Freeport Updates on PT Freeport Indonesia Operations

10/05/2025 – 09:52 PM

Phoenix – Freeport-McMoRan (NYSE: FCX) today confirmed the tragic loss of the remaining five team members who had been missing since the September 8 mud rush incident at the Grasberg Block Cave mine in Indonesia. The announcement marks a somber conclusion to the search and rescue efforts initiated following the unprecedented mining accident.

PT Freeport Indonesia (PTFI) located the deceased individuals on October 5, 2025. This follows the recovery of two other team members on September 20, 2025, bringing the total loss of life to seven. The incident has cast a pall over the mining giant’s operations and raised serious questions about safety protocols in deep underground mining environments.

In a joint statement, Richard C. Adkerson, Chairman of the Board, and Kathleen Quirk, President and Chief Executive Officer, expressed their condolences: “We are grieving for our seven coworkers lost in this tragic incident and extend our sincere condolences to the families who lost loved ones. We appreciate the extraordinary efforts of the emergency response team who worked tirelessly to locate our coworkers. We are committed to investigating the cause of the incident and to taking all steps necessary to prevent recurrence.” The company faces intense scrutiny from regulators, stakeholders, and the families of the deceased, underscoring the need for a transparent and thorough investigation.

The mud rush, involving approximately 800,000 metric tons of wet material from the former Grasberg open pit, surged into the mine and impacted multiple levels, including the service level where the team members were working. The sheer scale of the inundation highlights the unpredictable nature of geological events in complex mining operations. Experts suggest that factors such as heavy rainfall, geological instability, and legacy mining activities may have contributed to the incident.

Mining operations in the Grasberg minerals district have been suspended since September 8. The impact on Freeport’s copper production is a growing concern for the market, with analysts closely watching the timeline for resuming operations. The Grasberg mine is a significant contributor to global copper supply, and any prolonged disruption could lead to pricing volatility.

PTFI’s investigation, involving external experts, is expected to be completed by year-end 2025. The probe will focus on root cause analysis and recommendations to prevent future incidents. The outcome of the investigation will not only shape PTFI’s future operating procedures but may also lead to broader changes in safety standards for the global mining industry.

PTFI is collaborating with Indonesian government authorities to review the incident and future operating plans. The government’s involvement underscores the significance of the accident and its potential impact on Indonesia’s mining sector. Investors are keen to see how the regulatory landscape evolves in response to the tragedy.

On September 24, 2025, FCX provided a preliminary assessment of potential production impacts. The company has not updated this assessment. The lack of updated figures raises questions about the true extent of the damage and the potential financial fallout. Investors are bracing for a potentially significant impact on Freeport’s Q4 earnings and forward guidance.

The incident at Grasberg raises broader questions about risk management in large-scale, underground mining operations. The increasing depth and complexity of modern mines present unique challenges, requiring advanced monitoring systems, robust emergency response plans, and a strong safety culture. Mining companies are under pressure to invest in new technologies and training programs to mitigate these risks.

FCX, headquartered in Phoenix, Arizona, is a leading international metals company focused on copper production. Its portfolio includes the Grasberg minerals district in Indonesia and significant operations in North and South America. The company’s stock (FCX) will likely face continued volatility in the near term as the investigation progresses and the impact on production becomes clearer. The long-term outlook will depend on Freeport’s ability to restore confidence in its safety protocols and demonstrate a commitment to responsible mining practices.

Cautionary Statement: This press release contains forward-looking statements. Forward-looking statements are all statements other than statements of historical facts, such as plans, projections or expectations relating to or affected by the incident at PTFI’s Grasberg Block Cave mine and suspension of operations in the Grasberg minerals district, recovery assessments, investigations, repair efforts and phased restart and ramp-up of operations following the incident at PTFI’s Grasberg Block Cave mine and the anticipated impact on future production, results of operations and, operating plans and recoveries under insurance policies. The words “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” “targets,” “intends,” “likely,” “will,” “should,” “could,” “to be,” “potential,” “assumptions,” “guidance,” “forecasts,” “future,” “pursues,” “initiatives,” “objectives,” “opportunities,” “strategy” and any similar expressions are intended to identify those assertions as forward-looking statements.

FCX cautions readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, expected, projected or assumed in the forward-looking statements. Important factors that can cause FCX’s actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, ability to repair incident-related damage; complete the investigation to the satisfaction of the Indonesian government authorities and implement any recommendations therefrom; safely restart and phase-in ramp-up of production on the expected timeline and optimize production plans; recover amounts under insurance policies; resolve force majeure declarations and maintain relationships with commercial counterparties; production rates; timing of shipments; reductions in liquidity and access to capital; political and social risks, including the potential effects of violence in Indonesia and relations with local communities and Indigenous Peoples; operational risks inherent in mining, with higher inherent risks in underground mining; mine sequencing; changes in mine plans or operational modifications, delays, deferrals or cancellations, including the ability to smelt and refine or inventory; satisfaction of requirements in accordance with PTFI’s IUPK to extend mining rights from 2031 through 2041; process relating to the extension of PTFI’s IUPK beyond 2041; any major public health crisis; labor relations, including labor-related work stoppages and increased costs; compliance with applicable environmental, health and safety laws and regulations; weather- and climate-related risks; environmental risks, and impacts, expenses or results from litigation or investigations, as well as those factors described in more detail under the heading “Risk Factors” in FCX’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission.

Investors are cautioned that many of the assumptions upon which FCX’s forward-looking statements are based are likely to change after the date the forward-looking statements are made. Further, FCX may make changes to its business plans that could affect its results. FCX undertakes no obligation to update any forward-looking statements, which are as of the date made, notwithstanding any changes in its assumptions, changes in business plans, actual experience or other changes.