Freeport-McMoRan 2011 Annual Report Download - page 5

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We achieved record nancial performance during 2011 — our
second consecutive year of record results. In the second half of
the year, we faced a challenging labor situation at our Grasberg
mine — the rst work stoppage of its kind in our more than 40-
year operating history in Papua, Indonesia. Despite the resulting
shortfall in production, our global operations performed well,
culminating in our strong results.
e markets for our products — copper, gold and molybdenum —
are currently strong and their outlook is positive. While we may
encounter volatile conditions in 2012, the long-term fundamentals
for our markets, particularly for copper, are very favorable. Copper
markets have been relatively tight in recent years, driven by
strong demand from China and other emerging economies and
by supply limitations. We cannot predict future prices, but it will
be challenging for mine supply to keep pace with rising demand
trends. Market fundamentals support long-term copper prices,
enhance the prospective values of our assets and cause growth
prospects to be highly attractive.
is year’s annual report theme, “Connecting the Future,” signies
the role of Freeport-McMoRan Copper & Gold Inc. in supplying
vital metals to the world’s economies. Copper has been an essential
material to mankind for thousands of years. Its properties of
conductivity, malleability and connectivity have made copper
a critical component of the breakthroughs that have advanced
societies. e generation and transmission of electricity, our means
of communications and transportation, and the infrastructure that
surrounds us all depend on the metals we produce. As we look
to the future, copper will continue to be key in these basic uses
while contributing signicantly to new technologies for energy
eciencies, advancing communications and enhancing public
health. Our position as one of the industry’s largest producers,
with an attractive portfolio of long-lived assets and a growing
production prole, will enable us to play an increasing role in
supplying the materials necessary to sustain and expand the
world’s economies and in “Connecting the Future.”
AS A GLOBAL MINING
LEADER WITH LONG-
LIVED, GEOGRAPHICALLY
DIVERSE RESERVES OF
COPPER, GOLD AND
MOLYBDENUM, WE ARE
CONNECTING THE FUTURE
FOR OUR SHAREHOLDERS,
EMPLOYEES AND LOCAL
COMMUNITIES.
Photo: Cerro Verde Mine, Peru
2011 ANNUAL REPORT | 3