Making Metal  for a Positive  Market PT Freeport Indonesia  Concentrate Sales 2005e Sales: 2.7 million dry metric tons Investment in smelters provides  downstreamintegration,boosting  marketingstrategy.Positive  m arket  fundamentals for copper an d gold  coincide with operations suc cess. Smeltingand Refining  The product of our PT Freep ort  Indonesia mining and milling operations in the  Indonesian province of Papua is sold in the form of copper concentrate. We extract ore from our Grasbe rg  open-pit and Deep Ore Zone underground mines and process it at our mill facility, essentially separating the material containing copper and gold from the r est  of the mined ore. Our copper concentrate is sold to  smelters and refineries around the world, including  two smelters in which we have ownership interest.  Our  investment in smelters serves an important role in  our  concentrate marketing strategy. Through downstrea m  integration, we assure placement of a significant port ion  of our concentrate production. Atlantic Copper, S.A. is our wholly owned smelting unit in Spain, and  PT Smelting is PT Freeport Indonesia’s 25-percent- owned Indonesian smelting unit. The remainder of ou r  copper concentrate is sold principally under long-te rm  contracts to customers with long-standing and  positive commercial relationships with our Company . Our  largest non-affiliated customers are located in Asia . PT Smel ting, Indonesia’s first and only copper smelter, in Gresik,  East Ja v a. 8 |  FREEPORT-McMoRan COPPER & GOLD INC. Background photo:  Copper cathode shipping operations at the Atlantic Copper smelter in Huelva, Spain. 50% 22% 28% e = Estimate Third Party Smelters Atlantic Copper PT Smelting