VIEWS: 224 PAGES: 19


            Copperton, Utah


             December 2005
                                             Table Of Contents

Section 1        Statement of Purpose ............................................................................... 3

Section 2        Communities .............................................................................................. 3

Section 3        Summary of 2005 Results and 2006 Goals ........................................... 4

       A.        Charitable Contributions.......................................................................... 4

                 1.         Sustainable Development/Community Initiatives ................. 6
                 2.         Kennecott Charitable Foundation............................................. 9

       B.        Community Relations Network............................................................10

       C.        Communications .....................................................................................11

       D.        Mining Education....................................................................................14

       E.        Cultural Heritage .....................................................................................15

Section 4        Reporting ..................................................................................................17

Section 5        Summary ...................................................................................................17


       I.        Community Relations 5-Year Plan Overview

       II.       Contributions to Higher Education

       III.      Community Relations Network

       IV.       Community Events and Coordinators

   KUC Five Year Community Relations Plan                                                                                         2
                                            SECTION 1

                                       Statement of Purpose

      Kennecott Utah Copper Corporation has adopted the following Statement of
Purpose for our Community Relations Plan:

       “Wherever Kennecott Utah Copper Corporation operates, good relations with
       our neighbors are fundamental to our long-term success. As a corporation,
       we will actively participate in the affairs of the communities in which we
       operate by partnering with our local communities for long-term mutual

       This Community Relations Plan is aligned with Kennecott Utah Copper
Corporation’s Business Plan and with the Corporation’s Mission, Vision, Values and
Strategic Objectives Statement founded on Sustainable Development concepts,
which reads:

       “To build on our economic, social and environmental successes by utilizing
       good governance systems and balancing the needs of present and future

                                            SECTION 2


       Communities are narrowly defined as the people working and living near our
operations and broadly defined as the people of Utah. It therefore includes:

            • Employees
            • Retirees
            • Families of KUC employees
            • Residents in the neighboring communities and townships of
              Copperton, Magna and Kearns, and the neighboring cities of
              West Jordan, South Jordan, Taylorsville, Herriman, Riverton,
              West Valley City, Midvale, Murray, Sandy and Salt Lake City
            • Residents of Salt Lake and Tooele Counties
            • Residents of Utah
            • Visitors to the Bingham Canyon Mine Visitors Center

   KUC Five Year Community Relations Plan                                           3
                                            SECTION 3

                        Summary of 2005 Results and 2006 Goals

       Kennecott Utah Copper Corporation’s Community Relations Plan has several
major components, e.g., charitable contributions, a community relations network,
communications, mining education and cultural heritage. Each of the components is
reviewed below regarding results in 2005 and goals for 2006. Also included as
Appendix I is an outline of our Five-Year Plan Overview for 2005-2009.

A. Charitable Contributions

       Strategic Objectives:
       Economic Contribution
       Resource Stewardship
       Business Ethics

       The emphasis of Kennecott Utah Copper Corporation’s charitable
contributions is to support local charities, non-profit organizations and community
groups, especially those in Salt Lake and Tooele Counties who are impacted by our
operations. These charitable contributions are aligned with Kennecott’s Business Plan
and are part of Kennecott’s Sustainable Development Program, which is designed to
promote an economically strong, productive and responsible company in concert
with a safe, vibrant community and a clean environment. The position of
Community Relations Advisor administers Kennecott Utah Copper Corporation’s
charitable contributions under the direction of the company’s Director of
Government and Public Affairs in consultation with the President and CEO.

        Kennecott Utah Copper Corporation’s philosophy concerning charitable
contributions is based on standards similar to those outlined in the Philanthropic
Advisory Service and incorporates the three pillars of Sustainable Development,
which are economic, social and environmental. Overall, contributions in 2005
amounted to approximately $663,000 from three sources, which included: first,
Matching Gifts ($18,000); second, the Visitors Center Charity Fund administered by
the Kennecott Charitable Foundation ($120,000); and third, Corporate Contributions
from Kennecott Utah Copper Corporation ($525,000). Contributions for 2005
reflect an overall increase of about $93,000 which is a 16% increase in contributions
from 2004. This is the second consecutive year with an increase in corporate giving
since 1997.

