Freeport plans to restart large-scale production at Grasberg in Q2 2026

[Ben Graham]

Freeport McMoRan (NYSE: FCX) says it plans to restore large-scale production at Indonesia’s Grasberg minerals district from the second quarter of 2026, following a fatal incident that halted operations earlier this year.

On Sept. 8, a catastrophic mudslide released 800,000 metric tons of wet material into Grasberg’s Block Cave underground mine, resulting in the death of seven workers. Since then, Freeport has declared force majeure and completed an investigation into the incident, the details of which are yet to be disclosed.

Remediation activities are currently being advanced to prepare for a phased restart and ramp-up of the Grasberg Block Cave underground mine, the US copper mining giant said in a press release on Tuesday.

GRAPHIC: Grasberg mine accident tightens global copper supply estimates

As previously reported, Freeport has already resumed activities at the Deep Mill Level Zone and Big Gossan underground mines, which it said were not affected by the mud flow. Together with the Block Cave, they form one of the world’s largest copper-gold mine complexes, producing 1.7 billion lb. of copper and 1.4 million oz. of gold annually. The Grasberg district is situated in the remote highlands of the Sudirman Mountains in Central Papua.

Freeport serves as Grasberg’s operator and holds an approximate 49% interest, while the rest is owned by the Indonesia government.

“We have incorporated the learnings from the recent tragic incident into our future plans and are implementing several initiatives to address the conditions that led to the incident,” Freeport’s chief executive Kathleen Quirk said in the Tuesday press release.

Production forecasts

According to Freeport, Grasberg’s in 2026 production will be similar to 2025 at about 1 billion lb. of copper and 900,000 oz. of gold — about 35% lower than its pre-incident estimates following a September revision.

However, the company expects production to rise in the following three years, averaging 1.6 billion lb. of copper and 1.3 million oz. of gold between 2027-2029. The Block Cave mine, which accounts for half of Grasberg’s entire mineral reserves, is set to account for a majority (70%) of that production.

Freeport opened the Tuesday session 5.8% higher at $41.27 a share in New York, for a market capitalization of $56 billion.