Freeport‑McMoRan announced that it will resume large‑scale production at its Grasberg Block Cave mine in Central Papua, Indonesia, with a phased restart scheduled to begin in the second quarter of 2026. The company’s plan restores a key revenue source that was halted by a mud‑rush incident on September 8, 2025, which caused seven fatalities and forced a temporary shutdown.
The company projects 2026 output to match 2025 levels, with approximately 1.0 billion pounds of copper and 0.9 million ounces of gold. From 2027 to 2029, production is expected to rise to an average of 1.6 billion pounds of copper and 1.3 million ounces of gold, reflecting a gradual return to full capacity after the incident. These figures are about 35 % lower than pre‑incident estimates, underscoring the impact of the mud‑rush on the mine’s throughput.
Freeport‑McMoRan’s management emphasized safety and operational lessons learned from the incident. President and CEO Kathleen Quirk said the company is “committed to restoring large‑scale, low‑cost production at Grasberg in a safe, efficient and responsible manner.” The company has also reduced capital expenditures for 2025‑2026 and is implementing enhanced operating procedures to mitigate future risks.
In its Q3 2025 earnings, the company reported revenue of $6.97 billion, beating the consensus estimate of $6.7 billion by 4 %. Adjusted earnings per share were $0.50, surpassing the $0.41 forecast by 22 %. The strong performance was driven by higher realized copper prices—$4.68 per pound versus $4.30 the previous year—and gold prices of $3,539 per ounce, offsetting the production shortfall caused by the Grasberg incident. Consolidated copper production for the quarter was 912 million pounds, and gold production was 287,000 ounces, both below the 2024 levels of 1,051 million pounds and 1,051 million pounds respectively.
Investors responded favorably to the restart announcement and the earnings beat, citing the company’s clear timeline for returning to full production and the resilience of copper demand amid electrification trends. The market reaction was driven by the combination of a phased restart plan, strong commodity prices, and management’s focus on safety and cost discipline.
The restart plan positions Freeport‑McMoRan to capture a growing global copper demand driven by electric vehicle and renewable energy expansion. Headwinds include the need to maintain safety standards and the potential for higher unit costs in Q4 2025 due to low production volumes at Grasberg. However, the company’s substantial reserves and disciplined cost management provide a solid foundation for long‑term growth.
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