FCX · 10-Q · 2026Q2 · Full report

PTFI Mud Rush Restoration and Ramp-Up

FREEPORT-MCMORAN INC · 2026-08-06 · Importance 71 · Surprise 60 · No source text

PTFI’s Grasberg Block Cave underground mine in Indonesia continued to incur costs related to the September 2025 external mud rush incident during the six months ended June 30, 2026. The company recorded $172 million of idle-facility costs and $690 million of idle-facility and restoration costs, totaling $862 million, associated with the incident. Management’s forward outlook contemplates repair efforts, enhanced operating procedures, and a phased ramp-up of production and downstream processing, creating material timing and execution risk for Indonesia operations.

Key facts

• Idle facility and restoration costs are expected to approximate $1.2 billion for the year 2026, including $0.3 billion in third-quarter 2026. source
• Consolidated copper and gold production volumes for the year 2026 are expected to exceed sales volumes, reflecting deferrals of approximately 100 million pounds of copper and 50 thousand ounces of gold associated with inventory held at PTFI’s smelting operations. source
• Based on current sales volume estimates, consolidated DD&A is estimated to approximate $2.3 billion for the year 2026, including $0.3 billion recognized as idle facility costs associated with the September 2025 external mud rush incident. source
• Idle facility and restoration costs totaled $284 million ($0.40 per pound) in second-quarter 2026 and $690 million ($0.50 per pound) for the first six months of 2026 and were excluded from consolidated net cash costs. source
• For the six months ended June 30, 2026, Indonesia operations include $690 million ($2.93 per pound of copper) of idle facility and restoration costs associated with the September 2025 external mud rush incident. source
• For the three months ended June 30, 2026, Indonesia operations include $284 million ($1.86 per pound of copper) of idle facility and restoration costs associated with the September 2025 external mud rush incident. source
• The CAUTIONARY STATEMENT identifies the phased ramp-up of production and downstream processing following the September 2025 external mud rush incident at PTFI’s Grasberg Block Cave underground mine as a forward-looking subject that could affect production, sales and operating plans. source
• For the three months ended June 30, 2026, Indonesia operations include $79 million ($0.52 per pound of copper) of idle facility costs associated with the September 2025 external mud rush incident. source

Impact estimates