Copper Spikes as Freeport Declares Force Majeure at Grasberg Mine

The production from the mine has been temporarily suspended following the incident.

SEATTLE (Scrap Monster): Following a fatal mud rush disaster that claimed two lives, Freeport declared a force majeure on contracted supplies from its Indonesian Grasberg Block Cave mine, which caused copper prices to jump Wednesday.

A massive flow of almost 800,000 metric tons of wet material entered the mine on September 8, 2025, and quickly moved across several levels, including the service level, where the missing team members had been engaged in developmental activities. Five workers have gone missing, and the search is still ongoing.

ALSO READ:

Freeport Targets Low-Cost Copper Gains with Leaching Technologies

Copper Production at Freeport's Manyar Smelter Pushed to November

Following the event, the mine's output has been temporarily halted. Compared to July predictions, the suspension is expected to have a 4% and 6% impact on Freeport's Q3 consolidated sales of copper and gold, respectively. In the fourth quarter, the impact is anticipated to be more severe.

The corporation estimates that it will take at least 2027 to reach pre-incident operational rates. Compared to previous predictions of 1.7 billion pounds of copper and 1.6 million ounces of gold, the projected production in 2026 may drop by 35%.

The already limited supply of copper in the world has been made worse by the Grasberg mine's production halt. As a result, the price of copper has increased. By the way, Grasberg is the second-biggest copper mine in the world.