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Cover and table of contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark one)
| ☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2024
OR
| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number: 001-11307-01
Freeport-McMoRan Inc.
(Exact name of registrant as specified in its charter)
| Delaware | 74-2480931 | |||||||
| (State or other jurisdiction of | (I.R.S. Employer Identification No.) | |||||||
| incorporation or organization) |
| 333 North Central Avenue | ||||||||||||||||||||
| Phoenix | Arizona | 85004-2189 | ||||||||||||||||||
| (Address of principal executive offices) | (Zip Code) |
(602) 366-8100
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
| Common Stock, par value $0.10 per share | FCX | The New York Stock Exchange |
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act ☑ Yes ☐ No
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ☐ Yes ☑ No
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☑ Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☑ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☑ | Accelerated filer | ☐ | ||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||
| Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes ☑ No
The aggregate market value of common stock held by non-affiliates of the registrant was $69.5 billion on June 30, 2024.
Common stock issued and outstanding was 1,437,073,006 shares on January 31, 2025.
DOCUMENTS INCORPORATED BY REFERENCE
| Portions of the registrant’s proxy statement for its 2025 annual meeting of stockholders are incorporated by reference into Part III of this report. |
Freeport-McMoRan Inc.
i
PART I
Items 1. and 2. Business and Properties.
All of our periodic reports filed with the United States (U.S.) Securities and Exchange Commission (SEC) pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, are available, free of charge, through our website, fcx.com, including our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports. These reports and amendments are available through our website as soon as reasonably practicable after we electronically file or furnish such material to the SEC. Our website is for information only and the contents of our website or information connected thereto are not incorporated in, or otherwise to be regarded as part of, this Form 10-K.
References to “we,” “us” and “our” refer to Freeport-McMoRan Inc. (FCX) and its consolidated subsidiaries. References to “Notes” refer to the Notes to Consolidated Financial Statements included herein (refer to Item 8.), and references to “MD&A” refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk included herein (refer to Items 7. and 7A.). The following discussions include forward-looking statements that are not guarantees of future performance and actual results may differ materially (refer to Item 1A. “Risk Factors” and “Cautionary Statement” in MD&A for further discussion).
GENERAL
We are a leading international metals company with the objective of being foremost in copper. Headquartered in Phoenix, Arizona, we operate large, long-lived, geographically diverse assets with significant proven and probable mineral reserves of copper, gold and molybdenum. We are one of the world’s largest publicly traded copper producers. Our portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; and significant operations in North America and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru.
Our results for 2024 reflect solid execution of our operating plans and we are committed to enhancing productivity, managing costs and capital and advancing opportunities for long-term profitable growth and value creation. We believe the actions we have taken in recent years to strengthen our balance sheet and maintain flexible organic growth options will allow us to continue to execute our business plans, and reliably and responsibly generate cash flows to pursue value-enhancing organic growth options and return cash to shareholders.
We believe that we have a high-quality portfolio of long-lived copper assets positioned to generate long-term value, and we remain focused on executing our operating and investment plans. Our underground mining operations at the Grasberg minerals district in Indonesia continue to perform well, with copper production increasing in each of the past three years. During 2024, construction of PT Freeport Indonesia’s (PT-FI) new smelter and precious metals refinery (PMR) (collectively, PT-FI’s new downstream processing facilities) in Eastern Java, Indonesia were completed and as part of start-up activities, PT-FI commenced gold production from the PMR in December 2024. In October 2024, during start-up activities of the new smelter, a fire occurred requiring a temporary suspension of smelting operations to complete repairs. PT-FI expects repairs to be completed by mid-2025 and ramp-up to full capacity to be achieved by year-end 2025.
We are progressing initiatives across our North America and South America operations by incorporating new applications, technologies and data analytics to our leaching processes. Incremental copper production from these initiatives totaled 214 million pounds in 2024, compared with a total of 144 million pounds in 2023. We have projects underway to apply recent operational enhancements to our leaching processes on a larger scale and are testing new innovative technology applications that we believe have the potential for significant increases in recoverable metal from leach stockpiles beyond the current run rate.
We believe we benefit from significant copper reserves and resources with embedded growth options, an experienced team and exposure to markets with a favorable fundamental outlook.
For the year 2024, the London Metal Exchange (LME) copper settlement prices averaged $4.15 per pound (ranging from a low of $3.67 per pound to a high of $4.92 per pound) and closed at $3.95 per pound on December 31, 2024. We believe fundamentals for copper are favorable with growing demand supported by copper’s critical role in the global transition to renewable power, electric vehicles and other carbon-reduction initiatives, continued urbanization in developing countries, data centers and artificial intelligence developments and growing connectivity globally.
Following are our ownership interests at December 31, 2024, in operating mines through our consolidated subsidiaries, Freeport Minerals Corporation (FMC) and PT-FI:
a.Refer to Note 2 for discussion of our conclusion to consolidate PT-FI.
b.FMC has a 72% undivided interest in Morenci via an unincorporated joint venture. Refer to Note 2 for further discussion.
c.FMC’s interest in Cerro Verde is 55.08%, and prior to September 2024 was 53.56%.
Following is the allocation of our estimated consolidated recoverable proven and probable mineral reserves at December 31, 2024, by geographic location (refer to “Operations” and “Mineral Reserves” for further discussion):
| Copper | Gold | Molybdenum | ||||||||||||||||||
| North America | 43 | % | 3 | % | 79 | % | a | |||||||||||||
| South America | 29 | — | 21 | |||||||||||||||||
| Indonesia | 28 | 97 | — | |||||||||||||||||
| 100 | % | 100 | % | 100 | % |
a.Our North America copper mines contain 61% of our estimated consolidated recoverable proven and probable molybdenum reserves, and our Henderson and Climax molybdenum mines contain 18%.
In North America, we manage seven copper operations – Morenci, Bagdad, Safford (including Lone Star), Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico, and two molybdenum mines – Henderson and Climax in Colorado. We also operate a copper smelter in Miami, Arizona. In addition to copper, certain of our North America copper mines also produce molybdenum concentrate, gold and silver.
In South America, we manage two copper operations – Cerro Verde in Peru and El Abra in Chile. In addition to copper, the Cerro Verde mine also produces molybdenum concentrate and silver.
In Indonesia, PT-FI operates in the Grasberg minerals district. In addition to copper, the Grasberg minerals district also produces gold and silver. Upon completion and full ramp-up of PT-FI’s new downstream processing facilities, PT-FI will be a fully integrated producer of refined copper and gold.
Following is the allocation of our consolidated copper, gold and molybdenum production for the year 2024 by geographic location (refer to “Operations” and MD&A for further information):
| Copper | Gold | Molybdenum | ||||||||||||||||||
| North America | 29 | % | 1 | % | 75 | % | a | |||||||||||||
| South America | 28 | — | 25 | |||||||||||||||||
| Indonesia | 43 | 99 | — | |||||||||||||||||
| 100 | % | 100 | % | 100 | % |
a.Our North America copper mines produced 38% of our consolidated molybdenum production, and our Henderson and Climax molybdenum mines produced 37%.
Copper production from three of our mines (the Morenci mine in North America, the Cerro Verde mine in Peru and the Grasberg minerals district in Indonesia) together totaled 77% of our consolidated copper production in 2024.
The geographic locations of our operating mines are shown on the world map below.
COPPER, GOLD AND MOLYBDENUM
The following provides a summary of our primary natural resources – copper, gold and molybdenum. Refer to MD&A for further discussion of historical and current market prices of these commodities and Item 1A. “Risk Factors” for discussion of factors that can cause price fluctuations.
Copper
Copper is an internationally traded commodity, and its prices are determined by the major metals exchanges – the LME, Commodity Exchange Inc. (COMEX) and Shanghai Futures Exchange. Prices on these exchanges generally reflect the worldwide balance of copper supply and demand, and can be volatile and cyclical.
In general, demand for copper reflects the rate of underlying world economic growth, particularly in industrial production and construction. According to a 2024 report from Wood Mackenzie, a widely followed independent metals market consultant, copper’s end-use markets (and their estimated shares of total consumption) are electrical applications (29%), construction (25%), consumer products (21%), transportation (14%) and industrial machinery (11%). We believe copper will continue to be essential in these basic uses as well as contribute significantly to new technologies for clean energy and advancement in communications, including the global transition to renewable
power, electric vehicles and other carbon-reduction initiatives, continued urbanization in developing countries, data centers and artificial intelligence developments and growing connectivity globally. Examples of areas we believe will require additional copper in the future include: (i) high efficiency motors, which consume up to 75% more copper than a standard motor; (ii) electric vehicles, which consume up to four times the amount of copper in terms of weight compared to vehicles of similar size with an internal combustion engine, and require copper-intensive charging station infrastructure to refuel; and (iii) renewable energy such as wind and solar, which consume four to five times the amount of copper compared to traditional fossil fuel generated power.
Gold
Gold is used for jewelry, coinage and bullion as well as various industrial and electronic applications. Gold can be readily sold on numerous markets throughout the world. Benchmark prices are generally based on London Bullion Market Association (London) quotations.
Molybdenum
Molybdenum is a key alloying element in steel and the raw material for several chemical-grade products used in catalysts, lubrication, smoke suppression, corrosion inhibition and pigmentation. Molybdenum-based chemicals are used to produce high-purity molybdenum metal used in electronics such as flat-panel displays and in super alloys used in aerospace. Like copper, demand for molybdenum is positively impacted by new technologies for clean energy. Reference prices for molybdenum are available in several publications, but generally based on Platts Metals Daily.
PRODUCTS AND SALES
Our consolidated revenues for 2024 primarily included sales of copper (74%), gold (17%) and molybdenum (7%). For the three years ended December 31, 2024, the only customers that accounted for 10% or more of our consolidated revenues were Mitsubishi Materials Corporation (MMC), PT-FI’s joint venture partner in PT Smelting (PT-FI’s 66%-owned copper smelter and refinery), in 2024 and PT Smelting in 2022. Beginning January 1, 2023, PT-FI’s commercial arrangement with PT Smelting changed to a tolling arrangement so there were no further sales from PT-FI to PT Smelting (refer to Note 2 for further discussion) during 2023 and 2024. Refer to Note 14 for a summary of our consolidated revenues by product and geographic area, and revenues and operating income (loss) by business segment.
Copper Products
We are one of the world’s leading producers of copper concentrate, cathode and continuous cast copper rod. During 2024, 45% of our mined copper was sold in concentrate, 34% as cathode and 21% as rod. The copper ore from our mines is generally processed either by smelting and refining or by solution extraction and electrowinning (SX/EW) as described below.
Copper Concentrate. We produce copper concentrate at six of our mines in which mined ore is crushed and treated to produce a copper concentrate with copper content of approximately 20% to 30%. In North America, copper concentrate is produced at the Morenci, Bagdad, Sierrita and Chino mines, and a significant portion is shipped to our Miami smelter in Arizona for further processing. Copper concentrate is also produced at the Cerro Verde mine in Peru and the Grasberg minerals district in Indonesia. Historically, copper concentrate produced in the Grasberg minerals district has been shipped to PT Smelting in Indonesia, Atlantic Copper in Spain and third-party smelters outside of Indonesia. Once PT-FI’s new smelter is fully operational, all of Grasberg’s copper concentrate is expected to be processed within Indonesia.
Copper Cathode. We produce copper cathode at our electrolytic refinery located in El Paso, Texas, and at nine of our mines.
SX/EW cathode is produced from the Morenci, Bagdad, Safford, Sierrita, Miami, Chino and Tyrone mines in North America, and from the Cerro Verde and El Abra mines in South America*.* For ore subject to the SX/EW process, the ore is placed on stockpiles and copper is extracted from the ore by dissolving it with a weak sulfuric acid solution. The copper content of the solution is increased in two additional SX stages, and then the copper-bearing solution undergoes an EW process to produce cathode that is, on average, 99.99% copper. Our copper cathode is used as the raw material input for copper rod, brass mill products and for other uses.
