Freeport Mine Gradually Recovers, Output Targeted to Reach 80% by Mid-2027
Sat 03 Oct 2026, 09:18 AM
Share
Freeport-McMoRan Inc. (FCX) reported that mining operations at PT Freeport Indonesia (PTFI) in the Grasberg minerals district continued to show a positive recovery trend following the wet material flow incident at the underground mine in September 2025.
“During the third quarter of 2026, mill processing capacity averaged around 140,000 metric tons of ore per day, approaching 67% of normal levels prior to the 2025 incident, including around 700,000 metric tons of ore per day from the Grasberg Block Cave,” FCX management wrote in an official statement, as quoted on Saturday (3/10/2026).
PTFI continues to prepare to restart production from Production Block 1S, Grasberg Block Cave (GBC), which is targeted for mid-2027.
FCX is targeting PTFI production capacity to reach 80% by mid-2027 and approach full capacity by the end of 2027.
Meanwhile, PTFI’s smelter facility in East Java reportedly resumed operations in late August 2026 after a temporary shutdown following the September 2025 Grasberg incident. Ramp-up activities are also progressing as expected.
PTFI said its combined refining capacity, including PT Smelting, can produce up to around 800,000 metric tons of copper cathodes per year and is equipped with precious metals refining facilities to process all of its gold production.
FCX estimates consolidated copper sales in the third quarter of 2026 at around 750 million pounds, in line with the estimate provided in July 2026. Meanwhile, consolidated gold sales are estimated at around 100,000 ounces, lower than the July 2026 estimate due to delays in gold sales.
The delay was triggered by a shift in the schedule for PTFI gold sales deliveries in July - September 2026.
“The change in the gold sales schedule at PT Freeport Indonesia [PTFI] resulted in a delay of around 60,000 ounces of refined gold from the third quarter of 2026 to the fourth quarter of 2026,” FCX management wrote.
In addition, consolidated unit net cash costs in the third quarter of 2026 are estimated to be around 5% above the July 2026 estimate of USD 2.00 per pound of copper, reflecting lower by-product credits due to the delay in gold sales.
Nevertheless, Freeport-McMoRan’s consolidated gold production, primarily supported by the Grasberg mine in Papua, Indonesia, remained in line with expectations at 230,000 ounces during the July - September 2026 period.
Advertisement
