Kilambi News

Freeport's Grasberg hits 67 percent milling as smelter restarts

Mining Tuesday, October 6, 2026 · Updated Oct 6, 2026 12:41

Freeport's Grasberg averaged 67 percent of normal milling in the third quarter, slightly above BMO's 65 percent estimate, with the East Java smelter restarted in late August.

Why it matters: Grasberg's ramp is the largest single swing factor in global copper concentrate supply, and the trajectory now points to near-full capacity by end-2027.

Data as of Third quarter 2026 operating data; Production Block 1S restarts mid-2027

Freeport’s Grasberg averaged 67 percent of normal milling in the third quarter, about 140,000 tonnes per day, slightly above BMO’s 65 percent estimate. Third-quarter production was about 830 million pounds of copper and 230,000 ounces of gold. The East Java smelter restarted in late August, and Production Block 1S restarts mid-2027 toward 80 percent capacity and near-full by year-end.

Unit net cash costs guidance rose to about $2.10 a pound excluding idle and restoration charges, on deferred gold byproduct credits. Realized copper may exceed $6.50 a pound. BMO rates the shares outperform with an $85 target; shares rose 3.6 percent to $71.79 on October 2.

The ramp matters for a market pricing record copper on thin supply. Grasberg is the world’s largest single source of copper concentrate swing capacity, and its recovery timeline now extends the supply response into 2027.

Sources

  1. Freeport Grasberg recovery reporting · Northern Miner · 2026-10-06
  2. Freeport analyst note · BMO Capital Markets · 2026-10-02