Freeport-McMoRan (NYSE:FCX) has reported that its Grasberg Block Cave underground mine in Indonesia continues its phased recovery on schedule following the September 2025 mudslide incident that resulted in seven worker fatalities and temporary suspension of mining operations. The Grasberg operation, located in the Sudirman Mountain Range in Central Papua, is one of the world's largest copper mines comprising several underground mining zones. The company stated on Friday that the facility achieved significant progress during the third quarter of 2026, with mill throughput averaging approximately 140,000 tonnes per day during the quarter.
This represents around 67% of normalised rates prior to the September 2025 incident and included approximately 70,000 tonnes of ore per day from the Block Cave mine itself. According to the operational update, Freeport continues to expect Grasberg to reach approximately 80% of capacity by mid-2027 before approaching full capacity by the end of 2027. The company previously estimated Grasberg's copper production could reach around 800 million pounds in 2026, increasing to 1.2 billion pounds in 2027 as the recovery progresses.
Freeport's associated smelter facility in East Java, which was temporarily suspended following the Grasberg incident, successfully restarted operations in late August. For the third quarter overall, Freeport reported consolidated copper production of approximately 830 million pounds, which aligns with company expectations. The result reflects slightly stronger production from international operations, though this was partially offset by lower output in the United States where localised flooding, power outages, and strong winds affected mining activities.
The company expects quarterly copper sales of around 750 million pounds, with average realised copper price forecast to exceed US$6.50 per pound. Freeport-McMoRan characterised itself as strongly positioned for future growth, citing ongoing progress on the Grasberg recovery, innovation-led growth strategies, and potential organic brownfield development opportunities. The Phoenix-based mining company is scheduled to release its complete third-quarter 2026 financial results before market opening on 27 October 2026.
Source: Mining.com.au, Jackson Chen, 3 October 2026
Source: mining.com.au