   KUC Five Year Community Relations Plan                                           4
       In addition to monetary donations there are in-kind donations, which in 2005
included surplus railroad equipment, file cabinets, shelving and medical equipment
valued at about $54,000. The surplus file cabinets, shelving and medical equipment
were donated to several educational institutions and valued at about $8,500. The
surplus railroad equipment, which was composed of surplus rail cars and parts was
valued at $45,500 and given to the Heber Valley Historic Railroad Authority in
Wasatch County, Utah. This in-kind donation was part of Kennecott’s Sustainable
Development/Community Initiatives, which are further discussed on Page 6. The
guidelines of the Philanthropic Advisory Service and Kennecott’s Sustainable
Development Program are available upon request.

       The major areas of giving for 2005 and percentage of the monetary
contributions by general category are outlined below:

            1. Truly Needy (32%) - includes assisting the poor, homeless,
            disenfranchised members of the community and Affirmative Action
            groups defined as minorities, females, disabled and veterans, which include
            Vietnam Era Veterans and health care organizations providing assistance
            to the needy.
            2. Educational (37%) - includes scholarships, the development of
            curriculum and the purchase of computers and books with the objective
            being to affect the largest number of students possible, including
            Affirmative Action candidates identified for scholarships.
            3. Environmental/Ecological (7%) - includes supporting environmental
            education centers, nature centers, ecological programs, zoos, aviaries,
            arboretums, environmental and conservation organizations
            4. Civic (24%) - includes providing support for community councils,
            youth recreation and athletics, historical preservation, public broadcasting,
            cultural programs and Affirmative Action groups.

        Contributions in the area of elementary and secondary education are carefully
designated to affect the largest number of students. This usually means contributing
to the purchase of library books, textbooks, computer equipment, teacher recognition
awards and curriculum development. These educational contributions were primarily
for the elementary through middle school age groups. Kennecott’s role is as an active
partner in education. This is accomplished through our participation with the
Education Foundations of three of the five local school districts adjacent to our
operations, namely, Jordan, Granite and Murray in Salt Lake County.

        Of special note, in 2005 Kennecott gave a one time contribution, as part of a
yearly contribution to the Granite Education Foundation, in memory of an excellent
teacher and spouse of a Kennecott retiree and former state legislator, who
unexpectedly died. This gift was designated for the purchase of books, enhancements
and furnishings for a reading room named in her memory in the Magna Elementary

   KUC Five Year Community Relations Plan                                              5
School located near Kennecott’s operations. Kennecott did not sponsor any major
educational programs in the Salt Lake and Tooele School Districts in 2005.
        In 2006, it is Kennecott’s goal to maintain its partnership with three of the
five local school districts. Kennecott’s long-term partnership with the Jordan School
District will remain part of KUC’s community relations portfolio in 2006. Kennecott
Land will maintain its own relationship with the new Daybreak Elementary School in
the Jordan School District located in Kennecott Land’s Daybreak planned
community in South Jordan, Utah.

        In the area of higher education, the Kennecott Scholars Program, in its
fifteenth year of existence as implemented at the University of Utah, serves as a
model. This program, in some form, also exists at other universities and colleges in
Utah where Kennecott recruits college students as entry-level professionals. In 2005
the Kennecott Scholars Program was continued with no changes at the University of
Utah. The program was also continued with only minor changes at Westminster
College, the College of Eastern Utah, Utah State University, and at Brigham Young
University. The number of funded scholarships remained at 64 with one less
scholarship at Westminster College and one additional scholarship at Brigham Young
University. An overview entitled Contributions to Higher Education is attached as
Appendix II.

       In 2006, the Kennecott Scholars Program will be slightly modified. An
additional scholarship will be added at Utah State University. The number of
scholarships at Westminster College will be reduced from ten to five. This is based on
Kennecott’s completion of a ten year pledge of scholarships. Kennecott and
Westminster representatives will meet to discuss the changes that will be
implemented for the 2006-2007 academic year. This change will result in additional
scholarships being awarded to other universities and colleges for students in mining
related disciplines. This is being coordinated as part of the company wide college
recruitment program of Rio Tinto America, in conjunction with Kennecott Utah
Copper Corporation, and other Kennecott and Rio Tinto companies. The Kennecott
Scholars Program and college recruitment program are aligned with Kennecott’s
Business Plan.

1. Sustainable Development/Community Initiatives

         In 2005, Kennecott Utah Copper Corporation sponsored six major
Sustainable Development/Community Initiatives. This compares to five major
initiatives in 2004, five in 2003, two in 2002 and three in 2001.

