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PHELPS DODGE CORPORATION AND SUBSIDIARIES
 COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
 For the years ended December 31,2005*
    
    
    2004*
    
    
    2003*
    
    
    2002*
    
    
    2001*Income (loss) from continuing operations before taxes, minority
interests in consolidated subsidiaries, equity in net
earnings (losses) of affiliated companies, extraordinary item and
cumulative effect of accounting
changes
    
    $
    2,348.6
    
    
    
    1,354.1
    
    
    
    11.0
    
    
    
    (471.4
    )
    
    
    (306.0
    )Amortization of previously capitalized interest
expense
    
    
    2.4
    
    
    
    4.4
    
    
    
    6.0
    
    
    
    6.8
    
    
    
    7.4Less: capitalized
interest
    
    
    (16.3
    )
    
    
    (0.3
    )
    
    
    
    
    
    
    
    
    
    
    (1.6
    )Earnings (losses) before fixed
charges
    
    $
    2,334.7
    
    
    
    1,358.2
    
    
    
    17.0
    
    
    
    (464.6
    )
    
    
    (300.2
    )Fixed charges:Interest expensed and
capitalized
    
    $
    94.2
    
    
    
    119.6
    
    
    
    130.6
    
    
    
    155.7
    
    
    
    214.7Amortization of debt expenses, premiums and discounts
    
    
    0.7
    
    
    
    3.9
    
    
    
    11.2
    
    
    
    25.2
    
    
    
    10.2Interest portion of rental expense
    
    
    9.8
    
    
    
    10.1
    
    
    
    6.7
    
    
    
    6.2
    
    
    
    6.0Total fixed charges
    
    $
    104.7
    
    
    
    133.6
    
    
    
    148.5
    
    
    
    187.1
    
    
    
    230.9Adjusted earnings (losses)
    
    $
    2,439.4
    
    
    
    1,491.8
    
    
    
    165.5
    
    
    
    (277.5
    )
    
    
    (69.3
    )Ratio of earnings to fixed charges (a)
    
    
    23.3
    
    
    
    11.2
    
    
    
    1.1
    
    
    
    
    (b)
    
    
    
    (d)Preferred dividend requirements:Total fixed charges
    
    $
    104.7
    
    
    
    133.6
    
    
    
    148.5
    
    
    
    187.1
    
    
    
    230.9Preferred stock dividends
    
    
    6.8
    
    
    
    13.5
    
    
    
    13.5
    
    
    
    9.1
    
    
    
    N/ACombined fixed charges and preferred stock dividends
    
    $
    111.5
    
    
    
    147.1
    
    
    
    162.0
    
    
    
    196.2
    
    
    
    230.9Ratio of earnings to combined fixed charges and preferred
stock dividends (a)
    
    
    21.9
    
    
    
    10.1
    
    
    
    1.0
    
    
    
    
    (c)
    
    
    N/A
 
 *
    
    2005 and 2004 reflected full consolidation of El Abra and Candelaria; 2003 through 2001 reflected El Abra and Candelaria on a pro-rata basis (51 percent
and 80 percent, respectively).(a)
    
    As a result of Phelps Dodges agreement to sell Columbian Chemicals Company (Columbian), previously disclosed as our Specialty Chemicals segment,
the operating results for Columbian have been reported separately from continuing operations. For purposes of computing the consolidated ratio of earnings
to fixed charges, earnings consist of income from continuing operations before taxes, minority interests and equity in net earnings (losses) of affiliated
companies, extraordinary items and cumulative effect of accounting changes. Minority interests in majority-owned subsidiaries were not deducted from
earnings as all such subsidiaries had fixed charges. Fixed charges from continuing operations consist of interest (including capitalized interest) of all
indebtedness, amoritization of debt discount and expense, and that portion of rental expense which we believe to be representative of interest. For purposes
of calculating the ratio of earnings to combined fixed charges and preferred stock dividends, the preferred stock dividend requirements were assumed to be
equal to the pre-tax earnings which would be required to cover such dividend requirements. The amount of pre-tax earnings required to cover such
preferred stock dividends was computed using the tax rate for each applicable year.(b)
    
    Due to the loss recorded in 2002, the ratio coverage was less than 1:1. Phelps Dodge would have needed to generate additional earnings of $464.6 million
to achieve coverage of 1:1 in 2002.(c)
    
    Due to the loss recorded in 2002, the ratio coverage was less than 1:1. Phelps Dodge would have needed to generate additional earnings of $473.7 million
to achieve coverage of 1:1 in 2002.(d)
    
    Due to the loss recorded in 2001, the ratio coverage was less than 1:1. Phelps Dodge would have needed to generate additional earnings of $300.2 million
to achieve coverage of 1:1 in 2001.