Freeport-McMoRan

“Copper Copper is an internationally traded commodity, and its prices are determined by the major metals exchanges – the LME, COMEX and Shanghai Futures Exchange. Prices on these exchanges generally reflect the worldwide balance of copper supply and demand, and can be volatile and cyclical.”

Annual report 2025A · The company itself

“Preliminary economics indicate that the expansion would require an incentive copper price of approximately $4.00 per pound and three to four years to complete.”

Annual report 2025A · The company itself

“Revenues from our South America concentrate sales are recorded net of royalties and treatment charges (i.e., fees paid to smelters that are generally negotiated annually).”

Annual report 2025A · The company itself

“Substantially all of PTFI’s copper cathode sales contracts provide final copper pricing in a specified month (generally within one to two months of the shipment date) primarily based on quoted LME monthly average settlement copper prices.”

Annual report 2025A · The company itself

“In addition to the factors discussed above, copper prices may be affected by demand from China, which is currently the largest consumer of refined copper in the world, including as a result of geopolitical uncertainty and tension between the U.S. and China as well as uncertainties about China’s economy.”

Annual report 2025A · The company itself

“We believe our competitive position is based on the size, quality and grade of our ore bodies and our ability to manage costs compared with other producers. We have a diverse portfolio of mining operations with varying ore grades and cost structures.”

Annual report 2025A · The company itself

“We continue to advance pre-feasibility studies in the Safford/Lone Star district to define a potential significant expansion opportunity. Positive drilling conducted in recent years indicates a large, mineralized district with opportunities to pursue a significant expansion project.”

Annual report 2025A · The company itself

“We continue to evaluate and advance potential expansion opportunities at certain of our copper mines in the U.S. and South America.”

Annual report 2025A · The company itself

“Our portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; and significant operations in the U.S. and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru.”

Annual report 2025A · The company itself

“In late 2025, we achieved an annual run rate of approximately 240 million pounds of copper. We are targeting annual production of 300 million pounds of copper in 2026 from these initiatives and believe there is potential for further significant increases in recoverable metal beyond the current annual target.”

Annual report 2025A · The company itself

“PRODUCTS AND SALES Our consolidated revenues for 2025 primarily included sales of copper (75%), gold (15%) and molybdenum (8%).”

Annual report 2025A · The company itself

“Copper Products We are one of the world’s leading producers of copper concentrate, cathode and continuous cast copper rod.”

Annual report 2025A · The company itself

“During 2025, 43% of our mined copper was sold in concentrate, 33% as cathode and 24% as rod.”

Annual report 2025A · The company itself

“Table of Contents Morenci We own a 72% undivided interest in Morenci, with the remaining 28% owned by Sumitomo Metal Mining Arizona, Inc.”

Annual report 2025A · The company itself

“Copper production from three of our mines (the Morenci mine in the U.S., the Cerro Verde mine in Peru and the Grasberg minerals district in Indonesia) together totaled 70% of our consolidated copper production in 2025.”

Annual report 2025A · The company itself

“We produce copper concentrate at six of our mines in which mined ore is crushed and treated to produce a copper concentrate with copper content of approximately 20% to 30%. In the U.S., copper concentrate is produced at the Morenci, Bagdad, Sierrita and Chino mines, and a significant portion is shipped to our Miami smelter in Arizona for further processing (refer to “Other Smelting Facilities and Mining Properties” for further discussion of the Miami smelter).”

Annual report 2025A · The company itself

“We produce copper cathode at our electrolytic refinery located in El Paso, Texas, and at nine of our mines. SX/EW cathode is produced from the Morenci, Bagdad, Safford, Sierrita, Miami, Chino and Tyrone mines in the U.S., and from the Cerro Verde and El Abra mines in South America.”

Annual report 2025A · The company itself

“We manufacture continuous cast copper rod at our U.S. rod facilities primarily using copper produced at our U.S. copper mines and processing facilities.”

Annual report 2025A · The company itself

“Chino’s copper production totaled 150 million pounds in 2025, 133 million pounds in 2024 and 141 million pounds in 2023.”

Annual report 2025A · The company itself

“Tyrone’s copper production totaled 32 million pounds in 2025, 43 million pounds in 2024 and 51 million pounds in 2023.”

Annual report 2025A · The company itself

“Cerro Verde is an open-pit copper and molybdenum mining complex that has been in operation since the 1970s.”

Annual report 2025A · The company itself

“PTFI’s smelter and PT Smelting smelt and refine all of the copper concentrate from PTFI, and the PMR processes anode slimes from the smelter and PT Smelting. With the completion of its downstream processing facilities during 2025, PTFI became a fully integrated producer of refined copper and gold.”

Annual report 2025A · The company itself

“In 2025, copper anode production from PTFI’s smelter totaled 54,100 metric tons and copper cathode production from its refinery totaled 42,600 metric tons.”

