Freeport says Grasberg recovery not delayed until 2028, stands by 2027 forecast

Freeport-McMoRan said on Monday that it still expects Indonesia’s Grasberg copper and gold mine to resume full production by the end of 2027, reiterating a plan outlined last month and pushing back on reports that the restart could drag into 2028.

Grasberg, the world’s second-largest copper mine and largest gold mine, was hit by a massive mud flow last September that killed seven workers and shuttered operations for nearly a month.

In late April, Freeport said recovery at the site was taking longer than expected and pushed back a forecast for 85% of production to be restored by the second half of the year, saying that number would now be 65%. Freeport’s executives said that full operations would be restored by the end of 2027.

Last week, the Indonesian head of PT Freeport Indonesia, the company that owns the mine, said that the full production restart could be delayed further into 2028.

That news sent copper prices to a three-month high as markets absorbed what seemed like yet another supply shock amid surging demand for the red metal.

PT Freeport Indonesia is majority controlled by Indonesian government entities that hold a 51.24% stake to Freeport’s 48.76%. Phoenix-based Freeport manages Grasberg’s operations.

“PT Freeport Indonesia’s ramp-up progress and revised mine plans were disclosed on April 23 in connection with Freeport’s earnings release,” Freeport said in an emailed statement to Reuters. “Media headlines are misleading as this information was publicly disclosed more than two weeks ago.”

When asked about the discrepancy in statements between Freeport’s headquarters in Phoenix and the operations in Indonesia, a Freeport spokesperson said that if there were an additional delay, the company would have alerted markets.

Freeport filed a quarterly update with US regulators on Friday that reiterated the 2027 timeline.

Freeport CEO Kathleen Quirk plans to discuss the Grasberg operations on Tuesday during the Bank of America Global Metals, Mining and Steel Conference, the company said.

Freeport’s shares gained 5% on Monday to $64.75 as copper prices gained more than 2.5%.

(By Ernest Scheyder; Editing by Mark Porter and Deepa Babington)