March 4, 1999

Mr. Garland Robinette
Vice President -Communications
Freeport-McMoRan Copper & Gold Inc.
1615 Poydras Street
New Orleans, LA 70112

Dear Garland,

You asked me if either Freeport-McMoRan Copper & Gold Inc. (FCX) or McMoRan Exploration Co. (MMR) are involved directly or indirectly in a phosphate deposit being developed in Sri Lanka.

As you are aware, I was formerly vice president of taxes for Freeport-McMoRan Inc. (FTX) and general counsel for FCX until 1997. During my tenure at FTX and FCX, I was involved in every major commercial transaction and was charged with the reporting of all activities through the filing of Federal tax returns.

In 1986, FTX transferred all of its fertilizer and sulphur operations to Freeport-McMoRan Resource Partners; a publicly traded master limited partnership (FRP). FTX was the general partner and operator of FRP and the majority owner. In March of 1987, FRP acquired the fertilizer assets of The Williams Companies, which were operated under the trade name of Agrico. In the bundle of assets acquired in this transaction were certain rights to a phosphate resource in Sri Lanka. FRP entered into discussions with the government of Sri Lanka to develop the property that went on-for several years.

In 1988, FRP and IMC Global (IGL) entered into a joint venture to explore for and develop a sulphur deposit located in the offshore in the Gulf of Mexico. The mine is known as Main Pass sulphur deposit. Under the joint venture agreement IGL used its share of the sulphur production in the manufacture of phosphate fertilizer. FTX was the operator of the Main Pass Mine.

In 1993, FRP and IMC Global (IGL) transferred their respective fertilizer operations to a joint venture, IMC-Agrico. The operator of the joint venture was IGL. The Sri Lanka phosphate property was not transferred to the joint venture but IGL had the right to participate in the event the parties decided to go forward and execute a definitive agreement with the Government. In 1997, IGL purchased 57% of FRP's interest in the Sri Lanka phosphate property.

In 1997, FRP enter into an agreement to fund, as a joint venturer, certain oil and gas exploration programs with McMoRan Oil & Gas Co. (MOXY), a company spun off from FTX but unrelated to FTX. As part of the arrangement, FRP agreed to invest money in MOXY by acquiring an interest in MOXY through a public equity offering in 1997. FRP purchased approximately a 5% of the common stock of MOXY.

In the fall of 1997, FTX agreed to merge into IGL with IGL surviving the merger. As part of the merger, the sulphur assets. owned by FRP and IGL were placed into a corporation, Freeport-McMoRan Sulphur Co. (FSC) and distributed to the FRP unit holders (including FTX) as the first step in the merger of FTX and IGL. FTX then distributed its FSC shares to its shareholders. As part of this transaction, IGL entered into a long-term sulphur supply contract with newly formed FSC.

In December 1997, the merger of FTX and IGL was completed. The former FTX management no longer was involved in the operations of the fertilizer business. IGL became the managing general partner of FRP. Thereafter, IGL changed the name of FRP to Phosphate Limited Partner, LP (PLP.)

In the fall of 1998, MOXY and FSC were merged together to form MMR.

Since 1997, IGL has acted as the managing general partner of PLP and controls the development and operations of the Sri Lanka phosphate properties.

FCX and MMR have no interest either directly or indirectly in the Sri Lanka phosphate properties and have no operations or other properties in Sri Lanka.

Currently, MMR sells sulphur to PLP under the 1997 long-term contract. In addition, as a result of the 1997 MOXY offering, PLP owns approximately 5% of the common stock of MMR. FCX has no commercial relationships directly or indirectly with IGL or PLP.,

If you have any further questions about the relationship of any of the parties I am available to discuss at your convenience.

Yours truly,

Henry A. Miller

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