Annual report 2025A · The company itself

“At normal operating rates, PTFI’s underground operations produce approximately 1.7 billion pounds of copper and 1.3 million ounces of gold per year and are among the lowest cost operations in the world.”

Annual report 2025A · The company itself

“Production from the Grasberg minerals district totaled 1.0 billion pounds of copper and 0.9 million ounces of gold in 2025, 1.8 billion pounds of copper and 1.9 million ounces of gold in 2024, and 1.7 billion pounds of copper and 2.0 million ounces of gold in 2023.”

Annual report 2025A · The company itself

“Our wholly owned Atlantic Copper smelter and refinery is located on land concessions from the Huelva, Spain, port authorities, which are scheduled to expire in 2038. The smelter has a design capacity to produce approximately 300,000 metric tons of copper per year, and the refinery has a capacity to produce 286,000 metric tons of copper per year.”

Annual report 2025A · The company itself

“Atlantic Copper’s copper anode production from its smelter totaled 249,300 metric tons in 2025, 247,600 metric tons in 2024 and 261,900 metric tons in 2023. Copper cathode production from its refinery totaled 249,600 metric tons in 2025, 254,400 metric tons in 2024 and 260,300 metric tons in 2023.”

Annual report 2025A · The company itself

“Our financial results are significantly influenced by and vary with fluctuations in the market prices of the commodities we produce, primarily copper and gold, and to a lesser extent molybdenum.”

Annual report 2025A · The company itself

“According to a 2025 report from Wood Mackenzie, a widely followed independent metals market consultant, copper’s end-use markets (and their estimated shares of total consumption) are electrical applications (30%), construction (24%), consumer products (21%), transportation (14%) and industrial machinery (11%).”

Annual report 2025A · The company itself

“Generally, copper cathode is sold to rod, brass or tube fabricators.”

Annual report 2025A · The company itself

“We believe long-term fundamentals for copper are favorable with growing demand supported by copper’s critical role in the global transition to renewable power, electric vehicles and other carbon-reduction initiatives, continued urbanization in developing countries, data centers and artificial intelligence (AI) developments and growing connectivity globally; however if these markets, industries and transitions do not develop as we expect, or develop more slowly than we expect, future demand and prices for copper may be negatively affected, impacting our business.”

Annual report 2025A · The company itself

“We believe long-term fundamentals for copper are favorable with growing demand supported by copper’s critical role in the global transition to renewable power, electric vehicles and other carbon-reduction initiatives, continued urbanization in developing countries, data centers and artificial intelligence (AI) developments and growing connectivity globally; however if these markets, industries and transitions do not develop as we expect, or develop more slowly than we expect, future demand and prices for copper may be negatively affected, impacting our business.”

Annual report 2025A · The company itself

“Our 2025 operations and results were impacted by the September 2025 mud rush incident at the Grasberg minerals district in Central Papua, Indonesia. In late October 2025, PT Freeport Indonesia (PTFI) restarted operations at the unaffected Deep Mill Level Zone (DMLZ) and Big Gossan underground mines.”

Annual report 2025A · The company itself

“During fourth-quarter 2025, investigations and remedial plans were completed and a phased restart and ramp-up of the Grasberg Block Cave underground mine is anticipated to begin in second-quarter 2026.”

Annual report 2025A · The company itself

“Volatility in global economic growth, particularly in developing economies, has the potential to affect adversely future demand and prices for commodities.”

Annual report 2025A · The company itself

“Prior to the completion of PTFI’s downstream processing facilities, copper concentrate produced in the Grasberg minerals district was shipped to PT Smelting in Indonesia, third-party smelters and to Atlantic Copper (our wholly owned copper smelting and refining unit in Spain). With the completion of PTFI’s downstream processing facilities during 2025, all of Grasberg’s copper concentrate is processed within Indonesia.”

Annual report 2025A · The company itself

“With the completion of its downstream processing facilities during 2025, PTFI is a fully integrated producer of refined copper and gold, and its copper production is sold in the form of copper cathode under long-term contracts (generally Indonesia contracts are rupiah denominated and export contracts are U.S.-dollar denominated).”

Annual report 2025A · The company itself

“In Indonesia, PTFI operates in the Grasberg minerals district.”

Annual report 2025A · The company itself

“Roads, power lines and aqueducts are controlled by easements. Cerro Verde We have a 55.08% ownership interest in Cerro Verde, with the remaining 44.92% ownership interest held by SMM Cerro Verde Netherlands B.V.”

Annual report 2025A · The company itself

“The El Abra operation consists of a SX/EW facility with a capacity of 500 million pounds of copper cathode per year from a 115,000-metric-ton-per-day crushed leach circuit and a ROM leaching operation.”

