Freeport-McMoRan extends losses as Grasberg accident sparks supply concerns.

Freeport-McMoRan's shares have fallen 5.2% to a five-month low after the company declared force majeure on contracted supplies from its Grasberg mine in Indonesia due to a fatal mudslide accident. The Grasberg mine is a major copper producer, sparking concerns over global copper supplies.

Freeport-McMoRan (FCX) shares fell 5.2% to a five-month low on September 12, 2025, following the company's declaration of force majeure on contracted supplies from its Grasberg mine in Indonesia. The Grasberg mine, the world's second-largest copper producer, has been significantly impacted by a fatal mudslide accident, raising global concerns about copper supplies.

The mudslide, which occurred on September 8, 2025, resulted in approximately 800,000 tons of wet material flooding into the mine and causing damage to infrastructure across multiple operational levels UBS Group: The suspension of operations at the Grasberg mine in Indonesia, the world's second-largest copper mine, following a mining accident is expected to widen the global copper supply-demand gap next year. The industry has a positive outlook on compa^[2]. FCX has announced a temporary halt in production, with only minimal output and sales expected by Q4 2025. The company expects a phased restart and gradual resumption of production in 2026, with initial estimates suggesting a 35% reduction in copper output compared to prior guidance UBS Group: The suspension of operations at the Grasberg mine in Indonesia, the world's second-largest copper mine, following a mining accident is expected to widen the global copper supply-demand gap next year. The industry has a positive outlook on compa^[2].

UBS, an investment bank, has issued a report stating that the downward revision of Grasberg’s guidance (approximately 200,000 tons) will exacerbate short-term supply risks in the mining sector UBS Says Force Majeure at Freeport's Grasberg Mine to Tighten Copper Supply Into 2026^[1]. The bank originally forecasted global mine supply growth of around 2% (500,000 tons) in 2026, including an estimated 5% supply disruption. However, following the adjustment in Grasberg’s guidance, the growth in mine supply for 2026 is now projected to drop to about 1% (below 250,000 tons) UBS Says Force Majeure at Freeport's Grasberg Mine to Tighten Copper Supply Into 2026^[1].

The accident at the Grasberg mine is not the only incident affecting global copper supply. Recent accidents at the Kamoa Kakula and El Teniente mines, as well as protests in Peru, have also contributed to supply risks UBS Group: The suspension of operations at the Grasberg mine in Indonesia, the world's second-largest copper mine, following a mining accident is expected to widen the global copper supply-demand gap next year. The industry has a positive outlook on compa^[2]. Over the past two to three years, refined copper supply growth has consistently outpaced mine supply growth, tightening the copper concentrate and scrap markets but delaying pressure on the refined market UBS Says Force Majeure at Freeport's Grasberg Mine to Tighten Copper Supply Into 2026^[1].

UBS forecasts that the suspension of operations at the Grasberg mine will exacerbate supply pressures for refined copper in 2026, with growth expected to fall below 1% UBS Says Force Majeure at Freeport's Grasberg Mine to Tighten Copper Supply Into 2026^[1]. Despite ongoing macroeconomic uncertainties, China’s copper demand remains resilient, supported by strong demand from power grids and energy storage UBS Group: The suspension of operations at the Grasberg mine in Indonesia, the world's second-largest copper mine, following a mining accident is expected to widen the global copper supply-demand gap next year. The industry has a positive outlook on compa^[2]. However, the bank predicts a supply deficit in 2026, leading to visible inventory declines and sustained upward support for copper prices.

Investors and financial professionals should closely monitor the situation at the Grasberg mine and its impact on global copper supplies. UBS has highlighted key recommendations in the mining sector, including Anglo American (NGLOY.US), Teck Resources (TECK.US), Antofagasta plc (ANTO.L), and Zijin Mining (02899.HK) UBS Group: The suspension of operations at the Grasberg mine in Indonesia, the world's second-largest copper mine, following a mining accident is expected to widen the global copper supply-demand gap next year. The industry has a positive outlook on compa^[2].