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PHELPS DODGE CORPORATION AND SUBSIDIARIES
Exhibit 12.1 COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(in millions except ratios) For the years ended December 31,2004
    
    
    2003
    
    
    2002
    
    
    2001
    
    
    2000Income (loss) before taxes, minority
interests, equity in net earnings
of affiliated companies, extraordinary
item and cumulative effect
of accounting changes
    
    $
    1,338.5
    
    
    
    71.4
    
    
    
    (425.0
    )
    
    
    (246.6
    )
    
    
    84.9Amortization of previously capitalized interest expense
    
    
    4.6
    
    
    
    6.3
    
    
    
    7.1
    
    
    
    7.8
    
    
    
    7.5Less: capitalized interest
    
    
    (1.0
    )
    
    
    (0.6
    )
    
    
    
    
    
    
    (1.6
    )
    
    
    (4.5
    )Earnings (loss) before fixed charges
    
    $
    1,342.1
    
    
    
    77.1
    
    
    
    (417.9
    )
    
    
    (240.4
    )
    
    
    87.9Fixed charges:Interest expensed and capitalized
    
    $
    124.2
    
    
    
    135.2
    
    
    
    161.8
    
    
    
    217.3
    
    
    
    214.1Amortization of debt expenses, premiums and discounts
    
    
    3.9
    
    
    
    11.2
    
    
    
    25.2
    
    
    
    10.2
    
    
    
    2.2Interest portion of rental expense
    
    
    11.3
    
    
    
    7.7
    
    
    
    7.1
    
    
    
    7.5
    
    
    
    9.7Total fixed charges
    
    $
    139.4
    
    
    
    154.1
    
    
    
    194.1
    
    
    
    235.0
    
    
    
    226.0Adjusted earnings
    
    $
    1,481.5
    
    
    
    231.2
    
    
    
    (223.8
    )
    
    
    (5.4
    )
    
    
    313.9Ratio of earnings to fixed charges (a)
    
    
    10.6
    
    
    
    1.5
    
    
    
    
    (b)
    
    
    
    (d)
    
    
    1.4Preferred dividend requirements:Total fixed charges
    
    $
    139.4
    
    
    
    154.1
    
    
    
    194.1
    
    
    
    235.0
    
    
    
    226.0Preferred stock dividends
    
    
    13.5
    
    
    
    13.5
    
    
    
    9.1
    
    
    
    N/A
    
    
    
    N/ACombined fixed charges and preferred stock dividends
    
    $
    152.9
    
    
    
    167.6
    
    
    
    203.2
    
    
    
    235.0
    
    
    
    226.0Ratio of earnings to combined fixed charges and preferred
stock dividends (a)
    
    
    9.7
    
    
    
    1.4
    
    
    
    
    (c)
    
    
    N/A
    
    
    
    N/A
  (a)
    For purposes of computing the consolidated ratio of earnings to fixed
charges, earnings consist of income 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 consist of interest
(including capitalized interest) of all indebtedness, amortization 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 $417.9
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 $427.0
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 $240.4
million to achieve coverage of 1:1 in 2001.