U.S. FIFTH CIRCUIT COURT OF APPEALS AFFIRMS DISMISSAL OF BEANAL LAWSUIT; Freeport-McMoRan's Mining Operations Do Not Violate International Law

Business Wire, Dec 1, 1999

NEW ORLEANS--(BUSINESS WIRE)--Dec. 1, 1999--

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) announced today that the U.S. Fifth Circuit Court of Appeals has affirmed the U.S. District Court's earlier dismissal with prejudice of the lawsuit filed on behalf of Tom Beanal.

In a strongly worded ruling, the Court of Appeals concluded that the U.S. District Court "exercised considerable judgment, discretion, and patience" due to the "gravity and far ranging implications" of the case. The Court of Appeals ruling said that the District Court provided the plaintiff repeated opportunities to amend the complaint, including providing the plaintiff "a roadmap" as to how to amend it by providing sufficient underlying facts, assuming he was able to do so, but the plaintiff did not provide such facts.

With regard to the environmental allegations, the Court of Appeals agreed with the lower court's decision - made after "a thorough survey of various international law principles, treaties and declarations" - that the plaintiff "failed to show ... that Freeport's mining activities constitute environmental torts or abuses under international law." The sources cited by the plaintiff, the Court of Appeals wrote, are not universally accepted, and are "abstract" and "devoid of ... discernible standards and regulations to identify practices that constitute international environmental abuses or torts." Further, the Court of Appeals took the opportunity to warn that "federal courts should exercise extreme caution when adjudicating environmental claims under international law to insure that environmental policies of the United States do not displace environmental policies of other governments..."

With regard to the allegations of human rights violations and "cultural genocide", the Court of Appeals concluded that "... (the) complaint is saturated with conclusory allegations devoid of any underlying facts..." and upheld the lower court's dismissal with prejudice.

Paul S. Murphy, Senior Vice President, stated, "As we have said from the beginning, this lawsuit had no basis in law or in fact. We are extremely pleased with the Court of Appeals ruling that puts these baseless human rights and environmental claims behind us. We look forward to continuing our efforts to build and maintain constructive relationships with the local people of Irian Jaya."

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.