Freeport eyes full Grasberg output by end of 2027

Freeport-McMoRan‘s (NYSE: FCX) Indonesian unit has reaffirmed plans to restore the giant Grasberg mine in Indonesia to full production by the end of 2027 despite the process taking “longer than expected,” Reuters reported.

“In the second half next year, we are approaching full ramp-up,” PT Freeport Indonesia CEO Tony Wenas told the news service in an interview on Wednesday. The Freeport unit currently serves as operator of Grasberg, one of the world’s largest copper and gold producers, and holds a 48.76% interest in the asset. The Indonesian government owns a majority interest at 51.24%.

The mine complex, located in the remote highlands of the Sudirman Mountain Range in Central Papua, was hit by a severe mudslide last September, resulting in the death of seven workers. The incident forced the company to pause production at the underground mine and declare force majeure on shipments.

Since then, mining has resumed at the Deep Mill Level Zone and Big Gossan deposits. Operations at the Grasberg Block Cave (GBC), the site of the incident, only restarted recently.

“We found out that the ore at the GBC, now, because of the incident, has more water … since the ore is going to be a lot wetter than what we thought, we have to modify the chute,” Wenas said, adding that the company is also building new infrastructure to prevent a repeat of the accident.

65% capacity

The update follows contradictory reports on Freeport’s return-to-production timeline for GBC. The company initially detailed in a quarterly report that a slower-than-expected progress on work related to mining infrastructure could delay the full production to early 2028, but its U.S.-based parent later called reports of a delay “misleading” and reiterated its end-of-2027 target.

In Wednesday’s interview, Wenas confirmed that Grasberg is now running at 50% of capacity and is expected to reach 65% later this year. Production is anticipated to reach 800 million lb. of copper cathode and 700,000 oz. of gold in 2026, then rising to 1.2 billion lb. and 1 million oz. respectively in 2027, he said.

About $20 billion has been earmarked for fresh investment in Grasberg after 2041, when the company’s current mining permit expires, Freeport Indonesia’s CEO added. A memorandum of understanding to extend the permit was signed earlier this year during a meeting between Indonesian President Prabowo Subianto and U.S. President Donald Trump.

The extension will coincide with the transfer of a further 12% stake in Freeport Indonesia to the Indonesian government, Wenas said.

Freeport-McMoRan shares rose 3.3% to $60.65 in U.S. trading Wednesday afternoon. That values the company at about $87 billion (C$120 billion).