     The continuation of the Kennecott Scholars Program and the Kennecott
House on the University of Utah campus were again a major Sustainable

   KUC Five Year Community Relations Plan                                           6
Development/Community Initiative in 2005. In the past, Kennecott had funded the
renovation of the Kennecott House with a one time contribution of $250,000. The
Kennecott House serves as a residence and meeting place for Kennecott Scholars. In
2005, Kennecott donated $105,000 in scholarships to the University of Utah for the
Society of Kennecott Scholars.

        A second initiative in 2005 was an on-going gift of $10,000 to the Murray
Education Foundation. This was the ninth yearly gift following a five-year pledge and
gift of $100,000 that helped finance the building of a major environmental education
complex as part of the Jordan River Parkway. The complex was dedicated in
September 1999 and named the Kennecott Nature Center of Murray. The Center
serves as a natural classroom where thousands of students, teachers and the public
can study biology, ecology and conservation. The Kennecott Nature Center was again
a subject of favorable media coverage and was highlighted in Rio Tinto’s corporate

        A third major community initiative was the pledge to donate the historic
Spencer Farm House on Magna’s historic Main Street to Magna FACT, a tax
exempt, non-profit organization that assists the needy in the Magna community. Both
Kennecott Utah Copper Corporation and the Kennecott Charitable Foundation have
had a close working relationship with this organization and given both financial and
technical assistance. A Kennecott representative serves on the organization’s
Advisory Board and in turn, a Magna FACT leader serves as a Trustee on the Board
of the Kennecott Charitable Foundation. In 2006, American Express Centurion Bank
became a second corporate partner to assist Magna FACT in fund raising. If enough
capital is raised to enable Magna FACT to improve the facility and bring it up to
building code, Kennecott will donate the property to Magna FACT in 2006.

       The fourth major initiative was a two-year pledge of $20,000, with $10,000
contributed in 2005 to the Clark Planetarium. This was Kennecott’s first major
donation to Salt Lake City’s new planetarium. It will fund and sponsor “Black
Holes,” a full feature cinematic three-dimensional star show shown at the
planetarium. This feature program will be shown about 1,100 times annually with
Kennecott acknowledged as the major corporate sponsor. This pledge will also
permit Kennecott’s use of the facility for a premier showing of the company’s new
film/video (to be featured at the new Bingham Canyon Mine Visitors Center) to
company executives and special guests. This initiative creates a new partnership with
a reputable scientific/educational institution and continues the company’s legacy as a
responsible corporate citizen improving the quality of life in Utah. This initiative also
continues Kennecott’s traditional sponsorship of Salt Lake County’s planetarium,
which was formerly the Hansen Planetarium, that was relocated, expanded,
modernized and renamed the Clark Planetarium.

   KUC Five Year Community Relations Plan                                              7
        The fifth major initiative was a gift of $52,000 to the American Red Cross.
The gift included a $50,000 donation to the National American Red Cross to support
related efforts for the victims of Hurricane Katrina and $2,000 to support the Utah
chapter of the American Red Cross. In addition, the $50,000 was part of a larger
$385,000 donation from Rio Tinto, Kennecott’s parent company, directed toward
relief efforts for the victims of Hurricane Katrina.

       A sixth major initiative was the donation of surplus railroad equipment, valued
at $45,500 to the Heber Valley Historic Railroad Association in Wasatch County,
Utah. This was the most recent of several past donations of surplus rail cars, materials
and parts to this organization. This donation provided economic assistance to this
unique Utah tourism venue. It also helped preserve Utah’s railroad history and that of
Kennecott because some of the donated rail cars will retain Kennecott’s railroad
emblems and colors promoting the company’s rich railroad heritage.

      For 2006, the Kennecott Scholars Program and Kennecott House at the
University of Utah, the Kennecott Nature Center of Murray, and the Spencer Farm
House in Magna and the Clark Planetarium in Salt Lake City will be four of
Kennecott’s six Sustainable Development/Community Initiatives.

       A fifth and new major initiative will be a multi-year major donation to the
Utah Museum of Natural History. The details will be finalized in 2006. This will be a
continuing partnership with an organization that Kennecott has historically
supported. The donation will be directed toward the sponsorship of new earth
science exhibits and programs in the Museum’s new facility. Construction of the new
Utah Museum of Natural History is anticipated in 2008.

