US-based Freeport-McMoRan has announced a delay in restoring production at the giant Grasberg copper mine in Indonesia. The mine is now expected to reach full capacity only in early 2028. The previous plan was to return to 100% utilization by the end of 2027.
The delay is linked to additional work on logistics infrastructure and the ore transportation system in the underground section. In September last year, the site was hit by a major landslide that killed seven workers. After the tragedy, the company immediately suspended mining operations and declared force majeure on shipments.
The mine is currently operating at 40–50% of capacity. The phased restart began last year: first, undamaged areas of the Deep Mill Level Zone and Big Gossan were brought back online, and in April this year operations partially resumed at the affected GBC block. The new schedule is as follows: Grasberg is expected to reach 65% capacity in the second half of 2026, 80% by mid-2027, and nearly full capacity, or 100%, by the end of 2027. Full recovery, including all infrastructure solutions, is expected to be completed by early 2028.
Because of this shift, Freeport has reduced its 2026 copper production forecast from 1 billion to 700 million pounds. Grasberg is one of the world’s largest copper mines. Before the accident, it accounted for about 3% of global copper supply and also produced significant volumes of gold — around 1.4 million ounces per year. The delay adds pressure to a market that is already facing a shortage of raw material.
Earlier, Freeport Indonesia reached an agreement with the Indonesian government to extend its mining rights for the full life of the reserves. But even with this positive development, the recovery is moving more slowly than expected.
Copper and gold consumers will have to live with constrained supply from this key source for at least another year and a half.
Source: MINING.COM
Image: Ministry of Energy and Mineral Resources of Indonesia