Annual report 2025A · The company itself

“PTFI operates in the remote highlands of the Sudirman Mountain Range in the province of Central Papua, Indonesia, which is on the western half of the island of New Guinea. Since 1967, we and our predecessors have been the only operator of exploration and mining activities in the approximately 24,600-acre operating area.”

Annual report 2025A · The company itself

“Refer to “Operations – Indonesia” below for discussion of PTFI’s plans to transition its existing energy source from coal to natural gas.”

Annual report 2025A · The company itself

“Climax operations receive electrical power through long-term contracts with Xcel Energy and natural gas supply with Spark Energy Gas (with Xcel Energy as the transporter).”

Annual report 2025A · The company itself

“Table of Contents SOURCES AND AVAILABILITY OF ENERGY, NATURAL RESOURCES AND RAW MATERIALS Our copper mining operations require significant amounts of energy, principally diesel, electricity, coal and natural gas, most of which is obtained from third parties under long-term contracts. In 2025, energy represented 15% of our copper mine site operating costs, including purchases of approximately 275 million gallons of diesel fuel; approximately 8,600 gigawatt hours of electricity at our U.S. and South America copper mining operations (we generate all of our power at our Indonesia mining operation); approximately 550 thousand metric tons of coal for our coal power plant in Indonesia; and approximately 3 million MMBtu (million British thermal units) of natural gas at certain of our U.S. mines.”

Annual report 2025A · The company itself

“Prices of consumables used in our operations (such as natural gas, diesel, coal, other sources of energy, ammonium nitrate, chemical reagents, including sulfuric acid, and steel-related products), certain components, equipment, parts and other operating supplies and services can fluctuate in price, impacting the costs of production at our operations and the costs of development projects.”

Annual report 2025A · The company itself

“Our operations require significant energy, much of which is currently from fossil fuel sources and is obtained from third parties under long-term contracts. Energy represented 15% of our copper mine site operating costs in 2025, and based on currently available information and projected operations, is expected to approximate 17% in 2026. The principal sources of energy consumption at our mining operations are: diesel fuel, which powers mine trucks 70 Table of Contents and other transportation equipment; purchased electricity, which powers core facilities and certain on-site metal processing operations; and coal and natural gas, which provide electricity at certain operations.”

Annual report 2025A · The company itself

“PTFI plans to transition its existing energy source from coal to natural gas, which would meaningfully reduce PTFI’s greenhouse gas emissions at the Grasberg minerals district. Following the September 2025 mud rush incident, PTFI’s planned investments for a new gas-fired combined cycle facility have been deferred with start-up and commissioning of the new facility scheduled in the second half of 2029.”

Annual report 2025A · The company itself

“Our portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; and significant operations in the U.S. and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru.”

Annual report 2025A · The company itself

“PRODUCTS AND SALES Our consolidated revenues for 2025 primarily included sales of copper (75%), gold (15%) and molybdenum (8%).”

Annual report 2025A · The company itself

“In addition to copper, certain of our U.S. copper mines also produce molybdenum concentrate, gold and silver.”

Annual report 2025A · The company itself

“In addition to copper, the Cerro Verde mine also produces molybdenum concentrate and silver.”

Annual report 2025A · The company itself

“In addition to copper, the Grasberg minerals district also produces gold and silver.”

Annual report 2025A · The company itself

“Prices of consumables used in our operations (such as natural gas, diesel, coal, other sources of energy, ammonium nitrate, chemical reagents, including sulfuric acid, and steel-related products), certain components, equipment, parts and other operating supplies and services can fluctuate in price, impacting the costs of production at our operations and the costs of development projects.”

Annual report 2025A · The company itself

“Our financial results are significantly influenced by and vary with fluctuations in the market prices of the commodities we produce, primarily copper and gold, and to a lesser extent molybdenum.”

Annual report 2025A · The company itself

“Molybdenum Molybdenum is a key alloying element in steel and the raw material for several chemical-grade products used in catalysts, lubrication, smoke suppression, corrosion inhibition and pigmentation. Molybdenum-based chemicals are used to produce high-purity molybdenum metal used in electronics such as flat-panel displays and in super alloys used in aerospace.”

Annual report 2025A · The company itself

“Molybdenum Products and Sales According to Wood Mackenzie, we are the world’s largest producer of molybdenum and molybdenum-based chemicals.”

Annual report 2025A · The company itself

“Preliminary estimates, which remain under review, indicate that the project economics would be supported using an incentive copper price of less than $4.00 per pound.”

Annual report 2025A · The company itself

“Volatility in global economic growth, particularly in developing economies, has the potential to affect adversely future demand and prices for commodities.”

