Freeport?s copper production, sales increased in 2002

Copper production and sales volumes for the twelve-month 2002 period were annual records. Fourth-quarter 2002 copper ore grades averaged 1.23 percent, compared with 0.89 percent in the fourth quarter of 2001; twelve-months 2002 copper ore grades averaged 1.14 percent, compared with 1.00 percent in the twelve-months 2001 period.

PT-FI PRODUCTION AND SALES

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                                 Fourth Quarter         Twelve Months

                               ---------------------------------------

                                  2002     2001       2002       2001

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Copper (000s of recoverable

 pounds):

  Production                   427,100  316,200  1,524,200  1,393,400

  Sales                        429,800  325,300  1,522,300  1,399,100

     Average realized price per

      pound                       $.70     $.65       $.71       $.69

Gold (recoverable ounces):

  Production                   665,300  478,700  2,296,800  2,634,900

  Sales                        678,300  500,200  2,293,200  2,644,800

  Average realized price per

   ounce                          $323     $277       $312       $269

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Gold sales of 2.3 million ounces for 2002 exceeded previous estimates of 2.25 million ounces reflecting higher ore grades and mill recovery rates. In the fourth quarter of 2002, ore milled averaged 1.44 grams per metric ton (g/t), compared with 1.03 g/t in the fourth quarter of 2001. For the twelve-months 2002 period gold production and sales declined from the 2001 period as gold ore grades averaged 1.24 g/t in 2002 compared with 1.41 g/t in 2001.

PT-FI expected its sales for 2003 to approximate 1.4 billion pounds of copper and 2.6 million ounces of gold, reflecting the expectation in 2003 of slightly lower copper ore grades and higher gold ore grades compared with 2002. PT-FI expects its sales for the first quarter of 2003 to approximate 370 million pounds of copper and 580,000 ounces of gold.

CASH PRODUCTION COSTS

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                                        Fourth Quarter  Twelve Months

                                          ------------- ---------------

                                           2002   2001   2002    2001

------------------------------------------------------- ---------------

Per pound of copper:

Site production and delivery              $0.35  $0.43  $0.36   $0.39

Gold and silver credits                   (0.52) (0.43) (0.48)  (0.52)

Treatment charges and royalties            0.20   0.21   0.20    0.20

------------------------------------------------------- ---------------

     Net cash production costs            $0.03  $0.21  $0.08   $0.07

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?PT-FI remains the world's lowest cost copper producer with average unit net cash production costs, including gold and silver credits, of $0.03 per pound of copper during the fourth quarter of 2002 and $0.08 per pound for the year. Unit production and delivery costs decreased primarily because of improved ore grades. Assuming current gold prices of $350 per ounce and gold sales of 2.6 million ounces for 2003, we expect to establish a new record low for unit net cash production costs of a net credit of $0.07 per pound. Based on our estimate of cash production costs for 2003, unit net costs would change approximately $0.05 per pound for each $25 per ounce change in the price of gold at this level of gold sales,? said the company in a statement.

RESERVE ADDITIONS
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                               Aggregate Reserves     PT-FI's Share
                               ---------------------------------------
                                            Gold               Gold
                                Copper    (millions   Copper (millions
                               (billions      of    (billions    of
                                of lbs)    ounces)    of lbs) ounces)
------------------------------ ---------------------------------------
Reserves at December 31, 2001      52.5      64.5      39.4     50.2
Net additions/revisions             2.6       1.0       1.5      0.6
Production                         (1.8)     (2.9)     (1.5)    (2.3)
------------------------------ --------------------------------------
Reserves at December 31, 2002      53.3      62.6      39.4     48.5
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During 2002, additions to the aggregate proven and probable reserves at the Grasberg mining complex totaled approximately 86.6 million metric tons of ore representing aggregate increases of 2.6 billion recoverable pounds of copper and 1.0 million ounces of gold. Year-end aggregate proven and probable recoverable reserves, net of 2002 production, were 2.6 billion metric tons of ore averaging 1.12 percent copper, 1.02 grams per metric ton gold and 3.73 grams per metric ton silver. Estimated recoverable reserves were assessed using a copper price of $0.85 per pound and a gold price of $270 per ounce. If metal prices in the reserve calculations were adjusted to the approximate average London spot market prices for the past three years, i.e., copper prices adjusted from $0.85 per pound to $0.75 per pound and gold prices adjusted from $270 per ounce to $285 per ounce, there would be no change in proven and probable reserves. (alex)