The health and safety of our workforce and communities and the protection of the environment are fundamental to our extensive tailings management programs and approach. Our objective is to have zero fatalities, zero catastrophic failures and zero unplanned discharges from any of our tailings facilities.
WHY TAILINGS MANAGEMENT MATTERS
Effective and responsible tailings management is critical to mining safely, protecting people and the environment, and maintaining the trust of the communities and stakeholders where we operate.
We strive to continuously manage, enhance, and innovate our tailings system in a manner that minimizes impacts to stakeholders and the environment. We recognize the potential failure of a tailings storage facility (TSF) at any of our mining operations could cause severe or catastrophic damage that could result in loss of life, property damage, or environmental harm. Using appropriate management approaches and technologies, we operate with a bias for action by aiming to quickly identify and address issues at our TSFs.
The health and safety of our workforce and local communities and the protection of the environment are fundamental to our extensive tailings management system (TMS).
Our Tailings Management Policy defines our commitment to the safe, responsible and effective management of tailings facilities across all sites. This policy is implemented in conjunction with our Environmental, Human Rights and Social Performance policies and associated management systems.
OUR TAILINGS MANAGEMENT JOURNEY TO DATE
Freeport-McMoRan Inc. (FCX) established a Tailings Stewardship Program more than 20 years ago, and it has evolved into our comprehensive TMS. Our TMS, led by our expert team of tailings professionals, comprises specific programs to address the various aspects of TSFs – over all phases of the TSF lifecycle – while promoting continuous improvement. Through our TMS, we systematically analyze potential failure modes, then work to eliminate or mitigate them to minimize the risk of failure scenarios associated with our TSFs. The TMS incorporates applicable regulations and international best practices, including the integration of the Global Industry Standard on Tailings Management (Tailings Standard).
FCX has comprehensive measures in place to help ensure our TSFs are designed, constructed, operated, closed, and monitored/maintained to minimize risk to our workforce, local communities, and the environment. The TMS comprises specific programs to address aspects of tailings planning, design, operation, maintenance, surveillance, and risk management over the TSF lifecycle. Although there is some overlap among the categories, our safeguards generally fall within four categories: 1) Engineering practices and safe designs 2) Adherence to construction and operational parameters through monitoring and use of technology 3) Multi-tiered oversight and robust management of change and 4) Adherence to practices grounded in continuous improvement and learning from past experiences, including industry failures and best practices.
IMPLEMENTATION OF THE GLOBAL INDUSTRY STANDARD ON TAILINGS MANAGEMENT
FCX implemented the Global Industry Standard on Tailings Management (Tailings Standard) which requires mining operators to take responsibility and prioritize the safety of TSFs through all phases of the facility’s lifecycle and strives for zero harm to people and the environment. The Tailings Standard includes 77 requirements across six key areas – design, construction, operation and monitoring of tailings facilities, management and governance, use of integrated multi-disciplinary knowledge, engaging with affected stakeholders, emergency response and long-term recovery, and public disclosure. FCX also applies the Conformance Protocols for the Tailings Standard and the ICMM Tailings Management Good Practice Guide.
FCX implemented the Tailings Standard at applicable TSFs and conformance has been achieved, including independent verification, a process that occurs every three or five years, depending on the consequence classification of associated TSFs. We also have reviewed our closed TSFs and determined which are deemed Safely Closed, as defined by the Tailings Standard. For a TSF to be designated as Safely Closed, FCX conducted an internal review, including a suite of detailed technical evaluations, which were supported by multidisciplinary team risk assessments. The designation was approved by the appropriate Accountable Executive (AE) and confirmed by the Independent Tailings Review Board (ITRB) and/or senior independent reviewer.
CONSEQUENCE CLASSIFICATIONS FOR OUR TAILINGS STORAGE FACILTIES
To determine the consequence classification for our TSFs, FCX conducts risk assessments. TSF risk assessments include risk identification, analysis and evaluation to determine which measures are, or should be, in place to eliminate or minimize risk. Outcomes also inform TSF consequence classification.