Annual report 2025A · The company itself

“We have several projects and potential opportunities to expand production volumes, extend mine lives and develop large-scale underground ore bodies. As further discussed in MD&A, our near-term major development projects will focus on the underground development activities in the Grasberg minerals district as well discretionary growth projects for the development of Kucing Liar and at the Bagdad mine.”

Annual report 2025A · The company itself

“Like copper, demand for molybdenum is positively impacted by new technologies for clean energy.”

Annual report 2025A · The company itself

“The majority of the copper produced at our U.S. copper mines and refined in our El Paso, Texas refinery is consumed at our rod plants to produce copper rod, which is then sold to wire and cable manufacturers.”

Annual report 2025A · The company itself

“We believe long-term fundamentals for copper are favorable with growing demand supported by copper’s critical role in the global transition to renewable power, electric vehicles and other carbon-reduction initiatives, continued urbanization in developing countries, data centers and artificial intelligence (AI) developments and growing connectivity globally; however if these markets, industries and transitions do not develop as we expect, or develop more slowly than we expect, future demand and prices for copper may be negatively affected, impacting our business.”

Annual report 2025A · The company itself

“Scrutiny, action and evolving expectations from stakeholders and other third parties with respect to our sustainability-related practices, performance, commitments and disclosures may impact our reputation, increase our costs and impact our access to capital or business strategy. Stakeholder and other third-party scrutiny related to our sustainability-related practices, commitments, performance and disclosures continues to evolve. While we have adopted various sustainability-related policies and programs, it is possible that stakeholders and other third parties might not be satisfied or even disagree with our practices, goals, initiatives, commitments, performance and/or disclosures, or the speed of their adoption, implementation and measurable success.”

Annual report 2025A · The company itself

“OPERATIONS Responsible Production We demonstrate our responsible production performance through the Copper Mark, a comprehensive assurance framework developed specifically for the copper industry and extended to other metals, including molybdenum. To achieve the Copper Mark and Molybdenum Mark, as applicable, each site is required to complete an independent external assurance process to assess conformance with various environmental, social and governance criteria.”

Annual report 2025A · The company itself

“We are also a founding member of the International Council on Mining & Metals (ICMM), an organization dedicated to a safe, fair and sustainable mining and metals industry, aiming continuously to strengthen performance across the global mining and metals industry. As a member company, we are required to implement the 10 Mining Principles which define good environmental, social and governance practices, and associated position statements, while also meeting 39 performance expectations.”

Annual report 2025A · The company itself

“Information and operational technology systems continue to evolve and, in order to remain competitive, we must implement, advance and develop new technologies in a timely, cost-effective and efficient manner. For example, we may develop and apply AI in decision support systems, material characterization, equipment reliability enhancement, mineral extraction optimization and remote/autonomous operation. We may also pursue strategic alliances, investments, partnerships or licensing arrangements with other companies in areas where we believe collaboration can produce technological and industry advancements, which involve special risks that may negatively impact us or our reputation.”

Annual report 2025A · The company itself

“We believe long-term fundamentals for copper are favorable with growing demand supported by copper’s critical role in the global transition to renewable power, electric vehicles and other carbon-reduction initiatives, continued urbanization in developing countries, data centers and artificial intelligence (AI) developments and growing connectivity globally; however if these markets, industries and transitions do not develop as we expect, or develop more slowly than we expect, future demand and prices for copper may be negatively affected, impacting our business.”

Annual report 2025A · The company itself

“Ensuring continuity of supply of such consumables to our operations is critical to our business. We also rely on the availability of components from suppliers for key machines and equipment, which may be impacted by competition demands as well as the availability of input materials in the creation of such equipment.”

Annual report 2025A · The company itself

“Molybdenum Molybdenum is a key alloying element in steel and the raw material for several chemical-grade products used in catalysts, lubrication, smoke suppression, corrosion inhibition and pigmentation. Molybdenum-based chemicals are used to produce high-purity molybdenum metal used in electronics such as flat-panel displays and in super alloys used in aerospace.”

Annual report 2025A · The company itself

“Conversion of Bagdad’s haul truck fleet to autonomous haulage was completed in 2025, making Bagdad the first major mine in the U.S. to operate a fully autonomous haulage fleet.”

Annual report 2025A · The company itself

“We believe long-term fundamentals for copper are favorable with growing demand supported by copper’s critical role in the global transition to renewable power, electric vehicles and other carbon-reduction initiatives, continued urbanization in developing countries, data centers and artificial intelligence (AI) developments and growing connectivity globally; however if these markets, industries and transitions do not develop as we expect, or develop more slowly than we expect, future demand and prices for copper may be negatively affected, impacting our business.”

Annual report 2025A · The company itself

“Our costs are driven by the location, grade and nature of our ore bodies, and the level of input costs, including energy, labor and equipment.”

