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Grasberg Recovery Reaches 67% as Freeport Targets Full Output by End-2027
Freeport-McMoRan's Grasberg minerals district in Indonesia averaged approximately 140,000 metric tons of ore throughput per day during the third quarter, reaching about 67% of normalized pre-incident milling rates as the company continues its phased recovery from the deadly September 2025 mud rush.
By Paul Ploumis
Published October 5, 2026
Summary Points
- Grasberg mill throughput averaged approximately 140,000 metric tons per day in Q3 2026, equal to about 67% of normalized pre-incident rates.
- Roughly 70,000 tonnes per day came from the Grasberg Block Cave underground mine.
- Freeport expects Grasberg to reach about 80% of capacity by mid-2027 and approach full capacity by year-end 2027.
- Material-handling upgrades are scheduled for completion in early 2027, followed by the targeted restart of Production Block 1S around mid-year.
- Freeport's company-wide Q3 copper production totaled approximately 830 million pounds, while consolidated gold output reached about 230,000 ounces.
- PT Freeport Indonesia's Eastern Java smelter restarted in late August and is ramping up in line with company expectations.
MONTREAL (Scrap Monster): Freeport-McMoRan's Grasberg copper-gold operation in Indonesia continued its phased recovery during the third quarter, with mill throughput reaching approximately two-thirds of the level achieved before the September 2025 mud rush disaster.
Freeport said the Grasberg minerals district processed an average of approximately 140,000 metric tons of ore per day during the quarter, equivalent to about 67% of normalized pre-incident rates.
Of that total, roughly 70,000 tonnes per day came from the Grasberg Block Cave underground mine.
The latest operating update keeps the company on track to reach approximately 80% of capacity by mid-2027 and approach full operating capacity by the end of 2027.
Recovery Advances After September 2025 Mud Rush
The Grasberg Block Cave was severely disrupted by a mud rush on September 8, 2025, when approximately 800,000 metric tons of wet material entered the underground mine and traveled through multiple mine levels.
Seven workers were killed in the incident, prompting a suspension of mining operations while Freeport and PT Freeport Indonesia carried out search, investigation and remediation work.
Production later resumed in unaffected areas, including the Deep Mill Level Zone and Big Gossan operations, before the company began the phased restart of the Grasberg Block Cave.
SCRAPMONSTER EDGE
The key Q3 milestone is the improvement in sustained throughput rather than simply the restart itself. Grasberg has moved from partial recovery into a more measurable production ramp, with mill throughput now at roughly two-thirds of normalized rates and a defined path toward 80% capacity next year.
Material-Handling Upgrades Target Early 2027 Completion
Freeport continues to modify underground infrastructure following the 2025 incident.
Upgrades to the material-handling system at the Grasberg Block Cave haulage level are progressing toward completion in early 2027.
The work forms part of the company's effort to improve ore handling and support higher production rates while incorporating lessons from the mud rush.
Preparations are also underway for the targeted restart of Production Block 1S around mid-2027.
Freeport expects the combination of infrastructure upgrades and additional production areas to support the next stage of the ramp-up toward approximately 80% of normalized capacity.
Full Capacity Now Targeted Around Year-End 2027
Freeport's latest corporate guidance calls for Grasberg to approach full operating capacity by the end of 2027.
The timetable represents the company's current official outlook and supersedes some earlier public estimates that had suggested full normalization could extend into early 2028.
The recovery remains subject to completion of infrastructure work, successful restart of additional production blocks and continued safe operation of the underground mine.
The company cautioned that actual timing could still vary because of underground conditions, remediation requirements and operational performance during the ramp-up.
Freeport Produces 830 Million Pounds of Copper in Q3
Freeport reported approximately 830 million pounds of consolidated copper production during the third quarter of 2026.
That figure covers the company's global operations and should not be interpreted as production from Grasberg alone.
Consolidated gold production totaled approximately 230,000 ounces, also broadly in line with company expectations.
Freeport expects third-quarter consolidated copper sales to approximate its July estimate of 750 million pounds.
Gold sales are expected to total approximately 100,000 ounces, below the company's earlier projection because roughly 60,000 ounces of refined gold sales from PT Freeport Indonesia were deferred from the third quarter into the fourth quarter.
PRODUCTION VS. SALES
The lower Q3 gold sales figure does not represent an equivalent production shortfall. Freeport produced approximately 230,000 ounces company-wide, but about 60,000 ounces of refined Indonesian gold sales shifted into the fourth quarter because of timing.
Higher Copper Prices Provide Some Financial Support
Freeport expects its third-quarter average realized copper price to exceed $6.50 per pound.
That stronger pricing provides some support as the company absorbs costs associated with Grasberg's phased recovery and lower gold by-product credits.
Freeport currently expects consolidated unit net cash costs for the third quarter to run approximately 5% above its July estimate of $2.00 per pound of copper.
The company attributed the increase primarily to lower by-product credits resulting from the timing of gold sales.
Eastern Java Smelter Restarts
PT Freeport Indonesia's smelter in Eastern Java also resumed operations in late August 2026 after being temporarily suspended following the Grasberg disruption.
Freeport said the smelter ramp-up is progressing in line with expectations.
Combined with PT Smelting, PT Freeport Indonesia has capacity to produce up to approximately 800,000 metric tons of copper cathode per year.
The associated precious-metals refinery is designed to process all of PT Freeport Indonesia's gold production.
Restoring smelting capacity is an important downstream component of the Grasberg recovery because ore and concentrate production must ultimately be matched with available processing capacity.
Grasberg Remains Critical to Global Copper Supply
Grasberg is one of the world's largest copper and gold mining complexes, making changes in its production rates important to the global copper market.
The September 2025 shutdown tightened an already constrained mine-supply picture and contributed to higher copper prices after Freeport declared force majeure on contracted deliveries.
The recovery therefore has implications beyond Freeport's own production results.
A sustained increase from 67% toward 80% and eventually full capacity would return significant copper supply to the market, while any renewed delays would prolong pressure on global mine availability.
Market Read
The third-quarter update shows that Grasberg's recovery is advancing broadly in line with Freeport's current operating plan.
Mill throughput has climbed to approximately 140,000 tonnes per day, underground material-handling improvements remain scheduled for early 2027, and Production Block 1S is targeted for restart around mid-year.
The next major operating milestone is the move toward approximately 80% of normalized capacity by mid-2027.
From there, Freeport expects the district to approach full production by year-end.
For the copper market, the pace of that recovery will remain important because Grasberg represents a major source of global mine supply at a time when disruptions in several producing regions have kept concentrate availability tight.
