FCX · 10-Q · 2026Q2 · Full report
Bagdad Expansion Opportunity
FREEPORT-MCMORAN INC · 2026-08-06 · Importance 46 · Surprise 42 · From source text
Freeport-McMoRan is evaluating an expansion of its Bagdad operation in northwest Arizona that would more than double concentrator capacity and add 200 to 250 million pounds of copper and 10 to 12 million pounds of molybdenum production annually. The company advanced technical and economic studies and expects a potential investment decision during the second half of 2026. Current project capital costs are approximately $4.5 billion, about 30% above the prior $3.5 billion estimate, reflecting cost escalation, scope revisions and additional engineering. Construction would require three to four years, and the decision will consider copper-market conditions and other factors.
Key facts
- We are finalizing cost estimates for an opportunity to more than double the concentrator capacity of the Bagdad operation and have advanced studies in preparation for a potential investment decision during the second half of 2026. source
- Current capital cost estimates for the Bagdad expansion indicate project capital costs of approximately $4.5 billion, approximately 30% above the prior $3.5 billion estimate prepared in 2023. source
- Studies indicate opportunity to increase copper production at Bagdad by 200 to 250 million pounds per year. source
- Expected capital expenditures for the year 2026 do not include project capital costs associated with the expansion project at Bagdad, which we are preparing for a potential investment decision during the second half of 2026. source
- We completed technical and economic studies in late 2023 and have advanced these studies in preparation for a potential investment decision during the second half of 2026. source
- Studies indicate opportunity to increase molybdenum production at Bagdad by 10 to 12 million pounds per year. source
- We expect to complete pre-feasibility studies in the Safford/Lone Star district during 2026. source
- The Bagdad expansion would require three to four years to complete. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | probable | -0.8% | Current capital cost estimates for the Bagdad expansion indicate project capital costs of approximately $4.5 billion, approximately 30%… |
| assets | positive | contingent | — | We are finalizing cost estimates for an opportunity to more than double the concentrator capacity of the Bagdad operation and have… |
| revenue | positive | contingent | — | Studies indicate opportunity to increase copper production at Bagdad by 200 to 250 million pounds per year. |
| assets | positive | probable | — | We completed technical and economic studies in late 2023 and have advanced these studies in preparation for a potential investment… |
| revenue | positive | contingent | — | Studies indicate opportunity to increase molybdenum production at Bagdad by 10 to 12 million pounds per year. |