Annual report 2025A · The company itself

“MW&E sources its generation services through our wholly owned subsidiary, Freeport-McMoRan Copper and Gold Energy Services LLC, through capacity rights at the Luna Energy Facility in Deming, New Mexico, and other power purchase agreements.”

Annual report 2025A · The company itself

“Bagdad receives electrical power from Arizona Public Service Company.”

Annual report 2025A · The company itself

“The Safford operation’s electrical power is primarily sourced from Tucson Electric Power Company, Arizona Public Service Company and the Luna Energy facility.”

Annual report 2025A · The company itself

“Sierrita receives electrical power through long-term contracts with the Tucson Electric Power Company.”

Annual report 2025A · The company itself

“Chino receives electrical power from the Luna Energy facility and from the open market. We believe the Chino operation has sufficient water sources to support current operations.”

Annual report 2025A · The company itself

“Climax operations receive electrical power through long-term contracts with Xcel Energy and natural gas supply with Spark Energy Gas (with Xcel Energy as the transporter).”

Annual report 2025A · The company itself

“Cerro Verde currently receives electrical power, including hydro-generated power, under long-term contracts with ElectroPerú S.A. and Engie Energía Peru S.A. During 2023, Cerro Verde entered into a new power purchase agreement that is expected to transition its electric power to fully renewable energy sources in 2026.”

Annual report 2025A · The company itself

“El Abra receives electrical power generated from renewable sources under a long-term contract with Engie Energía Chile S.A.”

Annual report 2025A · The company itself

“Table of Contents SOURCES AND AVAILABILITY OF ENERGY, NATURAL RESOURCES AND RAW MATERIALS Our copper mining operations require significant amounts of energy, principally diesel, electricity, coal and natural gas, most of which is obtained from third parties under long-term contracts. In 2025, energy represented 15% of our copper mine site operating costs, including purchases of approximately 275 million gallons of diesel fuel; approximately 8,600 gigawatt hours of electricity at our U.S. and South America copper mining operations (we generate all of our power at our Indonesia mining operation); approximately 550 thousand metric tons of coal for our coal power plant in Indonesia; and approximately 3 million MMBtu (million British thermal units) of natural gas at certain of our U.S. mines.”

Annual report 2025A · The company itself

“Our operations require significant energy, much of which is currently from fossil fuel sources and is obtained from third parties under long-term contracts. Energy represented 15% of our copper mine site operating costs in 2025, and based on currently available information and projected operations, is expected to approximate 17% in 2026. The principal sources of energy consumption at our mining operations are: diesel fuel, which powers mine trucks 70 Table of Contents and other transportation equipment; purchased electricity, which powers core facilities and certain on-site metal processing operations; and coal and natural gas, which provide electricity at certain operations.”

Annual report 2025A · The company itself

“We believe that our social and economic development programs are responsive to the issues raised by the local communities near our areas of operation and help us maintain good relations with the surrounding communities and avoid disruptions of mining operations. As part of our ongoing commitment to our community stakeholders, we have made and expect to continue making investments in certain social programs, including in-kind support and administration, across our global operations from time to time.”

Annual report 2025A · The company itself

“Fluctuations in commodities prices are caused by varied and complex factors beyond our control, including global supply and demand impacted by industry production and inventory levels; global economic and political conditions (such as election results, level of economic growth, or recession and political or geopolitical tensions and conflicts); national and international regulatory, trade and/or tax policies, including tariffs and other controls or restrictions on imports and exports; commodities investment activity and speculation; interest rates; current inflation rates and expectations regarding future inflation rates; the strength of the U.S. dollar compared to foreign currencies; the price and availability of substitute products; and changes in technology.”

Annual report 2025A · The company itself

“If PTFI does not fulfill its defined fiscal and other obligations to the Indonesia government as set forth in the IUPK, the IUPK may not be extended from 2031 through 2041, and PTFI would be unable to mine all of its proven and probable mineral reserves in the Grasberg minerals district, which could adversely affect our business, results of operations and financial position.”

Annual report 2025A · The company itself

“International risks •Geopolitical, economic, regulatory and social risks for our operations; and •PTFI’s failure to meet its commitments to achieve the extension of its IUPK.”

Annual report 2025A · The company itself

“Since 2019, the Indonesia government has enacted various laws and regulations related to downstream processing of various products. Refer to “Operations – Indonesia” in MD&A and Notes 10 and 11 for a discussion of Indonesia regulatory matters, including those related to export licenses, export duties, export proceeds, smelter assurance bonds and PTFI’s new smelter and precious metals refinery (PMR) (collectively, PTFI’s downstream processing facilities) in Eastern Java, Indonesia.”

