SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 11-K

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(Mark One)

[x]		ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2002

OR

[ ]		TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from          to

Commission file number 1-82

PHELPS DODGE EMPLOYEE SAVINGS PLAN

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PHELPS DODGE CORPORATION

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One North Central Avenue
Phoenix, Arizona 85004-4416

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SIGNATURES

The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the Committee has duly caused this Annual Report to be signed by the undersigned hereunto duly authorized.

		PHELPS DODGE EMPLOYEE SAVINGS PLAN

Date: June 30, 2003		By:		/s/David L. Pulatie
				David L. Pulatie, Chairman
				Benefits Administration Committee

 

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Phelps Dodge Employee Savings Plan
Index
December 31, 2002 and 2001

		Page
Report of Independent Auditors			1
Statement of Net Assets Available for Benefits			2
Statement of Changes in Net Assets Available for Benefits			3
Notes to Financial Statements			4
Supplemental Information:*
I.     Schedule of Assets (Held at End of Year)			12

*

Other schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under ERISA have been omitted because they are not applicable

 

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Report of Independent Auditors

To the Benefits Administration Committee and Participants
of the Phelps Dodge Employee Savings Plan

In our opinion, the accompanying statement of net assets available for benefits and the related statement of changes in net assets available for benefits present fairly, in all material respects, the net assets available for benefits of the Phelps Dodge Employee Savings Plan at December 31, 2002 and 2001, and the changes in net assets available for benefits for the year ended December 31, 2002 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Benefits Administration Committee (the Committee); our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by the Committee, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

As described in Note 2 to the financial statements, the Plan restated its net assets available for benefits as of December 31, 2001.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets (held at end of year) is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedule is the responsibility of the Committee. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/PricewaterhouseCoopers LLP
Phoenix, Arizona
June 25, 2003

 

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Phelps Dodge Employee Savings Plan
Statement of Net Assets Available for Benefits
December 31, 2002 and 2001
(in thousands)

		2002				2001
						As Restated*
Assets
Investments		$	409,858			$	462,362
Employee contributions receivable			243				—
Employer contributions receivable			499				474
Employer profit sharing contribution receivable			4,067				4,067
Interest receivable			361				94
Net assets available for benefits		$	415,028			$	466,997

*

Refer to Note 2, Restatement of Net Assets Available for Benefits.

The accompanying notes are an integral part of these financial statements.

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Phelps Dodge Employee Savings Plan
Statement of Changes in Net Assets Available for Benefits
For the Year Ended December 31, 2002
(in thousands)

Additions to net assets attributed to:
	Investment income (loss):
		Net depreciation in fair value of investments		$	(59,079	)
		Interest and dividends			11,374
					(47,705	)
Contributions:
	Employer contributions				11,160
	Participant contributions				24,543
					35,703
		Total additions, net			(12,002	)
Deductions from net assets attributed to:
	Distributions to participants and beneficiaries				41,677
	Administrative expenses				420
		Total deductions			42,097
Funds transferred in from affiliated plans (see Note 1)					2,130
Decrease in net assets					(51,969	)
Net assets available for benefits at December 31, 2001 (as restated)*					466,997
Net assets available for benefits at December 31, 2002				$	415,028

*

Refer to Note 2, Restatement of Net Assets Available for Benefits.

The accompanying notes are an integral part of these financial statements.

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Phelps Dodge Employee Savings Plan
Notes to Financial Statements

1.		Description of Plan
		General
		The Phelps Dodge Employee Savings Plan (the Plan) is a defined contribution plan established for the benefit of eligible hourly and salaried employees (the Participants) of Phelps Dodge Corporation (the Corporation). The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). A brief description of the Plan is included in the following paragraphs. Participants should refer to the Plan document for a complete description of Plan provisions.
		Effective July 1, 2002, assets in the Columbian Chemicals Company Hourly Employees Savings Plan applicable to Participants at the Hickok, Kansas facility, in the amount of $1,374,000, were transferred into the Plan. Additionally, assets in the Cobre Mining Company 401(k) Plan, in the amount of $756,000, were transferred into the Plan.
		Administration
		The Plan is sponsored by the Corporation and administered by the Benefits Administration Committee (the Committee) composed of five employees of the Corporation who are appointed by the Corporation’s Board of Directors.
		Plan assets are held by a trust (the Trust) administered by UMB Bank, n.a. (the Trustee) and J.P. Morgan/American Century Retirement Plan Services serves as the Recordkeeper of the Trust.
		Administrative expenses are paid by the Corporation, and all other fees and expenses are paid by the Trust. The Trust’s fees and expenses primarily relate to the administration of the Plan’s benefit-responsive guaranteed investment contracts.
		Contributions
		Beginning January 1, 2002, Participants are eligible to make pretax contributions (Pretax Contributions), subject to certain limitations, equal to 1 percent to 100 percent of their eligible pay. Also, Participants 50 years or older may be eligible to make additional Pretax Contributions, which are eligible for a matching contribution from the Corporation (Company Matching Contribution). The Company Matching Contribution is equal to 100 percent of the first 3 percent of eligible pay deferred and 50 percent of the next 2 percent of eligible pay deferred. Participants are eligible to make Pretax Contributions to the Plan immediately upon hire date, and those Pretax Contributions are eligible for the Company Matching Contribution. All contributions are invested in one or more of the investment funds available within the Plan as directed by Participants. Participants are fully vested in their total account balances.
		A profit sharing contribution for certain Participants may be made by the Corporation (Company Profit Sharing Contribution). The Company Profit Sharing Contribution is limited to the lesser of:

	•		6 percent; or
	•		8 percent of consolidated net income of the Corporation divided by aggregate eligible Participants pay; or
	•		4 percent of consolidated net income divided by the aggregate eligible pay of exempt salaried Participants;
	multiplied by the total eligible pay of all Participants.

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Phelps Dodge Employee Savings Plan
Notes to Financial Statements

1.		Description of Plan (Continued)
		Company Profit Sharing Contributions can be made only to the extent that they do not reduce the Corporation’s consolidated net income below $0.50 per common share for such year after provision for payment of preferred and preference share dividends. A profit sharing contribution was not required in 2002.
		Distributions
		Participants’ interests in the Trust become distributable upon severance from the Corporation or to their beneficiaries in the event of their death or upon attaining age 59 1/2. The distribution may be made in a single lump sum or a series of substantially equal annual, quarterly or monthly cash installments beginning no earlier than age 55 and continuing over a period not to exceed 10 years, at the election of the Participant or beneficiary. Cash distributions are based upon the underlying closing price of the funds, except for Phelps Dodge Common Stock, Occidental Petroleum Stock or BP Amoco Stock, which are based upon the actual price at which the stock is liquidated in the market three days prior to distribution. Distributions of the Phelps Dodge Common Stock, Occidental Petroleum Common Stock and BP Amoco Common Stock may also be made in shares.
		Participants may withdraw their after-tax contributions and earnings thereon at any time. The Plan also provides, with certain limitations, for hardship withdrawals of employee Pretax, Company Matching and Company Profit Sharing Contributions; however, earnings on any of these contributions are ineligible for hardship withdrawal. Hardship withdrawals are not granted unless other financial resources are not reasonably available, including after-tax savings or a loan from the Plan. All withdrawals and distributions are made in accordance with procedures outlined in the Plan document.
		Investment Options
		Participants may invest their Pretax Contributions in one or more of the following investment options:
		Interest Income Fund – This fund is invested in bonds combined with stable value investment contracts, guaranteed investment contracts, bonds issued by the U.S. government, high quality corporate bonds and money market instruments. Its investment objective is to provide security of principal and a stable, consistent rate of return higher than money market rates.
		Enhanced Index Fund – This fund invests in stocks, targeting a range of large U.S. companies, such as those in the S&P 500 Index, which are representative of the U.S. stock market. The fund seeks to invest in approximately 350 of the most attractive stocks within that range. Its investment objective is to outperform the S&P 500 Index.
		American Century Income and Growth Fund – This fund invests in common stocks, targeting those with a higher expected dividend yield and higher overall return potential than the S&P 500. It typically invests in larger-sized companies. Its investment objective is dividend growth, current income and capital appreciation, as well as a total return and dividend yield that exceeds that of the S&P 500.

