Freeport says all missing workers at Grasberg have died

Freeport-McMoRan (NYSE: FCX) said all seven workers who went missing at the Grasberg copper mine in eastern Indonesia during a mudslide that halted production at the site last month have died.

The bodies of the last five missing miners were found on Sunday, Freeport said late Sunday in a statement. This brings to an end the nearly month-long search effort that began after about 800,000 tonnes of wet material swept through the site from the former Grasberg open pit in early September. The seven workers who perished were conducting development activities on the mine’s service level, Freeport said.

Grasberg, the world’s second-largest copper mine, is a critical asset for Freeport’s Indonesian operations.

Mining operations in the Grasberg minerals district have been suspended since Sept. 8. An investigation to identify the cause of the incident – which Freeport says is unprecedented in its multi-decade history of block-cave mining operations in Indonesia – is under way and should be completed by year-end 2025, according to the company. Freeport is working closely with Indonesian government authorities to review the incident and future operating plans.

“We are grieving for our seven coworkers lost in this tragic incident and extend our sincere condolences to the families who lost loved ones,” Freeport chairman Richard C. Adkerson and CEO Kathleen Quirk said in a statement. “We appreciate the extraordinary efforts of the emergency response team who worked tirelessly to locate our coworkers.”

One of the identified victims was Victor Bastida Ballesteros, a Chilean national. The remaining victims are undergoing formal identification.

Grasberg accounts for half of Freeport Indonesia’s reserves and is expected to provide about 70% of its copper and gold output through 2029. The company expects full operations to resume by 2027, with some unaffected areas possibly restarting later this year.

Freeport recently declared force majeure on its Indonesian shipments and cut production guidance for both this year and next. Copper output in the fourth quarter will be “insignificant,” and sales guidance for 2026 is down 35%.

Global supply squeezed

Benchmark Mineral Intelligence (BMI) estimates the cumulative loss between September 8 and the end of 2026 will reach nearly 600,000 tonnes of contained copper. This is roughly equal to the forecast 2026 output at Chile’s Collahuasi mine, the world’s third-largest.

The Grasberg disruption adds to mounting global supply pressures. In July, five workers died at Chile’s El Teniente mine, prompting a week-long shutdown. n September, Hudbay Minerals suspended operations at a mill at its Constancia site in Peru due to political unrest.

Copper prices are now approaching record highs, driven by tightening supply, looser US monetary policy, and a weaker dollar. Freeport says it is cooperating with the Indonesian government to investigate the incident, which it called unprecedented. The mine remains shut.