Copper cathode is also produced at Atlantic Copper (our wholly owned copper smelting and refining unit in Spain) and PT Smelting. Copper concentrate is smelted (i.e., subjected to extreme heat) to produce copper anode, which
weighs between 700 and 900 pounds and has an average copper content of 99.5%. We operate a copper smelter in Miami, Arizona that produces copper anode. The anode is further treated by electrolytic refining to produce copper cathode, which weighs between 100 and 350 pounds and has an average copper content of 99.99%. Refer to “Smelting Facilities and Other Mining Properties” for further discussion of PT-FI’s new downstream processing facilities, Atlantic Copper, PT Smelting and the Miami smelter.
Continuous Cast Copper Rod. We manufacture continuous cast copper rod at our facilities in El Paso, Texas and Miami, Arizona, primarily using copper cathode produced at our North America copper mines.
Copper Sales
North America. The majority of the copper produced at our North America copper mines and refined in our El Paso, Texas refinery is consumed at our rod plants to produce copper rod, which is then sold to wire and cable manufacturers. The remainder of our North America copper production is sold in the form of copper cathode or copper concentrate under U.S. dollar-denominated annual contracts. Generally, copper cathode is sold to rod, brass or tube fabricators. Cathode and rod contract prices are generally based on the prevailing COMEX monthly average settlement price for the month of shipment and include a premium.
South America. Production from our South America operations is sold as copper concentrate or copper cathode under U.S. dollar-denominated, annual and multi-year contracts. During 2024, our South America operations sold 74% of their copper production in concentrate and 26% as cathode.
Substantially all of our South America copper concentrate and cathode sales contracts provide final copper pricing in a specified future month (generally one to four months from the shipment date) primarily based on quoted LME monthly average settlement copper prices. Revenues from our South America concentrate sales are recorded net of royalties and treatment charges (i.e., fees paid to smelters that are generally negotiated annually). In addition, because a portion of the metals contained in copper concentrate is unrecoverable from the smelting process, revenues from our South America concentrate sales are also recorded net of allowances for unrecoverable metals, which are a negotiated term of the contracts and vary by customer.
Indonesia. PT-FI has historically sold its production in the form of copper concentrate, which contains significant quantities of gold and silver, primarily under U.S. dollar-denominated, long-term contracts. PT-FI sells a small amount of copper concentrate in the spot market. Following the full ramp-up of PT-FI’s new downstream processing facilities, PT-FI’s mining and smelting operations will be fully integrated and copper sales will be in the form of copper cathodes.
Beginning in 2023, PT-FI’s commercial arrangement with PT Smelting changed to a tolling arrangement so there were no further sales from PT-FI to PT Smelting during 2023 and 2024. Under this arrangement, PT-FI pays PT Smelting a tolling fee to smelt and refine its concentrate and PT-FI retains title to all products for sale to third parties. PT-FI’s sale of copper cathodes under the tolling arrangement are priced in the month of shipment and are not subject to provisional pricing.
During 2024, PT-FI sold 56% of its copper production in concentrate and 44% as cathode.
Substantially all of PT-FI’s copper concentrate sales contracts provide final pricing in a specified future month (generally one to four months from the shipment date) primarily based on quoted LME monthly average settlement copper prices. Revenues from PT-FI’s concentrate sales are recorded net of royalties, export duties, treatment charges and allowances for unrecoverable metals. Revenues from PT-FI’s cathode sales are recorded net of royalties.
Refer to Item 1A. “Risk Factors,” “Operations – Indonesia” in MD&A and Notes 10 and 11 for a discussion of Indonesia regulatory matters, including those related to export licenses, export duties and export proceeds.
Gold Products and Sales
We produce gold almost exclusively from our mines in the Grasberg minerals district. The gold we produce is primarily sold as a component of our copper concentrate or in anode slimes, which are a product of the smelting and refining process. Gold generally is priced at the average London price for a specified month near the month of shipment. Revenues from gold sold as a component of our copper concentrate are recorded net of treatment charges, royalties, export duties and allowances for unrecoverable metals. Revenues from gold sold in anode slimes are recorded net of royalties and refining charges. As part of start-up activities, PT-FI commenced gold production from its new PMR in December 2024. We began selling gold bars produced by the PMR in February 2025 and the related revenues are recorded net of royalties.
Molybdenum Products and Sales
According to Wood Mackenzie, we are the world’s largest producer of molybdenum and molybdenum-based chemicals. In addition to production from the Henderson and Climax molybdenum mines, we produce molybdenum concentrate at certain of our North America copper mines and our Cerro Verde copper mine in Peru. The majority of our molybdenum concentrate is processed in our own conversion facilities. Our molybdenum sales are primarily priced based on the average published Platts Metals Daily prices for the month prior to the month of shipment.
GOVERNMENTAL REGULATIONS
Our operations are subject to a broad range of laws and regulations imposed by governments and regulatory bodies, both in the U.S. and internationally. These laws and regulations touch all aspects of our operations, the most significant of which include how we extract, process and explore for minerals and how we conduct our business, including laws and regulations governing matters such as mining rights, environmental and reclamation matters, climate change, occupational health and safety, and human rights. Compliance with these laws and regulations requires expenditures for the implementation, operation and maintenance of systems and programs, but has not had and is not expected to have a material adverse effect on our expenditures, results of operations or competitive position. We continuously monitor and strive to maintain compliance with changes in laws and regulations that impact our business.
Mining Rights
We conduct our mining and exploration activities pursuant to concessions granted by, or under contracts with, the host government in the countries where we operate. These countries include, among others, the U.S., Peru, Chile and Indonesia. Mining rights include our license to operate and involve our payment of applicable taxes and royalties to the host governments. The concessions and contracts are subject to the political risks associated with the host countries. For information about mining rights, governmental agreements, licenses to operate, and tax regulations and related matters refer to “Operations” below, Item 1A. “Risk Factors” and Notes 2, 9, 10 and 11.
Environmental Matters
Our operations are subject to extensive and complex environmental laws and regulations governing the generation, storage, treatment, transportation and disposal of hazardous substances; solid waste disposal; air emissions; wastewater discharges; remediation, restoration and reclamation of environmental contamination, including mine closures and reclamation; protection of endangered and threatened species and designation of critical habitats; and other related matters. In addition, we must obtain regulatory permits and approvals to start, continue and expand operations. As a mining company, compliance with environmental, health and safety laws and regulations is an integral and costly part of our business. We conduct our operations in a manner that aims to protect public health and the environment. We believe our operations follow applicable laws and regulations in all material respects, and we have internal company policies that in some instances go beyond compliance with such laws and regulations.
At December 31, 2024, we had $2.0 billion recorded in our consolidated balance sheet for environmental obligations and $3.7 billion recorded for asset retirement obligations. We incurred environmental capital expenditures and other environmental costs (including our joint venture partners’ shares) to comply with applicable environmental laws and regulations that affect our operations totaling $0.6 billion in 2024, $0.5 billion in 2023 and $0.4 billion in 2022, and we expect to incur approximately $0.6 billion in 2025. The timing and amounts of estimated payments could change as a result of changes in regulatory requirements, changes in scope and costs of reclamation activities, the settlement of environmental matters and the rate at which actual spending occurs on continuing matters.
For information about environmental laws and regulations at our global operations, including legal proceedings and related costs, and reclamation matters, see below as well as Item 1A. “Risk Factors,” Item 3 “Legal Proceedings” and Notes 1, 10 and 11.
United States. There are a number of federal and state environmental laws and regulations that apply to our properties and may affect our operations. Laws such as the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (CERCLA) and similar state laws may expose us to joint and several liability for environmental damages caused by our operations, or by previous owners or operators of properties we acquired or are currently operating or at sites where we previously sent materials for processing, recycling or disposal. Other federal and comparable state environmental laws have affected, or could in the future affect, us including, but not limited to, the Resource Conservation and Recovery Act, the Clean Air Act and the National Environmental Policy Act. We have substantial obligations for environmental remediation on mining properties previously owned or operated by FMC and certain of its affiliates.
Our operations are subject to state regulations governing mine closures and reclamation. Closure plans are required to be updated every six years in Arizona and every five years in New Mexico and Colorado. We are also required by U.S. federal and state laws and regulations to provide financial assurance sufficient to allow a third party to implement approved closure and reclamation plans for our mining properties if we are unable to do so. Most of our financial assurance obligations are imposed by state laws that vary significantly by jurisdiction, depending on how each state regulates land use and groundwater quality. The U.S. Environmental Protection Agency (EPA) and state agencies may also require financial assurance for investigation and remediation actions that are required under settlements of enforcement actions under CERCLA or similar state laws.
Regulations have been, and may in the future be, considered at various governmental levels to increase financial responsibility requirements both for mine closure and reclamation. Further, there has been consideration of reforms to federal mining laws, including enhancement of laws, regulations and policies governing financial assurance, which if ever enacted, may be applicable to us.
Our U.S. mining operations are also subject to regulations under the Endangered Species Act (ESA) that are intended to protect species listed by the Department of the Interior’s Fish & Wildlife Service (FWS) as endangered or threatened, along with critical habitat designated by FWS for these listed species. The ESA may affect the ability of landowners, including us, to obtain federal permits or authorizations needed for expansion of our operations, and may also affect our ability to obtain, retain or deliver water to some operations.
New or revised environmental regulatory requirements are frequently proposed, many of which result in substantially increased costs for our business, including those regarding financial assurance discussed above and in Item 1A. “Risk Factors.” For example, in May 2024, EPA amended its rule establishing standards for hazardous air pollutant emissions from primary copper smelters. This final rule will impact our Miami, Arizona smelter operations, which process a significant portion of the copper concentrate produced by our North America copper mines. We are evaluating processes and equipment modifications and the costs involved, which could be significant in connection with the revised rule requirements. Our appeal of EPA’s final rule to the Court of Appeals for the District of Columbia Circuit is suspended pending resolution of several petitions for reconsideration to the EPA filed by us and other parties.
EPA and state agencies continue to consider regulations for man-made organic compounds that could be present in soil, groundwater and surface water at our existing and former operations. These regulations may include drinking water standards, hazardous waste requirements, and hazardous substance designations for Perfluorooctanesulfonic and Perfluorooctanoic acids. In January 2024, EPA announced through guidance that, effective immediately, it lowered the recommended screening levels for investigation and cleanup of lead in residential soils, and in January 2025, EPA published its final toxicological assessment for inorganic arsenic, which may be used to calculate cleanup levels at state and federal remediation sites and may lead to regulatory guidance, rulemaking and other regulatory activities. We are working with state agencies to understand possible ramifications of this guidance to our projects. This EPA guidance and future changes to EPA’s lead and arsenic cleanup levels could result in increases to our environmental reserves for ongoing residential property cleanup projects near former smelter sites.
In 2023, EPA and the U.S. Army Corps of Engineers issued a final rule to amend the final revised definition of the “waters of the United States.” Although future court decisions may further affect the scope of the final rule and legal challenges have already been successful, we may need federal authorization under the Clean Water Act to expand some of our operations.
Peru*.* The General Environmental Law (Law No. 28611) establishes the main environmental guidelines and principles applicable in Peru. Pursuant to the General Environmental Law, Ministry of Energy and Mines (MINEM) issued national environmental regulations, which have gradually replaced prior guidelines governing governmental agencies’ environmental competencies. The Environmental Evaluation and Oversight Agency has the authority to inspect mining operations and fine companies that fail to comply with prescribed environmental regulations and their approved environmental assessments.
Cerro Verde is subject to regulation under the Mine Closure Law administered by MINEM. Under the closure regulations, mines must submit a closure plan that includes the reclamation methods, closure cost estimates, methods of control and verification, closure and post-closure plans, and financial assurance. In compliance with the requirement for five-year updates, Cerro Verde submitted its updated closure plan and cost estimates and received approval from MINEM in December 2023.
The Cerro Verde mine has developed and continues to implement detailed, comprehensive mine waste and tailings management programs to meet the applicable Peru waste regulations and our environmental management practices. These programs incorporate commitments included in the Environmental and Social Impact Studies and the engineer of record designs for the specific cases of tailings storage facilities and certain leach pad stockpiles. For any future projects, including for existing facilities, Cerro Verde also may be required by MINEM or the National Environmental Certification Service for Sustainable Investments to incur additional costs to comply with the requirements of new regulations that provide for the adequacy of the transportation and final disposal of tailings.
Chile*.* El Abra is subject to regulation under the Mine Closure Law administered by the Chile Mining and Geology Agency. In compliance with the requirement for five-year updates, El Abra is working to submit an updated plan with closure cost estimates in the second half of 2025.