The risk assessment focuses on potential physical failures of each TSF, which may include instability, slope failures, excessive slope erosion, overtopping of the impoundment and internal erosion. For the purposes of the assessment, FCX defines a TSF failure as the unintended loss of the structural containment where the tailings and water released could be impactful.
During the risk assessment process, multidisciplinary teams use available information such as TSF-specific detailed data and engineering analysis, expertise from team members, case histories, and regulatory data to identify how a TSF failure may occur and what factors exist that make the potentially credible failure mode more or less likely (considering the site-specific knowledge base, existing controls and uncertainties), and ultimately determine which are credible failure scenarios. A credible failure scenario comprises of a credible failure mode (CFM) and an associated consequence that is technically feasible considering analysis and expert opinion on a minimum threshold of possibility of occurrence during a structured analysis process.
The credible failure scenarios are then used to assign a TSF consequence classification, as defined by the Tailings Standard. The TSF consequence classification is based on downstream conditions and potential impacts of CFMs, including incremental losses to Population at Risk, potential loss of life, environmental impacts, health / social / cultural impacts, and infrastructure and economic impacts.
One of the ways FCX integrates safety into our tailings programs is by taking a conservative approach to consequence classification (see diagram below for additional detail). Our definitions for consequence classification align with the Tailings Standard except as outlined below:
- If there is one or more permanent Population at Risk – including the public, employees, or contractors – the CFM is classified as Extreme. In contrast, the Tailings Standard considers Population at Risk greater than 1,000 people to be classified as Extreme.
- If there is no permanent Population at Risk, but there is a transient Population at Risk, the minimum consequence classification is Significant.
- Other metrics (as defined in the Tailings Standard for environmental and health; social and culture; and infrastructure and economics) help further determine the consequence classification.
Regardless of the TSF consequence classification, all of FCX’s operating TSFs and Development TSFs are designed, analyzed and operated using Extreme loading criteria. Design criteria for Inactive, Closed, and Safely Closed TSFs are informed by the Extreme loading criteria and assigned using the As Low As Reasonably Practicable (ALARP) principle.
In accordance with the Tailings Standard, FCX’s updated consequence classification approach incorporates each TSF’s detailed information and analyses that have been enhanced over the past few years to reduce uncertainties and incorporate expert opinions on thresholds for CFMs.
Information about site-specific classifications can be found in FCX’s disclosures.
About Tailings and Tailings Storage Facilities
Overview of Tailings and Tailings Storage Facilities
Tailings are the finely ground rock particles left after copper or other minerals have been processed and extracted from the mined ore. Tailings cannot be put back into their original form, so FCX utilizes TSFs to secure them safely and responsibly. A TSF is a structure made of one or more embankments, that provide a secure environment to keep tailings indefinitely.
TSFs have two main purposes:
- To indefinitely store the tailings safely and responsibly
- To reclaim water that can be reused in plant processing facilities
Designing and Constructing Tailings Storage Facilities
TSFs are uniquely engineered structures, with embankments often constructed from the tailings material itself. The process to design and build TSFs is a robust one that considers various factors and requires engagement with numerous stakeholders, partners, independent reviewers, and regulatory agencies. Factors include site conditions such as geology, topography, climate, hydrology, hydrogeology, seismicity, and the material being used for construction – in addition to social, community, and environmental factors. These factors are evaluated to determine the most appropriate site before undergoing a rigorous permitting process. There is no “one size fits all” design approach.
Our goal is to safely contain the tailings under any and all circumstances and throughout a TSF’s entire lifecycle; we take this responsibility seriously and strive to meet or exceed governing standards for all our TSFs. Freeport has a demonstrated track record of developing and constructing resilient TSFs, considering site-specific conditions to help maintain the safety and longevity of each facility.
There are three types of embankments – upstream, centerline, and downstream. FCX owns and operates TSFs with all three embankment types, though the majority have upstream embankments.
