Freeport delays Grasberg full restart to early 2028

Staff Writer | May 8, 2026 | 8:34 am Top Companies Asia USA Copper Gold

All missing workers found dead at Freeport’s Grasberg mine

Grasberg mine. (Image courtesy of Indonesia’s Ministry of Mines and Minerals Resources.)

PT Freeport Indonesia has confirmed the delayed restart of full production at the Grasberg mine, as it continues to recover from a deadly accident last year that crippled the global copper supply chain.

In a statement on Thursday, the company said it now expects the giant complex in Central Papua province to return to full capacity by early 2028. Previously, it had targeted a full restart by end-2027.

A Freeport spokesperson told Reuters that this delay was due to “additional work on logistics and ore handling infrastructure” at the underground mine, which was hit by a severe mudflow in September.

The incident, which occurred at Grasberg’s Block Cave underground mine portion (GBC), resulted in the death of workers, forcing Freeport to immediately shut down mining activity and declare force majeure on shipments.

The suspension added further strain on the global copper market, as Grasberg accounted for about 3% of the world’s copper supply at the time, producing about 1.7 million lb. of the metal annually. It is also a major producer of gold, with annual production of 1.4 million oz.

Slowed ramp-up

As part of the recovery process, Freeport has laid out plans for a phased restart, beginning with areas that were unaffected by the mudslide. The Deep Mill Level Zone and Big Gossan underground mines had already resumed last year, while parts of GBC returned to operations last month.

Initially, the miner planned to ramp up to 85% capacity by the middle of this year, then 100% by end-2027. However, in its most recent earnings statement, the company said the trajectory to full production would slow materially, and now aims for 65% capacity in the second half of 2026, 80% by mid-2027, and near full capacity by the end of 2027.

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“Operations are currently in the recovery phase following the GBC underground mine incident, with production currently at around 40% to 50%. The company targets a return to full capacity by early 2028,” Freeport Indonesia’s chief executive Tony Wenas stated in a press release on Thursday.

As a result of the delay, the company currently expects Grasberg’s copper production this year to be 700,000 lb., down from the 1-billion-lb. target it had forecasted in its fourth-quarter earnings report.

Earlier this year, the Freeport-McMoRan (NYSE: FCX) unit reached an agreement with the Indonesian government for a life-of-resource extension of operating rights.