Indonesia*.* PT-FI holds multiple permits from national, provincial, and regency regulatory agencies, including groundwater use permits, effluent and air discharge permits, solid and hazardous waste storage and management permits and protection of forest borrow-to-use permits. Where permits have specific terms, renewal applications are made to the relevant regulatory authority as required, prior to the end of the permit term.
In December 2018, Indonesia’s Ministry of Environment and Forestry (MOEF) issued a revised environmental permit to PT-FI to address certain operational activities that it alleged were inconsistent with earlier studies. PT-FI and the MOEF also established a new framework known as the Tailings Management Roadmap for continuous improvement in environmental practices at PT-FI’s operations, including initiatives to potentially increase tailings retention and to evaluate large scale beneficial uses of tailings within Indonesia. The third-party expert nominated by MOEF to perform the framework evaluation submitted its report to the MOEF in June 2021. In 2024, PT-FI continued to work with MOEF on the Tailings Management Roadmap objectives, including further reduction of non-tailings sediment entering the tailings management area, construction of bamboo and geotube structures in the estuary portion of the tailings management area to increase sedimentation and reduce erosion, as well as continue pursuing additional beneficial uses of tailings in infrastructure and other projects. In October 2024, MOEF approved the next phase of the Tailings Management Roadmap, which extends from 2025 to 2030 and continues activities from the initial period with additional programs and studies for continuous improvement in tailings management.
In 2020, PT-FI initiated a new environmental impact analysis (called an Analisis Mengenai Dampak Lingkungan or AMDAL) in preparation for the proposed activities associated with the transition from Grasberg surface mine to underground operations, and PT-FI completed the approval requirements of the AMDAL covering all support activities for the underground transition in 2023. In December 2023, PT-FI received technical approval for its tailings management activities. In 2024, the MOEF approved an addendum to the AMDAL that covers activities associated with the conversion of PT-FI’s power plant from coal-fired to liquefied natural gas (LNG). Permitting related to the conversion to LNG continues to progress.
A detailed mine closure plan and five-year reclamation plan have been approved by Indonesia regulators as required by Indonesia law. The mine closure plan is reviewed annually and required reclamation bonds are in place. In 2019, PT-FI completed and received approval on an updated mine closure plan to reflect Grasberg minerals district production operations until 2041 and PT-FI will be required to fund the next mine closure guarantee in 2025. PT-FI’s most recent five-year reclamation plan covering 2022 through 2026 was approved in early 2022. In the future, additional approval will be required for the diversion of the Aghawagon/Otomona River out of the tailings management area at the end of the mine life.
Climate
In many of the jurisdictions in which we or our customers operate, governmental bodies are increasingly enacting legislation and regulations in response to the potential impacts of climate change, including:
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As a result of the 2015 Paris Agreement, a number of governments, including Peru, Indonesia and Chile, have pledged “Nationally Determined Contributions” to control and reduce greenhouse gas emissions (GHG).
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Several states in the U.S., including Colorado and New Mexico, have advanced goals reducing or eliminating fossil fuel-based energy production and use.
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Carbon tax legislation also has been adopted in jurisdictions where we operate, including Indonesia, Chile and the European Union (EU). Starting in 2025, PT-FI's coal-fired power plant will be subject to a carbon emissions trade system based on reported emissions submitted to the regulators in early 2026. Refer to “Operations – Indonesia” below for discussion of PT-FI’s plans to transition its existing energy source from coal to natural gas.
Regulations that affect us also may include mandated corporate climate-related reporting, including:
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The SEC’s new climate-related disclosure rules, which are being challenged in federal courts.
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The EU’s Corporate Sustainability Reporting Directive, which requires in scope entities to provide detailed reporting on climate change and other sustainability topics.
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The EU’s Corporate Sustainability Due Diligence Directive which will require in scope entities to identify, assess and address various social and environmental topics.
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California’s Climate Corporate Data Accountability Act and Climate-Related Financial Risk Act, which are being challenged in federal courts, and Voluntary Carbon Market Disclosures Act, which were enacted in 2023. Legislation similar to California’s is also under consideration in other states.
While it is not yet possible to reasonably estimate the nature, extent, timing and cost or other impacts of any future carbon pricing mechanisms, mandatory disclosures, other climate change regulatory programs or future legislative action that may be enacted, we anticipate that we will dedicate more resources and incur more costs to comply and remediate in response to legislative or regulatory changes.
For information about the risks posed by the potential impacts of climate change and related regulations, refer to Item 1A. “Risk Factors.”
Health and Safety
Our highest priority is the health, safety and well-being of our employees and contractors. We also work to promote our safety-first values with our suppliers and in the communities where we operate. We believe health and safety considerations are integral to, and fundamental for, all other functions in our organization, and we understand the health and safety of our workforce is critical to our operational efficiency and long-term success. We are subject to extensive U.S. and international regulation of worker health and safety, including the requirements of the U.S. Occupational Safety and Health Act and similar laws of other jurisdictions. For example, in the U.S., the operation of our mines is subject to regulation by the U.S. Mine Safety and Health Administration (MSHA) under the Federal Mine Safety and Health Act of 1977 (Mine Act). MSHA inspects our mines on a regular basis and issues citations and orders when it believes a violation has occurred under the Mine Act. In 2024, MSHA enacted the Safety Program for Surface Mobile Equipment regulation and finalized a new regulation, which reduces permissible exposure limits of respirable crystalline silica effective April 2026. Our compliance with these or any other new health and safety regulations could increase our mining costs. If we were found to be in violation of these regulations we could face penalties or restrictions that may materially and adversely affect our operations.
Additionally, in the U.S., various state agencies have concurrent jurisdiction arising under state law that regulate worker health and safety in both our industrial facilities and mines. If regulatory inspections result in an alleged violation, we may be subject to fines and penalties and, in instances of alleged significant violations, our mining operations or industrial facilities could be subject to temporary or extended closures. Refer to Exhibit 95.1 to this Form 10-K for additional information regarding certain orders and citations issued by MSHA for our operations during the year ended December 31, 2024. For information about health and safety, refer to “Human Capital” below and Item 4. “Mine Safety Disclosures.”
Human Rights
We are dedicated to the recognition, respect and promotion of human rights wherever we do business. We are committed to respecting the rights of all people, including our employees, business partners, community members and others who potentially may be impacted by our business activities. We take this obligation seriously in all aspects of our business, and we expect the same of our business partners.
For information about human rights, refer to “Community and Human Rights” below.
COMPETITION
The top 10 producers of copper comprise approximately 40% of total worldwide mined copper production. Based on Wood Mackenzie’s December 2024 estimates, we ranked third among those producers for the year 2024, with approximately 6% of estimated total worldwide mined copper production based on net equity ownership. We believe our competitive position is based on the size, quality and grade of our ore bodies and our ability to manage costs compared with other producers. We have a diverse portfolio of mining operations with varying ore grades and cost structures. Our costs are driven by the location, grade and nature of our ore bodies, and the level of input costs, including energy, labor and equipment. The metals markets are cyclical, and we believe our ability to maintain our competitive position over the long term is based on our ability to acquire and develop quality deposits (including the expansion of deposits at our existing mine sites); recruit, retain, develop and advance a skilled workforce; and to manage our costs.
OPERATIONS
Responsible Production
We demonstrate our responsible production performance through the Copper Mark, a comprehensive assurance framework developed specifically for the copper industry, and recently extended to other metals including molybdenum. To achieve the Copper Mark, each site is required to complete an independent external assurance process to assess conformance with various environmental, social and governance criteria. Awarded sites must be revalidated every three years. We have achieved, and are committed to maintaining, the Copper Mark and/or Molybdenum Mark, as applicable, at all of our operating sites globally.
We are also a founding member of the International Council on Mining & Metals (ICMM), an organization dedicated to a safe, fair and sustainable mining and metals industry, aiming continuously to strengthen performance across the global mining and metals industry. As a member company, we are required to implement the 10 Mining Principles which define good environmental, social and governance practices, and associated position statements, while also meeting 39 performance expectations.
Tailings Management
We dedicate substantial financial resources and internal and external technical resources to pursue the safe management of our tailings facilities and to reduce or eliminate the number of and potential consequences of credible failure modes. Our tailings management and stewardship program, which involves qualified external engineers of record and periodic oversight by an independent tailings review board and our tailings stewardship team, conform with the tailings governance framework on preventing catastrophic failure of tailings storage facilities adopted by the ICMM. Further, our tailings management policy outlines our continued commitment to managing our tailings responsibly and effectively across our sites globally. As an ICMM member and in accordance with our commitment in our tailings management policy, we also have implemented the Global Industry Standard on Tailings Management (the Tailings Standard) for all tailings storage facilities with “Extreme” or “Very High” potential consequences based on “credible failure modes” and are committed to implementing the Tailings Standard by August 2025 for all other tailing storage facilities that have not been deemed “Safely Closed” (each as defined in the Tailings Standard). We believe we have the financial capacity to meet current estimated lifecycle costs, including estimated closure, post-closure and reclamation obligations associated with our tailings storage facilities. We continue to enhance our existing practices to strengthen the design, operation and closure of tailings storage facilities in an effort to reduce the risk of severe or catastrophic failure of those facilities.
Refer to Item 1A. “Risk Factors” for further discussion of the risks associated with our tailings management.
Overview of Mines
Following are maps and descriptions of our copper and molybdenum mining operations in North America, South America and Indonesia. We consider our material mines, as defined under the disclosure requirements of Subpart 1300 of SEC Regulation S-K, to be the Morenci mine in the U.S., the Cerro Verde mine in Peru and the Grasberg minerals district in Indonesia. Refer to Exhibits 96.1, 96.2 and 96.3 for the Technical Report Summaries that have been prepared for our material mines.
North America
In the U.S., most of the land occupied by our copper and molybdenum mines, concentrators, SX/EW facilities, smelter, refinery, rod mills, molybdenum roasters and processing facilities is owned by us or is located on unpatented mining claims owned by us. Certain portions of our Bagdad, Sierrita, Miami, Chino, Tyrone, Henderson and Climax operations are located on government-owned land and are operated under a Mine Plan of Operations or other use permit. We hold various federal and state permits or leases on government land for purposes incidental to mine operations.
Morenci
We own a 72% undivided interest in Morenci, with the remaining 28% owned by Sumitomo Metal Mining Arizona, Inc. (15%) and SMM Morenci, Inc. (13%). Each partner takes in kind its share of Morenci’s production.
Morenci is an open-pit copper and molybdenum mining complex that has been in continuous operation since 1939 and previously was mined through underground workings. In the 1880s, Phelps Dodge & Company (Phelps Dodge) first invested in the area, and through acquisition, consolidated all mining operations in the area by the 1920s. Phelps Dodge was acquired by FCX in 2007. Morenci is located in Greenlee County, Arizona, approximately 50 miles northeast of Safford on U.S. Highway 191. The property is located at latitude 33.07 degrees north and longitude 109.35 degrees west using the World Geodetic System (WGS) 84 coordinate system. The site is accessible by a paved highway and a railway spur.
The Morenci mine is a porphyry copper deposit that has oxide, secondary sulfide and primary sulfide mineralization. The predominant oxide copper mineral is chrysocolla. Chalcocite is the most important secondary copper sulfide mineral, with chalcopyrite as the dominant primary copper sulfide.
The Morenci operation consists of two concentrators with a milling design capacity of 132,000 metric tons of ore per day, which produce copper and molybdenum concentrate; a 72,500 metric ton-per-day, crushed-ore leach pad and stacking system; a low-grade run-of-mine (ROM) leaching system; four SX plants; and three EW tank houses that produce copper cathode. Total EW tank house capacity is approximately 900 million pounds of copper per year. Morenci’s available mining fleet consists of one hundred and forty-one 235-metric-ton haul trucks loaded by 13 electric shovels with bucket sizes ranging from 47 to 59 cubic meters. Morenci’s mining fleet is capable of moving an average of 785,000 metric tons of material per day. Our share of Morenci’s net property, plant, equipment (PP&E) and mine development costs at December 31, 2024, totaled $2.2 billion.
