Copper Spikes as Freeport Declares Force Majeure at Grasberg Mine
Copper | 2025-09-25 08:59:06
The production from the mine has been temporarily suspended following the incident.
By Paul Ploumis
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.
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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.
POLL
Fatal incidents at major copper mines, like Grasberg, are on the rise. How will this affect global copper prices?
Frequently Asked Questions
- When is the Grasberg mine expected to return to normal operations?
- Freeport estimates it will take until 2027 to reach pre-incident operational rates.
- What was the impact on copper prices?
- The production halt tightened global copper supply, causing copper prices to jump.
- Why is this incident significant for the global copper market?
- Grasberg is the second-largest copper mine in the world, so the halt has major implications for global supply and pricing.
