Freeport-McMoRan (NYSE: FCX) said on Friday progress at its Grasberg Block Cave underground mine in Indonesia is on track for a phased ramp-up, as the miner undertakes recovery efforts following a deadly mudslide that disrupted operations last year.
The company, whose shares rose 3.2% in morning trading, expects to reach 80% of capacity in mid-2027 and approach full capacity by year-end 2027.
Grasberg, the world’s second-largest copper mine and largest gold mine, was hit by a massive mud flow last year that killed seven workers and shuttered operations for nearly a month.
Upgrades to the material handling system at the Grasberg Block Cave haulage level are progressing toward completion by early 2027, while preparations continue for the targeted restart of production from Production Block 1S by mid-2027, Freeport said.
It projects third-quarter copper sales of 750 million pounds and total gold sales of about 100,000 ounces, below its July 2026 forecast, hurt by deferred gold sales.
The miner estimates quarterly average realized price of copper to exceed $6.50 per pound.
US operations were affected by lower-than-planned operating rates during the quarter due to localized flooding, power outages and strong winds, the company said.
Freeport is scheduled to report third-quarter results on October 27.
(Reporting by Katha Kalia in Bengaluru; Editing by Shreya Biswas)