        A sixth and the second new initiative will be a multi-year donation to the
Magna Ethnic and Mining Museum. This donation will be in partnership with Salt
Lake County and the community of Magna. In 2006, Salt Lake County has dedicated
$85,000 to clean and restore the interior of a vacant structure on Magna’s historic
Main Street. The structure is the former J. C. Penney building which is designated to
house the Magna Ethnic and Mining Museum. Kennecott will also seek to establish a
similar partnership with the Western Hellenic Cultural Museum and Library, which
has a similar mission of preserving Utah’s ethnic and mining heritage. Discussions
between the two organizations will begin in 2006 to explore the possible joint
ownership and occupancy of the Magna museum site. This initiative will complement
Kennecott’s continuing support in the revitalization of historic downtown Magna.
The initial support was the donation of the former Webster School, which will be the
site for an affordable housing project on Magna’s historic main street which will
commence in February 2006.

   KUC Five Year Community Relations Plan                                             8
2. Kennecott Charitable Foundation

        The Kennecott Utah Copper Visitors Center Charity Fund is administered
through a Board of Trustees of the Kennecott Utah Copper Visitors Center
Charitable Foundation commonly called the Kennecott Charitable Foundation. The
emphasis of the Kennecott Charitable Foundation’s giving is to Utah-based charities
and non-profit organizations helping the needy, which includes the disabled, seniors,
and youth with an emphasis on communities near Kennecott Utah Copper
Corporation’s operations. The nine-member Board of Trustees includes four
representatives from Kennecott Utah Copper and five representatives from local
communities, including leaders from the neighboring communities of Magna,
Copperton and West Jordan, as well as representatives from the public education and
religious sectors.

      The Board of Trustees administers all the fees collected from visitors to the
Bingham Canyon Mine Visitors Center and all other contributions to the Foundation.
The Board of Trustees also determines the amount of contributions to Utah-based
non-profit organizations and charities and manages the Foundation’s endowment.

        During 2005, the Board met on several occasions and awarded $120,000 in
gifts to 108 Utah-based community non-profit organizations and charities. Of major
significance is the fact that since its inception in 1992, the Visitors Center Charity
Fund administered by the Kennecott Charitable Foundation has given over
$1,700,000 to more than 200 charities and non-profit organizations. In 2005, the
Foundation deposited $20,000 into its endowment currently valued at about
$390,000. Also during the year the Board of Trustees restructured the investment
portfolio of the Foundations endowment.

        In addition, a company Trustee vacancy was filled during 2005 with Ted
Himebaugh, Mining Manager who replaces Mark Anderson, Kennecott’s Chief
Operations Officer who became the President and CEO of Diavik Diamonds,
another Rio Tinto Company. In 2005, the Foundation was one of three major
choices that Kennecott Utah Copper employees could contribute to during the
Company’s annual “Care and Share Charitable Giving Campaign.” During the year,
through the Kennecott Foundation, KUC employees gave about $26,000 to several
charities and non-profit community organizations in this annual campaign.

        In 2006, the Kennecott Charitable Foundation’s goal is to increase the
endowment by at least $20,000 or 20% of the yearly admission fees and to give about
$120,000 to community charities and non-profit organizations. These amounts could
be increased dependent upon the increased price of admission fees approved by the
Foundation Board of Trustees for the 2006 Bingham Canyon Mine Visitors Center
season In 2006, the Foundation will again be an option for Kennecott employees
participating in the annual “Care and Share Charitable Giving Campaign.”

   KUC Five Year Community Relations Plan                                           9
B. Community Relations Network

       Strategic Objectives:
       Stakeholder Engagement & Transparency
       Working Together
       External Governance

       Kennecott Utah Copper Corporation has developed a community relations
network for KUC management’s participation and contact with a broad-based group
of business, trade, civic, community and educational organizations. The key to its past
success was maintaining regular and constant “grassroots” contact. This includes
attending regularly scheduled monthly meetings and conducting quarterly meetings
with local community councils. It also involves coordinating tours and orientations of
KUC’s facilities, which include industrial plants, land and water reclamation projects
for government officials, community councils, business associations, regulatory
agencies, environmental groups, schools groups and the media.

