worked
LTIR = ((Lost Time Incidents + Restricted Duty Incidents) x 200,000) / Hours Worked
OIR = (Occupational Illness Incidents x 200,000) / Hours Worked

a. Global engineering/construction projects
b. Includes discontinued operations, exploration, reclamation and remediation

Emergency Response Emergency preparedness and response is a fundamental component of all Freeport-McMoRan activities. Through our Crisis Management Program and Sustainable Development Risk Register program, operations maintain plans which incorporate procedures for preventing and responding to incidents that could cause severe or catastrophic harm to human health and the environment. We coordinate with local governments to prepare a range of emergency response scenarios and conduct mock drills to plan for the protection of our workers, the community and the environment.



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