Freeport Targets 800 Million Pounds From Leaching

Freeport-McMoRan targets annual copper production of 800 million pounds from leaching initiatives. The company currently produces about 200 million pounds annually from these operations. Management estimates the stockpiles contain 40 billion pounds of previously unrecoverable material. This expansion would occur without the costs associated with developing new conventional mines.

CEO Kathleen Quirk outlined these goals at a Jefferies conference in New York. She stated the company is entering a growth phase supported by its diversified production base. The 2026 priorities include disciplined execution at the Grasberg site. Freeport is also investing in technology to improve efficiency and lower operating costs.

Grasberg Operations Resume Capacity Ramp

Freeport is ramping up the Grasberg Block Cave operation in Indonesia. The site restarted partially in October and fully in March. The company targets 65% of overall capacity in the second half of 2026. Production is expected to reach 80% by mid-2027. Near-full capacity is targeted by the end of 2027.

The ramp-up follows a fatal underground incident that resulted in seven deaths. Freeport completed an investigation and identified risk management steps. The company modified its plan in April to upgrade the material-handling system. These changes aim to improve long-term efficiency. Dry weather in Indonesia has aided recent mining conditions.

New Smelter Completes Local Integration

Freeport recently started a new copper smelter in Indonesia. This facility joins an existing smelter that has operated since the late 1990s. The new plant makes the company fully integrated in the region. Freeport reduces its reliance on third-party processing in other countries. This local integration supports the company's broader operational strategy.

U.S. Production Growth Drives Expansion

The leaching technology targets copper recovery from U.S. stockpiles. Freeport estimates these stockpiles hold 40 billion pounds of copper. Current annual production from these sources is approximately 200 million pounds. The company sees a path to 800 million pounds annually. This growth would raise U.S. copper production by roughly 60% over three to four years.

Freeport is also pursuing a potential $500 million annual benefit. This benefit stems from including copper in the federal 45X tax credit. The proposed Bagdad mine expansion supports this growth. The company seeks to unlock value from previously mined material. These initiatives form the core of Freeport's 2026 growth plan.