Morenci’s production, including our joint venture partners’ share, totaled 0.7 billion pounds of copper and 3 million pounds of molybdenum in 2024, 0.8 billion pounds of copper and 3 million pounds of molybdenum in 2023, and 0.9 billion pounds of copper and 4 million pounds of molybdenum in 2022.
Morenci is located in a desert environment with rainfall averaging 13 inches per year. The highest bench elevation is 1,900 meters above sea level and the ultimate pit bottom is expected to have an elevation of 760 meters above sea level. The Morenci operation encompasses approximately 61,700 acres, comprising 51,300 acres of fee lands and 10,400 acres of unpatented mining claims held on public mineral estate and numerous state or federal permits, easements and rights-of-way.
The Morenci operation’s electrical power is supplied by our wholly owned subsidiary, The Morenci Water & Electric Company (MW&E). MW&E sources its generation services through our wholly owned subsidiary, Freeport-McMoRan Copper and Gold Energy Services LLC, through capacity rights at the Luna Energy Facility in Deming, New Mexico, and other power purchase agreements. Although we believe the Morenci operation has sufficient water sources to support current operations, we are a party to litigation that may impact our water right claims or rights to continued use of currently available water supplies, which could adversely affect our water supply for the Morenci operation. Refer to “Governmental Regulations” above, Item 1A. “Risk Factors” and Item 3. “Legal Proceedings” for further discussion.
Bagdad
Our wholly owned Bagdad mine is an open-pit copper and molybdenum mining complex that has been in continuous operation since 1945 and prior mining was conducted through underground workings. Bagdad is located in Yavapai County in west-central Arizona, approximately 60 miles west of Prescott and 100 miles northwest of Phoenix. The property can be reached by U.S. Highway 93 to State Route 97 or Arizona Highway 96, which ends at the town of Bagdad. The closest railroad is at Hillside, Arizona, 24 miles southeast on Arizona Highway 96.
The Bagdad mine is a porphyry copper deposit containing both sulfide and oxide mineralization. Chalcopyrite and molybdenite are the dominant primary sulfides and are the primary economic minerals in the mine. Chalcocite is the most common secondary copper sulfide mineral, and the predominant oxide copper minerals are chrysocolla, malachite and azurite.
The Bagdad operation consists of a concentrator with a milling design capacity of 77,100 metric tons of ore per day that produces copper and molybdenum concentrate, a SX/EW plant that can produce approximately 9 million pounds per year of copper cathode from solution generated by low-grade stockpile leaching, and a pressure-leach plant to process molybdenum concentrate. The available mining fleet consists of thirty-eight 235-metric-ton haul trucks loaded by 6 electric shovels and 2 loaders with bucket sizes ranging from 30 to 48 cubic meters, which are capable of moving an average of 236,000 metric tons of material per day. In 2023, we announced a project to convert Bagdad’s fleet of haul trucks to become fully autonomous. The testing of the autonomous fleet is expected to begin in second-quarter 2025 with anticipated project completion by year-end 2025. Bagdad’s net PP&E and mine development costs at December 31, 2024, totaled $1.0 billion.
Bagdad’s production totaled 146 million pounds of copper and 13 million pounds of molybdenum in 2024, 146 million pounds of copper and 10 million pounds of molybdenum in 2023, and 165 million pounds of copper and 9 million pounds of molybdenum in 2022.
We have a potential expansion project to more than double the concentrator capacity of the Bagdad operation in northwest Arizona. Bagdad’s reserve life currently exceeds 80 years and supports an expanded operation. In late 2023, we completed technical and economic studies, which indicate the opportunity to construct new concentrating facilities to increase copper production by 200 to 250 million pounds per year at estimated incremental project
capital costs of approximately $3.5 billion. Expanded operations would provide improved efficiency and reduce unit net cash costs through economies of scale. Project economics indicate that the expansion would require an incentive copper price in the range of $3.50 to $4.00 per pound and approximately three to four years to complete. The decision of whether to proceed and timing of the potential expansion will take into account overall copper market conditions, availability of labor and other factors, including pending conversion of the existing haul truck fleet to autonomous to support long-range plans. In parallel, we are enhancing local infrastructure and advancing activities for expanded tailings infrastructure projects required under long-range plans in order to advance the potential construction timeline. Refer to Item 1A. “Risk Factors” for further discussion.
Bagdad is located in a desert environment with rainfall averaging 15 inches per year. The highest bench elevation is 1,250 meters above sea level and the ultimate pit bottom is expected to be 120 meters above sea level. The Bagdad operation encompasses approximately 53,300 acres, comprising 40,000 acres of fee lands and 13,300 acres of unpatented mining claims held on public mineral estate and numerous state or federal permits, easements and rights-of-ways.
Bagdad receives electrical power from Arizona Public Service Company. We believe the Bagdad operation has sufficient water sources to support current operations.
Safford, including Lone Star
Our wholly owned Safford mine is an open-pit copper mining complex that has been in operation since 2007. Safford is located in Graham County, Arizona, 8 miles north of the town of Safford and 170 miles east of Phoenix. The site is accessible by a paved county road off U.S. Highway 70.
The Safford mine includes three copper deposits that have oxide mineralization overlaying primary copper sulfide mineralization. The predominant oxide copper minerals are chrysocolla and copper-bearing iron oxides with the predominant copper sulfide material being chalcopyrite. The only Safford deposit currently being mined is Lone Star.
We have commenced pre-feasibility studies in the Lone Star district of Safford to define a potential significant expansion opportunity. Positive drilling conducted in recent years indicates a large, mineralized district with opportunities to pursue a further expansion project. We are expecting to complete these studies in 2026. The decision of whether to proceed and timing of the potential expansion will take into account results of technical and economic studies, overall copper market conditions and other factors.
Safford is a mine-for-leach operation that produces copper cathode. The operation feeds a crushing facility with a design capacity of 103,500 metric tons of ore per day. The crushed ore is delivered to a leach pad by a series of overland and portable conveyors. Leach solutions feed a SX/EW facility with a capacity of 320 million pounds of copper per year. A sulfur burner plant is also in operation at Safford, providing a cost-effective source of sulfuric acid used in SX/EW operations. The available mining fleet consists of fifty-nine 235-metric-ton haul trucks loaded by 7 electric shovels with bucket sizes ranging from 34 to 47 cubic meters, which are capable of moving an average of 408,000 metric tons of material per day. Safford’s net PP&E and mine development costs at December 31, 2024, totaled $1.7 billion.
Safford’s copper production totaled 249 million pounds in 2024, 245 million pounds in 2023 and 285 million pounds in 2022.
Safford is located in a desert environment with rainfall averaging 10 inches per year. The highest bench elevation is 1,783 meters above sea level and the ultimate pit bottom is expected to have an elevation of 716 meters above sea level. The Safford operation encompasses approximately 78,600 acres, comprising 38,000 acres of fee lands and 40,600 acres of unpatented claims held on public mineral estate.
The Safford operation’s electrical power is primarily sourced from Tucson Electric Power Company, Arizona Public Service Company and the Luna Energy facility. Although we believe the Safford operation has sufficient water sources to support current operations, we are a party to litigation that may impact our water right claims or rights to continued use of currently available water supplies, which could adversely affect our water supply for the Safford operation. Refer to “Governmental Regulations” above, Item 1A. “Risk Factors” and Item 3. “Legal Proceedings” for further discussion.
Sierrita
Our wholly owned Sierrita mine is an open-pit copper and molybdenum mining complex that has been in operation since 1959. Sierrita is located in Pima County, Arizona, approximately 20 miles southwest of Tucson and 7 miles west of the town of Green Valley and Interstate Highway 19. The site is accessible by a paved highway and by rail.
The Sierrita mine is a porphyry copper deposit that has oxide, secondary sulfide and primary sulfide mineralization. The predominant oxide copper minerals are malachite, azurite and chrysocolla. Chalcocite is the most important secondary copper sulfide mineral, and chalcopyrite and molybdenite are the dominant primary sulfides.
The Sierrita operation includes a concentrator with a milling design capacity of 100,000 metric tons of ore per day that produces copper and molybdenum concentrate. Sierrita also produces copper from a ROM oxide-leaching system. Cathode copper is plated at the Twin Buttes EW facility, which has a design capacity of approximately 50 million pounds of copper per year. The Sierrita operation also has molybdenum facilities consisting of a leaching circuit, two molybdenum roasters and a packaging facility. The molybdenum facilities process molybdenum concentrate produced by Sierrita, from our other mines and from third-party sources. The available mining fleet consists of twenty-five 235-metric-ton haul trucks loaded by 4 electric shovels with bucket sizes ranging from 34 to 56 cubic meters, which are capable of moving an average of 200,000 metric tons of material per day. Sierrita’s net PP&E and mine development costs at December 31, 2024, totaled $0.9 billion.
Sierrita’s production totaled 165 million pounds of copper and 15 million pounds of molybdenum in 2024, 185 million pounds of copper and 18 million pounds of molybdenum in 2023, and 184 million pounds of copper and 17 million pounds of molybdenum in 2022.
Sierrita is located in a desert environment with rainfall averaging 14 inches per year. The highest bench elevation is 1,387 meters above sea level and the ultimate pit bottom is expected to be 427 meters above sea level. The Sierrita operation, including the adjacent Twin Buttes site, encompasses approximately 47,700 acres, comprising 38,700 acres of fee lands including split estate lands and 9,000 acres of unpatented mining claims held on public mineral estate.
Sierrita receives electrical power through long-term contracts with the Tucson Electric Power Company. Although we believe the Sierrita operation has sufficient water sources to support current operations, we are a party to litigation that may impact our water rights claims or rights to continued use of currently available water supplies, which could
adversely affect our water supply for the Sierrita operation. Refer to “Governmental Regulations” above, Item 1A. “Risk Factors” and Item 3. “Legal Proceedings” for further discussion.
Miami
Our wholly owned Miami mine is an open-pit copper mining complex located in Gila County, Arizona, 90 miles east of Phoenix and 6 miles west of the city of Globe on U.S. Highway 60. The site is accessible by a paved highway and by rail.
The Miami mine is a porphyry copper deposit that has leachable oxide and secondary sulfide mineralization. The predominant oxide copper minerals are chrysocolla, copper-bearing clays, malachite and azurite. Chalcocite and covellite are the most important secondary copper sulfide minerals.
Since about 1915, the Miami mining operation had processed copper ore using both flotation and leaching technologies. The design capacity of the SX/EW plant is 200 million pounds of copper per year. Miami is no longer mining ore, but currently produces copper through leaching material already placed on stockpiles. Miami’s net PP&E and mine development costs at December 31, 2024, totaled $13 million.
Miami’s copper production totaled 9 million pounds in 2024, 12 million pounds in 2023 and 11 million pounds in 2022.
Miami is located in a desert environment with rainfall averaging 18 inches per year. The highest bench elevation is 1,390 meters above sea level and mining advanced the pit bottom to an elevation of 810 meters above sea level. Subsequent sloughing of material into the pit has filled it back to an elevation estimated to be 900 meters above sea level. The Miami operation encompasses approximately 14,800 acres, comprising 10,400 acres of fee lands and 4,400 acres of unpatented mining claims held on public mineral estate.
Miami receives electrical power through long-term contracts with the Salt River Project and natural gas through long-term contracts with El Paso Natural Gas as the transporter. We believe the Miami operation has sufficient water sources to support current operations. Refer to “Governmental Regulations” above and Item 1A. “Risk Factors” for further discussion.
Chino and Tyrone
Chino*.* Our wholly owned Chino mine is an open-pit copper mining complex that has been in operation since 1910. Chino is located in Grant County, New Mexico, approximately 15 miles east of Silver City, along State Highway 180. The mine is accessible by paved roads and by rail.
The Chino mine is a porphyry copper deposit with adjacent copper skarn deposits. There is leachable oxide, secondary sulfide and millable primary sulfide mineralization. The predominant oxide copper mineral is chrysocolla. Chalcocite is the most important secondary copper sulfide mineral, and chalcopyrite and molybdenite are the dominant primary sulfides.
