Phelps Dodge Corporation

Four Phelps Dodge Sites Achieve 1 Million Hours or More Without a Recordable Injury

March 31, 2005

PHOENIX – Four facilities of Phelps Dodge Corp. (NYSE: PD) are the first recipients of the company’s Million Zero Hours Award for operating 1 million consecutive employee hours or more without a recordable injury.

The four sites – three in South America and one in Africa – are being recognized for achieving zero recordable injuries for nearly 5 million hours combined, said J. Steven Whisler, chairman and chief executive officer.

“These safety successes are a first step toward our corporate goal of achieving and sustaining zero injuries in all our locations,” said Whisler. “We believe we have a moral obligation to send all our workers home without injury each day and to encourage them to be safe both on and off the job. The goal of every Phelps Dodge employee is zero injuries each and every day, and we are firmly committed to attaining this goal.”

The four sites being recognized with the Million Zero Hours Award are:

The Candelaria mine near Copiapo, Chile, which went injury-free for 1.47 million consecutive employee hours from March to November 2004.

The Wire and Cable manufacturing facility in Pocos de Caldas, Brazil, which went injury-free for 1.09 million hours from October 2003 to December 2004.

The Wire and Cable manufacturing operations in Venezuela, which went injury-free for 1.31 million hours from March 2003 to January 2005.

The Wire and Cable manufacturing facility in Luanshya, Zambia, which went injury-free for 1.08 million hours from October 2003 to January 2005.

Phelps Dodge launched its Zero and Beyond safety initiative in 1997 with a goal of achieving and sustaining zero safety incidents, zero injuries, zero fatalities and zero job-related illnesses. The initiative encourages employees to take safety awareness beyond the workplace into their homes and communities.

Phelps Dodge Corp. is one of the world’s leading producers of copper and molybdenum, the largest producer of molybdenum-based chemicals and continuous-cast copper rod, and among the leading producers of magnet wire and carbon black. The company and its two divisions, Phelps Dodge Mining Co. and Phelps Dodge Industries, employ more than 14,000 people worldwide.