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Phelps Dodge Employee Savings Plan
Notes to Financial Statements

1.		Description of Plan (Continued)
		American Century Equity Growth Fund – This fund invests in common stocks, targeting stocks that are believed to have higher overall return potential than the S&P 500. It typically invests in larger-sized companies, although it may own stock in smaller companies. Its investment objective is capital appreciation, as well as a total return that exceeds the S&P 500.
		T. Rowe Price Small Cap Stock Fund – This fund invests in a portfolio of small and medium company stocks. Its investment objective is long-term growth of capital.
		American Funds Group EuroPacific Growth Fund – This fund invests in the stocks of non-U.S. companies, which appear to offer above-average growth potential. Holdings range from small firms to multinational corporations located in major world markets, as well as in smaller, developing countries. Its investment objective is long-term growth of capital.
		Conservative Investment Portfolio Fund – This portfolio is invested primarily in an interest income fund (60 percent), with the remainder invested in a mix of stock funds (40 percent). Its investment objective is to provide modest returns by investing in a diversified mix of funds that emphasizes income-related investments with some potential for growth.
		Moderate Investment Portfolio Fund – This portfolio is invested primarily in stock funds (60 percent), emphasizing growth and income investments, with the remainder invested in an interest income fund (40 percent). Its investment objective is to provide a balance of moderate returns with moderate volatility by investing in a diversified mix of funds that emphasizes both growth and income-related investments.
		Aggressive Investment Portfolio Fund – This portfolio is invested primarily in stock funds (80 percent), emphasizing growth-related investments, with the remainder invested in an interest income fund (20 percent). Its investment objective is to provide high returns by investing in a diversified mix of funds that emphasizes growth-related investments.
		Phelps Dodge Common Stock Fund – This fund is invested exclusively in common stock of the Corporation. Its investment objective is capital appreciation and long-term growth. There may be higher fluctuations in value than in other funds because returns are based on the performance of the stock of only one company. The Trustee will purchase the Corporation’s Common Stock either in the open market or by private purchase, at such prices, in such amounts and at such times as the Trustee may determine in its discretion. No private purchase of the Corporation’s Common Stock will be made from any employee or director of the Corporation.
		Self-Directed Brokerage Account – Participants can transfer funds from the foregoing accounts to a wide range of investments, which includes mutual funds, stocks, certificates of deposit and bonds through Charles Schwab and Co., Inc. Participants are responsible for fees incurred in the self-directed brokerage account.

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Phelps Dodge Employee Savings Plan
Notes to Financial Statements

1.		Description of Plan (Continued)
		Loans
		Participants may borrow from their account balances as provided in the Plan. Loans are repayable over a maximum of 5 years with the exception of loans for the purchase of a primary residence that may extend to 15 years. The maximum loan amount is equal to $50,000 minus the Participant’s highest outstanding loan balance during the past 12 months, limited to 50 percent of the Participant’s vested account balance. Loans bear the prime interest rate as quoted in the Wall Street Journal plus 2 percent as of the first of each month. The prime rate at December 31, 2002, was 4.25 percent.
		Loans are repaid by payroll deduction and interest is credited to the Participant’s accounts. Loans are secured by the Participant’s previous contributions to the Plan.
		Plan Termination
		The Plan may be amended or terminated at any time by the Corporation. No such action may cause any portion of the Trust to revert to the Corporation or to be used or diverted for any purpose other than for the exclusive benefit of Participants or their beneficiaries.
2.		Restatement of Net Assets Available for Benefits
		During 2002, the Corporation identified certain accounting matters related to its consolidated financial statements for years prior to 2002 that required restatement. The restatement adjustments applicable to 2000 required the Corporation to make a profit sharing contribution of $4,067,000 to the Plan in 2003. The restatement adjustments did not impact profit sharing contributions to the Plan applicable to other years.
		The Plan’s net assets available for benefits as of December 31, 2001, have been restated to reflect the 2000 profit sharing contribution and interest income earned on the related employer contribution receivable through that date as follows (in thousands):

Net assets available for benefits
	Balance, December 31, 2001 (as originally reported)		$	462,836
	2000 profit sharing contribution			4,067
	Interest on related employer contribution receivable			94
	Balance, December 31, 2001 (as restated)			466,997

		The Corporation made the required profit sharing contribution and related interest income to the Plan in June 2003.
3.		Summary of Significant Accounting Policies
		Basis of Presentation
		The accompanying financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America.

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Phelps Dodge Employee Savings Plan
Notes to Financial Statements

3.		Summary of Significant Accounting Policies (Continued)
		Use of Estimates
		The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of net assets and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of additions to and deductions from net assets during the reporting period. Actual results could differ from those estimates.
		Investment Valuation and Income Recognition
		Plan investments, other than benefit-responsive guaranteed investment contracts (GICs), are presented at fair value. The fair values of common stock, mutual funds and common/collective fund shares are based upon the closing market price on the valuation date. GICs are recorded at contract value and are based upon the respective face values plus accrued interest on the valuation date. Participant loans are valued at cost, which approximates fair value.
		Security transactions are recorded on a trade date basis. Expenses paid by the Plan in connection with such transactions include brokerage commissions and taxes that are included in the cost of securities purchased and deducted from the proceeds of securities sold. Net appreciation (depreciation) in the fair value of the Plan’s investments consists of the realized gains (losses) and the unrealized appreciation (depreciation) on those investments. Dividend income is recognized on the ex-dividend date. Interest income is recognized as earned. Employer and Participant contributions are recognized on the accrual basis.
		Risks and Uncertainties
		Investments held by the Plan are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in risks in the near term would materially affect Participants’ account balances and the amounts reported in the Statement of Net Assets Available for Benefits and the Statement of Changes in Net Assets Available for Benefits.
		Payment of Benefits
		Benefits are recorded when paid.

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Phelps Dodge Employee Savings Plan
Notes to Financial Statements

4.		Investments
		The following table presents investments that represent 5 percent or more of the Plan’s net assets at December 31:

		2002				2001
		(in thousands)
J.P. Morgan Interest Income Fund		$	79,969			$	70,499
American Century Equity Growth Fund			47,931				63,229
American Century Income & Growth Fund			38,773				50,547
Moderate Investment Portfolio Fund			49,861				57,439
Aggressive Investment Portfolio Fund			32,453				36,839
J.P. Morgan Enhanced Index Fund			26,782				34,855
Schwab Personal Choice Retirement Fund			20,645				28,401
Phelps Dodge Common Stock Fund			46,854				50,642
Participant Loans			22,503				23,803

Certain of the investments in the preceding table include GICs, which are carried at contract value. Such amounts as of December 31 were as follows:

		2002				2001
		(in thousands)
J.P. Morgan Interest Income Fund		$	78,252			$	68,856
Moderate Investment Portfolio Fund			20,088				22,670
Aggressive Investment Portfolio Fund			6,553				7,238

During 2002, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) depreciated in value as follows (in thousands):

Mutual funds		$	(41,870	)
Common/collective funds			(14,112	)
Common stock			(3,097	)
		$	(59,079	)

During 2002 and 2001, the J.P. Morgan Interest Income Fund and the Portfolio Funds had investments in benefit-responsive GICs. The GICs were credited with earnings on the underlying investments and charged for participant withdrawals and administration expenses. Participants may ordinarily direct the withdrawal or transfer of all or a portion of their investment at contract value. These GICs totaled $112,634,000 at December 31, 2002 and $106,635,000 at December 31, 2001.

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Phelps Dodge Employee Savings Plan
Notes to Financial Statements

4.		Investments (Continued)
		A reconciliation of the fair market value of investments in these contracts and the related contract value as reflected in the accompanying Statement of Net Assets Available for Benefits were as follows:

		December 31,
		2002				2001
		(in thousands)
Fair market value of investments		$	117,958			$	108,650
Synthetic wrapper value			(5,324	)			(2,015	)
Carrying value (contract value)		$	112,634			$	106,635

		There were no reserves against contract value for credit risk of the contract issuer or otherwise at December 31, 2002 or 2001. The average yield and crediting interest rates were approximately 6.43 percent and 6.37 percent for 2002 and 2001, respectively. The crediting interest rates are based on a formula agreed upon by the issuers. Such interest rates are reviewed on a quarterly basis for resetting.
5.		Related Party Transactions
		The Trustee invests in the Corporation’s common stock in accordance with the provisions of the Plan. The following is a summary of transactions in the Corporation’s common stock during 2002 (in thousands):

Cost of shares purchased		$	9,839
Number of shares purchased			292
Proceeds from shares sold		$	10,753
Number of shares sold			330
Value of shares distributed		$	2,405
Number of shares distributed			49

		Certain Plan investments are shares of mutual funds and common/collective trusts managed by American Century Investments and J.P. Morgan Investment Management while an affiliated company, J.P. Morgan/American Century Retirement Plan Services, is the Recordkeeper as defined by the Plan and, therefore, these transactions qualify as party-in-interest.
6.		Tax Status
		The Plan received a determination letter from the Internal Revenue Service (IRS) dated October 16, 2002, which states that the Plan met the requirements of Section 401(a) of the Internal Revenue Code and that the earnings of the Trust are exempt from taxation under Section 501(a) of the Code. The Plan has been amended since receiving the determination letter, however, the Committee believes that the Plan, as amended and as operated, continues to satisfy IRS requirements for tax exemption.

