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Published: 06 October 2014 06 October 2014

PHOENIX, AZ, October 6, 2014 – Freeport-McMoRan Inc. (NYSE: FCX) announced today that it has entered into a definitive agreement to sell its 80 percent ownership interest in the Candelaria/Ojos del Salado copper mining operations and supporting infrastructure to Lundin Mining Corporation (TSX:LUN)(OMX:LUMI) for $1.8 billion in cash and contingent consideration of up to $0.2 billion, calculated as 5% of net copper revenues in any annual period over the next five years when the average realized copper price exceeds $4.00 per pound. FCX estimates after-tax net proceeds from the transaction of approximately $1.5 billion, excluding contingent consideration.

James R. Moffett, Chairman of the Board; Richard C. Adkerson, Vice Chairman, and FCX President and Chief Executive Officer; and James C. Flores, Vice Chairman, and FM O&G President and Chief Executive Officer, said, "This transaction represents another important step in our ongoing debt reduction plan and follows the completion of our $3.1 billion sale of Eagle Ford shale assets in June. We remain committed to our balance sheet objectives while focusing on our large portfolio of high quality assets and resources, which provide strong current cash flows and have attractive growth characteristics."

Mr. Adkerson continued: "We congratulate our team on developing Candelaria to be a highly successful mining operation and for contributing to the Company's success over many years. We are pleased that Lundin Mining will continue to build on Candelaria's past success, and continue a commitment to provide a safe, productive work environment and a sustainable future. We look forward to our continued investments in Chile through opportunities for a major expansion of the El Abra operation. We are positive about our portfolio of copper assets, our large scale growth projects currently in progress and opportunities for additional expansion and development provided by our sizeable copper resource base."

The interests include all of FCX's interests in the Candelaria/Ojos mining district. As of December 31, 2013, Candelaria/Ojos had consolidated recoverable reserves totaling 4.0 billion pounds of copper and 1.1 million ounces of gold. Consolidated production for the first six months of 2014 totaled 169 million pounds of copper and 42 thousand ounces of gold.

The transaction has an effective date of June 30, 2014, and is expected to close by year-end 2014, subject to regulatory approvals and customary closing conditions.

FCX expects to record an approximate $450 million after-tax gain on the transaction.