Cautionary StatementsyCaution Regarding Forward Looking Statements
This presentation contains forward looking statements These forward looking statements are not basedThis presentation contains forward-looking statements. These forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events. These forward-looking statements are subject to risks and uncertainties. These risks and uncertainties could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements.
Caution Regarding Inferred Resources
This presentation may use the terms "Measured", "Indicated" and "Inferred" Resources. U.S. investors are advised that while such terms are recognized and required by Canadian regulations, the Securities and Exchange Commission does not recognize them. "Inferred Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Resources may not form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that all or any part of Measured or Indicated Resources will ever be converted into reserves.
Ownership and Funding
• 82.5% TF Holdings Ltd (70:30 funding)
• 17.5% Gecamines ( i d)17.5% Gecamines (carried)
Mine Plan and Resource Expansion
• FS b i 40 i l• FS basis 40 year mine plan
• Oxides-Kwatebala, Fwaulu and Tenke deposits developed firstdeposits developed first
• Open pit - low strip ratio
• High grade mine plan
• Prove up new high grade for expansions with aggressive drilling program
Development Plan• Initial phase – 115,000 tpa Cu cathode / 8,000 tpa Co
• Commissioning/first copper cathode target – 2nd Q09
p
Commissioning/first copper cathode target – 2nd Q09
• Investment for initial facilities/expansion capability: $US1 75 billion$US1.75 billion
• Full Production - second half 2009
• Exploration, expansion concept studies advancing
• Objective: expand to + 400,000 tpa copper in stages
Process Process
GrindingCopper / Cobalt OreFrom Mine
Whole Ore Agitated Leaching
Thickening and Counter Current
DecantationTailings Neutralization
Residue to disposal
First and Second Stage Impurity
Removal
Solvent Extraction Cobalt Hydroxide Precipitation
Intermediate product to
Market
Electrowinning Cobalt Refinery (future expansion)
Cobalt metal to Market
Copper cathode to
Market
Tenke FungurumeDevelopment Project Update
Construction SiteJanuary 2009Construction SiteJanuary 2009
FF IIDevelopment Project Update II
HH
JJ
DD HH
EEGG
AA
GG
AA
BBBBCC
A – Heavy Duty Shop, B – Dump Pocket, C – Stockpile, D – Grinding (SAG mill), E –Leach and CCD, F – Cobalt Precipitation, G – PLS Ponds, H – Solvent Extraction, I –Electrowinning, J – Sulphuric Acid Plant
Regional InfrastructureConstruction AirstripConstructionVillagePlant
Access Road
Airstrip
Waste Dump
SNEL
Tailings Pond
Kwatebala
FwaluPit
220 KV Power Line
SNELPower Substation
TFM CampTenkePit
KwatebalaPit
150 KV P LiSNCC RailwayPit
National Road
150 KV Power Line
Each grid line = 2km
20
DRC’s Power SupplyDRC s Power Supply• Tenke a major
investor ininvestor in rebuilding system capacity
• Investing inInvesting in reliability and for expansions
• Restarting latent capacity
C t S i l R ibilit
• Safely run project and operations
Corporate Social Responsibility
• Equator Principles
• Voluntary Principles - Security and Human Rights
• Applicable IFC and WB standards & guidelines
• Freeport - high corporate standards
• Extractive Industries Transparency Initiative
• Implemented in partnership with NGO’sTenke Fungurume training programs
Key Social Issues
• Resettlement Plan
• Community DevelopmentCommunity Meeting in Mulumbu• Employment/Economic
Opportunities
• A Sustainable Future
Community Meeting in Mulumbu
A Sustainable Future
New Fungurume School
Social/Regional C it tCommitments
• Re settlement to high international standards• Re-settlement to high international standards
• Environmental protection
• Education, agriculture, water, health programs
• Micro enterprise development
• Infrastructure investment roads border power• Infrastructure investment – roads, border, power
• Operating Phase Social Development Foundation
DRC Contract ReviewDRC Contract Review•Complex political process – very different issues between contracts
•Tenke agreements - legally sound, equitable, binding. Cooperative dialogue on current issuesCooperative dialogue on current issues.
•Tenke Agreements = DRC Mining Code fiscal terms + g gadditional financial + project and social commitments
60% f h l f T k l l b i•> 60% of the value of Tenke goes to local business, the DRC Government and Gecamines
Tenke Fungurume – one of the World’s Largest New Copper Mines
• Superb, experienced development team on site
• Freeport making excellent progress.
• Critical circuits for first copper production nearing completion – stretch target first cathode - Q2
• Major expansion planning in progress
• Best in class practices
For Our ShareholdersFor Our Shareholders
• Stakeholders in a world class copper projectpp p j
• Freeport as Operator
• Lo cash operating costs• Low cash operating costs
• Strong project economics
• Extraordinary upside potential