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Phelps Dodge Employee Savings Plan
Notes to Financial Statements

7.		Reconciliation of the Financial Statements to the Form 5500
		The Plan intends to record the profit sharing contribution and related interest income described in Note 2 in its Form 5500 to be filed with the IRS for the year ended December 31, 2003.
		The following table presents a reconciliation of the Plan’s net assets available for benefits from the financial statements to the Form 5500 for the year ended December 31, 2002:

		December 31,
		2002				2001
		(in thousands)
Net assets available for benefits per the financial statements		$	415,028			$	466,997
Profit sharing contribution receivable			(4,067	)			(4,067	)
Interest receivable on related employer profit sharing contribution			(361	)			(94	)
Net assets available for benefits per the Form 5500		$	410,600			$	462,836

The following table presents a reconciliation of the Plan’s changes in net assets available for benefits from the financial statements to the Form 5500 for the year ended December 31, 2002:

		Year Ended
		December 31,
		2002
		(in thousands)
Decrease in net assets per the financial statements		$	(51,969	)
Interest earned on employer profit sharing contribution receivable			(267	)
Decrease in net assets per the Form 5500		$	(52,236	)

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Phelps Dodge Employee Savings Plan		Supplemental Information
Schedule of Assets (Held at End of Year)		Schedule I
December 31, 2002

(c) Description of

investment including

maturity date, rate of

interest, collateral,

(d)

par or maturity value,

Cost

(e) Current

(a)

(b) Identity of issue, borrower, lessor or similar party

or number of shares

**

Value

Cash and Short-Term Investments:

Cash

—

$

69,193

Guaranty Bank, F. C.D. 2.10% due 5/13/03

28,000

28,000

Guaranty Bank, S. C.D. 2.05% due 1/13/03

16,000

16,000

Schwab Money Market Fund

91,021

91,021

Schwab U.S. Treasury Money Fund

3,040,723

3,040,723

*

UMB Scout Prime

5,607

5,607

U.S. Treasury Note 2.875% Due 6/30/04

300,000

306,630

Total Cash and Short-Term Investments

3,557,174

Common/Collective Funds:

*

J.P. Morgan U.S. Smart Index Fund

3,189,108 shares

49,533,078

*

J.P. Morgan Liquidity Fund

2,354,175 shares

2,354,175

*

J.P. Morgan Public Bonds Fund

4,445,599 shares

76,642,129

*

J.P. Morgan Mortgage Private Placement Fund

1,667,507 shares

32,616,442

*

J.P. Morgan Corporate High Yield Opportunity Fund

93,276 shares

898,248

*

J.P. Morgan Public Mortgage Fund

345,938 shares

5,915,546

*

J.P. Morgan Emerging Market Opportunity Fund

75,508 shares

940,832

Total Common/Collective Funds

168,900,450

Common Stocks:

ACTV Inc

85 shares

59

ADC Telecommunications Inc

225 shares

470

AM Communications Inc

2,000 shares

560

AMF Bowling Inc

800 shares

16

AO Tatneft Spon ADR

500 shares

7,565

AOL Time Warner, Inc

683 shares

8,947

API Electronics Group

1,000 shares

870

AT&T Corporation

528 shares

13,786

AT&T Wireless

1,405 shares

7,938

Aastrom Biosciences Inc

2,700 shares

1,269

Aber Diamond Corporation

400 shares

7,832

Aberdeen Asia Pac Income

2,439 shares

11,267

Access Power Inc

250 shares

1

Ace Communications Corporation

100 shares

105

Abode Systems Inc

250 shares

6,212

Advanced Digital Information Corporation

100 shares

671

Advanced Micro Devices

2,044 shares

13,204

Advanced Viral Research

1,300 shares

104

Aeroflex Inc

1,000 shares

6,900

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Phelps Dodge Employee Savings Plan		Supplemental Information
Schedule of Assets (Held at End of Year)		Schedule I
December 31, 2002

(c) Description of

investment including

maturity date, rate of

interest, collateral,

(d)

par or maturity value,

Cost

(e) Current

(a)

(b) Identity of issue, borrower, lessor or similar party

or number of shares

**

Value

Common Stocks: (Continued)

Affymetrix Inc

270 shares

$

6,180

Agere Systems Inc Class A

223 shares

321

Agere Systems Inc Class B

5,720 shares

8,008

Agnico-Eagle Mines Limited

400 shares

5,944

Airlease Ltd. Depository Units

165 shares

118

Alcoa Inc

302 shares

6,873

Allied Motions Technologies, Inc

3,000 shares

5,310

Amazon.Com Inc

128 shares

2,418

America West Holdings Corporation Class B

5,200 shares

9,360

American Aircarriers Support Incorporated

320 shares

1

American Express Company

200 shares

7,070

American Tower Corporation Class A

2,465 shares

8,701

America’s Senior Financial Services, Inc.

5,000 shares

500

Amgen Incorporated

900 shares

43,506

Anadigics Inc

100 shares

258

Analog Devices Inc

125 shares

2,984

Anglo American PLC ADR

513 shares

7,490

Anheuser Busch Company Inc

225 shares

10,909

APAC Customer Services, Inc

500 shares

1,170

Applebee’s International, Inc

22 shares

512

Applera Celera Genomics

172 shares

1,642

Applied Digital Solution

400 shares

164

Applied Materials Inc

1,745 shares

22,737

Applied Micro Circuits

15,672 shares

57,829

Aquila, Inc

111 shares

196

Arch Coal Inc

75 shares

1,619

Ariba Inc

6,500 shares

16,120

Armor Holdings, Inc

165 shares

2,272

Astralis Ltd.

2,000 shares

720

Atmel Corporation

1,200 shares

2,676

Atmos Energy Corporation

300 shares

6,996

Audiovox Corporation Class A

150 shares

1,551

Aurora Platinum Corporation

1,000 shares

2,360

Avaya Inc

127 shares

311

Avici System Inc

7 shares

25

Axia Group Inc

500 shares

15

BMC Software Inc

250 shares

4,277

BP PLC ADR

620 shares

25,203

BP Amoco Corporation (BP PLC)

23,724 shares

964,386

BP Prudhoe Bay Royalty Trust

465 shares

6,863

Ballard Power Systems

55 shares

609

Beazer Homes USA Inc

133 shares

8,060

Bed Bath & Beyond Inc

2 shares

69

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Phelps Dodge Employee Savings Plan		Supplemental Information
Schedule of Assets (Held at End of Year)		Schedule I
December 31, 2002

(c) Description of

investment including

maturity date, rate of

interest, collateral,

(d)

par or maturity value,

Cost

(e) Current

(a)

(b) Identity of issue, borrower, lessor or similar party

or number of shares

**

Value

Common Stocks: (Continued)

Bell Microproducts Inc

1,000 shares

$

5,540

Bema Gold Corporation

1,000 shares

1,300

Benguet Corporation Class B

1,000 shares

200

Berkshire Hathaway Class B

8 shares

19,384

Bico Inc

9,000 shares

5

Bindview Development Corporation

200 shares

288

Biogen Inc

200 shares

8,012

Biomerica Inc

100 shares

21

Biopure Corporation Class A

25 shares

93

Block H&R Incorporated

100 shares

4,020

Boeing Company

265 shares

8,737

Bombardier Inc Cv Class B

200 shares

672

Bradley Pharmaceuticals Inc

500 shares

6,515

Brigham Exploration Company

200 shares

984

Brio Software Inc

563 shares

872

Bristol-Myers Squibb Co

177 shares

4,103

Broadcom Corporation Class A

103 shares

1,551

Broadvision Inc

53 shares

181

Brocade Communications Systems Inc

200 shares

828

CBRL Group Inc

25 shares

757

CMGI Inc

1,175 shares

1,152

CTS Corporation

102 shares

791

Cal Bay International Inc

2,500 shares

400

Caldera International

87 shares

126

Caliper Technologies CP

30 shares

90

Calpine Corporation

7,429 shares

24,218

Cambior Inc

1,000 shares

1,430

Cardiac Science Inc

1,110 shares

2,453

Cardstakes.com

84 shares

1

Catalyst Semiconductor Inc

2,100 shares

5,292

Caterpillar Inc

.1 share

3

Cendant Corporation

2,050 shares

21,484

Charles Schwab Corporation

154 shares

1,670

Charter Communications

445 shares

525

Check Point Software Technologies

975 shares

12,646

Checkfree Corporation

40 shares

640

Chesapeake Energy Corporation

50 shares

387

Chippac Inc

4,700 shares

16,685

Ciena Corporation

3,412 shares

17,537

Cigna Corporation

41 shares

1,682

Cirrus Logic Inc

100 shares

288

Cisco Systems Inc

20,562 shares

269,362

Citigroup Inc

943 shares

33,191

- 14 -

---

 