       In 2005, no organizations were eliminated from KUC’s community relations
network. In addition, some vacancies occurred in the network and were filled with
new Kennecott representatives. During the year, Government and Public Affairs
Department representatives conducted two orientations for senior Kennecott Utah
Copper management about the company’s community relations programs. In
addition, the KUC Government and External Affairs Department representatives
attended the Rio Tinto North American Community Relations workshop in June and
completed their Community Relations Core Competencies Assessments in
November. These efforts were undertaken to better align the company’s Community
Relations Program with the company’s Business Plan.

        A goal in 2006 is to maintain Kennecott’s Community Relations Network and
to train and involve more KUC senior management in community engagement
activities. A list of community organizations and KUC representatives for the 2006
Community Relations Network is attached as Appendix III.

        It is also important to note that prior staff reductions and past budget
constraints resulted in Kennecott’s continuing non-participation and non-
sponsorship of several local community events such as the United Way Day of
Caring and United Cerebral Palsy’s Casual Day. During the year, an additional
position was added to the Government and Public Affairs Department. As a result
of this additional staff member, Kennecott was able to sponsor and company
employees and their families participated in 23 community events, as compared to the
19 events in 2004. Kennecott’s sponsored community events were for the most part
localized to specific communities. As part of these sponsored community events,

   KUC Five Year Community Relations Plan                                           10
Kennecott banners and promotional materials were displayed at almost all of the
        In 2005, the company sponsored a new event in the area of public television.
In December, 25 KUC employees participated in KUED’s “Utah World War II
Stories” a television program which premiered as the annual fundraiser for Utah’s
PBS affiliate. Kennecott employees assembled at the television station, answered
telephone calls and solicited pledges during the broadcast. Kennecott’s important role
as a producer of copper for the Allies during World War II, and the large number of
company employees and their family members who served in the United States
Armed Forces were highlighted.

       During 2005, Kennecott again sponsored several well publicized and well
attended community health care fundraisers, which included the Race for the Cure
(Breast Cancer), Valley West Relay for Life (Cancer), Arthritis Walk, the Down
Syndrome Buddy Walk, Light the Night Walk (Leukemia and Lymphoma), Walk
with Me (Easter Seals) and the Memory Walk (Alzheimer’s Association).

        As part of the 2006 Community Relations Plan, Kennecott Utah Copper
Corporation is planning to participate in and sponsor 24 local community events and
seven health care fundraisers. Many of events will be in communities closest to
Kennecott Utah Copper’s facilities, which are the most impacted by our operations
and/or have the largest numbers of KUC employees, retirees and families.
Participation and sponsorship will also be targeted to those events that will benefit
local communities and charities, offer good media exposure and give Kennecott
employees and families an opportunity to participate. In 2006, Kennecott has agreed
to offer additional support to the Magna community in their efforts to renew and
expand Magna’s July 4th Celebration and related activities. A list of Kennecott-
sponsored Community Events and Coordinators for 2006 is attached as Appendix

C. Communications

       Strategic Communications
       Stakeholder Engagement and Transparency
       External Governance

       As part of Kennecott Utah Copper Corporation’s Community Relations Plan,
the following communications strategy was implemented. The strategy had two
major purposes. First, to profile KUC as a “good neighbor” and a “responsible
corporate citizen” involved with its community. Second, to inform the community
about KUC’s operations, activities and policies. The strategy also recognizes two
audiences, one external and one internal.

   KUC Five Year Community Relations Plan                                          11
        Communication increases credibility, improves our corporate image and helps
build a trust account to call upon during difficult or adverse times. For fourteen years,
Kennecott has used the public opinion telephone survey as an effective tool to
monitor public opinion. Kennecott’s first public opinion survey was conducted in
1991 and was part of the consultation process as outlined in the Rio Tinto
Communities Policy guidelines. The last survey was conducted during June and July
2004 and was administered in conjunction with Kennecott Utah Copper’s Five Year
Community Relations Plan and Sustainable Development Program.

        In 2004, the survey was a telephone survey of 1,000 Utah residents, who were
adults 18 years of age or older and heads of households. This survey is useful in
determining public opinion, in general, about the importance of mining and
specifically about Kennecott Utah Copper Corporation as an employer and corporate
citizen. The survey also measures public opinion about KUC’s community image and
environmental performance. For 2004, the survey was conducted for both Kennecott
Utah Copper Corporation and Kennecott Land.