Upstream Tailings Storage Facilities
Upstream construction begins with an initial embankment, which is constructed at the toe of the facility area and then discharged to form a tailings beach and structural zone. The deposited tailings drain and compact, becoming the foundation for subsequent levels as new tailings are added and the embankment is raised. Upstream TSFs must be raised slowly over time to allow the solid tailings to dry and consolidate enough to support a new level of the embankment.
Centerline Tailings Storage Facilities
In centerline construction, the facility is raised vertically from the initial embankment. The embankment crest remains fixed relative to upstream and downstream directions as the facility is sequentially raised. Unlike the upstream TSFs, the wall of a centerline TSF does not use beached tailings to support its foundation.
Downstream Tailings Storage Facilities
Downstream designs start with an initial embankment similar to the other two construction methods. Tailings are then discharged into the facility and as the embankment is raised, each new wall is constructed and supported on top of the downstream slope of the previous section, so the crest moves downstream with each raise.
Responsible Management of Tailings Storage Facilities
FCX’s Commitment to Safety
The health and safety of our workforce and local communities, and the protection of the environment are fundamental to our extensive tailings management program and approach. Our objective remains zero fatalities, zero catastrophic failures, and zero unplanned discharges. This objective is supported by robust governance and clear accountability.
Our Tailings Management System
FCX has comprehensive measures in place to ensure our TSFs are designed, constructed, operated, closed, and monitored to minimize risk to employees, local communities, and the environment.
The TMS comprises specific programs to address aspects of tailings planning, design, operation, maintenance, surveillance, and risk management over the TSF lifecycle. Although there is some overlap among the categories, our safeguards generally fall within four categories:
Good engineering practices and safe designs
Rigorous adherence to construction and operational parameters through monitoring and use of technology
Multi-tiered internal and external oversight and robust management of change
Adherence to practices grounded in continuous improvements and learnings from past experiences, including industry failures and best practices.
Governance
FCX’s programs and safeguards are effectively implemented through the promotion of open and ongoing communication throughout our organization and with a bias for action.
We remain focused on the safe execution of our TMS by maintaining robust, multi-tiered governance of our tailings programs, which involves appropriately qualified personnel with clearly defined roles, responsibilities and accountabilities. There are multiple layers of assurance we apply to all TSFs: site-level implementation, functional accountability, third-party review, and board and executive leadership oversight.
Key Roles in Governance Structure
Site-level Implementation
- Site Tailings Management, Engineers, and Operators: Internal team that implements the management program and regularly monitors, identifies, and addresses potential risks.
- Responsible Tailings Facility Engineer (RTFE): Internal engineer appointed by the Accountable Executive responsible for the integrity of assigned TSFs. The RTFE provides technical expertise, manages risk, and liaises with the EoR. Corporate discipline experts provide regular support to RTFEs.
- Engineer of Record (EoR): External engineer who provides expert design and engineering analysis, technical support, inspection, review, and guidance to support an RTFE in achieving design intent of their assigned TSF.
Functional Accountability and Responsibilities
- Accountable Executive (AE): Chief Operating Officer (sites with active tailings operations) or Chief Sustainability Officer (sites without active tailings operations) who reports to the FCX Chief Executive Officer on tailings matters and is accountable for the safe management of TSFs and for minimizing the social and environmental consequences of any TSF failure.
- Tailings and Water Director: Oversees RTFE activities and has delegated responsibilities from the AE for engaging with and reviewing the site-implementation of TMS activities.
Third-Party Review
- Independent Tailings Review Board (ITRB): Third-party, internationally known expert panels who provide independent opinions and guidance on the physical integrity, safety, and performance of TSFs and have access to corporate senior leadership. Members have decades of experience in applicable disciplines.
- Tailings Stewardship Team (TST): Third-party professional engineers who have not been directly involved with the design or operation of the TSFs and internal experts who inspect all TSFs, review documents and monitoring data, identify potential deficiencies, and recommend corrective actions.
- Tailings Management System (TMS) Implementation Assessment Consultant: An external assessor with sufficient knowledge and understanding of the TMS to assess the efficacy of the TMS applied at a site-specific level, including key tasks, roles and responsibilities, and associated governance structure to support proper management and operation of the TSFs, and structural integrity.
