Freeport Restarts PTFI Smelter After Grasberg Ramp-Up
Third-quarter copper production reached about 830 million pounds as Grasberg mill throughput averaged 140,000 metric tons of ore a day.
Freeport-McMoRan (FCX) said third-quarter 2026 consolidated copper production of approximately 830 million pounds was in line with expectations, as the Grasberg Block Cave underground mine continued a phased ramp-up and PTFI’s Eastern Java smelter recommenced operations in late August.
The copper and gold producer’s output rose from 786 million pounds in the second quarter and 662 million pounds in the first quarter. Slightly better results from international operations offset slightly lower production in the United States.
Consolidated gold production increased to approximately 230 thousand ounces, from 192 thousand ounces in the second quarter and 97 thousand ounces in the first quarter.
At Grasberg, mill throughput averaged about 140,000 metric tons of ore per day, approximately 67% of normalized rates before the September 2025 incident, including about 70,000 metric tons per day from the Grasberg Block Cave. Upgrades to the material-handling system at the Block Cave haulage level are progressing toward completion by early 2027, and preparations continue for a targeted restart of Production Block 1S by mid-2027. FCX continues to expect to reach 80% of Grasberg capacity in mid-2027 and approach full capacity by year-end 2027.
PTFI’s smelter, temporarily suspended after the September 2025 Grasberg incident, successfully recommenced operations in late August 2026. Ramp-up activities are proceeding in line with expectations. PTFI has combined smelting capacity, including PT Smelting, to produce up to approximately 800,000 metric tons of cathode per annum and a precious metals refinery capable of processing all of PTFI’s gold production.
U.S. operations experienced lower-than-planned operating rates in the third quarter associated with an increased frequency of localized flooding, power outages, and strong winds. In Indonesia, abnormally dry weather was generally favorable for mining but presented milling challenges that were being actively managed with limited impact to date.
FCX expects third-quarter consolidated copper sales to approximate its July 2026 estimate of 750 million pounds, after second-quarter sales of 710 million pounds and first-quarter sales of 657 million pounds.
Gold sales were a different story. Changes in the timing of gold sales at PTFI deferred approximately 60 thousand ounces of refined gold from the third quarter to the fourth. Consolidated gold sales are expected to approximate 100 thousand ounces, below the July 2026 estimate of 160 thousand ounces.
Consolidated unit net cash costs, net of by-product credits and excluding idle facility and restoration costs associated with the Grasberg Block Cave ramp-up, are currently expected to be approximately 5% above the July 2026 estimate of $2.00 per pound of copper, versus $1.97 per pound in the second quarter and $1.91 per pound in the first quarter. The increase principally reflects lower by-product credits from the deferred gold sales.
FCX estimates its third-quarter consolidated average realized copper price to exceed $6.50 per pound, versus $6.17 per pound in the second quarter and $5.78 per pound in the first quarter.
FCX is positioned for future growth, including America’s Copper Champion plans. During the third quarter, it advanced projects to scale an innovative leach initiative and finalized work to reach an investment decision by year-end 2026 to double the capacity of its Bagdad operation in Northwest Arizona. It also continues to advance the regulatory process for a potential expansion of its El Abra mine in Chile.
FCX plans to release third-quarter 2026 earnings results before the market opens on Tuesday, October 27, 2026, and will hold a conference call at 10:00 a.m. Eastern Time.