Can you provide recent operational highlights from El Abra?

In 2023 and early 2024, we focused on ramping up production to pre-pandemic levels. The team did an excellent job achieving full capacity. Copper production has been driven by the grade and material type from the mine, with lower volumes compared to pre-pandemic due to lower grade ore. We also have seen positive progress in community involvement and engagement, marking significant achievements over the past year and into 2024. Can you discuss the potential and plans for the recent modelled and drilled sulfide resource?

We have known about a significant sulfide resource for a long time and have invested heavily in defining it over the past decade. This resource, located below and adjacent to our current mining area, offers exciting opportunities for leveraging our existing operation, facilities, and workforce. We have conducted extensive work, including engineering and mine planning. The resource has the potential to add 500-600 million lb/y of copper if developed as a milling project. How will El Abra help Freeport-McMoRan address the copper shortage?

The market offers a great opportunity for copper producers, but the challenge is meeting the impending demand gap. For El Abra, completing engineering, permitting, and constructing a project the size of the potential sulfide resource by 2027 – when demand is predicted to outpace production – is not feasible. This highlights the industry's challenge to execute projects quickly. Improving Chile's permitting process is essential. We are always seeking near-term production increases through better efficiencies and productivity, but making a significant impact by 2027 will be tough for us and the industry. How does Freeport plan to take advantage of copper’s recent highs?

While the price is high, input costs like power, diesel, and labor have also risen. Additionally, grades are decreasing over time so our team is dedicated to maximizing production, minimizing costs, and leveraging the high copper price. Specifically, for El Abra, this is an opportunity to generate cash to fund a portion of the sulfide project as well as ongoing sustaining capital required for operations, so optimizing processes is crucial. How is Freeport using technology to boost productivity?

We are using data analytics in mining, optimizing truck fleets with remote monitoring and proactive maintenance, and leveraging data to improve recoveries, like with our leaching initiatives. These tools help us recover copper previously considered unrecoverable. We are also implementing autonomous haulage at our Bagdad operation in the US to evaluate its benefits, aiding in our transition to an all-electric haulage fleet. By leveraging data, we can make better decisions and respond in real-time. Can you discuss El Abra's water source transition and environmental impact mitigation initiatives?

Historically, we have used water from the Salar de Atacama, but we are transitioning to other sources. This year, we are working on engineering and feasibility studies to submit an EIS for extending the operation's life, building another leach pad, and constructing a desalination plant on the coast. This will allow us to stop using water from the Salar de Atacama. In 2023, we sourced all our energy from renewables, aiming for long-term renewable energy use. We are also collaborating with Caterpillar and Komatsu to develop all-electric trucks to reduce GHG emissions from our haulage fleet. This transition will take time, but we are committed to understanding and implementing these technologies. Can you discuss Freeport-McMoRan’s community engagement efforts at El Abra?

Through initiatives like the agricultural fund partnership and the Coastal Edge Sustainable Development Program, we have fostered strong relationships with local communities. These efforts, particularly with indigenous agricultural communities near El Abra, aim to support their livelihoods and long-term visions. By closely collaborating with these communities, understanding their needs, and providing support, we have been able to sustain our operations while facilitating their development. What are the key priorities for El Abra over the next two years?

We are also committed to maximizing production, minimizing costs, and generating cash to support the development of growth projects. We are advancing feasibility work to bolster these growth endeavors, with plans to potentially submit an Environmental Impact Assessment by the end of this year or next. This initiative will lay the groundwork for future projects while sustaining our ongoing operations.