ECONOMIC, SOCIAL AND ENVIRONMENTAL OVERVIEW At FCX, we are fully committed to promoting sustain- able development for the communities where we operate through our operations and support programs.  Sustainable development balances economic, social and environmental issues to meet the needs of the  present without compromising the ability of future  generations to meet their own needs.  The copper we produce is needed throughout the  world for modern development and electronics. While  our mining operations impact the environment and  nearby communities, we take actions to minimize and  to mitigate negative environmental impacts and to  maximize positive economic and social development  results, both for the present and the future. We have  adopted strong policies to enforce that commitment,  and we work to achieve responsible operations and  sustainable development through our economic, social  and environmental programs. In partnership with the  governments and the local communities where we operat e, we work to improve our performance in this  area c ontinually.  De monstrating the strength of our commitment,  our su stainable development programs in our mining  operat ions cost us $72.7 million during 2004, including  $29.2  million on environmental management and $43.5  million on social development. 12 |  FREEPORT-McMoRan COPPER & GOLD INC. 50 100 150 200 Actual Goal 04 03 02 01 00 99 98 Goal Actual 04 03 02 01 00 99 98 Economic Development  Our Indonesian mining affili ate,  PT Freeport Indonesia, provides substantial economic  benefits for the economies of the Republic of Indones ia  and the Indonesian province of Papua, where our minin g  operations are located. These benefits include direct  benefits through the payment of taxes, royalties,  dividends, fees and other support and indirect benefi ts  through wages to employees, the purchase of goods a nd  services from national and local suppliers, and invest- ments in infrastructure such as roads, port and airpor t  facilities, utility and communications systems, schoo ls,  hospitals and community facilities. Highlights • In 2004, we provided direct benefits to the Republi c  of Indonesia of $260 million through the payment o f  taxes, royalties, dividends and fees. Since 1992, the se  direct benefits have totaled $2.6 billion. • The Institute For Economics and Social Research,  Faculty of Economics, University of Indonesia has  studied the multiplier effect of PT Freeport Indones ia’s  direct and indirect contributions. Their study foun d  that our total economic benefit to Indonesia in 200 4,  including indirect benefits, was $3 billion. Papuan Professional Staff PT Free port Indonesia’s apprentice training programs prepare  hundre ds of qualified local Papuan tradesmen for the industrial  workfor ce. 