Phelps Dodge Employee Savings Plan		Supplemental Information
Schedule of Assets (Held at End of Year)		Schedule I
December 31, 2002

(c) Description of

investment including

maturity date, rate of

interest, collateral,

(d)

par or maturity value,

Cost

(e) Current

(a)

(b) Identity of issue, borrower, lessor or similar party

or number of shares

**

Value

Common Stocks: (Continued)

Citrix Systems Inc

800 shares

$

9,856

Clarent Corporation

500 shares

1

Coca Cola Company

10 shares

453

Cognizant Technology Solutions Class A

25 shares

1,806

Coherent Inc

50 shares

997

Comcast Corporation Class A

854 shares

20,129

Commerce One Inc

1 share

3

Concur Technologies Inc

4,500 shares

14,625

Conexant Systems Inc

263 shares

423

ConocoPhillips

51 shares

2,459

Constellation 3D Inc

200 shares

2

Coral Gold Corporation

10,000 shares

4,100

Corbel Holdings Inc

2,552 shares

1

Cordiant Communications Group ADRF

100 shares

275

Corgenix Medical Corporation

117 shares

64

Corinthian Colleges Inc

50 shares

1,893

Corning Inc

1,306 shares

4,322

Corvis Corporation

5,500 shares

3,905

Cross Media Marketing

27 shares

15

Cryolife Inc

285 shares

1,946

CyberCare Inc

50 shares

2

Cygnus Inc

8,300 shares

5,478

Cytogenix Inc

2,000 shares

200

DPL Inc

102 shares

1,558

DR Horton Corporation

1 share

4

Decorize Inc

400 shares

448

Dell Computer Corporation

350 shares

9,359

Deswell Industries Inc

75 shares

1,087

Detour Media Group

1,000 shares

1

Digital Lightwave Inc

20 shares

25

Dippy Foods Inc

2,000 shares

1

Disney, Walt Holding Company

758 shares

12,359

Diversa Corporation

155 shares

1,403

Divine Inc Class A

22,332 shares

31,265

Dollar General Corporation

37 shares

442

Dow Chemical Company

100 shares

2,970

Drkoop.com Inc

280 shares

1

Du Pont E I De Nemour & Company

149 shares

6,325

Duke Energy Corporation

303 shares

5,913

Durban Rdpt Dp ADR F

4,260 shares

17,253

Dynasil Corporation America

2,000 shares

280

Dynegy Inc Class A

1,101 shares

1,299

E-Com Technologies Corporation

20,300 shares

304

- 15 -

---

 

Phelps Dodge Employee Savings Plan		Supplemental Information
Schedule of Assets (Held at End of Year)		Schedule I
December 31, 2002

(c) Description of

investment including

maturity date, rate of

interest, collateral,

(d)

par or maturity value,

Cost

(e) Current

(a)

(b) Identity of issue, borrower, lessor or similar party

or number of shares

**

Value

Common Stocks: (Continued)

E Digital Corporation

2,551 shares

$

484

8X8 Inc

14 shares

3

EMC Corporation

4,608 shares

28,293

E.Spire Communications Inc

19,500 shares

4

EchoStar Communications Corporation Class A

150 shares

3,339

El Paso Corporation

207 shares

1,440

Elan Corp PLC Spon ADR F

400 shares

984

Elan Corporation PLC 05 Wts

5,000 shares

500

Elcom International Inc

500 shares

110

Electric City Corp

1,000 shares

770

Emerson Electric Company

200 shares

10,170

Empire Energy CL B VTG

500 shares

1

Empire Exhangeco Service A

500 shares

1

Emulex Corporation

250 shares

4,637

Endwave Corporation

25 shares

24

Energizer Holding Inc

91 shares

2,539

Energy Conversion Devices Inc

100 shares

980

Enerplus Res Fund

100 shares

1,775

Enron Corporation

3,316 shares

206

Enviro-Energy Corporation

51,000 shares

1,581

Ericsson Tel Adr B

402 shares

2,709

Eroom System Tech Inc

1,385 shares

251

E-Trade Group Inc

400 shares

1,944

EuroTech Ltd

1,500 shares

315

Evolve One Inc

19,500 shares

23

EXFO Electro-Optical Engineering Inc

198 shares

525

Exxon Mobil Corporation

1,288 shares

44,993

Ezenia Inc

77,600 shares

10,088

F2 Broadcast Network

62 shares

1

Famous Fixins Inc

400 shares

2

Federal-Mogul Corporation

100 shares

22

Fedex Corporation

40 shares

2,169

Finova Group Inc

507 shares

81

First Capital International Inc

2,650 shares

265

Fleetboston Financial CP

100 shares

2,430

Flextronics International Ltd

200 shares

1,638

Fly Networks

230 shares

2

Fonix Corporation

2,000 shares

80

Ford Motor Company

532 shares

4,949

Fortune Brands Inc

115 shares

5,352

Foundry Networks Inc

100 shares

704

4 Kids Entertainment Inc

500 shares

11,040

Freemarkets Inc

540 shares

3,477

- 16 -

---

 

Phelps Dodge Employee Savings Plan		Supplemental Information
Schedule of Assets (Held at End of Year)		Schedule I
December 31, 2002

(c) Description of

investment including

maturity date, rate of

interest, collateral,

(d)

par or maturity value,

Cost

(e) Current

(a)

(b) Identity of issue, borrower, lessor or similar party

or number of shares

**

Value

Common Stocks: (Continued)

Fresh Del Monte Produce Inc

103 shares

$

1,948

Frontier Airlines

350 shares

2,366

Fuelcell Energy Inc

352 shares

2,306

GSI Commerce Inc

94 shares

343

GYK Ventures Inc

200 shares

176

Gabelli Equity Trust Inc

1,224 shares

8,384

Galtech Semiconductor Material

175,000 shares

3,500

Gap Inc

152 shares

2,366

Gart Sports Company

200 shares

3,870

Gemstar TV Guide International

375 shares

1,219

Genentech Inc

30 shares

995

General Chemical Group Inc

200 shares

124

General Electric Company

8,044 shares

195,872

General Motors Corp

31 shares

1,142

Genome Therapeutics Corporation

500 shares

775

Genta Inc

1,596 shares

12,273

Glamis Gold Ltd

1,950 shares

22,113

Global Bancorp Inc

5 shares

1

Global Crossing Ltd

11,855 shares

213

Global Escience Corporation

260 shares

3

Globalstar Telecom Ord

1,489 shares

77

Globespan Virata Inc

51 shares

225

GoAmerica Inc

175 shares

51

Gold Fields Ltd

750 shares

10,470

Goldcorp Inc

2,050 shares

26,076

Golden Eagle International Inc

10,000 shares

2,650

Goldman Sachs Group Inc

102 shares

6,950

Goodyear Tire & Rubber

500 shares

3,405

Great Basin Gold Ltd F

1,900 shares

2,432

Guidant Corporation

500 shares

15,425

H Power Corporation

180 shares

689

Handspring Inc

6,000 shares

5,700

Hanger Orthopedic Group

80 shares

1,052

Harley Davidson Inc

532 shares

24,580

Harrah’s Entertainment Inc

20 shares

792

Harvard Bioscience Inc

100 shares

330

Harvest Natural Resources Inc

500 shares

3,225

Healthcare Services Group Inc

30 shares

391

Healthsouth Corporation

1,000 shares

4,200

Heilig-Meyers Company

100 shares

1

Hewlett-Packard Company

3,623 shares

62,896

HI/FN Inc

100 shares

578

Hitachi Ltd Adr

150 shares

5,587

- 17 -

---

 

Phelps Dodge Employee Savings Plan		Supplemental Information
Schedule of Assets (Held at End of Year)		Schedule I
December 31, 2002

(c) Description of

investment including

maturity date, rate of

interest, collateral,

(d)

par or maturity value,

Cost

(e) Current

(a)

(b) Identity of issue, borrower, lessor or similar party

or number of shares

**

Value

Common Stocks: (Continued)

