Freeport shares sink after workers trapped at Grasberg mine
The Grasberg mine on the island of New Guinea, is one of the world's biggest sources of copper and gold. (Image from Google Earth) Freeport-McMoRan (NYSE: FCX) shares sank Tuesday after the company suspended operations at its Grasberg Block Cave underground mine in Indonesia, where a surge of wet material blocked access routes and left seven workers trapped underground. The incident occurred late Monday evening in one of five production blocks within the mine, located in Central Papua.
According to the company, the location of the workers is known, and they are believed to be safe. Crews are working to clear debris and secure safe evacuation routes, while support is being provided to the trapped workers. Shares of Freeport fell 5.81% Tuesday morning following the announcement, giving the miner a market capitalization of £63 billion.
"All other personnel at the site are confirmed safe," Freeport said in a statement. "Our team is working diligently to bring our team members to safety as quickly as possible," Chairman Richard C. Adkerson and CEO Kathleen Quirk said in a statement[1].
Freeport said no timeline has been provided for the evacuation of the workers or the resumption of production. The Grasberg operation is one of the world's largest copper and gold mines, with annual output of about 1.7 billion pounds of copper and 1.4 million ounces of gold from three mines in the district. Freeport holds a 48.76% stake in the complex, while Indonesia's state-owned mining company holds the majority interest.
Indonesia's mining minister, Bahlil Lahadalia, said on Tuesday that his team would visit the site to assess conditions and provide updates. The suspension initially pressured copper prices. The most-active COMEX futures contract was down 0.15% at £4.552 per lb (£10,014/t) on Tuesday morning.
Freeport Indonesia has previously forecast copper concentrate output of nearly 3 million metric tons in 2025.
Any extended disruption at Grasberg could add supply-side uncertainty to already tight copper markets.