Annual report 2025A · The company itself

“Our Indonesia mining operations are remotely located in steep mountainous terrain and in an active seismic area, which also experiences extreme weather events. Independent environmental management expert audits have reaffirmed conclusions from previous studies that PTFI’s controlled riverine tailings management system represents the best alternative for tailings management given the volume of tailings produced and the site-specific conditions of the area. Overtopping or failure of any of the PTFI tailings containment structures (levees or protection structures) induced by extreme weather events such as floods, a major seismic event or naturally occurring weak ground under the structures, are potential risks.”

Annual report 2025A · The company itself

“The political 63 Table of Contents environment remains polarized following the national legislative elections, including the presidential election, held in Chile during 2025. We cannot predict whether similar or more significant incidents of civil unrest or political instability will occur in the future in Peru or Chile.”

Annual report 2025A · The company itself

“Concurrent with closing the 2018 Transaction, the Indonesia government granted PTFI an IUPK to replace its former contract of work. Under the terms of the IUPK, PTFI has been granted an extension of mining rights through 2031, with rights to extend mining rights through 2041, subject to PTFI completing the construction of additional domestic smelting and refining capacity in Indonesia and fulfilling its defined fiscal obligations to the Indonesia government.”

Annual report 2025A · The company itself

“In addition to the factors discussed above, copper prices may be affected by demand from China, which is currently the largest consumer of refined copper in the world, including as a result of geopolitical uncertainty and tension between the U.S. and China as well as uncertainties about China’s economy.”

Annual report 2025A · The company itself

“Roads, power lines and aqueducts are controlled by easements. Cerro Verde We have a 55.08% ownership interest in Cerro Verde, with the remaining 44.92% ownership interest held by SMM Cerro Verde Netherlands B.V.”

Annual report 2025A · The company itself

“The El Abra operation consists of a SX/EW facility with a capacity of 500 million pounds of copper cathode per year from a 115,000-metric-ton-per-day crushed leach circuit and a ROM leaching operation.”

Annual report 2025A · The company itself

“Cerro Verde is located in a desert environment with rainfall averaging less than two inches per year and is in an active seismic zone.”

Annual report 2025A · The company itself

“El Abra is located in a desert environment with rainfall averaging less than one inch per year and is in an active seismic zone.”

Annual report 2025A · The company itself

“Our Indonesia mining operations are remotely located in steep mountainous terrain and in an active seismic area, which also experiences extreme weather events. Independent environmental management expert audits have reaffirmed conclusions from previous studies that PTFI’s controlled riverine tailings management system represents the best alternative for tailings management given the volume of tailings produced and the site-specific conditions of the area. Overtopping or failure of any of the PTFI tailings containment structures (levees or protection structures) induced by extreme weather events such as floods, a major seismic event or naturally occurring weak ground under the structures, are potential risks.”

Annual report 2025A · The company itself

“The PTFI project area receives considerable rainfall that makes it susceptible to periodic floods and mudslides, the nature and magnitude of which cannot be predicted. Conversely, the area has experienced, and may in the future experience, certain extended periods without rainfall, which can impact water availability at the milling operations.”

Annual report 2025A · The company itself

“Our costs are driven by the location, grade and nature of our ore bodies, and the level of input costs, including energy, labor and equipment.”

Annual report 2025A · The company itself

“Table of Contents SOURCES AND AVAILABILITY OF ENERGY, NATURAL RESOURCES AND RAW MATERIALS Our copper mining operations require significant amounts of energy, principally diesel, electricity, coal and natural gas, most of which is obtained from third parties under long-term contracts. In 2025, energy represented 15% of our copper mine site operating costs, including purchases of approximately 275 million gallons of diesel fuel; approximately 8,600 gigawatt hours of electricity at our U.S. and South America copper mining operations (we generate all of our power at our Indonesia mining operation); approximately 550 thousand metric tons of coal for our coal power plant in Indonesia; and approximately 3 million MMBtu (million British thermal units) of natural gas at certain of our U.S. mines.”

Annual report 2025A · The company itself

“Prices of consumables used in our operations (such as natural gas, diesel, coal, other sources of energy, ammonium nitrate, chemical reagents, including sulfuric acid, and steel-related products), certain components, equipment, parts and other operating supplies and services can fluctuate in price, impacting the costs of production at our operations and the costs of development projects.”

Annual report 2025A · The company itself

“Our operations require significant energy, much of which is currently from fossil fuel sources and is obtained from third parties under long-term contracts. Energy represented 15% of our copper mine site operating costs in 2025, and based on currently available information and projected operations, is expected to approximate 17% in 2026. The principal sources of energy consumption at our mining operations are: diesel fuel, which powers mine trucks 70 Table of Contents and other transportation equipment; purchased electricity, which powers core facilities and certain on-site metal processing operations; and coal and natural gas, which provide electricity at certain operations.”

Annual report 2025A · The company itself

“Table of Contents We continued to face challenges in 2025 with a competitive and tight labor market, specifically in the U.S., and we remain committed to assessing our recruitment and training and development programs to adapt to the changing labor market and our company’s and employees’ needs.”

