FREEPORT-McMoRan COPPER & GOLD INC. ANNOUNCES RESULTS OF INDEPENDENT ENVIRONMENTAL AUDIT.

Business Editors

NEW ORLEANS--(BUSINESS WIRE)--Dec. 22, 1999

Audit Finds PTFI Environmental Management System

"Exemplary and a Showcase for the Mining Industry"

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) said today its Indonesian affiliate, P.T. Freeport Indonesia (PTFI), has released the results of an independent audit of its environmental management systems just completed by the internationally recognized environmental consulting and auditing firm of Montgomery Watson. In its report, Montgomery Watson "...found the Environmental Management System (EMS) developed and implemented by PTFI to be exemplary and a showcase for the mining industry." The auditors concluded that PTFI "...incorporates environmental management systems supported by environmental programs and resources that achieve the standard of practice for world-scale mines."

The Montgomery Watson audit team was accompanied by three representatives of the Indonesian Government's Department of Mines and Energy (DOME) and two representatives of the World Wildlife Fund, who participated in the audit site visit as formal observers. Approximately 70 interested stakeholders, academicians and non-governmental organizations, including many environmental groups, were invited to comment on the scope of work and the selection of the independent audit firm for the PTFI audit.

Montgomery Watson summarized the results of its audit as follows:

-- "The PTFI mining operation incorporates environmental management

systems supported by environmental programs and resources that

achieve the standard of practice for world-scale mines.

Montgomery Watson found the Environmental Management System (EMS)

developed and implemented by PTFI to be exemplary and a showcase

for the mining industry."

-- "The PTFI mining operation is in material compliance with current

Indonesian government environmental laws and regulations and has

fulfilled the recommendations specified in the previous 1996

External Environmental Audit, as well as commitments made in

governmental approved monitoring and management plans."

-- "PTFI tailings management practices represent the best

alternative when considering important geotechnical, topographic,

climatologic, seismic and water quality criteria. Moreover, PTFI

has completed comprehensive technical evaluations of alternative

tailings disposal options and has selected the most appropriate

management system for the site conditions. The on-going

Ecological Risk Assessment (ERA) will allow additional evaluation

of the impacts of tailings disposal on the estuarine and marine

ecosystem."

-- "The techniques and methods used at the Grasberg Mine for

characterization and management of overburden stockpiles, as well

as managing Acid Rock Drainage (ARD), are consistent with

international practice."

-- "PTFI has implemented environmental programs for solid and

hazardous waste management; water and wastewater control; and,

air quality that meet international standards for the mining and

industrial sectors."

-- "PTFI has a comprehensive environmental monitoring program

including a state-of-the-science environmental analytical

laboratory."

Montgomery Watson estimated that PTFI's environmental management and monitoring commitments will total $1.6 billion in current dollars over the life of the mine, which "...shows a strong long-term commitment on PTFI's part." While Montgomery Watson found that PTFI has fulfilled its environmental commitments and requirements, the auditors commented that PTFI "...must remain diligent and proactive in implementing their environmental plan." Montgomery Watson also provided specific recommendations, including, among others, that PTFI conduct a comprehensive groundwater study and additional groundwater monitoring, increase biological monitoring in estuaries downstream of the tailings deposition area to better estimate impact to mollusk communities, modify the closure plan for the project area to include the tailings deposition area and port site, and continue development of effective and innovative technology for the treatment of Acid Rock Drainage.

PTFI President Director Adrie Machribie said, "The Montgomery Watson audit report represents the views of independent experts who have concluded that overall our Environmental Management Systems are exemplary and that our practices, including tailings management, represent the best alternative. At the same time, they have challenged us to remain diligent and have offered constructive suggestions in a number of important areas. We will continue to work to make our environmental systems even better. We are reviewing their recommendations and will prepare an action plan."

Montgomery Watson was provided access to all pertinent studies, documents, reports and other information relevant to its evaluation of PTFI's environmental performance. In addition, the Audit Team conducted a thorough site visit to PTFI's operations in Irian Jaya and spent additional time in Jakarta reviewing environmental information provided by PTFI. Alan Krause, Montgomery Watson Audit Team Leader, said, "We were given access to inspect all operational areas and we interviewed all necessary personnel for the audit. PTFI cooperated fully in every way. We were given everything we needed to do our job."

The audit involved a comprehensive review of PTFI's Environmental Management Systems, but did not directly address social, cultural or economic issues. To address these issues, PTFI and KEHATI, an environmental organization chaired by Emil Salim, Indonesia's former Minister of Environment and Population, will conduct a Social Symposium. The symposium will focus on social, economic, cultural and public health issues involving sustainable development in the area where PTFI operates. The symposium will be open to interested stakeholders including government officials, non-governmental organizations and social/economic experts and is being scheduled for early next year.

The Montgomery Watson audit was the second triennial independent environmental audit of PTFI in fulfillment of the company's policy. The first audit was performed by Dames & Moore in 1996. This latest audit is more detailed and specific than the first. As was the case with the Dames & Moore audit, PTFI is making the full report public. The Executive Summary as well as the full 126-page report are available in printed form upon request. In addition, the Executive Summary is available in both Bahasa Indonesia and English on the website of FCX (www.fcx.com).

Agus Purnomo, Executive Director of World Wildlife Fund-Indonesia, whose observers participated in the audit, said, "An independent audit is a necessary tool for a company to know how its environmental programs are actually performing. Every company should do independent environmental audits and make the results available to their stakeholders."

FCX is engaged in mineral exploration and development, mining and milling of copper, gold and silver in Irian Jaya, Indonesia, and the smelting and refining of copper concentrates in Spain and Indonesia.