Home Depot Inc

1,613 shares

$

38,654

Home Fing Centers Inc

5 shares

1

Honda Motor Co Ltd

150 shares

2,709

House2Home Inc

1,000 shares

1

Huaneng Power International Adr

300 shares

9,669

Hurry Inc Class A

5,000 shares

300

Hyseq Inc

1,900 shares

1,653

I2 Technologies Inc

1,712 shares

1,969

iAsiaworks Inc

35,000 shares

175

iBeam Broadcasting

150 shares

1

iGo Corporation

265 shares

1

iJoin Systems Inc

10,000 shares

1

iPet Holdings Inc

100 shares

1

iShares MSCI JPN IDX FDF

790 shares

5,490

iShares MSCI EMU INDX FD

275 shares

11,962

iShares Trust S&P 500

254 shares

22,440

iShares TR S&P Small Cap

307 shares

29,917

iShares TR DJ US Energy

295 shares

11,613

iShares TR Dow Jones Re

196 shares

15,151

iTrack Inc

200 shares

24

Identix Inc

134 shares

690

Imclone Systems Inc

40 shares

425

Immulabs Corporation

1 share

1

Immunogen Inc

3,900 shares

12,090

Impath Inc

700 shares

13,804

Indo Pacific Energy

110 shares

90

Infonet Services Corporation

152 shares

301

Infonow Corporation

17,311 shares

26,832

Infospace Inc

175 shares

1,479

Inhale Therapeutic Systems Inc

450 shares

3,636

Inktomi Corporation

37,925 shares

60,680

Insight Enterprises Inc

807 shares

6,706

Integrated Device Technology Inc

200 shares

1,674

Intel Corporation

10,833 shares

168,673

Interamerican Res Inc

999 shares

1

Interliant Inc

100 shares

2

International Business Machines

120 shares

9,335

International FiberCom Inc

2,000 shares

1

International Rectifier Corporation

300 shares

5,538

Internet Business

60 shares

1

Intuit Inc

50 shares

2,346

Island Critical Care Corp.

19,500 shares

29

Itronics Inc

1,000 shares

98

- 18 -

---

 

Phelps Dodge Employee Savings Plan		Supplemental Information
Schedule of Assets (Held at End of Year)		Schedule I
December 31, 2002

(c) Description of

investment including

maturity date, rate of

interest, collateral,

(d)

par or maturity value,

Cost

(e) Current

(a)

(b) Identity of issue, borrower, lessor or similar party

or number of shares

**

Value

Common Stocks: (Continued)

ITS Network Inc

500 shares

$

225

Ivax Corporation

25 shares

303

J M Smucker Company

4 shares

159

*

J.P. Morgan Chase & Company

962 shares

23,095

Jabil Circuit Inc

120 shares

2,150

Jawz Inc

150 shares

1

JDS Uniphase Corporation

2,881 shares

7,116

JNI Corporation

356 shares

986

Johnson & Johnson

504 shares

27,059

Juniper Networks Inc

812 shares

5,522

K Mart Corporation

10,459 shares

2,092

Kemet Corporation

125 shares

1,092

Kinder Morgan Energy LP

599 shares

20,970

Kinross Gold Corporation

763 shares

1,869

Kirshner International Inc

840 shares

17

Knight Trading Group

30 shares

144

Koninklijke Philips Electronics NV

550 shares

9,724

Krispy Kreme Doughnut Corporation

85 shares

2,870

Kushner-Locke Company

2,200 shares

1

LTWC Corporation

474 shares

28

LAM Pharmaceutical Corporation

478 shares

134

Lancaster Colony Corporation

50 shares

1,954

Liberty Satellite & Tech Class A

105 shares

278

Lifecore Biomedical Inc

20 shares

172

Loch Harris Inc

4,000 shares

44

Loral Space & Communications Ltd

1,350 shares

580

Lowes Companies Inc

910 shares

34,128

LSI Logic Corporation

1,310 shares

7,559

Lucent Technologies Inc

23,905 shares

30,120

Luminex Corporation

500 shares

2,055

MRV Communications Inc

2,000 shares

2,140

Macromedia Inc

206 shares

2,194

Macrovision Corporation

500 shares

8,020

Manpower Inc

20 shares

638

MarchFirst Inc

400 shares

1

Marex Inc

50 shares

5

Martha Stewart Living Omni

2,000 shares

19,740

Massey Energy Company

78 shares

757

Maxim Pharmaceuticals

1,000 shares

2,890

Maxworldwide Inc

1,000 shares

600

McData Corporation Class A

15 shares

106

MedCom USA Inc

400 shares

88

Mediax Corporation

5,000 shares

1

- 19 -

---

 

Phelps Dodge Employee Savings Plan		Supplemental Information
Schedule of Assets (Held at End of Year)		Schedule I
December 31, 2002

(c) Description of

investment including

maturity date, rate of

interest, collateral,

(d)

par or maturity value,

Cost

(e) Current

(a)

(b) Identity of issue, borrower, lessor or similar party

or number of shares

**

Value

Common Stocks: (Continued)

Medicis Pharamaceutical Corp Class A

200 shares

$

9,934

Medquist Inc

35 shares

709

Medtronic Inc

1,008 shares

45,970

Merck & Co Inc

417 shares

23,606

Meritage Corporation

100 shares

3,365

Micron Technology Inc

5,000 shares

48,700

Microsoft Corporation

2,429 shares

125,579

Microstrategy Inc

150 shares

2,265

Millennium Pharmaceuticals Inc

300 shares

2,382

Miracle Entertainment

1,571 shares

1

Mobile Mini Inc

400 shares

6,268

Mobility Electronics Inc

31 shares

23

Monsanto Company

3 shares

58

Mooney Aerospace Group

10,000 shares

300

Motorola Incorporated

1,757 shares

15,195

Mylan Laboratories Inc

400 shares

13,969

Myriad Genetics Inc

100 shares

1,460

MyTurn.com Inc

24,000 shares

2

NCS HealthCare Inc Class A

3,940 shares

21,197

NL Industries Inc

274 shares

4,652

National Beauty Corp

22 shares

1

National Residential PPTYS Inc

210,000 shares

21

Navisite Inc

2,000 shares

300

Net2Phone Inc

1,000 shares

4,050

NetLojix Communications Inc

1,000 shares

17

Network Appliance Inc

999 shares

9,990

New Century Financial CP

100 shares

2,539

New Century Company

20 shares

25

Newell Rubbermaid Inc

367 shares

11,139

Newmont Mining Corporation

541 shares

15,709

Newport Corporation

254 shares

3,191

Niku Corporation

213 shares

852

Nisource Inc Holding Company

31 shares

613

Nokia Corporation Spon Adr

1,615 shares

25,032

Nordic American Tanker Shipping Inc

119 shares

1,611

Nortel Networks Corporation (Holding Company)

220 shares

354

Northrop Grumman Corporation

9 shares

873

Novagold Resources Inc

2,070 shares

6,665

Novatel Wireless Inc

862 shares

836

Nutrition 21 Inc

300 shares

192

O’Charley’s Inc

230 shares

4,722

Ocean Power Corporation

3,400 shares

17

ON Semiconductor Corporation

200 shares

274

- 20 -

---

 

Phelps Dodge Employee Savings Plan		Supplemental Information
Schedule of Assets (Held at End of Year)		Schedule I
December 31, 2002

(c) Description of

investment including

maturity date, rate of

interest, collateral,

(d)

par or maturity value,

Cost

(e) Current

(a)

(b) Identity of issue, borrower, lessor or similar party

or number of shares

**

Value

Common Stocks: (Continued)

Openwave Systems Inc

68 shares

$

136

Optical Communications Products Inc

200 shares

216

Oracle Corporation

9,110 shares

98,388

Owens Corning

300 shares

126

Oxy Corporation

5,418 shares

154,132

Ozolutions Inc

1,700 shares

170

P F Changs China Bistro

100 shares

3,630

PCCW Limited

300 shares

45

PMC-Sierra Inc

222 shares

1,234

Palm Inc

506 shares

7,944

Pan American Silver

800 shares

6,272

Paradigm Advanced Tech F

1,200 shares

24

Paradigm Genetics Inc

2,000 shares

582

Penton Media Inc

100 shares

68

Pepsico Incorporated

103 shares

4,343

Permian Basin Royalty Trust

74 shares

465

Petro Geo Services

100 shares

40

Petsmart Inc

100 shares

1,713

Pfizer Incorporated

1,937 shares

59,222

Pharmaceutical Product Development

266 shares

7,786

Pharmacia Corporation

23 shares

961

Pharmos Corporation

600 shares

630

Phelps Dodge 6.75% A Preferred

204 shares

17,423

Philip Morris Companies Inc

221 shares

8,972

Phoenix Companies

101 shares

768

Pinnacle Business Management Inc

257,142 shares

103

Pipeline Technologies

3,000 shares

1

Pixar

25 shares

1,325

Pixelworks Inc

1,965 shares

11,397

Plug Power Inc

80 shares

359

Polycom Inc

100 shares

952

Poore Brothers Inc

60 shares

149

Presstek Inc

400 shares

1,844

PrimeLink Systems Inc

100 shares

1

Procter & Gamble Company

270 shares

23,224

Proginet Corporation

625 shares

83

QLogic Corporation

70 shares

2,416

QUALCOMM Incorporated

1,249 shares

45,451

Quanta Services Inc

400 shares

1,400

Quentra Networks Inc

700 shares

1

Quintus Corporation

400 shares

48

Quokka Sports Inc

1 share

1

Qwest Communications International Inc

570 shares

2,850

- 21 -

---

 