Corporate Leadership and FCX Board Oversight
- Corporate Leadership: Leaders that participates in major decisions related to the tailings management program, including allocation of resources for TSF-related operations, initiatives, and projects.
- Board of Directors: Corporate governing body firmly committed to providing active oversight and, with the Corporate Senior Leadership, the necessary financial and technical resources to maintain the safety and integrity of our tailings facilities globally, with a focus on risk management and continuous improvement. The AE regularly reports to the Corporate Responsibility Committee of the Board of Directors on matters related to the tailings management, including implementation of the Tailings Standard.
Risk Informed Decision Making
Risk informed decision making (RIDM) is a critical and integral part of how we design, build, and operate our TSFs. By understanding and assessing the risks associated with a TSF, we can more effectively protect our people, local communities, and the environment.
RIDM is informed by the Tailings Standard and consists of three primary elements:
Risk Assessment
A risk assessment for a TSF entails identifying, analyzing, and evaluating risks to determine both their potential consequences and likelihood, enables prioritization, and helps determine risk management options.
We assess what is needed to keep TSFs running safely as well as how to adapt to future conditions across all phases of the lifecycle, including evaluating changes in seismicity, climate, material characterization, ore variability, and processing throughput, as well as land use and the needs of neighboring communities.
The risk assessment also considers credible failure scenarios across all phases of the TSF lifecycle and identifies ways to minimize the related risks, with an integrated team regularly conducting detailed technical, operational, social, and environmental analyses.
Risk Management
Using the learnings from the risk assessment, our expert teams use engineering and operational controls to prevent, minimize and/or mitigate risks. These controls include an ongoing focus on quality engineering design, construction, and operating discipline. Additionally, part of mitigating risk is openly engaging with our local communities and external authorities to maintain a shared state of readiness through robust emergency preparedness and response planning.
Surveillance and Review
Risks and controls are reviewed periodically, including where there are high-potential events or changes in the external environment, to evaluate performance. In addition to our site engineers and operators, our Engineer of Record(s) and our Tailings Stewardship Team physically inspect all our TSFs and review associated documents and monitoring data. Through this work, the team recommends actions to reinforce the safety of our TSFs. In addition, our Independent Tailings Review Board provides technical guidance on the physical integrity, safety and performance of our TSFs and associated management systems.
TSF Disclosures and Independent Verification
FCX’s Longstanding Commitment to Transparency
FCX is committed to transparency by making relevant information regarding TSFs at our operations is readily available through public disclosures and active engagement with stakeholders.
We publish and regularly update information on TSF management, implementation of our tailings governance framework, and our policies, standards and approaches to the planning, design, construction, operation, monitoring, maintenance, closure and post-closure of tailings facilities in alignment with the Tailings Standard.
Monitoring our TSFs is an ongoing process and disclosures will be updated as needed.
| FCX Operation/Site | Disclosure Report | Independent Verification Summary |
|---|---|---|
| Morenci 1 | ||
| Bagdad 2 | PDF |
PDF (Sycamore TSF) PDF ( Bagdad TSFs) |
| Cerro Verde 2 | ||
| Chino 2 | ||
| Climax 2 | ||
| Henderson 2 | ||
| Sierrita 2 | ||
| Bruce 2, 3 |
(1) Certain tailings storage facilities at this operation have Extreme or Very High consequence classifications per the Tailings Standard. Important safety information for neighbors and community can be found here: Morenci: A Guide To Tailings Storage Facilities.
(2) Certain tailings storage facilities at these operations have either High, Significant or Low consequence classifications per the Tailings Standard.
(3) Bruce TSFs meet the applicable requirements in the Tailings Standard and are expected to achieve safe closure through a multi-year action plan.
Note: Information on all FCX tailings storage facilities, including those deemed Safely Closed, can be found here: Site Specific Tailings Management.
BACK TO TAILINGS MANAGEMENT PROGRAM > AMERICAS | Americas Documents | Indonesia



SOCIAL
RECOGNITION