Annual report 2025A · The company itself

“Our business depends on our ability to recruit, retain, develop and advance a qualified workforce at all levels, including sufficient personnel to develop, implement and operate new technologies. Our ability to recruit qualified personnel is affected by the available pool of candidates with the training and skills necessary to fill the vacant positions, the impact on the labor supply because of general economic conditions and our ability to offer competitive compensation and benefit packages. We continued to face challenges in 2025 with a competitive and tight labor market, particularly with some technical trades in the U.S.”

Annual report 2025A · The company itself

“Our costs are driven by the location, grade and nature of our ore bodies, and the level of input costs, including energy, labor and equipment.”

Annual report 2025A · The company itself

“Table of Contents A summary of employees covered by CLAs on December 31, 2025, including the number of employees covered and the expiration date of the applicable CLA, follows: Location Number of Unions Number of Employees Covered by a CLA Expiration Date PTFI – Indonesia 3 2,711 March 2026 Cerro Verde – Peru 2 3,604 August 2028 and August 2029 El Abra – Chile 2 1,093 April 2029 Atlantic Copper – Spain 3 571 December 2026 Stowmarket – United Kingdom 1 38 May 2026 Health and Safety Our highest priority is the health, safety and well-being of our workforce.”

Annual report 2025A · The company itself

“The PTFI project area receives considerable rainfall that makes it susceptible to periodic floods and mudslides, the nature and magnitude of which cannot be predicted. Conversely, the area has experienced, and may in the future experience, certain extended periods without rainfall, which can impact water availability at the milling operations.”

Annual report 2025A · The company itself

“Although we believe the Morenci operation has sufficient water sources to support current operations, we are a party to litigation that may impact our water right claims or rights to continued use of currently available water supplies, which could adversely affect our water supply for the Morenci operation.”

Annual report 2025A · The company itself

“We believe the Bagdad operation has sufficient water sources to support current operations, including the potential expansion noted above.”

Annual report 2025A · The company itself

“Our mining operations also require secure water supplies for mining, ore processing and related support facilities. The loss of water rights for any of our mines, in whole or in part, or shortages of water to which we have rights, could require us to curtail or shut down mining operations.”

Annual report 2025A · The company itself

“For example, in 2024, EPA amended its rule establishing standards for hazardous air pollutant emissions from primary copper smelters (Copper Smelter Rule). This final rule would impact our Miami, Arizona smelter operations, which process a significant portion of the copper concentrate produced by our U.S. copper mines.”

Annual report 2025A · The company itself

“We incurred environmental capital expenditures and other environmental costs (including our joint venture partners’ shares) to comply with applicable environmental laws and regulations that affect our operations totaling $0.5 billion in 2025, $0.6 billion in 2024 and $0.5 billion in 2023, and we expect to incur approximately $0.7 billion in 2026.”

Annual report 2025A · The company itself

“New or revised environmental regulatory requirements are frequently proposed, many of which have resulted and may in the future result in substantially increased costs for our business, including those regarding financial obligations. Regulations have been considered at various governmental levels to increase financial responsibility requirements for mine closure and reclamation. Adoption of such environmental regulations or more stringent application of existing regulations may materially increase our costs, threaten certain operating activities and constrain our expansion opportunities.”

Annual report 2025A · The company itself

“Sulfuric acid is used in the SX/EW process and is produced as a by-product of the smelting process at our smelters and from our sulfur burners at the Safford mine. Sulfuric acid needs in excess of the sulfuric acid produced by our operations are purchased from third parties.”

Annual report 2025A · The company itself

“Prices of consumables used in our operations (such as natural gas, diesel, coal, other sources of energy, ammonium nitrate, chemical reagents, including sulfuric acid, and steel-related products), certain components, equipment, parts and other operating supplies and services can fluctuate in price, impacting the costs of production at our operations and the costs of development projects.”

Annual report 2025A · The company itself

“Concurrent with closing the 2018 Transaction, the Indonesia government granted PTFI an IUPK to replace its former contract of work. Under the terms of the IUPK, PTFI has been granted an extension of mining rights through 2031, with rights to extend mining rights through 2041, subject to PTFI completing the construction of additional domestic smelting and refining capacity in Indonesia and fulfilling its defined fiscal obligations to the Indonesia government.”

Annual report 2025A · The company itself

“Tariffs In 2025, our costs were not significantly impacted by U.S. tariffs, and we are continuing to monitor the impacts on our business, cost structure and supply chains associated with tariffs on U.S. imports.”