The Chino operation consists of a concentrator with a milling design capacity of 36,000 metric tons of ore per day that produces copper concentrate, and a 150 million pound-per-year SX/EW plant that produces copper cathode from solution generated by ROM leaching. The available mining fleet consists of twenty 240-metric-ton haul trucks loaded by 3 electric shovels with bucket sizes ranging from 31 to 48 cubic meters, which are capable of moving an average of 180,000 metric tons of material per day. Chino’s net PP&E and mine development costs at December 31, 2024, totaled $0.6 billion.
Chino’s copper production totaled 133 million pounds in 2024, 141 million pounds in 2023 and 130 million pounds in 2022.
Chino is located in a desert environment with rainfall averaging 16 inches per year. The highest bench elevation is 2,250 meters above sea level and the ultimate pit bottom is expected to be 1,508 meters above sea level. The Chino operation encompasses approximately 129,700 acres, comprising 111,900 acres of fee lands and 17,800 acres of unpatented mining claims held on public mineral estate.
Chino receives electrical power from the Luna Energy facility and from the open market. We believe the Chino operation has sufficient water sources to support current operations. Refer to “Governmental Regulations” above and Item 1A. “Risk Factors” for further discussion.
Tyrone*.* Our wholly owned Tyrone mine is an open-pit copper mining complex and has been in operation since 1967. Tyrone is located in Grant County, New Mexico, 10 miles south of Silver City, along State Highway 90. The site is accessible by paved roads and by rail.
The Tyrone mine is a porphyry copper deposit. Mineralization is predominantly secondary sulfide consisting of chalcocite, with leachable oxide mineralization consisting of chrysocolla.
Copper processing facilities consist of a SX/EW operation with a maximum capacity of approximately 100 million pounds of copper cathode per year. The available mining fleet consists of six 240-metric-ton haul trucks loaded by 1 electric shovel with a bucket size of 47 cubic meters, which is capable of moving an average of 108,000 metric tons of material per day. Tyrone’s net PP&E and mine development costs at December 31, 2024, totaled $0.1 billion.
Tyrone’s copper production totaled 43 million pounds in 2024, 51 million pounds in 2023 and 59 million pounds in 2022.
Tyrone is located in a desert environment with rainfall averaging 16 inches per year. The highest bench elevation is 2,070 meters above sea level and the ultimate pit bottom is expected to have an elevation of 1,475 meters above sea level. The Tyrone operation encompasses approximately 78,500 acres, comprising 65,500 acres of fee lands and 13,000 acres of unpatented mining claims held on public mineral estate.
Tyrone receives electrical power from the Luna Energy facility and from the open market. We believe the Tyrone operation has sufficient water sources to support current operations. Refer to “Governmental Regulations” above and Item 1A. “Risk Factors” for further discussion.
Climax and Henderson
Climax*.* Our wholly owned Climax mine is an open-pit molybdenum mine that is located 13 miles northeast of Leadville, Colorado, off Colorado State Highway 91 at the top of Fremont Pass. The mine is accessible by paved roads. Climax was placed on care and maintenance status by its previous owner in 1995 and, after being acquired by FMC, began commercial production in 2012.
The Climax ore body is a porphyry molybdenum deposit, with molybdenite as the primary sulfide mineral.
The Climax mine includes a 25,000 metric tons of ore per day mill facility. Climax has the capacity to produce approximately 30 million pounds of molybdenum per year. The majority of the molybdenum concentrate produced is shipped to our Fort Madison, Iowa, processing facility. The available mining fleet consists of thirteen 177-metric-ton haul trucks loaded by 2 hydraulic shovels with bucket sizes of 34 cubic meters, which are capable of moving an average of 90,000 metric tons of material per day. Climax’s net PP&E and mine development costs at December 31, 2024, totaled $1.4 billion.
Climax’s molybdenum production totaled 18 million pounds in 2024, 17 million pounds in 2023 and 21 million pounds in 2022.
The Climax mine is located in a mountainous region. The highest bench elevation is approximately 4,050 meters above sea level and the ultimate pit bottom is expected to have an elevation of approximately 3,100 meters above sea level. This region experiences significant snowfall during the winter months. The Climax operation encompasses approximately 15,100 acres, comprising 14,300 acres of privately owned land and 800 acres of federal claims.
Climax operations receive electrical power through long-term contracts with Xcel Energy and natural gas supply with United Energy Trading (with Xcel as the transporter). We believe the Climax operation has sufficient water sources to support current operations. Refer to “Governmental Regulations” above and Item 1A. “Risk Factors” for further discussion.
Henderson*.* Our wholly owned Henderson molybdenum mining complex has been in operation since 1976. Henderson is located 42 miles west of Denver, Colorado, off U.S. Highway 40. Nearby communities include the towns of Empire, Georgetown and Idaho Springs. The Henderson mill site is located 15 miles west of the mine and is accessible from Colorado State Highway 9. The Henderson mine and mill are connected by a 10-mile conveyor tunnel under the Continental Divide and an additional 5-mile surface conveyor. The tunnel portal is located 5 miles east of the mill.
The Henderson mine is a porphyry molybdenum deposit, with molybdenite as the primary sulfide mineral.
The Henderson operation consists of a block-cave underground mining complex feeding a concentrator with a design capacity of approximately 32,000 metric tons per day. Henderson has the capacity to produce approximately 15 million pounds of molybdenum per year. The majority of the molybdenum concentrate produced is shipped to our Fort Madison, Iowa, processing facility. The available underground mining equipment fleet consists of fifteen 9-metric-ton load-haul-dump (LHD) units and seven 73-metric-ton haul trucks, which deliver ore to a gyratory crusher feeding a series of 3 overland conveyors to the mill stockpiles. Henderson’s net PP&E and mine development costs at December 31, 2024, totaled $0.3 billion.
Henderson’s molybdenum production totaled 12 million pounds in 2024, 13 million pounds in 2023 and 12 million pounds in 2022.
The Henderson mine is located in a mountainous region with the main access shaft at 3,180 meters above sea level. The main production levels are currently at elevations of 2,200 and 2,350 meters above sea level. This region experiences significant snowfall during the winter months. The Henderson mine and mill operations encompass approximately 17,200 acres, comprising 13,000 acres of fee lands, 4,200 acres of unpatented mining claims held on public mineral estate and a 50-acre easement with the U.S. Forest Service for the surface portion of the conveyor corridor.
Henderson operations receive electrical power through long-term contracts with Xcel Energy and natural gas supply with United Energy Trading (with Xcel Energy as the transporter). We believe the Henderson operation has sufficient water sources to support current operations. Refer to “Governmental Regulations” above and Item 1A. “Risk Factors” for further discussion.
South America
At our operations in South America, mine properties and facilities are controlled through mining claims or concessions under the general mining laws of the relevant country. The claims or concessions are owned or controlled by the operating companies in which we or our subsidiaries have a controlling ownership interest. Roads, power lines and aqueducts are controlled by easements.
Cerro Verde
In September 2024, we purchased 5.3 million shares of Cerro Verde common stock for $210 million, increasing our ownership interest in Cerro Verde to 55.08% from 53.56%. The remaining 44.92% ownership interest in Cerro Verde is held by SMM Cerro Verde Netherlands B.V. (21.0%), Compañia de Minas Buenaventura S.A.A. (19.58%) and other stockholders whose Cerro Verde shares are publicly traded on the Lima Stock Exchange (4.34%).
Cerro Verde is an open-pit copper and molybdenum mining complex that has been in operation since the 1970s. Cerro Verde is located 20 miles southwest of Arequipa, Peru. Prior to being acquired in 1994 by a predecessor of Phelps Dodge, the mine was previously operated by the Peru government. The property is located at latitude 16.53 degrees south and longitude 71.58 degrees west using the WGS 84 coordinate system. The site is accessible by paved highways. Cerro Verde’s copper cathode and concentrate production that is not sold locally is transported approximately 70 miles by truck and by rail to the Port of Matarani for shipment to international markets. Molybdenum concentrate is transported by truck to either the Ports of Callao or Matarani for shipment.
The Cerro Verde mine is a porphyry copper deposit that has oxide, secondary sulfide and primary sulfide mineralization. The predominant oxide copper minerals are brochantite, chrysocolla, malachite and copper “pitch.” Chalcocite and covellite are the most important secondary copper sulfide minerals. Chalcopyrite and molybdenite are the dominant primary sulfides.
Cerro Verde’s operation includes 2 concentrating facilities with an annual average permitted milling capacity of 409,500 metric tons of ore per day (and the ability to annually treat up to 10% more for a total of 450,450 metric tons of ore per day). As a result of several efficiency initiatives implemented over the past several years, in 2024, Cerro Verde’s 2 concentrators were able to achieve a combined average milling rate of 415,500 metric tons of ore per day in 2024. Cerro Verde also operates a 100,000-metric-ton-per-day ROM leach system coupled with SX/EW leaching facilities, which have a production capacity of approximately 200 million pounds of copper per year.
The available fleet consists of fifty-four 300-metric-ton haul trucks, ninety-one 250-metric-ton haul trucks (8 of which are currently on standby) and 8 leased 380-metric-ton haul trucks loaded by 14 electric shovels with bucket sizes ranging from 33 to 57 cubic meters. This fleet is capable of moving an average of approximately 1,000,000 metric tons of material per day. Cerro Verde’s net PP&E and mine development costs at December 31, 2024, totaled $5.8 billion.
Cerro Verde’s production totaled 0.9 billion pounds of copper and 20 million pounds of molybdenum in 2024, 1.0 billion pounds of copper and 22 million pounds of molybdenum in 2023, and 1.0 billion pounds of copper and 23 million pounds of molybdenum in 2022.
Cerro Verde is located in a desert environment with rainfall averaging less than two inches per year and is in an active seismic zone. The highest bench elevation is 2,768 meters above sea level and the ultimate pit bottom is expected to be 1,538 meters above sea level. The Peru general mining law and Cerro Verde’s mining stability agreement grant the surface rights of mining concessions located on government land. Government land obtained after 1997 must be leased or purchased. Cerro Verde has a mining concession covering approximately 175,500 acres, including 61,500 acres of surface rights and access to 14,600 acres granted through an easement from the Peru National Assets Office, plus 151 acres of owned property, and 1,065 acres of rights-of-way outside the mining concession area leased from both government agencies and private parties.
Cerro Verde currently receives electrical power, including hydro-generated power, under long-term contracts with ElectroPerú S.A. and Engie Energía Peru S.A. During 2023, Cerro Verde entered into a new power purchase agreement that is expected to transition its electric power to fully renewable energy sources in 2026.
Water for our Cerro Verde processing operations comes from renewable sources through a series of storage reservoirs on the Río Chili watershed that collect water primarily from seasonal precipitation and from wastewater collected from the city of Arequipa and treated at a wastewater treatment plant originally constructed and currently operated by Cerro Verde. We believe the Cerro Verde operation has sufficient water sources to support current operations, but we are closely monitoring ongoing weather patterns. Refer to “Governmental Regulations” above and Item 1A. “Risk Factors” for further discussion.
El Abra
We have a 51% ownership interest in El Abra, and the remaining 49% interest is held by the state-owned copper enterprise Corporación Nacional del Cobre de Chile.
El Abra is an open-pit copper mining complex that has been in operation since 1996. El Abra is located 47 miles north of Calama in Chile’s El Loa province of the northern Chilean region of Antofagasta. The site is accessible by paved highways and by rail.
The El Abra mine is a porphyry copper deposit that has sulfide and oxide mineralization. The predominant primary sulfide copper minerals are bornite and chalcopyrite. There is a minor amount of secondary sulfide mineralization as chalcocite. The oxide copper minerals are chrysocolla and pseudomalachite. There are lesser amounts of copper bearing clays and tenorite.
The El Abra operation consists of a SX/EW facility with a capacity of 500 million pounds of copper cathode per year from a 115,000-metric-ton-per-day crushed leach circuit and a ROM leaching operation. The available fleet consists of twenty-three 242-metric-ton haul trucks loaded by 4 electric shovels with buckets ranging in size from 29 to 41 cubic meters, which are capable of moving 217,000 metric tons of material per day. El Abra’s net PP&E and mine development costs at December 31, 2024, totaled $0.8 billion.
El Abra’s copper production totaled 219 million pounds in 2024, 217 million pounds in 2023 and 202 million pounds in 2022.
