Freeport-McMoRan Copper & Gold Inc. Announces Molybdenum Production Curtailment

Company Plans to Defer Restart of Climax Molybdenum Mine PHOENIX, AZ Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) announced in response to the recent sharp decline in molybdenum prices plans to reduce production from its Henderson primary molybdenum mine and to defer the restart of the Climax molybdenum mine. Molybdenum markets have been strong in recent years, averaging $30 per pound in 2007 and $33 per pound in the nine months ended September 30, 2008. Slowing demand for molybdenum in the metallurgical and chemicals sectors during October 2008 combined with weak global economic conditions and turmoil in credit and financial markets has resulted in a sudden and sharp decline in molybdenum prices in recent weeks. The Metals Week Molybdenum Dealer Oxide price declined from approximately $30 per pound in mid-October 2008 to $12 per pound on November 10, 2008. In response to these conditions, FCX has revised its mine plans at its Henderson primary molybdenum mine near Empire, Colorado to operate at a reduced rate. This will result in a reduction in expected annual molybdenum production of approximately 10 million pounds, reflecting a 25 percent reduction in Hendersons approximate annual production. FCX is also assessing the potential to curtail molybdenum production at its by-product mines. FCX also announced the suspension of construction activities associated with the restart of the Climax molybdenum mine near Leadville, Colorado. While FCX remains positive on the long-term prospects for the molybdenum business and the future of the Climax mine, the construction activities will be suspended in a controlled and sequenced manner in order to maintain the integrity of the work completed to-date and to allow for a quick restart of the project pending improvement in market conditions. Reclamation and environmental projects will continue and FCX will preserve the significant Climax reserves and resources for better market conditions. Approximately $150 million of the $500 million project has been incurred through October 31, 2008 and remaining near-term commitments total $50 million. The project was previously expected to commence production in 2010 ramping up to a rate of 30 million pounds per annum. Once a decision is made to resume construction activities, the project would be capable of starting up within a 12-18 month timeframe. Richard C. Adkerson, FCXs Chief Executive Officer, said, We are responding aggressively to the current market conditions which have weakened dramatically in recent weeks. These changes to our molybdenum production plans will allow us to reduce operating costs and capital spending, adjust our production profile to better match market requirements, preserve our valuable resources for anticipated improved market conditions and continue our long-standing tradition of providing customers with high quality molybdenum products and service. We have a positive long-term view for molybdenum markets and will be positioned to increase our production as market conditions improve. 