Annual report 2025A · The company itself

“Effective August 1, 2025, a 50% tariff was imposed under Section 232 of the Trade Expansion Act, targeting U.S. imports of semi-finished copper products and copper-intensive derivative products. However, refined copper, including cathodes, concentrates and scrap, was exempted from the tariff, and the U.S. government has indicated it will reassess by mid-2026 the potential for a refined copper tariff of 15% beginning in January 2027 and rising to 30% in 2028.”

Annual report 2025A · The company itself

“Secretary of Commerce was directed to impose requirements that 25% of copper cathode and concentrate produced in the U.S. be sold domestically in 2027, potentially increasing to 30% in 2028 and 40% in 2029.”

Annual report 2025A · The company itself

“However, in March 2025, EPA announced that it will reconsider, among others, the Copper Smelter Rule, and in October 2025, a presidential proclamation exempted the Miami smelter from the compliance deadlines in the Copper Smelter Rule for two years. EPA’s reconsideration of the Copper Smelter Rule continues and upon its proposal, we will evaluate processes and equipment modifications and the costs involved, which could be significant.”

Annual report 2025A · The company itself

“Fluctuations in commodities prices are caused by varied and complex factors beyond our control, including global supply and demand impacted by industry production and inventory levels; global economic and political conditions (such as election results, level of economic growth, or recession and political or geopolitical tensions and conflicts); national and international regulatory, trade and/or tax policies, including tariffs and other controls or restrictions on imports and exports; commodities investment activity and speculation; interest rates; current inflation rates and expectations regarding future inflation rates; the strength of the U.S. dollar compared to foreign currencies; the price and availability of substitute products; and changes in technology.”

Annual report 2025A · The company itself

“In 2024, MSHA enacted the Safety Program for Surface Mobile Equipment regulation and finalized a regulation, which reduces permissible exposure limits of respirable crystalline silica (Silica Rule). The Silica Rule is being challenged in federal court, and in November 2025, MSHA announced that it will reconsider the Silica Rule.”

Annual report 2025A · The company itself

“These laws and regulations touch all aspects of our operations, the most significant of which include how we extract, process and explore for minerals and how we conduct our business, including laws and regulations governing matters such as mining rights, environmental and reclamation matters, climate change, occupational health and safety, and human rights.”

Annual report 2025A · The company itself

“We are also subject to extensive regulation of worker health and safety. Our mines are inspected on a regular basis by government regulators who may issue citations and orders when they believe a violation has occurred under applicable mining regulations. If inspections result in an alleged violation, we may be subject to fines and penalties and, in instances of alleged significant violations, our mining operations or industrial facilities could be subject to temporary or extended closures.”

Annual report 2025A · The company itself

“For example, carbon tax legislation has been adopted in jurisdictions where we operate, including Indonesia, Chile and the European Union (EU).”

Annual report 2025A · The company itself

“Fluctuations in the price and availability of consumables and components for key machines and equipment we purchase, and constraints on supply and logistics could affect our profitability and operating plans. Further, significant delays or increases in costs affecting transportation services may affect our business.”

Annual report 2025A · The company itself

“Fluctuations in commodities prices are caused by varied and complex factors beyond our control, including global supply and demand impacted by industry production and inventory levels; global economic and political conditions (such as election results, level of economic growth, or recession and political or geopolitical tensions and conflicts); national and international regulatory, trade and/or tax policies, including tariffs and other controls or restrictions on imports and exports; commodities investment activity and speculation; interest rates; current inflation rates and expectations regarding future inflation rates; the strength of the U.S. dollar compared to foreign currencies; the price and availability of substitute products; and changes in technology.”

Annual report 2025A · The company itself

“We are the leading copper supplier in the U.S., providing approximately 70% of total U.S. refined copper production through our integrated domestic mining and processing facilities, and most of which is sold domestically.”

Annual report 2025A · The company itself

“In the U.S., we manage seven copper operations – Morenci, Bagdad, Safford (including Lone Star), Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico, and two molybdenum mines - Henderson and Climax in Colorado. We also operate a copper smelter and rod mill in Miami, Arizona, and a copper refinery and rod mill in El Paso, Texas.”

Annual report 2025A · The company itself

“Chino is located in Grant County, New Mexico, approximately 15 miles east of Silver City, along State Highway 180.”

Annual report 2025A · The company itself

“Our wholly owned Climax mine is an open-pit molybdenum mine that is located 13 miles northeast of Leadville, Colorado, off Colorado State Highway 91 at the top of Fremont Pass.”

Annual report 2025A · The company itself

“A portion of the copper concentrate produced at Cerro Verde is shipped to Atlantic Copper for further processing.”

Annual report 2025A · The company itself

“Our wholly owned Atlantic Copper smelter and refinery is located on land concessions from the Huelva, Spain, port authorities, which are scheduled to expire in 2038.”

Annual report 2025A · The company itself

“In South America, we manage two copper operations – Cerro Verde in Peru and El Abra in Chile.”

Annual report 2025A · The company itself