We have completed substantial drilling and evaluations to define a large sulfide resource that would support a potential major mill project similar to the large-scale concentrator at Cerro Verde. We are preparing data for a potential submission of an environmental impact statement by year-end 2025, subject to ongoing stakeholder engagement and economic evaluations. Preliminary estimates, which remain under review, indicate that the project economics would be supported using an incentive copper price of less than $4.00 per pound. The decision of whether to proceed and timing of the potential project will take into account overall copper market conditions, required permitting and other factors.
El Abra is located in a desert environment with rainfall averaging less than one inch per year and is in an active seismic zone. The highest bench elevation is 4,225 meters above sea level and the ultimate pit bottom is expected to be 3,340 meters above sea level. El Abra controls a total of approximately 183,700 acres of mining claims covering the ore deposit, stockpiles, process plant, and water wellfield and pipeline. El Abra also has land surface rights for the road between the processing plant and the mine, the water wellfield, power transmission lines and for the water pipeline from the Salar de Ascotán aquifer.
El Abra currently receives electrical power under a long-term contract with Engie Energía Chile S.A. Water for our El Abra processing operations currently comes from the continued pumping of groundwater from the Salar de Ascotán aquifer pursuant to regulatory approval. We believe El Abra has sufficient water sources to support current operations, although we are evaluating options for water infrastructure alternatives to provide options to extend existing operations and support a future expansion. Refer to “Governmental Regulations” above and Item 1A. “Risk Factors” for further discussion.
Indonesia
Ownership. PT-FI is a limited liability company organized under the laws of the Republic of Indonesia. On December 21, 2018, we completed the transaction with the Indonesia government regarding PT-FI’s long-term mining rights and share ownership (the 2018 Transaction). Following the 2018 Transaction, we have a 48.76% share ownership in PT-FI and the remaining 51.24% share ownership is collectively held by PT Mineral Industri Indonesia (MIND ID), an Indonesia state-owned enterprise, and PT Indonesia Papua Metal Dan Mineral (formerly known as PT Indocopper Investama), which is expected to be owned by MIND ID and the provincial/regional government in Central Papua, Indonesia.
IUPK. Concurrent with closing the 2018 Transaction, the Indonesia government granted PT-FI a special mining business license (IUPK) to replace its former contract of work. Under the terms of the IUPK, PT-FI has been granted an extension of mining rights through 2031, with rights to extend mining rights through 2041, subject to PT-FI completing the construction of additional domestic smelting and refining capacity in Indonesia and fulfilling its defined fiscal obligations to the Indonesia government. The IUPK, and related documentation, contains legal and fiscal terms and is legally enforceable through 2041. In addition, we, as a foreign investor, have rights to resolve investment disputes with the Indonesia government through international arbitration.
Pursuant to regulations issued during 2024, PT-FI is eligible to apply for an extension of its mining rights beyond 2041, provided certain conditions are met, including ownership of integrated downstream facilities that have entered the operational stage; domestic ownership of at least 51% and agreement with a state-owned enterprise for an additional 10% ownership; and commitments for additional exploration and increases in refining capacity, each as approved by the Ministry of Energy and Mineral Resources. Application for extension may be submitted at any time up to one year prior to the expiration of the current IUPK. PT-FI expects to apply for an extension during 2025, pending agreement with MIND ID on a purchase and sale agreement for the transfer in 2041 of an additional 10% interest in PT-FI. An extension would enable continuity of large-scale operations for the benefit of all stakeholders and provide growth options through additional resource development opportunities in the highly attractive Grasberg minerals district.
Refer to Item 1A. “Risk Factors” and Notes 10 and 11 for discussion of PT-FI’s IUPK, export licenses and risks associated with our Indonesia operations.
Downstream Processing Facilities*.* In connection with the 2018 Transaction, PT-FI agreed to expand its domestic smelting and refining capacity. The new smelter and PT Smelting will smelt and refine copper concentrate from PT-FI, and the PMR will process anode slimes from the new smelter and PT Smelting. Once its new downstream processing facilities are operational, PT-FI’s operations will be fully integrated.
During 2024, construction of PT-FI’s new smelter in Eastern Java, Indonesia was completed. In October 2024, during start-up activities, a fire occurred that required a temporary suspension of smelting operations to complete repairs. Procurement of long-lead items is advanced and repairs are scheduled to be completed by mid-2025, and PT-FI expects ramp-up to full capacity to be achieved by year-end 2025.
As part of start-up activities, PT-FI commenced gold production from its new PMR in December 2024. The PMR has the design capacity to refine all precious metals from PT-FI’s new smelter as well as from PT Smelting.
Pursuant to the terms of its IUPK regarding force majeure events, PT-FI has requested approval from the Indonesia government to permit exports of copper concentrate in 2025 until the required repairs of its new smelter following the October 2024 fire incident and full ramp-up are complete. Based on discussions with the Indonesia government, PT-FI expects to re-commence exports of copper concentrate during first-quarter 2025, and pursuant to current regulations, would be required to pay a 7.5% export duty on all copper concentrate exports during 2025.
Refer to “Smelting Facilities and Other Mining Properties” below, Item 1A. “Risk Factors,” MD&A and Notes 10 and 11 for additional discussion of PT-FI’s new downstream processing facilities.
Grasberg Minerals District*.* PT-FI operates in the remote highlands of the Sudirman Mountain Range in the province of Central Papua, Indonesia, which is on the western half of the island of New Guinea. Since 1967, we and our predecessors have been the only operator of exploration and mining activities in the approximately 24,600-acre operating area. The operating area is accessible by coastal portsite facilities on the Arafura Sea and by the Timika airport. The project site is located at latitude 4.08 degrees south and longitude 137.12 degrees east using the WGS 84 coordinate system. The project area includes a 70-mile main service road from portsite to the mill complex. PT-FI’s net PP&E and mine development costs at December 31, 2024, including the new downstream processing facilities, totaled $21.1 billion.
Production from the Grasberg minerals district totaled 1.8 billion pounds of copper and 1.9 million ounces of gold in 2024, 1.7 billion pounds of copper and 2.0 million ounces of gold in 2023, and 1.6 billion pounds of copper and 1.8 million ounces of gold in 2022.
Over a multi-year investment period, PT-FI has successfully commissioned three large-scale underground mines in the Grasberg minerals district (Grasberg Block Cave, Deep Mill Level Zone (DMLZ) and Big Gossan). Milling rates for ore from these underground mines averaged 208,400 metric tons of ore per day in 2024, 198,300 metric tons of ore per day in 2023 and 192,600 metric tons of ore per day in 2022. Production from these underground mines is expected to continue through 2041 and an extension of PT-FI’s operating rights beyond 2041 would extend the lives of these mines. In December 2024, PT-FI completed construction of a new copper cleaner circuit, a mill recovery project to enhance recoveries and optimize concentrate production, with commissioning underway. Refer to Item 1A. “Risk Factors” for discussion of risks associated with development projects and underground mines.
PT-FI plans to transition its existing energy source from coal to natural gas, which would meaningfully reduce PT-FI’s Scope 1 GHG emissions at the Grasberg minerals district. The majority of PT-FI’s planned investments in a new gas-fired combined cycle facility are expected to be incurred over the next three years, at a cost of approximately $1 billion, which represents an incremental cost of $0.4 billion compared to previously planned investments to refurbish the existing coal units. Once complete, PT-FI’s dual-fuel power plant and the new gas-fired combined cycle facility will be fueled by natural gas, supplied by a floating liquefied natural gas storage and regassification unit.
A combination of naturally occurring mountain streams and water derived from our underground operations provides water for our operations. Our Indonesia operations are in an active seismic zone and experience average annual rainfall of approximately 200 inches.
Grasberg Block Cave Underground Mine
The Grasberg Block Cave ore body is the same ore body historically mined from the surface in the Grasberg open pit. Undercutting, drawbell construction and ore extraction activities in the Grasberg Block Cave underground mine continue to track expectations. As of December 31, 2024, the Grasberg Block Cave underground mine had 469 open drawbells.
Ore milled from the Grasberg Block Cave underground mine averaged 133,800 metric tons per day in 2024, 117,300 metric tons per day in 2023 and 103,300 metric tons per day in 2022.
The Grasberg Block Cave fleet consists of approximately 530 pieces of mobile equipment. The primary mining equipment directly associated with production and development includes an available fleet of 96 LHD units and 16 haul trucks. Each production LHD unit typically carries approximately 11 metric tons of ore and transfers ore into the rail haulage system. The Grasberg Block Cave has an automated rail haulage system currently operating with 14 locomotives and 143 ore wagons that haul the ore to 3 gyratory crushers located underground. Each ore wagon typically carries 35 metric tons. The crushed ore is conveyed to surface stockpiles for processing.
DMLZ Underground Mine
The DMLZ ore body lies below the depleted Deep Ore Zone underground mine at the 2,590-meter elevation and represents the downward continuation of mineralization in the Ertsberg East Skarn system and neighboring Ertsberg porphyry.
Hydraulic fracturing operations have been effective in managing rock stresses and pre-conditioning the cave following mining-induced seismic activity experienced from time to time. As of December 31, 2024, the DMLZ underground mine had 174 open drawbells.
Ore milled from the DMLZ underground mine averaged 64,900 metric tons per day in 2024, 75,900 metric tons per day in 2023 and 76,300 metric tons per day in 2022.
The DMLZ fleet consists of approximately 310 pieces of mobile equipment, which includes 59 LHD units and 26 haul trucks used in production and development activities. Each production LHD unit typically carries approximately 9 metric tons of ore and transfers ore into the truck haulage system. The haul trucks have a capacity of 55 to 60 metric tons and load ore from chutes fed by the LHDs and transfer it to one of two gyratory crushers. The crushed ore is conveyed to surface stockpiles for processing.
Big Gossan Underground Mine
The Big Gossan ore body lies underground and adjacent to the current mill site. It is a tabular, near vertical ore body with approximate dimensions of 1,200 meters along strike and 800 meters down dip with varying thicknesses from 20 meters to 120 meters. The mine utilizes a blasthole stoping method with delayed paste backfill. Stopes of varying sizes are mined and the ore dropped down passes to a truck haulage level. Trucks are chute loaded and transport the ore to a jaw crusher. The crushed ore is then hoisted vertically via a two-skip production shaft to a level where it is loaded onto a conveyor belt. The belt carries the ore to one of the main underground conveyors where the ore is transferred and conveyed to the surface stockpiles for processing.
Ore milled from the Big Gossan underground mine averaged 8,000 metric tons per day in 2024, 7,900 metric tons per day in 2023 and 7,600 metric tons per day in 2022.
The Big Gossan fleet consists of approximately 70 pieces of mobile equipment, which includes 7 LHD units and 10 haul trucks used in development and production activities.
Kucing Liar Underground Mine
Long-term mine development activities are ongoing for PT-FI’s Kucing Liar deposit in the Grasberg minerals district. Kucing Liar is expected to produce over 7 billion pounds of copper and 6 million ounces of gold between 2029 and the end of 2041, and an extension of PT-FI’s operating rights beyond 2041 would extend the life of the project. Development activities commenced in 2022 and are expected to continue over an approximate 10-year timeframe. Capital investments for Kucing Liar are estimated to total $4 billion over the next 7 to 8 years (averaging approximately $0.5 billion per annum). Approximately $0.6 billion has been incurred through December 31, 2024. At full operating rates, annual production from Kucing Liar is expected to approximate 560 million pounds of copper and 520 thousand ounces of gold, providing PT-FI with sustained long-term, large-scale and low-cost production. Kucing Liar will benefit from substantial shared infrastructure and PT-FI’s experience and long-term success in block-cave mining.
Description of Indonesia Ore Bodies*.* Our Indonesia ore bodies are located within and around two main igneous intrusions, the Grasberg monzodiorite and the Ertsberg diorite. The host rocks of these ore bodies include both carbonate and clastic rocks that form the ridge crests and upper flanks of the Sudirman Range, and the igneous rocks of monzonitic to dioritic composition that intrude them. The igneous-hosted ore bodies (the Grasberg Block Cave and portions of the DMLZ) occur as vein stockworks and disseminations of copper sulfides, dominated by chalcopyrite and, to a lesser extent, bornite. The sedimentary-rock hosted ore bodies (portions of the DMLZ and Kucing Liar and all of the Big Gossan) occur as “magnetite-rich, calcium/magnesian skarn” replacements, whose
location and orientation are strongly influenced by major faults and by the chemistry of the carbonate rocks along the margins of the intrusions.