Phelps Dodge Employee Savings Plan		Supplemental Information
Schedule of Assets (Held at End of Year)		Schedule I
December 31, 2002

(c) Description of

investment including

maturity date, rate of

interest, collateral,

(d)

par or maturity value,

Cost

(e) Current

(a)

(b) Identity of issue, borrower, lessor or similar party

or number of shares

**

Value

Common Stocks: (Continued)

Raydne Comstream

8,000 shares

$

1,600

Radyne Comsteam 05 Wts

5,000 shares

1,000

Rambus Inc

5 shares

33

Ramtron International Corporation

60 shares

168

Raytheon Company

378 shares

11,617

Reality Wireless Networks Inc

204 shares

41

Recordlab Corporation

450 shares

1

Redhat Inc

90 shares

532

Remington Oil and Gas Corporation

78 shares

1,280

R F Micro Devices Inc

150 shares

1,099

R J Reynolds Tobacco HLD

123 shares

5,179

Rite Aid Corporation

37,800 shares

92,610

Rockford Corporation

20 shares

118

Royal Gold Inc

400 shares

9,968

Rudolph Technologies Inc

178 shares

3,410

SBC Communications Inc

246 shares

6,659

S P D R Trust Unit SR 1

50 shares

4,430

Safeway Inc

1,150 shares

26,864

San Juan Basin Royal Trust

340 shares

4,660

Sandisk Corporation

250 shares

5,075

Sanmina SCI Corporation

827 shares

3,713

Sara Lee Corporation

123 shares

2,780

Satyam Infoway Limited Adr

100 shares

236

Schlumberger Limited

32 shares

1,347

Scient Inc

532 shares

5

Scientific Atlanta Inc

226 shares

2,681

Seattle Genetics Inc

1,000 shares

3,100

Semotus Solutions Inc

1,000 shares

110

Serena Software Inc

50 shares

789

Serono S A

300 shares

4,068

Service Corporation International

335 shares

1,112

Shaman Pharmaceuticals

100,001 shares

20

Sicor Inc

100 shares

1,585

Siebel Systems Inc

657 shares

4,914

Silverado Gold Mines

5,000 shares

3,100

Single Source Financial

8,000 shares

80

Sirius Satellite Radio

2,010 shares

1,286

Siskon Gold Corporation

3,000 shares

21

Skyworks Solutions Inc

91 shares

784

Solectron Corporation

840 shares

2,982

Sonera Group PLC Adr

100 shares

577

Sonic Solutions

315 shares

6,454

Sourcecorp

75 shares

1,394

- 22 -

---

 

Phelps Dodge Employee Savings Plan		Supplemental Information
Schedule of Assets (Held at End of Year)		Schedule I
December 31, 2002

(c) Description of

investment including

maturity date, rate of

interest, collateral,

(d)

par or maturity value,

Cost

(e) Current

(a)

(b) Identity of issue, borrower, lessor or similar party

or number of shares

**

Value

Common Stocks: (Continued)

Southwall Technologies

462 shares

$

1,446

Southwest Airlines Company

2,997 shares

41,653

Southwestern Res Corporation

310 shares

2,824

Spectralink Corporation

100 shares

718

Spiegel Inc Class A Non-Vtg

7,000 shares

2,520

Sprint FON Group

637 shares

9,221

Sprint PCS Group

2,500 shares

10,950

Stamford International Inc

1,800 shares

1

Starbucks Corporation

300 shares

6,114

Stillwater Mining Corporation

1,385 shares

7,410

StorageNetworks Inc

220 shares

255

Stratos Lightwave Inc

50 shares

220

Styling Technology Corporation

130 shares

1

Sun Microsystems Inc

4,721 shares

14,682

Suncor Energy Inc

200 shares

3,134

Sungard Data Systems Inc

136 shares

3,204

Sunrise Technologies International Inc

1,000 shares

1

Surebeam Corporation

1,511 shares

6,104

Sycamore Networks Inc

309 shares

893

Symantec Corporation

38 shares

1,539

Synergy Brands Inc

3,280 shares

2,066

Synergie Holdings Ltd Inc

50,000 shares

750

Synopsys Inc

200 shares

9,230

Synthetic Turf CP America

2,000 shares

12

T & G2

375 shares

49

THC Communications Inc

19,600 shares

2

Talk Visual Corporation

52,000 shares

572

Target Corporation

167 shares

4,995

Teco Energy Inc

205 shares

3,172

Tellabs Inc

800 shares

5,816

Telular Corporation

1,500 shares

5,610

Telynx Inc

500 shares

1

Texas Instruments Inc

1,018 shares

15,273

ThatLook.com Inc

670 shares

1

THCG Inc

60 shares

1

Thor Industries Inc

50 shares

1,721

3Com Corporation

279 shares

1,292

3M Company

112 shares

13,810

3WVentures.com Inc

700 shares

1

Tiger Telematics Inc

5,000 shares

405

Time Warner Telecom Inc

220 shares

464

Titan Corporation

2,165 shares

22,516

Titanium Metals Corporation

1,500 shares

2,865

- 23 -

---

 

Phelps Dodge Employee Savings Plan		Supplemental Information
Schedule of Assets (Held at End of Year)		Schedule I
December 31, 2002

							(c) Description of
							investment including
							maturity date, rate of
							interest, collateral,						(d)
							par or maturity value,						Cost				(e) Current
(a)				(b) Identity of issue, borrower, lessor or similar party			or number of shares						**				Value
				Common Stocks: (Continued)
					Tokheim Corporation Ser C 06 Wt			300	shares								$	1
					Tommy Hilfiger Corporation			210	shares									1,459
					Total Systems Services			100	shares									1,350
					Trans Orient Pete Ltd			28	shares									7
					Transocean Inc			200	shares									4,640
					Travelers Property Casualty Class B			27	shares									395
					Travelers Property Casualty Class A			12	shares									176
					Trex Company			150	shares									5,295
					Triquint Semiconductor			200	shares									848
					Tumbleweed Communications Corporation			100	shares									155
					Tyco International Ltd.			360	shares									6,149
					UAL Corporation			4,275	shares									6,113
					U.S. Bancorp			30	shares									637
					U.S. Microbics			10,000	shares									480
					Union Planters Corporation			169	shares									4,762
					Uniprime Capital Acceptance Inc			11,975	shares									1
					Unisource Energy Corporation			660	shares									11,415
					United Online Inc			27	shares									430
					United Parcel Service Class B			63	shares									3,963
					United Technologies Corporation			20	shares									1,244
					VDC Communications Inc			1,000	shares									1
					VA Software Corporation			51	shares									46
					Vasomedical Inc			1,450	shares									1,363
					Vast Solutions Inc Class B1			46	shares									1
					Vast Solutions Inc Class B2			46	shares									1
					Vast Solutions Inc Class B3			46	shares									1
					VaxGen Inc			150	shares									2,896
					Verisign Inc			85	shares									682
					Vialta Inc Class A			2	shares									1
					Vigilant Applied			500	shares									1
					Viragen Inc			2,000	shares									300
					Visual Networks Inc			4,500	shares									6,525
					Vital Living Products			300	shares									3
					Vitesse Semiconductor Corporation			240	shares									524
					Vitria Technology Inc			18,000	shares									13,500
					Vivendi Universal Adr			16	shares									257
					Vixel Corporation			50	shares									100
					WCI Communications Inc			460	shares									4,692
					Walgreen Company			122	shares									3,560
					Wal-Mart De Cv Spn Adr			60	shares									1,339
					Wal-Mart Stores Inc			1,813	shares									91,574
					Wasatch Pharmaceutical Inc			2	shares									1

- 24 -

---

 

Phelps Dodge Employee Savings Plan		Supplemental Information
Schedule of Assets (Held at End of Year)		Schedule I
December 31, 2002

