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Materials Stewardship & Product Responsibility

Freeport-McMoRan participates in industry and commodity associations with strong materials stewardship agendas, such as our work with the International Copper Association (ICA) and the Molybdenum Consortium under the International Molybdenum Association (IMOA) as part of the industry’s efforts to meet obligations under REACH (Registration, Evaluation, Authorization and Restriction of Chemical substances). Under the REACH registration process in 2010, Climax Molybdenum Company, a subsidiary of Freeport-McMoRan, acted in a leadership role and was appointed lead registrant on five different molybdenum substances and was responsible for submitting the registration dossiers on behalf of the international molybdenum industry.

Freeport-McMoRan also actively participates in the ICMM Material Stewardship Committee, addressing a variety of issues related to the mining industry as a whole. In addition, Climax Molybdenum Company participates in a sustainability task force under IMOA. The task force is responsible for considering the value proposition of sustainability as a business strategy to assist its members in addressing the risks and opportunities associated with the applications of its molybdenum products. In 2013, the task force will launch a project initiative to demonstrate the sustainability of molybdenum in its different applications based on industrial sector input and the development of focused case studies based on life cycle assessment. Over the last ten years, IMOA developed and currently maintains a Life Cycle Inventory (LCI) of molybdenum substances that are produced by the international molybdenum industry. The LCI provides valuable quantitative and scientific analyses of the environmental impacts of products and their associated industrial systems. Climax Molybdenum Company participated in IMOA’s 2007 LCI update for products it produces at its mining and mineral processing facilities and remains engaged in ongoing LCI updates.

While approved product end uses are spelled out in the Safety Data Sheets for our products, Freeport-McMoRan previously did not have direct control regarding the ultimate disposition of unused or expired products at customer facilities that may require disposal. However, we are working closely with industry and commodity associations such as ICMM, IMOA, Cobalt Development Institute and International Copper Associations to learn about effective engagement with product life-cycle participants in this regard. As a REACH requirement, we are now working closely with our customers by informing them of downstream user obligations with respect to approved end uses associated with our products and recommended disposal options for expired materials. Life cycle assessment for copper is available from the European Copper Institute and IMOA provides similar information for molybdenum products.

Product Labeling

Freeport-McMoRan is primarily in the business of extraction and processing of metals. Because we typically provide bulk product in the form of copper and molybdenum concentrates and copper cathode, we do not maintain a health and safety assessment program specific to products supplied to customers. However, in the European Union, our Safety Data Sheets for roasted molybdenite concentrate and pure molybdenum trioxide include exposure scenario information that informs our customers of recommended safe exposure limits, work practices and approved end uses when using our products. Globally Harmonized System (GHS)-compliant Safety Data Sheets are routinely provided to our EU customers for our copper and molybdenum products.

Many countries are adopting the GHS for classifying chemicals and communicating their health and environmental hazards to consumers, workers, transport workers and emergency responders. The GHS will also be part of the chemical classification and labeling protocol for substances covered by REACH in the EU and worldwide. Under the GHS, Freeport-McMoRan has embarked on a comprehensive program to ensure communication of health and environmental hazard information consistent with GHS, which will involve updating Safety Data Sheets for substances we produce. Safety Data Sheets have been developed for most of Freeport-McMoRan’s products. In concert with our REACH efforts, we are also revising our product packaging labels to similarly communicate any product hazards referenced in the Safety Data Sheets.

To this end, we are communicating to both our customers and employees the new GHS requirements and how these requirements will become commonplace in Freeport-McMoRan. Climax Molybdenum Company will become GHS-compliant for over 12 different molybdenum products that it produces. In 2013, Climax Molybdenum Company will achieve worldwide compliance by placing into use GHS-compliant Safety Data Sheets and product labels for its entire global market.

All of our molybdenum and copper products were pre-registered under the European Union’s REACH during a six-month pre-registration period in 2008. The pre-registration period allowed for producers and importers in the EU to pre-register their products as existing substances under the REACH requirements. The REACH requirements also allow for a phased and full registration of substances to occur in the years 2010, 2013, and 2018 depending on the volume of each substance that is produced or imported. Freeport-McMoRan completed full registration of all of its products well ahead of the first REACH deadline of November 30, 2010, which is concurrent with the 2010 GHS implementation timeline that applies in most countries in the EU and worldwide.

 

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