The copper mineralization in these skarn deposits is dominated by chalcopyrite, but higher bornite concentrations are common. Moreover, gold occurs in significant concentrations in all of the district’s ore bodies, though rarely visible to the naked eye. These gold concentrations usually occur as inclusions within the copper sulfide minerals, though, in some deposits, these concentrations can also be strongly associated with pyrite.
The following diagram indicates the relative elevations (in meters) of our reported Indonesia ore bodies.
The following map, which encompasses an area of 42 square kilometers, indicates the relative positions and sizes of our reported Indonesia ore bodies and their locations.
Smelting Facilities and Other Mining Properties
PT-FI’s New Downstream Processing Facilities*.* PT-FI’s new smelter and PT Smelting (see further discussion below) will smelt and refine copper concentrate from PT-FI, and the PMR will process anode slimes from the new smelter and PT Smelting. Once its new downstream processing facilities are operational, PT-FI’s operations will be fully integrated.
PT-FI’s new greenfield smelter in Eastern Java, Indonesia has a capacity to process approximately 1.7 million metric tons of copper concentrate per year. During start-up activities, a fire occurred in October 2024, requiring a temporary suspension of smelting operations to complete repairs. Procurement of long-lead items is advanced and repairs are scheduled to be completed by mid-2025. PT-FI expects restoration, repair and replacement costs to approximate $100 million, which are expected to be mostly offset through recovery under construction insurance programs. PT-FI expects ramp-up to full capacity to be achieved by year-end 2025.
As part of start-up activities, PT-FI commenced gold production from its new PMR in December 2024.
PT Smelting*.* PT Smelting, an Indonesian joint venture between PT-FI and MMC, owns a copper smelter and refinery in Gresik, Indonesia. In December 2023, PT Smelting completed the expansion of its capacity by 30% to process approximately 1.3 million metric tons of copper concentrate per year. The project was funded by PT-FI with loans totaling $254 million that converted to equity effective June 30, 2024, increasing PT-FI’s ownership in PT Smelting to 66% from 39.5%. As discussed in Note 2, PT-FI continues to account for its investment in PT Smelting under the equity method.
Beginning in 2023, PT-FI’s commercial arrangement with PT Smelting changed from a copper concentrate sales agreement to a tolling arrangement. Under the arrangement, PT-FI pays PT Smelting a tolling fee (which PT-FI records as production costs in the consolidated statements of income) to smelt and refine its copper concentrate and PT-FI retains title to all products for sale to unaffiliated third parties (i.e., there are no further sales to PT Smelting). Refer to MD&A and Note 2 for further discussion.
PT Smelting’s copper anode production from its smelter totaled 398,200 metric tons in 2024, 251,300 metric tons in 2023 and 316,700 metric tons in 2022. Copper cathode production from its refinery totaled 335,200 metric tons in 2024, 212,000 metric tons in 2023 and 268,400 metric tons in 2022.
PT Smelting’s major scheduled maintenance turnarounds (which approximate 30 days to complete) are expected to occur every two years, with short-term maintenance turnarounds in the interim. PT Smelting completed an 18-day maintenance turnaround during October 2022, a 72-day shutdown in July 2023 associated with its expansion project and a 7-day shutdown in November 2023 to complete final tie-in of the expansion project. The next maintenance turnaround is scheduled for mid-year 2025.
Atlantic Copper. Our wholly owned Atlantic Copper smelter and refinery is located on land concessions from the Huelva, Spain, port authorities, which are scheduled to expire in 2038.
The smelter has a design capacity to process approximately 300,000 metric tons of copper per year, and the refinery has a capacity to process 286,000 metric tons of copper per year. Atlantic Copper’s copper anode production from its smelter totaled 247,600 metric tons in 2024, 261,900 metric tons in 2023 and 215,000 metric tons in 2022. Copper cathode production from its refinery totaled 254,400 metric tons in 2024, 260,300 metric tons in 2023 and 218,400 metric tons in 2022.
During 2024, Atlantic Copper purchased 30% of its concentrate from our copper mining operations (15% from South America operations, 13% from Indonesia operations and 2% from the North America copper mines) and 70% from third parties.
Atlantic Copper’s major maintenance turnarounds typically occur approximately every eight years, with shorter-term maintenance turnarounds in the interim. Atlantic Copper completed a 17-day maintenance turnaround in 2024 and a 78-day major maintenance turnaround in 2022.
Atlantic Copper is developing an e-material recycling project as a result of the significant and continued
growth in electronic waste material. Atlantic Copper’s existing smelting and refining facilities provide synergies to recycle this type of material, and the project, which is expected to commence operations in 2026, would include an addition of a smelting furnace and associated equipment to recover copper, gold, silver, palladium, tin, nickel and
platinum from electronic materials. Atlantic Copper estimates that the initial project capital will approximate $435 million.
Miami Smelter*.* We own and operate a smelter at our Miami mining operation in Arizona. The smelter has been operating for over 100 years and has been upgraded numerous times during that period to implement new technologies, improve production and comply with air quality requirements.
The Miami smelter processes copper concentrate primarily from our North America copper mines. Concentrate processed through the smelter totaled 840,600 metric tons in 2024, 810,900 metric tons in 2023 and 781,000 metric tons in 2022, and copper anode production from the smelter totaled 214,000 metric tons in 2024, 222,000 metric tons in 2023 and 202,000 metric tons in 2022. In addition, because sulfuric acid is a by-product of smelting concentrate, the Miami smelter is also the most significant source of sulfuric acid for our North America leaching operations.
Major maintenance turnarounds are anticipated to occur approximately every three to four years for the Miami smelter. We performed a major maintenance turnaround during 2021 and the next major maintenance turnaround is scheduled for mid-year 2025, for which we expect to incur maintenance charges and idle facility costs of approximately $85 million.
Rod & Refining Operations*.* Our Rod & Refining operations consist of conversion facilities located in North America, including a refinery in El Paso, Texas, and rod mills in El Paso, Texas and Miami, Arizona. We refine our copper anode production from our Miami smelter at our El Paso refinery. The El Paso refinery has the potential to operate at an annual production capacity of approximately 410,000 metric tons of copper cathode, which is sufficient to refine all of the copper anode we produce at our Miami smelter. Copper cathode production from the El Paso refinery totaled 221,300 metric tons in 2024, 217,800 metric tons in 2023 and 208,900 metric tons in 2022. Our El Paso refinery also produces nickel carbonate, copper telluride and autoclaved slimes material containing gold, silver, platinum and palladium.
Molybdenum Conversion Facilities. We process molybdenum concentrate at our conversion plants in the U.S. and Europe into such products as technical-grade molybdic oxide, ferromolybdenum, pure molybdic oxide, ammonium molybdates and molybdenum disulfide. We operate molybdenum roasters in Sierrita, Arizona; Fort Madison, Iowa; and Rotterdam, the Netherlands, and we operate a molybdenum pressure-leach plant in Bagdad, Arizona. We also produce ferromolybdenum for customers worldwide at our conversion plant located in Stowmarket, United Kingdom.
Other North America Copper Mines*.* We have five non-operating copper mines – Ajo, Bisbee, Tohono, Twin Buttes and Christmas, which are located in Arizona – that have been on care and maintenance status for several years and would require new or updated environmental studies, new permits, and additional capital investment, which could be significant, to return them to operating status.
MINING DEVELOPMENT PROJECTS AND EXPLORATION ACTIVITIES
In 2024, capital expenditures totaled $4.8 billion (including $2.1 billion for major mining projects – primarily for underground development activities in the Grasberg minerals district – and $1.2 billion for PT-FI’s new downstream processing facilities).
We have several projects and potential opportunities to expand production volumes, extend mine lives and develop large-scale underground ore bodies. As further discussed in MD&A, our near-term major development projects will focus on the underground development activities in the Grasberg minerals district. Considering the long-term nature and large size of our development projects, actual costs and timing could vary from estimates. Additionally, in response to market conditions, the timing of our expenditures will continue to be reviewed. We continue to review our mine development and processing plans to maximize the value of our mineral reserves.
Additionally, based on the current reserve life through 2041, full development of PT-FI’s underground mineral reserves at the Grasberg minerals district is expected to require approximately $4 billion (most of which will be incurred over the next 8 years) of capital expenditures at our processing facilities to optimize the handling of underground ore from the Grasberg Block Cave, DMLZ and Kucing Liar deposits. Increases in power loads at these processing facilities and the underground mines are expected to require additional power generation and as such, PT-FI is planning investments in a new gas-fired combined cycle facility. The majority of PT-FI’s planned
investments in a new gas-fired combined cycle facility are expected to be incurred over the next three years, at a cost of approximately $1 billion, which represents an incremental cost of $0.4 billion compared to previously planned investments to refurbish the existing coal units. Once complete, PT-FI’s dual-fuel power plant and the new gas-fired combined cycle facility will be fueled by natural gas, supplied by a floating liquefied natural gas storage and regassification unit.
In 2024, exploration spending associated with our mining operations totaled $113 million. Our mining exploration activities are primarily associated with our existing mines, focusing on opportunities to expand mineral reserves and resources to support development of additional future production capacity. Exploration results continue to indicate opportunities for significant future potential reserve additions at our existing properties.
Refer to Item 1A. “Risk Factors” for further discussion of risks associated with mine development projects and exploration activities, and PT-FI’s IUPK.
SOURCES AND AVAILABILITY OF ENERGY, NATURAL RESOURCES AND RAW MATERIALS
Our copper mining operations require significant amounts of energy, principally diesel, electricity, coal and natural gas, most of which is obtained from third parties under long-term contracts. In 2024, energy represented 16% of our copper mine site operating costs, including purchases of approximately 270 million gallons of diesel fuel; approximately 8,550 gigawatt hours of electricity at our North America and South America copper mining operations (we generate all of our power at our Indonesia mining operation); approximately 750 thousand metric tons of coal for our coal power plant in Indonesia; and approximately 2 million MMBtu (million British thermal units) of natural gas at certain of our North America mines. Based on current cost estimates, energy is expected to approximate 16% of our copper mine site operating costs for the year 2025.
Our mining operations also require significant quantities of water for mining, ore processing and related support facilities. The loss of water rights for any of our mines, in whole or in part, or shortages of water to which we have rights, could require us to curtail or shut down mining operations. For a further discussion of risks and legal proceedings associated with the availability of water, refer to “Governmental Regulations” above, Item 1A. “Risk Factors” and Item 3. “Legal Proceedings.”
Sulfuric acid is used in the SX/EW process and is produced as a by-product of the smelting process at our smelters and from our sulfur burners at the Safford mine. Sulfuric acid needs in excess of the sulfuric acid produced by our operations are purchased from third parties.
For further discussion of risks associated with various input costs, refer to Item 1A. “Risk Factors.”
HUMAN CAPITAL
We are committed to promoting the health, safety and well-being of our workforce and striving to further strengthen our commitment to promoting an inclusive, diverse and agile workplace. We believe our global workforce is the foundation of our success. Our Board of Directors (Board) oversees our policies and implementation programs that govern our approach to human capital management, with the Corporate Responsibility Committee (CRC) having oversight of health and safety matters and the Compensation Committee having oversight of other human capital matters, including those relating to workforce recruitment, retention and development, pay equity, and inclusion and diversity.
Workforce
At December 31, 2024, we had approximately 28,500 employees (13,900 in North America, 6,900 in South America, 6,600 in Indonesia and 1,100 in Europe and other locations). We also had contractors that employed personnel at many of our operations at various times throughout 2024, including approximately 32,200 in Indonesia (approximately 8,100 at PT-FI’s new downstream processing facilities and approximately 24,100 at the Grasberg minerals district), 25,500 in North America, 6,300 at our South America mining operations and 1,700 in Europe and other locations. Certain of these contractors work on projects that are temporary in nature and fluctuate from year to year.
Approximately 28% of our global employee population is covered by collective labor agreements (CLAs). In North America, our employees are not covered by a CLA. Rather, our hourly, full-time employees at our active North
America sites elect to work directly with management using our Guiding Principles, which outline how we work together to achieve our collective goals within the values of the company.