        Public awareness of Kennecott’s mass media messages has been very low
considering the fact that Kennecott has the highest unaided corporate awareness in
the state. It is evident that the decline in advertising expenditures starting in 1997 has
contributed to declining public opinion although public opinion about Kennecott
was at a 66% approval rating when last measured in 2004. When Kennecott stopped
informing the public about our environmental performance and community
programs, trust and confidence softened and public opinion declined. In 2005,
because of Kennecott Land’s extensive advertising and news coverage, both unaided
corporate awareness of and public opinions about Kennecott Utah Copper and
Kennecott Land will be impacted. For 2006, the survey will again be conducted in
May and June for both companies and the results presented to the senior
management of both companies.

       With a limited advertising budget for media, Kennecott Utah Copper was
able, however, to generate several favorable news articles in local newspapers and
news stories on local television stations. Several of these were related to the
expansion of the Bingham Canyon Mine. The publicity regarding the expansion was
aligned with Kennecott’s Business Plan. In addition, Kennecott’s operations were
highlighted on the National Science Discovery Channel in December 2005. Several
news stories dealt with the redesign of the Jordan Valley Groundwater Cleanup
proposal which included the discharge of by-products into Kennecott’s Tailings
Impoundment. Another major news story occurred in March, when the contents of
a leased Kennecott acid car leaked in a rail yard in South Salt Lake City resulting in a
temporary evacuation of nearby citizens. The contents were not Kennecott’s, but the
company was mentioned in numerous television, radio and newspaper stories. The
news reporting on both stories was balanced.

   KUC Five Year Community Relations Plan                                              12
        In 2005, the company’s advertising budget was substantially increased and
used for the production of a new corporate video. Therefore, newspaper and
television advertising was very limited. KUC did spend about $20,000, which was
primarily on playbills in the performing arts. In the fall of 2005, Kennecott Utah
Copper produced a Community Environmental Update, a newsletter mailed to all Rio
Tinto and Kennecott employees in Utah and about 700 business, government,
environmental and community leaders and other stakeholders including the media.
The newsletter highlighted the expansion of the Bingham Canyon Mine, and included
other articles about expansions and improvements at the Copperton Concentrator
and Tailings Impoundment. Other articles in the newsletter dealt with national
recognition for Kennecott’s safety performance, environmental stewardship, energy
conservation and community issues. The newsletter highlighted several parts of
Kennecott’s Business Plan.         Another Community Environmental Update is
scheduled for 2006.

        Consistent with a Sustainable Development goal for 2005, to “Engage external
stakeholders in Sustainable Development planning and utilize advisory groups,”
Kennecott personnel from Government and Public Affairs, Sustainable
Development and Kennecott’s President and CEO again hosted a focus group of
community stakeholders as part of Kennecott’s Business Plan. The group was
composed of internal and external stakeholders including representatives from
federal, state, and local governments, environmental and community groups,
employees, suppliers/vendors, business groups and academia. A workshop and
luncheon was held to interview stakeholders about Kennecott’s Annual Social and
Environmental Report, community engagement and environmental performance and
to seek feedback on a “Kennecott’s Future” presentation. Following the presentation
and feedback the “Kennecott’s Future” presentation was modified.

       In 2005, the presentation was given by KUC senior management to
stakeholders and community groups with an emphasis on organizations in the
communities of Magna and Copperton. Another presentation was given in
conjunction with Kennecott Land’s public engagement and planning process
regarding the entitlement of land to Salt Lake County wide government officials. In
2006, the “Kennecott’s Future” presentation will continue to be given to a broader
range of government, business, environmental, educational and community
organizations throughout Salt Lake County and Tooele County.

        In 2005, the Government and Public Affairs Department again produced and
distributed Kennecott Utah Copper’s 2006 Nature Calendar. The calendar was given
to 1,500 employees and 2,500 community stakeholders. In 2006, the Government
and Public Affairs Department will again produce a 2007 Nature Calendar to
promote Kennecott’s commitment to environmental stewardship and sustainable

   KUC Five Year Community Relations Plan                                         13
        In 2006, Kennecott Utah Copper will again advertise in various magazines,
playbills and programs associated with support for the arts and education. Because
of the Record of Decision on the Jordan Valley Groundwater Cleanup and the
anticipated finalization of Consent Decrees, the company plans to produce and
distribute a Community Environmental Update regarding the completion of
Kennecott’s environmental cleanup program under the Memorandum of
Understanding. In 2006, the company will advertise in the spring promoting the
newly relocated and expanded Bingham Canyon Mine Visitors Center and in the fall
promoting Kennecott’s environmental performance. In April 2006 Kennecott will
premier our new corporate video at the Bingham Canyon Mine Visitors Center and
show the new video for the 2006 season.

