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| Grasberg Block Cave underground mine |
Incident at Grasberg Block Cave and Immediate Company Response
Freeport-McMoRan suspended operations at its Grasberg Block Cave underground mine in Indonesia after a surge of wet material blocked access routes, trapping seven workers. The company confirmed all trapped workers have been located and are believed safe. Meanwhile, Freeport’s chairman Richard Adkerson and CEO Kathleen Quirk emphasized their team is working diligently to ensure a swift and safe evacuation. Other personnel at the site remain safe, but Freeport did not specify a timeline for resuming production.
Impact on Freeport Shares and Market Reactions
Following the incident, Freeport’s shares dropped 6% by mid-Tuesday, closing at $43.85 per share in New York, reducing its market capitalization to approximately $63 billion. The suspension exerted downward pressure on copper prices, with COMEX futures slipping 0.15% to $4.552 per pound ($10,014 per tonne). This reaction highlights investor concern over potential supply disruptions from one of the world’s largest copper and gold mining operations.
Grasberg Mine’s Significance and Supply Outlook
Grasberg produces roughly 1.7 billion pounds of copper and 1.4 million ounces of gold annually, operating three mines in Central Papua. Freeport holds a 49% stake, with Indonesia’s state mining company controlling the majority. Freeport Indonesia projected nearly 3 million tonnes of copper concentrate output in 2025. Therefore, any prolonged disruption could intensify supply constraints amid already tight global copper markets. Indonesia’s mining minister, Bahlil Lahadalia, plans to visit the site to assess conditions.
ScrapInsight Commentary
The Grasberg incident underlines operational risks in major mining complexes, potentially tightening copper supply amid high global demand. Freeport’s share price drop reflects market sensitivity to supply disruptions. Regulatory scrutiny and safety improvements may accelerate, while investors monitor recovery timelines closely.