								(c) Description of
								investment including
								maturity date, rate of
								interest, collateral,						(d)
								par or maturity value,						Cost				(e) Current
(a)				(b) Identity of issue, borrower, lessor or similar party				or number of shares						**				Value
				Common Stocks: (Continued)
					Washington Mutual Inc				503	shares								$	17,368
					Wave Systems Corporation Class A				4,150	shares									5,519
					Wavo Corporation				2,100	shares									4
					Webb Interactive Services				1,100	shares									308
					Weingarten Realty Invs SBI				26	shares									956
					Wellpoint Health Networks				50	shares									3,558
					Wells Fargo & Company				200	shares									9,374
					Western Wireless Corporation Class A				200	shares									1,060
					Williams Coal Seam Gas				500	shares									4,897
					Williams Companies				400	shares									1,080
					Williams Energy Partners LP				200	shares									6,490
					Wind River Systems Inc				250	shares									1,025
					World Gaming PLC Adr				30,000	shares									4,800
					World Wrestling Federation Class A				150	shares									1,207
					WorldCom Inc				73,095	shares									10,087
					WorldCom Inc — MCI Group				25	shares									4
					Worldgate Communications Inc				6,600	shares									2,772
					Worldwide Web NetworX Corporation				300	shares									1
					XM Satellite Radio Holdings				700	shares									1,883
					Xerox Corporation				2,604	shares									20,962
					Xo Communications Class A				100	shares									5
					Xybernaut Corporation				4,000	shares									2,080
					Yahoo! Inc				1,251	shares									20,454
					Zap.com Corporation				2	shares									1
					Zymetx Inc				750	shares									3
						Total Common Stocks													4,855,275
					Mutual Funds:
					AF Europacific Fund				882,944	shares									20,257,704
	*				American Century Equity Growth Fund				3,902,359	shares									59,285,818
	*				American Century Equity Income Fund				781	shares									5,102
	*				American Century Ginnie Mae				162	shares									1,762
	*				American Century Global Gold Fund				11,853	shares									108,215
	*				American Century Growth Fund				870	shares									12,551
	*				American Century Income & Growth Fund				2,305,099	shares									50,128,906
	*				American Century Inflation ADJ BND				480	shares									5,126
	*				American Century International Growth Fund Investor				2,421	shares									15,443
	*				American Century Target 2005 Fund				22	shares									2,134
	*				American Century Technology Fund				15,437	shares									19,605
					Amerindo Technology Fund Class D				91	shares									360
					Ameristock Fund				644	shares									21,281
					Ariel Appreciation Fund				112	shares									3,707

- 25 -

---

 

Phelps Dodge Employee Savings Plan		Supplemental Information
Schedule of Assets (Held at End of Year)		Schedule I
December 31, 2002

							(c) Description of
							investment including
							maturity date, rate of
							interest, collateral,						(d)
							par or maturity value,						Cost				(e) Current
(a)				(b) Identity of issue, borrower, lessor or similar party			or number of shares						**				Value
				Mutual Funds: (Continued)
					Ariel Fund			170	shares								$	5,975
					Artisan International Fund			3,107	shares									45,959
					Artisan Midcap Fund			675	shares									13,198
					Babson Enterprise Fund			68	shares									1,028
					Baron Growth Fund			246	shares									6,628
					Baron Small Cap Fund			361	shares									4,824
					Berger Small Cap Value Fund Investor Shares			1,237	shares									28,102
					Bjurman Micro Cap Growth Fund			1,899	shares									38,574
					Boston Partners Small Cap Value II Fund Investor			16	shares									246
					Bridgeway Ultra-Small Co Tax Adv			639	shares									5,334
					Buffalo Small Cap Fund			582	shares									8,615
					Burnham Financial Services Fund Class A			128	shares									2,351
					Clipper Fund			633	shares									47,914
					Columbia Small Cap Fund			442	shares									7,200
					Columbia Strategic Value			424	shares									5,576
					Credit Suisse Global Technology — Common			227	shares									4,164
					Credit Suisse Japan Growth Fund			279	shares									1,050
					Dodge & Cox Balanced Fund			100	shares									6,098
					Dodge & Cox Stock Fund			98	shares									8,645
					Dreyfus Intermediate Term Income Fund			331	shares									4,238
					Dreyfus Midcap Value Fund			152	shares									2,659
					Dreyfus Premier			177	shares									6,198
					Dreyfus Premier Technology Growth Fund Class A			224	shares									3,379
					Excelsior Energy and Natural Resources			841	shares									10,054
					Excelsior Value and Restructuring Fund			2,049	shares									50,120
					Family Equity Income Fund			463	shares									7,156
					FBR Small Cap Financial Fund			126	shares									3,065
					Federated Capital Appr Fund			107	shares									2,064
					Federated International Small Company Fund Class A			508	shares									7,530
					Fidelity Aggressive Growth Fund			111	shares									1,246
					Fidelity Contrafund II			552	shares									4,787
					Fidelity Equity Income Fund			40,846	shares									1,620,320
					Fidelity Growth Company Fund			22	shares									795
					Fidelity Magellan Fund			42,933	shares									3,390,020
					Fidelity Magellan Fund			1,466	shares									115,774
					Fidelity Select Biotechnolgy			20	shares									777
					Firsthand Technology Innovators Fund			2,782	shares									20,640
					Firsthand Technology Leaders Fund			464	shares									4,942
					Firsthand Technology Value Fund			369	shares									6,677
					FMI Focus Fund			68	shares									1,573
					Gabelli Asset Fund			264	shares									7,467
					Gabelli Gold Fund			6,528	shares									80,165
					Gabelli Westwood Balanced Fund Retail			272	shares									2,712

- 26 -

---

 

Phelps Dodge Employee Savings Plan		Supplemental Information
Schedule of Assets (Held at End of Year)		Schedule I
December 31, 2002

							(c) Description of
							investment including
							maturity date, rate of
							interest, collateral,						(d)
							par or maturity value,						Cost				(e) Current
(a)				(b) Identity of issue, borrower, lessor or similar party			or number of shares						**				Value
				Mutual Funds: (Continued)
					GE US Equity Fund Class A			1,618	shares								$	35,114
					Harbor International Fund Inv Cl			153	shares									4,096
					Heartland Value Fund			284	shares									8,945
					Henlopen Fund			1,401	shares									22,157
					ICON Healthcare Fund Class A			497	shares									5,141
					ICON Information Technology Fund			1,460	shares									8,700
					INVESCO Dynamics Fund			1,307	shares									13,938
					INVESCO Energy Fund			266	shares									4,415
					INVESCO Financial Services Fund			260	shares									5,984
					INVESCO Health Sciences Fund			20	shares									748
					INVESCO Technology Fund			388	shares									6,669
					INVESCO Telecommunications Fund			407	shares									3,316
					IPS Millennium Fund Class A			24	shares									510
					Ivy Global Natural Resources RD Class A			77	shares									889
					Janus Balanced Fund			3,181	shares									56,885
					Janus Enterprise Fund			405	shares									9,287
					Janus Fund			797	shares									14,209
					Janus Global Life Sciences Fund			612	shares									7,520
					Janus Global Technology Fund			4,015	shares									28,787
					Janus Growth & Income Fund			230	shares									5,364
					Janus High Yield Fund			398	shares									3,572
					Janus Mercury Fund			5,650	shares									83,398
					Janus Olympus Fund			2,344	shares									46,877
					Janus Special Situations Fund			3,142	shares									33,113
					Janus Strategic Value Fund			463	shares									3,266
					Janus Twenty Fund			779	shares									22,599
					Janus Worldwide Fund			405	shares									13,006
					Jensen Portfolio			171	shares									3,430
	*				J.P. Morgan Mid-Cap Growth Fund			248	shares									885
					Julius Baer International Equity Class A			2,498	shares									49,315
					Leuthold Core Investment Fund			225	shares									2,352
					LongLeaf Partners International Fund			581	shares									5,790
					Lord Abbett Affiliated Fund Class A			1,482	shares									15,605
					Lord Abbett Bond Debenture Fund Class A			1,345	shares									9,672
					Lord Abbett Mid-Cap Value Fund Class A			433	shares									6,666
					Matthews Pacific Tiger Fund			1,564	shares									12,891
					Millennium Growth & Income Fund			604	shares									3,502
					Munder NetNet Fund Class A			64	shares									636
					Murphy New World Biotechnology Fund			106	shares									307
					NB Fasciano Fund Investor			120	shares									3,665
					NI Small Cap Value Fund			213	shares									3,084
					Navellier Aggressive Micro Cap Portfolio			113	shares									2,024
					Navellier Large Cap Growth Fund			1,287	shares									15,683

- 27 -

---

 

Phelps Dodge Employee Savings Plan		Supplemental Information
Schedule of Assets (Held at End of Year)		Schedule I
December 31, 2002

