Freeport (NYSE: FCX) has provided an update on the status of the previously reported mud rush incident at the Grasberg Block Cave mine (GBC) in Indonesia. The incident resulted in the regrettably fatal injury of two team members on September 8, 2025, and the remaining five team members are still missing.
As a result of the incident, the company has suspended mining operations in the Grasberg minerals district since September 8th. The sudden rush of approximately 800,000 metric tons of wet material entered the mine, affecting multiple mine levels, including the service level where the missing team members were working.
For the third quarter of 2025, FCX's consolidated sales are expected to be approximately 4% lower for copper and approximately 6% lower for gold than the July 2025 estimates.
The GBC ore body represents 50% of PT Freeport Indonesia's estimated proven and probable reserves as of December 31, 2024, and approximately 70% of the previously forecasted copper and gold production through 2029. The incident has resulted in damage to infrastructure required to support other production areas in the GBC.
PTFI is evaluating the impact of the incident on future production plans, and preliminary assessments indicate that the impacts are likely to result in the deferral of significant production in the near-term. A phased restart and ramp-up of operations could potentially achieve a return to pre-incident operating rates in 2027.
Under the phased restart and ramp-up scenario, production in 2026 could potentially be approximately 35% lower than pre-incident estimates. PTFI will seek to optimize production plans as further evaluations are completed and will prioritize resources necessary to support the restoration of safe production.
PTFI intends to seek recovery of damages under its property and business interruption insurance policies, which cover up to $1.0 billion in losses (subject to a limit of $0.7 billion on underground incidents), after a $0.5 billion deductible. As a result of the incident and impacts on operations, PTFI is notifying commercial counterparties of a force majeure in accordance with the provisions of its contracts.
This incident has significantly impacted FCX's operations, and the company extends its deepest condolences to the families of the affected individuals. The company is working diligently to address the aftermath of this tragic incident and to determine the way forward for its operations in Indonesia. Following these announcements, the company's shares moved -15.34%, and are now trading at a price of $38.4014. If you want to know more, read the company's complete 8-K report here.
