Freeport McMoran

Freeport Helps Local Communities Build Strong Economies with Jobs, Taxes and Local Sourcing

September 12, 2024

Freeport-McMoRan contributed about $6.5 billion to the economies of U.S. states where it operates, new reports on the company’s economic impact during 2023 on communities show. 

In the five states with major Freeport operations, the company generated $3 billion in direct benefits that include employee wages and benefits, business taxes and purchases from vendors. As those direct dollars were spent by company employees, local governments and outside suppliers, they generated another $3.5 billion in what are considered indirect impacts of the company’s presence. 

Freeport also accounted for 12,789 direct jobs of company employees in the five states. When combined with the jobs created by associated economic activity, Freeport’s presence led to a total of 53,866 jobs.

“We work closely with local governments and community stakeholders to maximize the value that mining contributes,” said Tracy Bame, Director-Corporate Social Responsibility and Community Development. “We seek to be a positive force where we operate, whether it be through the jobs we create, the taxes we pay, the local sourcing of goods and services, or our voluntary and proactive community development activities. We continuously strive to minimize and mitigate any negative impacts and understand the positive ways in which our business benefits local communities.”  

The reports assess the impact of Freeport operations in Arizona, Colorado, Iowa, New Mexico and Texas. To analyze the importance of the company’s presence, Freeport commissioned the L. William Seidman Research Institute at Arizona State University to develop annual economic impact reports for counties and states in the United States where the company has operations. 

Actual data supplied by the company is used to determine direct impacts. The Seidman Institute then runs those numbers through economic impact models to determine the indirect benefits of Freeport’s presence. 

Reports for all five states, as well as separate analyses of counties where the bulk of Freeport’s operations in the U.S. are located, are available on fcx.com. 

The largest economic impacts from the company are in Arizona, where Freeport is headquartered and has major operations in Bagdad, Miami, Morenci, Safford and Sierrita. Direct benefits from things like wages and taxes total about $2.2 billion. Another $2.2 billion results from indirect impacts when those wages and taxes are spent. 

More than 10,000 Freeport employees work in Arizona. When combined with jobs created indirectly, Freeport’s presence is responsible for more than 35,000 jobs in the state. 

Other states with Freeport operations are: 

•Colorado: The Climax and Henderson operations produced $256.7 million in direct impacts and $337.5 million in indirect economic activity. The Colorado operations had 735 company employees and led to a total of 6,083 jobs in the state. 

•Iowa: Fort Madison’s molybdenum processing facilities generated $31.4 million in direct economic benefits and another $25 million in indirect activity. Fort Madison had 163 company employees and led to a total of 518 jobs in the state. 

•New Mexico: Chino and Tyrone had direct economic impacts of $238.4 million and $176.1 million in indirect activity. The operations employ 1,131 people and led to a total of 3,703 total jobs created. 

•Texas: El Paso operations and other activities in the state created $304.6 million in direct impacts and another $726.1 million in indirect benefits. Texas operations directly employed 464 people and led to a total of 8,035 jobs in the state. A large share of the indirect impact was from vendor purchases, primarily fuel. 

Globally, Freeport’s direct economic contributions through worker pay and benefits, taxes and royalties, export duties and payments to suppliers totaled $18.9 billion in 2023. Freeport operations employed 27,162 workers including 12,943 in North America, 6,444 in Indonesia, 6,718 in South America and 1,057 in Europe and other regions. 

In addition to its direct and indirect economic impact, Freeport engages with local stakeholders to understand priority needs, cultivate meaningful projects and award social investment funds in each community to create resilience and well-being over time. In 2023, Freeport spent $187 million globally in community development projects. The company has invested $2.5 billion in those initiatives since 2009. 

“It’s a lot more than just jobs and tax dollars that benefit our communities,” said Angie Harmon, Regional Manager, Social Performance-North America. “Our engagement and investment activities are focused on working in partnership with our communities, including Native American Tribes, to earn and maintain their trust and contribute to long-term shared value and resilience that addresses future mining transitions. This additional, voluntary social development activity comes along side our direct and indirect economic impacts to fully address community needs and ensure mining communities are good places to live and work.”

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