D. Mining Education

       Strategic Objectives:
       An important Sustainable Development strategic objective that is tied to
Kennecott’s Business Plan is the company’s mining education program, which is
designed to educate the public about Kennecott Utah Copper Corporation’s
philosophy of balancing society’s need for metals with an environmentally
responsible approach to mining. Our efforts are coordinated with the Utah Mining
Association’s Mining Education Committee. The Bingham Canyon Mine Visitors
Center is the focal point of our mining education program. A summary of 2005
mining education activities follows.

       In 2005, about 153,673 people visited the Mine Visitors Center, a decrease of
about 2% or 2,000 visitors in 2004. Included in the head count were about 1,400
teachers and 22,600 students. The slight decrease in visitors was attributed somewhat
to unfavorable weather but primarily to a decrease in field trips by school groups to
the Bingham Canyon Mine because of high fuel costs.

       The promotion of the Mine Visitors Center was limited to a soft advertising
campaign of local community newspaper ads and brochures in local tourist
information centers. In 2006, it is our goal to increase visitation to the 160,000 level
and to initiate a spring advertising campaign. Plans are also being developed for the
rededication of the Mine Visitors Center in May or June 2006.

        In conjunction with the Utah Mining Association, Kennecott Utah Copper
Corporation continued our extensive mining education efforts. In 2005, Kennecott’s
total expenditure for mining education was approximately $15,000. In addition, the
Utah Mining Association spent about $30,000 for mining education programs, which
complemented KUC’s efforts. In 2005, KUC personnel conducted a two-day mining
and minerals education workshop for approximately 39 teachers. This workshop was

   KUC Five Year Community Relations Plan                                            14
one of the Utah Mining Association’s sponsored two-day workshops in which an
additional 120 teachers participated. In addition, the Utah Mining Association
conducted 16 one-day Summer Core Academy workshops for about 451 teachers and
a one-day workshop for 36 teachers at the Utah Education Association’s Annual
Conference. In conjunction with the UMA, Kennecott Utah Copper also distributed
mining and mineral education materials to about 862 teachers at the Utah Education
Association’s Annual Conference, the Utah State Science Teachers Association
Annual Conference, and at the Natural Resources Festival. Kennecott supported the
efforts of the Utah Mining Association with both monetary and staff support. It is
estimated that the teachers trained at workshops and/or receiving educational
materials impacted about 66,500 students.

      In 2006, KUC will increase its expenditure for mining education at about
$20,000. It is anticipated that the Utah Mining Association will continue its
expenditure of about $30,000 for its mining education efforts in 2006.

E. Cultural Heritage

       Strategic Objectives:
       Community Education

        During 2005, representatives of Kennecott Utah Copper Corporation’s
Government and Public Affairs and Sustainable Development Departments met to
discuss and implement Rio Tinto’s Cultural Heritage Management System. As a
result of those discussions, the Government and Public Affairs Department was
charged with managing two cultural heritage sites on Kennecott Utah Copper
property, the Bingham Canyon Mine and Dead Man’s Cave. Both of these sites are
adjacent to or within active operations. All other sites on Kennecott Utah Copper’s
property are to be managed by Kennecott Land.

       The Bingham Canyon Mine was nominated and designated a Registered
Natural Historic Landmark in 1966 by the United States Department of the Interior.
The designation was made on the recommendation of the National Advisory Board
on National Park, Historic Sites, Buildings and Monuments. During the designation
ceremony, Utah Congressman David S. King stated, “The honor involves no federal
control of the operation. But is does involve suitable commendation to Kennecott
for preserving and making the mine available to the public. The Bingham Canyon
Mine commemorates the history of copper mining in the United States.”

       The Company has maintained that important and prestigious designation
through ongoing consultation with the National Park Service, an agency within the
Department of the Interior. The Director of Government and Public Affairs
maintains the designation through correspondence and monitoring visits from
representatives of the National Park Service and by managing public access to the

   KUC Five Year Community Relations Plan                                             15
Bingham Canyon Mine. To acknowledge the designation of the Bingham Canyon
Mine as a National Historic Landmark, Kennecott maintains several plaques at the
entrance to the Bingham Canyon Mine Visitors Center. The Center is open to the
public annually from April through October.

