Freeport Outlines Multi-Year Strategy for Grasberg Block Cave Recovery Through 2026

The copper mining sector is closely monitoring Freeport-McMoRan’s systematic restart strategy for one of the world’s most critical ore sources. Following the devastating September 2025 inflow incident that killed seven workers and halted operations, the Arizona-based producer has completed its investigative review and now faces a carefully choreographed path toward full operational recovery.

Timeline for Underground Operations Recovery

Freeport’s Indonesian subsidiary, PT Freeport Indonesia, has established a disciplined recovery sequence aimed at restoring the Grasberg Block Cave to productive status. The company expects Production Blocks 2 and 3 to commence operations in the second quarter of 2026, with output gradually escalating through the remainder of the year. The more severely impacted Production Block 1 carries a target restart date of 2027, reflecting the extent of remediation required in that sector.

Based on current assessments, Freeport anticipates recovering approximately 85 percent of standard production capacity during the second half of 2026. This projection assumes execution of planned work sequences that include systematic removal of sediment from underground infrastructure, reconstruction of critical operational systems, and installation of advanced protective structures designed to prevent recurrence of similar incidents.

Staged Production Block Resumption Strategy

The recovery effort reflects lessons learned from the incident investigation conducted throughout the final quarter of 2025. Meanwhile, Freeport has already demonstrated operational capability by restarting two unaffected mining zones. In late October 2025, the Deep Mill Level Zone and Big Gossan underground mines resumed production, providing partial output restoration though insufficient to fully offset losses from the primary Block Cave operation.

Kathleen Quirk, Freeport’s president and chief executive, emphasized the company’s commitment to restoring operations “safely and sustainably” while advancing efficiency improvements across its diversified portfolio. The restart timeline reflects not merely a return to previous capacity, but a reconfigured operational framework incorporating enhanced safety protocols and infrastructure reinforcement.

Financial Strength Amid Operational Disruption

Despite the operational challenges, Freeport demonstrated financial stability through the fourth quarter of 2025. The company reported net income of US$406 million attributable to common shareholders, equivalent to US$0.28 per share, with adjusted net income reaching US$688 million or US$0.47 per share—figures that exceeded market expectations and reflected the resilience of its broader portfolio.

This financial performance indicates that disruption at a single asset, though significant, has not undermined the company’s overall earnings trajectory. The diversified geographic and operational footprint has provided offsetting value during the Grasberg recovery phase.

2026 Production Outlook and Market Impact

Looking forward to 2026, Freeport has published consolidated production guidance assuming successful execution of the phased restart. The company projects annual output of approximately 3.4 billion pounds of copper, 0.8 million ounces of gold, and 90 million pounds of molybdenum. These figures incorporate the expected production ramp-up from the Block Cave resumption beginning in Q2.

For global copper markets, the sequential recovery of Grasberg output carries considerable significance. As one of the world’s lowest-cost, highest-grade copper sources, the mine’s return to full capacity addresses supply constraints and influences pricing dynamics for this critical industrial metal. Freeport’s detailed recovery roadmap through 2026 and into 2027 signals both operational confidence and recognition of the asset’s strategic importance to its stakeholder base.