							(c) Description of
							investment including
							maturity date, rate of
							interest, collateral,						(d)
							par or maturity value,						Cost				(e) Current
(a)				(b) Identity of issue, borrower, lessor or similar party			or number of shares						**				Value
				Mutual Funds: (Continued)
					Navellier Mid Cap Growth Portfolio			5,074	shares								$	87,977
					Navellier Small Cap Value Portfolio			184	shares									1,846
					Nevis Fund			55	shares									427
					Nicholas II Fund			217	shares									3,478
					Northern Technology Fund			94	shares									699
					Oakmark Equity Income Fund			1,721	shares									30,962
					Oakmark International Small Cap Fund			572	shares									6,070
					Oakmark Select Fund			3,207	shares									76,386
					Oberweis Micro Cap Portfolio			391	shares									5,422
					PBHG Clipper Focus PBHG Class			863	shares									11,410
					PBHG Global Technology & Communications Fund			667	shares									1,327
					PBHG Large Cap 20 Fund			178	shares									1,985
					PBHG Large Cap Growth Fund			61	shares									910
					PBHG Large Cap Value Fund			520	shares									5,290
					PBHG Mid-Cap Value Fund			201	shares									2,572
					PBHG Select Equity Fund			464	shares									7,475
					PBHG Technology & Communications Fund			475	shares									3,544
					PIMCO RCM Global			1,812	shares									27,307
					PIMCO RCM Global Tech Class D			347	shares									6,250
					PIMCO RCM Biotechnology Class D			1,237	shares									20,946
					PIMCO Real Return Fund Class D			996	shares									11,210
					PIMCO Total Return Fund Class D			4,942	shares									52,734
					PIMCO Total Return Mortgage Fund Class D			586	shares									6,267
					Pin Oak Aggressive Stock Fund			182	shares									2,168
					Pioneer High Yield Fund			304	shares									2,948
					Prudent Bear Fund			3,175	shares									23,272
					Prudent Safe Harbor Fund			749	shares									8,758
					Quaker Aggressive Growth Fund			253	shares									3,764
					Red Oak Technology Select Portfolio			1,182	shares									5,073
					Reynolds Blue Chip Growth			21	shares									455
					Royce Low Priced Stock Fund			915	shares									8,925
					Royce Premier Fund			4,876	shares									45,787
					Royce Special Equity Fund			378	shares									5,382
					Royce Total Return Fund			1,527	shares									12,782
					RS Diversified Growth Fund			455	shares									6,439
					RS Internet Age Fund			571	shares									1,868
					Rydex URSA Fund Investor Class			2,419	shares									30,934
					Rydex Velocity 100 Fund			324	shares									3,273
					Rydex Venture 100 Fund			233	shares									16,679
					Safeco Growth Opportunities Fund			966	shares									16,605
					Safeco Small Company Value Fund			79	shares									1,048
					Schwab 1000 Fund			696	shares									17,304
					Schwab MarketTrack All Equity Portfolio			1,745	shares									13,174

- 28 -

---

 

Phelps Dodge Employee Savings Plan		Supplemental Information
Schedule of Assets (Held at End of Year)		Schedule I
December 31, 2002

							(c) Description of
							investment including
							maturity date, rate of
							interest, collateral,						(d)
							par or maturity value,						Cost				(e) Current
(a)				(b) Identity of issue, borrower, lessor or similar party			or number of shares						**				Value
				Mutual Funds: (Continued)
					Schwab MarketTrack Balanced Portfolio			145	shares								$	1,727
					Schwab S&P 500 Fund - Investor Shares			6,683	shares									90,494
					Schwab Total Bond Market Index Fund			18,000	shares									185,583
					Schwab Total Stock Market Fund - Investor Shares			2,591	shares									36,714
					Schwab Value Advantage Money Fund			182,853	shares									182,853
					Scudder Balanced Fund Class S			524	shares									7,602
					Scudder Greater Europe Growth Fund Class S			615	shares									11,075
					Scudder Health Care Fund Class S			233	shares									3,671
					Selected American Shares			483	shares									12,311
					Skyline Special Equities Portfolio			127	shares									2,656
					SSgA Growth & Income Fund			1,171	shares									17,524
					SSgA Yield Plus Fund			6,978	shares									69,287
					Strong Opportunity Fund			694	shares									19,930
					Strong Ultra Short Term			213	shares									2,001
					T Rowe Price Emerging Markets Stock Fund			453	shares									4,633
					T Rowe Price Equity Income Fund			1,030	shares									20,392
					T Rowe Price Health Sciences Fund			1,552	shares									22,513
					T Rowe Price Latin America Fund			941	shares									7,066
					T Rowe Price Mid Cap Growth Fund			939	shares									29,152
					T Rowe Price Mid Cap Value			85	shares									1,274
					T Rowe Price New Asia Fund			998	shares									5,581
					T Rowe Price New Horizon Fund			195,088	shares									3,240,416
					T Rowe Price Science & Technology Fund			177,613	shares									2,207,726
					T Rowe Price Small Cap Stock Fund			1,171,676	shares									25,175,356
					T Rowe Price Small Cap Value Fund			570	shares									12,510
					T Rowe Price Spectrum Income Fund			1,613	shares									17,359
					TCW Galileo Value Opportunity Fund N			54	shares									737
					Third Avenue Value Fund			382	shares									11,629
					Tocqueville Gold Fund			1,674	shares									40,519
					Transamerica Premier Balanced Fund			89	shares									1,475
					Turner Midcap Growth Fund			343	shares									5,041
					Turner Top 20 Fund			262	shares									1,077
					Tweedy Browne Global Value Fund			1,636	shares									25,865
					UMB Scout Worldwide Fund			3,205	shares									49,931
					Van Wagoner Technology Fund			44	shares									240
					Vanguard GNMA Fund			959	shares									10,313
					Vanguard Index Trust 500 Fund - Investor Shares			60	shares									4,837
					Vanguard Precious Metals Fund			7,546	shares									82,171
					Vanguard Short-Term Bond Index Fund Inv Shs			2,978	shares									30,734
					Vanguard Short-Term Treasury Fund - Investor Shares			1,254	shares									13,579
					Vanguard STAR Fund			258	shares									3,709
					Vanguard Total Stock Market Index Fund			1,684	shares									33,804
					Wasatch Core Growth Fund			897	shares									23,945

- 29 -

---

 

Phelps Dodge Employee Savings Plan		Supplemental Information
Schedule of Assets (Held at End of Year)		Schedule I
December 31, 2002

								(c) Description of
								investment including
								maturity date, rate of
								interest, collateral,						(d)
								par or maturity value,						Cost				(e) Current
(a)				(b) Identity of issue, borrower, lessor or similar party				or number of shares						**				Value
				Mutual Funds: (Continued)
					Weitz Value Portfolio				790		shares							$	22,065
					Westport Select Cap Fund Class R				622		shares								10,255
					White Oak Growth Stock Fund				2,991		shares								68,964
					William Blair International Growth Fund — Class N				808		shares								10,611
					Yacktman Fund				583		shares								7,183
						Total Mutual Funds													168,492,787
					Employer Stock:
					Phelps Dodge Corporation				1,480,336		shares								46,853,808
					Phelps Dodge Corporation (Participant directed — Schwab)				17		shares								538
						Total Employer Stock													46,854,346
					Participant Loans:
					Loans To Various Participants			6% - 11.5% maturing through 2017											22,502,530
						Total Participant Loans													22,502,530
					Other Assets:
					3-Month Eurodollar December 2004				7		shares								—
					Euro CD March 2004				7		shares								—
					Euro CD (CME) March 2003				7		shares								—
					Euro CD (CME) June 2003				7		shares								—
					Euro CD (CME) June 2004				7		shares								—
					Euro CD (CME) September 2003				7		shares								—
					Euro CD (CME) September 2004				7		shares								—
					Euro CD (CME) December 2003				7		shares								—
					Nasdaq 100 Shares				769		shares								18,741
					USA 5 Year T-Notes (CBOT) March 2003				29		shares								—
					USA 10 Year T-Notes (CBOT) March 2003				14		shares								—
					USA T-Bonds (CBOT) March 2003				120		shares								—
					Synthetic wrapper value			Synthetic guaranteed investment contract
								held with Monumental Life Insurance
								Company, CDC Financial Products, and
								State Street Bank and Trust Company											(5,323,657	)
					Total Other Assets														(5,304,916	)
					Total Assets Held For Investment													$	409,857,646

*   This is a related party to the Plan’s Recordkeeper, a party-in-interest for which a statutory exemption exists.

** All investments are participant directed, therefore disclosure of cost is not required.

See Report of Independent Auditors.

- 30 -

---

 

Index to Exhibits

Exhibit Number		Description
23		Consent of PricewaterhouseCoopers LLP
99.1		Certification