Shares of Freeport-McMoRan Inc. (NYSE:FCX) tumbled 7% in pre-market trading Wednesday after the company confirmed that two workers were found dead at its Grasberg Block Cave mine in Indonesia, with five others still unaccounted for following a severe mud rush.
The copper and gold mining giant reported that on September 20, two employees were discovered fatally injured as a result of the September 8 incident, while search efforts continue for the remaining five missing workers. In response, Freeport-McMoRan has temporarily halted all mining activity across the Grasberg minerals district to prioritize the search and recovery efforts.
The company said the event involved roughly 800,000 metric tons of wet material that surged into the mine, rapidly spreading across multiple levels and causing extensive damage to infrastructure. Freeport-McMoRan has engaged external experts to investigate what it described as an “unprecedented” event in its decades of block cave mining operations.
As a result of the disruption, FCX lowered its Q3 2025 sales guidance, now anticipating about 4% lower copper sales and 6% lower gold sales relative to July projections. The long-term impact is significant, with the affected mine representing roughly 70% of PTFI’s previously projected copper and gold output through 2029.
The company expects “insignificant” sales in Q4 2025, with a gradual restart of operations slated for early 2026. Production for 2026 could be approximately 35% below pre-incident estimates, and a return to normal operating levels is not expected until 2027.
Freeport-McMoRan also noted that it will pursue recovery under its property and business interruption insurance policies, which cover up to $1.0 billion in losses after a $0.5 billion deductible, and has formally notified commercial counterparties of a force majeure.
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