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Transparency of Government Payments

Freeport-McMoRan has endorsed and committed to support the Extractive Industries Transparency Initiative (EITI) since 2008. EITI is a global standard to promote transparent and accountable management of natural resources. The initiative is a commitment by governments to disclose revenues received, and by oil, gas and mining companies to disclose natural resource payments to governments in an annual EITI report. In implementing countries, the initiative is supported by governments, extractives companies and civil society working together in a multi-stakeholder group forum.

Today, Freeport-McMoRan maintains significant mining operations in EITI implementing countries, including the DRC, Indonesia, Peru and the United States. Senior-level Freeport-McMoRan employees are representatives on these countries’ multi-stakeholder groups or are very active within the in-country processes. A company executive also serves on the EITI International Board of Directors.

In April 2015, we were honored to have hosted visits of the EITI International Board and Secretariat, along with other stakeholders, to our TFM copper and cobalt operation in the DRC. A similar visit was hosted by our Cerro Verde operation near Arequipa, Peru in 2012. These visits included the opportunity for local stakeholders to interact with the Board, Secretariat and managers from these operations. To help support a successful seventh EITI Global Conference in Lima, Peru in February 2016, Freeport-McMoRan provided a financial sponsorship and multiple employees attended as delegates.

The payments our company makes to host governments via taxes, royalties and other obligations are a significant contribution to national, regional and local development. We believe that increased transparency of natural resource revenues and payments promotes better governance and accountability regarding the distribution of natural resource revenues. In addition to our country-level EITI commitments, our practice is to report annual material cash payments to governments, including sub-national payments, in all countries where we conduct business, as presented below.

Cash Payments to Governmentsa
For the year ended
December 31, 2015
($ millions)
U.S.
Chile
Peru
Indonesia
DRC
Other    
Countriesb
Total
Corporate Income Taxes, Net of Refunds
$ (165)
$   56
$ 113
$     6
$  187
$     9
$    206
Withholding Taxes on Foreign Dividends
-
135
-
1
-
136
Employee Payroll Taxes
418
12
9
64
42
23
568
Royalties and Net Severance Taxes
177
12
12
122
24
-
347
Property Taxes
138
1
-
17
-
2
158
Other Taxes and Fees
125
12
162
169
127
(17)
578
Total
$    693
$ 228
$ 296
$ 379
$ 380
$  17
$ 1,993
a. This schedule reflects a voluntary effort by Freeport-McMoRan to capture its cash payments to governments (net of refunds), including payments by FM O&G. Schedule includes sub-national payments.
b. Represents cash payments to governments by Freeport-McMoRan’s other business groups that are located outside of the countries where Freeport-McMoRan conducts its primary operations.

Click here for a reconciliation of payments to governments presented in the 2015 Key Economic Contributions by Operating Region table and 2015 Cash Payments to Governments tables.



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