       In January 2006, Kennecott will notify the National Park Service as to the
planned relocation of the Bingham Canyon Mine Visitors Center beginning in April
2006. The Visitors Center will be moved, remodeled and enlarged and relocated to a
new site within the mine. Public access will be allowed seven days a week, 12 hours a
day from April 1, 2006 through October 31, 2006. The building will have a new
exterior and several energy savings improvements.

        The facility will be one of the few buildings in the state to carry a Leadership
in Energy and Environment Design (LEED) Certification. The Visitors Center will
also display new exhibits and a new corporate film/video which will premiere in April
2006. In May or June, the Company is planning to rededicate the facility. Federal,
state and local elected officials and representatives from the National Park Service
will be invited to the event.

        The second cultural heritage site managed by Kennecott Utah Copper
Corporation is Dead Man’s Cave located within an active operational area, the
Tailings Impoundment. The site has both archeological and historical significance.
The site served as a fishing spot for the ancient Fremont Indians and was
documented in archeological study by the University of Utah. Prior to the study,
however, the site had been vandalized. Any remaining archeological artifacts were
removed and given to the University which also maintains the archeological study of
the site.

       The site also has historical significance. It served as a resting place for
pioneers traveling on the California Trail (Donner Trail) before traveling across the
Great Salt Lake Desert. It was also a designated location on the Pony Express Trail
and later became a refuge for cattle ranchers and sheep herders. It was also a resting
place and as a point of interest on the historic Lincoln Highway, the first trans-
continental highway in the United States that was completed about 1913. The
Lincoln Highway was financed from both public and private sources and several
sections of the original highway are on Kennecott Utah Copper Corporation
property. The company has also placed Lincoln Highway signs, given to the
company by the National Lincoln Highway Association, next to several sections of
the original roadway that are used by Kennecott personnel.

     The actual cave is located just north of State Highway 201, east of State
Highway 202, and south of KUC’s Refinery at 11500 West. A plaque from the
Daughters of the Utah Pioneers describing the history of the site is located on State
Highway 201, which overlooks the actual cave. The cave is adjacent to an old paved

   KUC Five Year Community Relations Plan                                            16
road, an original section of the historic Lincoln Highway that is used daily by
Kennecott employees to service and maintain water lines. Although the site is not
accessible to the general public, it can be visited following a written request and
approval from the Director of Government and Public Affairs. All approved
visitors are escorted to and from the site by Kennecott security personnel.
Photographs and filming are allowed. The removal of vegetation and rocks is
prohibited. In 2005, KUC authorized several visits to the site which included several
hundred members of the National Lincoln Highway Association.

      In 2006, Kennecott Utah Copper will continue to manage access to this site
through the procedures outlined above.

                                            SECTION 4


       In January 2006, Kennecott Utah Copper’s Community Relations Plan will be
summarized appropriately for placement on KUC’s web site. In 2006, the Company
will again produce a Community Relations Section as part of KUC’s Sustainable
Development Plan. This site-based report will be available on the web for the public
and local communities in the spring of 2006.

                                            SECTION 5


        Since its inception in 1903, Utah Copper was active in community affairs. The
towns of Bingham Canyon and nearby Magna and Garfield, where the ore was mined
and processed, were essentially Company towns where employees lived and worked.
Because these towns were built and operated by the Company, Utah Copper was
actively involved in their local communities’ educational institutions, social and
recreational activities and charitable and community events. This community
involvement continued and expanded when Kennecott purchased the Utah Copper
Company in 1936. A legacy of community relations has existed throughout
Kennecott Utah Copper’s history.

        In 1991, Kennecott Utah Copper formally created several community
relations programs, e.g., charitable contributions, a community relations network, and
communications and mining education. In 2005, the Company implemented Rio
Tinto’s Cultural Heritage Management System. For the last fourteen years these
programs have been modified, improved upon and have been successful in

   KUC Five Year Community Relations Plan                                          17
promoting Kennecott Utah Copper as a “good neighbor” and “responsible corporate
citizen”. One of the major challenges in 2005 and subsequent years will be to
increase Kennecott’s management’s participation in community relations. Another
challenge will be to inform and educate the general public and neighbors, in
communities nearby Kennecott’s operations, about the company’s future mining
plans and operations and in coordination with Kennecott Land’s planning activities.

   KUC Five Year Community Relations Plan                                        18 17/05/2007

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