Freeport reports sharp drop in copper and gold production after Grasberg landslide

Freeport-McMoRan (FCX) has reported a significant decline in copper and gold production during the first nine months of 2025, with output dropping nearly 30 percent year-on-year, largely due to a landslide at its Grasberg mine in Central Papua on September 8, 2025. According to the company's latest report, copper production fell from 1.37 billion pounds in January-September 2025 to 966 million pounds, while gold output decreased nearly 39 percent to 876,000 ounces over the same period. "Our strong third-quarter performance this year was overshadowed by the tragic incident at our Grasberg operations last month.

Our organization mourns the lives lost, and we continue to prioritize workplace safety," FCX CEO Kathleen Quirk said as quoted in a statement on Monday, October 27, 2025. The landslide is estimated to have reduced Grasberg's third-quarter output by 90 million pounds of copper and 80,000 ounces of gold. The mine contributes almost 70 percent of FCX's operating revenue.

Despite the production setback, the company's operating revenue grew 1.53 percent year-on-year to US£5.7 billion (around Rp95 trillion), buoyed by rising commodity prices. Copper from PTFI increased 4.25 percent to US£442 per pound, while gold surged 42.13 percent to US£3,357 per ounce. FCX forecasts 2025 production to reach 1.2 billion pounds of copper and 1 million ounces of gold as Grasberg operations are expected to remain minimal until the conclusion of an investigation scheduled for November 18, 2025.

The company also anticipates a 35 percent production drop next year, projecting 1.1 billion pounds of copper and 1.04 million ounces of gold in 2026. Quirk has allocated US£43 million (Rp715 billion) for repair work at Grasberg. However, the most substantial financial impact stems from the suspension of operations at PT Smelting Gresik Copper Smelter & Refinery, in which FCX holds a 66 percent stake, with idle facility maintenance costs projected at US£128 million (Rp2.12 trillion).

Indonesia's Energy and Mineral Resources Minister Bahlil Lahadalia confirmed that Grasberg remains closed following the landslide, which buried 800,000 tons of soil in the underground Grasberg Block Cave and resulted in seven fatalities, all of whom have been evacuated.

"Operations will resume only after a full audit," Bahlil said on October 10, 2025 emphasizing that the government is conducting a comprehensive review to determine the causes of the landslide.