Freeport’s Grasberg copper mill reaches 67% after mudslide
Freeport-McMoRan's Grasberg copper-gold complex in Indonesia has reached 67% of its normal milling capacity following a fatal mudslide last year. The company expects to reach near-full production by the end of 2027 as it continues to upgrade its underground infrastructure.
Why it matters
As one of the world's largest copper and gold deposits, the operational status of the Grasberg mine is a critical factor in global commodity supply chains and market pricing.
Freeport-McMoRan (NYSE: FCX) averaged nearly two-thirds of normal milling rates at its Grasberg copper-gold complex in Indonesia during the third quarter, a year after a mudslide killed seven workers and shut the operation. The company expects near-full production by the end next year.
The complex in Central Papua, about 3,400 km east of Jakarta, processed about 140,000 tonnes of ore a day, modestly above the 65% rate BMO Capital Markets had expected. Freeport aims to reach 80% of capacity by mid-2027.
“The Grasberg ramp-up is progressing well, and the phased restart timeline was reaffirmed – a positive,” BMO mining analyst Katja Jancic said in a note Friday. She rates Freeport outperform with a $85 target. The NYSE-listed shares traded up 3.6% at $71.79 apiece on Friday afternoon, after testing $38.54 to $80.24 over the past 12 months.
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