Freeport-McMoRan Eyes Grasberg Ramp-Up, U.S. Copper Growth From Leaching

Grasberg is ramping back up after a fatal underground incident, with Freeport targeting 65% of capacity in the second half of 2026, 80% by mid-2027 and near-full capacity by year-end 2027. A new Indonesian smelter also makes the company fully integrated locally. Freeport’s leaching technology could unlock copper from stockpiles containing an estimated 40 billion pounds of previously unrecoverable material, potentially increasing annual production from about 200 million pounds to 800 million pounds without conventional mine-development costs. The proposed Bagdad mine expansion and successful leaching deployment could raise Freeport’s U.S. copper production by roughly 60% over three to four years ; the company is also seeking a potential $500 million annual benefit from including copper in the federal 45X tax credit.

Freeport-McMoRan NYSE: FCX is prioritizing the ramp-up of its Grasberg operations in Indonesia, potential U.S. production growth and an emerging leaching technology initiative that management believes could materially expand copper recovery from previously mined material. Speaking at a Jefferies conference in New York, Chief Executive Officer Kathleen Quirk said the company is entering a period of growth supported by its large-scale, geographically diversified copper production base and embedded expansion opportunities. She said the company’s 2026 priorities include disciplined execution at Grasberg, advancing leaching technology and investing in technology and innovation to improve efficiency and lower costs.

Quirk said Freeport has made substantial progress in recovering from an unprecedented incident at the Grasberg Block Cave underground operation about a year earlier. The incident resulted in the deaths of seven coworkers, she said, and the company has completed an investigation and identified steps it will take to manage the related risks in the future. Some operations restarted in October, followed by a larger restart in March. The company is proceeding with its planned ramp-up, Quirk said, targeting about 65% of overall capacity in the second half of the year, 80% by the middle of next year and nearly full capacity by the end of 2027.

Freeport modified its plan in April to add upgrades to the material-handling system. Quirk said the changes were intended to improve long-term efficiency rather than address a safety issue. Dry weather in Indonesia has helped mining conditions since operations resumed, according to Quirk, although she emphasized that the company is designing systems to operate effectively in the region’s typically wet climate. She said management believes the incident is behind the company, while acknowledging that mining operations will continue to face operational challenges.

Freeport also recently started its new Indonesian copper smelter, adding to an existing smelter that has operated since the late 1990s. Quirk said the new facility makes the company fully integrated in Indonesia across mining and processing, reducing its reliance on third-party processing in other countries.

A major area of potential growth involves recovering copper from material that was previously mined and placed in stockpiles, primarily in the United States. Quirk said Freeport estimates those stockpiles contain approximately 40 billion pounds of copper that was not considered recoverable using technology available decades a...