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PHELPS DODGE CORPORATION AND SUBSIDIARIES
 COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
 For the years ended December 31,2006*
    
    
    2005*
    
    
    2004*
    
    
    2003*
    
    
    2002*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
    
    $
    4,833.9
    
    
    
    2,348.6
    
    
    
    1,354.1
    
    
    
    11.0
    
    
    
    (471.4
    )Amortization of previously capitalized interest expense
    
    
    3.7
    
    
    
    2.4
    
    
    
    4.4
    
    
    
    6.0
    
    
    
    6.8Less: capitalized interest
    
    
    (54.0
    )
    
    
    (16.3
    )
    
    
    (0.3
    )
    
    
    
    
    
    
    Earnings (losses) before fixed charges
    
    $
    4,783.6
    
    
    
    2,334.7
    
    
    
    1,358.2
    
    
    
    17.0
    
    
    
    (464.6
    )Fixed charges:Interest expensed and capitalized
    
    $
    123.4
    
    
    
    94.2
    
    
    
    119.6
    
    
    
    130.6
    
    
    
    155.7Amortization of debt expenses, premiums and discounts
    
    
    3.6
    
    
    
    0.7
    
    
    
    3.9
    
    
    
    11.2
    
    
    
    25.2Interest portion of rental expense
    
    
    12.6
    
    
    
    9.8
    
    
    
    10.1
    
    
    
    6.7
    
    
    
    6.2Total fixed charges
    
    $
    139.6
    
    
    
    104.7
    
    
    
    133.6
    
    
    
    148.5
    
    
    
    187.1Adjusted earnings (losses)
    
    $
    4,923.2
    
    
    
    2,439.4
    
    
    
    1,491.8
    
    
    
    165.5
    
    
    
    (277.5
    )Ratio of earnings to fixed charges (a)
    
    
    35.3
    
    
    
    23.3
    
    
    
    11.2
    
    
    
    1.1
    
    
    
    
    (b)Preferred dividend requirements:Total fixed charges
    
    $
    139.6
    
    
    
    104.7
    
    
    
    133.6
    
    
    
    148.5
    
    
    
    187.1Preferred stock dividends
    
    
    
    
    
    
    6.8
    
    
    
    13.5
    
    
    
    13.5
    
    
    
    9.1Combined fixed charges and preferred stock dividends
    
    $
    139.6
    
    
    
    111.5
    
    
    
    147.1
    
    
    
    162.0
    
    
    
    196.2Ratio of earnings to combined fixed charges and preferred
stock dividends (a)
    
    
    35.3
    
    
    
    21.9
    
    
    
    10.1
    
    
    
    1.0
    
    
    
    
    (c)
 
 *
    
    2006, 2005 and 2004 reflected full consolidation of El Abra and Candelaria; 2003 and 2002
reflected El Abra and Candelaria on a pro-rata basis (51 percent and 80 percent, respectively).(a)
    
    As a result of Phelps Dodges sale of Columbian Chemicals Company (Columbian), previously 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
discounts, premiums and expenses, and that portion of rental expense that 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 that 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.