Freeport-McMoRan Gears Up for Grasberg Mine Production Resumption

Freeport-McMoRan is set to resume production at Indonesia's Grasberg copper and gold mine by July after a deadly incident halted operations. The mine's importance grows with rising copper demand. An investigation is underway, and production levels are expected to normalize by 2026.

Freeport-McMoRan announced plans to resume production at the Grasberg copper and gold mine in Indonesia by July, following a fatal incident that halted operations two months ago. The accident, which resulted in the deaths of seven workers, drew significant attention from the metals markets due to concerns over tightening supplies.

Grasberg, which ranks as the world's second-largest copper mine and the largest gold mine, represents a critical asset for Freeport amid the growing demand for copper driven by expanding electric grids and renewable energy initiatives. The company has expressed a commitment to learning from the incident, which involved a mud rush through the mine, to prevent future occurrences.

Under a phased plan, Freeport expects production levels to match those of 2025 by 2026, with significant production increases anticipated through 2027. Shares in Freeport have risen by 4.5% to $40.75 amidst investor reactions to the restart plans.

(With inputs from agencies.)