We prioritize open engagement with our employees and, where applicable, union leadership to negotiate and uphold labor agreements effectively. Prolonged strikes and other work stoppages can adversely affect our business, our workforce and regional stakeholders. In 2024, there were no strikes or lockouts at any of our operations, and Cerro Verde completed new multi-year CLAs with its two unions, PT-FI completed a new two-year CLA with its three unions and Atlantic Copper completed a new CLA with its three unions.
A summary of employees covered by CLAs on December 31, 2024, including the number of employees covered and the expiration date of the applicable CLA, follows:
| Location | Number of Unions | Number of Employees Covered by a CLA | Expiration Date | ||||||||||||||
| PT-FI – Indonesia | 3 | 2,849 | March 2026 | ||||||||||||||
| Cerro Verde – Peru | 2 | 3,544 | August 2028 and August 2029 | ||||||||||||||
| El Abra – Chile | 2 | 915 | April 2026 | ||||||||||||||
| Atlantic Copper – Spain | 3 | 525 | December 2026 | ||||||||||||||
| Stowmarket – United Kingdom | 1 | 41 | May 2026 |
In 2024, our employees formerly covered by a CLA in Rotterdam, The Netherlands eliminated their union representation and decided to negotiate directly with management through their internal works council. An employee benefits agreement replaced the CLA and is expected to be negotiated again in March 2025.
Health and Safety
Our highest priority is the health, safety and well-being of our employees and contractors. We also work to promote our safety-first values with our suppliers and in the communities where we operate. We believe that health and safety considerations are integral to, and fundamental for, all other functions in our organization, and we understand the health and safety of our workforce is critical to our operational efficiency and long-term success. Our global health and safety strategy, “Safe Production Matters,” is focused on fatality prevention, eliminating systemic root causes of incidents and continuous improvement through robust management systems, which are supported by leaders empowering our teams to work safely. Our culture of leading by example at all levels of the organization and our Safe Production Matters strategy underpin our Fatal Risk Management (FRM) program. The goal of our FRM program is to achieve zero workplace fatalities by strengthening preventative measures and raising awareness to fatal risks and the measures necessary to mitigate them.
We further seek to prevent fatalities and high-risk incidents by leveraging technology to support safe work practices in the field and data analytics to identify opportunities for improvement. Our framework for managing risks and compliance obligations is certified company-wide in accordance with the ISO 45001 Health and Safety Management System (ISO 45001), most recently certified in January 2023. ISO 45001 requires third-party site-level verification of requirements, with an overall goal of preventing fatalities and reducing safety incidents.
As part of our commitment to providing a healthy and safe workplace, we strive to provide the training, tools and resources needed so our workforce can identify risks and consistently apply effective controls. We share information and key learnings about potential fatal events (PFEs), high-risk incidents and best practices throughout the company, and we engage with industry peers and professional organizations to learn and continuously improve our health and safety program. Our corporate team communicates safety performance to executive management regularly, including reviews of high-risk, potential fatal and fatal incidents. The CRC provides input on the overall direction of our health and safety programs and reviews safety statistics, trends and incident investigation reports. In the event of a fatal incident, executive management and the Chair of the CRC are notified immediately, and we review and discuss all fatal incident investigations with the CRC and the Board.
Our objective is to achieve zero workplace fatalities and to decrease injuries and occupational illnesses. We measure our safety performance through regularly established benchmarks, including the industry-established Total Recordable Incident Rate (TRIR), and our company-established PFEs, both of which include employees and contractors company-wide. Regrettably, we had two work-related fatalities in 2024 and one work-related fatality in
- In addition, we had 30 PFEs in 2024 and 46 PFEs in 2023. Our TRIR per 200,000 man-hours worked was 0.52 in 2024 and 0.60 in 2023.
Employee Engagement, Training and Development
We aim to recruit and retain talented employees with diverse perspectives by offering, among other things, competitive compensation and benefits and pathways for career advancement. We prioritize a highly engaged, agile workforce and, in addition to physical and psychological safety, we aim to support the overall health and well-being of our workforce by providing access to health and wellness programs, and offering opportunities for flexible work schedules, where practicable, among other programs.
We continued to face challenges in 2024 with an increasingly competitive and tight labor market, specifically in North America, and we remain committed to assessing our recruitment and training and development programs to adapt to the changing labor market and our employee needs.
To support the advancement of our employees, we conduct regular strategic talent reviews and leadership planning. We offer training and development programs to encourage the growth of internal talent and to continue to promote a strong and experienced management pipeline. We leverage both formal and informal programs to identify, foster and retain top talent at both the corporate and operations levels. We expect our talent management processes and corresponding training and development programs will continue to mature and evolve in line with our commitment to continuous improvement.
Workplace Culture
We are dedicated to cultivating a company culture prioritizing safety, respect, inclusivity, and representation of the diverse communities in which we operate. As a global organization that operates in regions of varying ethnic, religious and cultural backgrounds, we value and prioritize inclusion and diversity within our workforce. A broad range of experience, knowledge, background, culture and heritage drives innovation, enhances operational performance and improves relationships with stakeholders.
We are often the largest employer in our local communities, which are typically in remote areas, and hiring locally is a commitment we make to the communities surrounding our operations and to our host countries. We retain expatriate expertise for managerial and technical roles when the required expertise is not available in local communities. We offer cultural awareness training to expatriates and inpatriates for new locations.
We strive for, promote and foster a workplace where everyone feels a sense of belonging, is treated with respect and their opinions are valued. We believe an inclusive environment gives our people the confidence to speak up, share ideas that drive innovation and achieve operational excellence. We believe our inclusive environment is the foundation of our high-performance culture and is paramount to the long-term sustainable success of our business.
We are also committed to providing equal pay for equal work regardless of gender, race, ethnicity or any other characteristic protected by applicable law. We periodically conduct internal compensation reviews to identify and address, as appropriate, possible pay gaps, which cannot be explained through performance, distribution of jobs, experience, time in role and other legitimate business-related factors.
Additional information regarding our workforce can be found in our Annual Report on Sustainability, which is available on our website and updated annually.
Refer to Item 1A. “Risk Factors” for further information on human capital matters.
COMMUNITY AND HUMAN RIGHTS
We have adopted policies that govern our working relationships with the communities where we operate and that are designed to guide our practices and programs in a manner that respects human rights and the culture of the local people impacted by our operations. In addition, global regulations with regard to human rights and environmental due diligence in supply chains require us to identify, and to prevent, or at least mitigate, adverse impacts on human rights and the environment.
We continue to make significant expenditures on community development, health, education, training and cultural programs, which include:
-
comprehensive job training programs
-
clean water and sanitation projects
-
public health programs, including malaria control
-
agricultural assistance programs
-
small and medium enterprise development programs
-
basic education programs
-
advanced education scholarships
-
cultural resources promotion and preservation programs
-
community infrastructure development
-
charitable donations
In 2000, we endorsed the joint U.S. State Department-British Foreign Office Voluntary Principles on Security and Human Rights (Voluntary Principles). We participated in developing these Voluntary Principles with other major natural resource companies and international human rights organizations and they are incorporated into our Human Rights Policy. The Voluntary Principles provide guidelines for our security programs, including interaction with host-government security personnel, private security contractors and our internal security employees.
Our Human Rights Policy reflects our commitment to implementing the United Nations Guiding Principles on Business and Human Rights. We conduct site-level human rights impact assessments (HRIAs) at our global operations, which help us to embed human rights considerations into our business practices. We completed HRIAs at Cerro Verde in 2024, our PT-FI Grasberg operations in 2023, Arizona operations in 2022, El Abra in 2021 and New Mexico operations in 2018. We are at the mid-way point of our HRIA at PT-FI’s new downstream processing facilities and plan to initiate our HRIA at our Colorado operations later in 2025. We continue to participate in a multi-industry human rights working group to gain insight from peer companies and experts in the field to learn how best practices are evolving.
We believe that our social and economic development programs are responsive to the issues raised by the local communities near our areas of operation and help us maintain good relations with the surrounding communities and avoid disruptions of mining operations. As part of our ongoing commitment to our community stakeholders, we have made and expect to continue making investments in certain social programs, including in-kind support and administration, across our global operations from time to time. Over the last three years, charges for these investments have averaged approximately $185 million per year. Nevertheless, social and political instability in the areas of our operations may adversely impact our mining operations. Refer to Item 1A. “Risk Factors” for further discussion.
South America. Cerro Verde has provided a variety of community support projects over the years. Following engagements with regional and local governments, civic leaders and development agencies, Cerro Verde constructed a potable water treatment plant to serve Arequipa. In addition, the development of a water storage network was financed by Cerro Verde and a distribution network was financed by the Cerro Verde Civil Association.
In 2015, Cerro Verde completed construction of a wastewater treatment plant for the city of Arequipa, which, in addition to supplementing existing water supplies to support Cerro Verde’s concentrator expansion, also improves the local water quality, enhances agriculture products grown in the area and reduces the risk of waterborne illnesses. In addition to these projects, Cerro Verde annually makes significant community development investments in the Arequipa region.
Security Matters. Consistent with our operating permits in Peru and our commitment to protect our employees and property, we have taken steps to provide a safe and secure working environment. As part of its security program,
Cerro Verde maintains its own internal security department. Both employees and contractors perform functions such as protecting company facilities, monitoring shipments of supplies and products, assisting in traffic control and aiding in emergency response operations. The security department receives human rights and Voluntary Principles training annually. Cerro Verde’s costs for its internal civilian security department totaled $8 million in both 2024 and 2023 and $7 million in 2022.
Cerro Verde, like all businesses and residents of Peru, relies on the Peru government for the maintenance of public order, upholding the rule of law and the protection of personnel and property. The Peru government is responsible for employing police personnel and directing their operations. Cerro Verde has limited public security forces in support of its operation, with the arrangement defined through an Inter-institutional Cooperation Agreement with the Peru National Police. Cerro Verde’s share of support costs for government-provided security approximated $1 million in 2024, 2023 and 2022. Refer to Item 1A. “Risk Factors” for further discussion of security risks in Peru.
Indonesia. PT-FI provides funding and technical assistance to support various community development programs in areas such as health, education, economic development and local infrastructure. In 1996, PT-FI established a social investment fund with the aim of contributing to social and economic development in the Mimika Regency. Prior to 2019, the fund was mainly managed by the Amungme and Kamoro Community Development Organization, a community-led institution. In 2019, a new foundation, the Amungme and Kamoro Community Empowerment Foundation (Yayasan Pemberdayaan Masyarakat Amungme dan Kamoro, or YPMAK), was established, and in 2020, PT-FI appointed YPMAK to assist in distributing a significant portion of PT-FI’s funding to support the development and empowerment of the local Indigenous Papuan people. YPMAK is governed by a Board of Governors consisting of seven representatives, including four from PT-FI.
In addition, since 2001, PT-FI has voluntarily established and contributed to land rights trust funds administered by Amungme and Kamoro representatives that focus on socioeconomic initiatives, human rights and environmental issues.
PT-FI is committed to the continued funding of YPMAK programs and the land rights trust funds, as well as other local-community development initiatives, making annual investments in public health, education, and local economic development. PT-FI recorded charges totaling $141 million in 2024 and $123 million in both 2023 and 2022 to production and delivery costs for social and economic development programs.
Security Matters. Consistent with our ongoing commitment to protect our employees and property, we have taken steps to provide a safe and secure working environment. As part of its security program, PT-FI maintains its own internal civilian security department. Both employees and contractors perform functions such as protecting company facilities, monitoring shipments of supplies and products, assisting in traffic control and aiding in emergency response operations. The security department receives human rights training annually.
PT-FI’s costs for its internal civilian security department totaled $49 million in 2024, $51 million in 2023 and $50 million in 2022.
PT-FI, like all businesses and residents of Indonesia, relies on the Indonesia government for the maintenance of public order, upholding the rule of law and protection of personnel and property. The Grasberg minerals district has been designated by the Indonesia government as one of Indonesia’s national vital objects. This designation results in the police and, to a lesser extent, the military playing a significant role in protecting the area of our operations. The Indonesia government is responsible for employing police and military personnel and directing their operations. As part of pre-deployment, all military and police personnel receive human rights training.
From the outset of PT-FI’s operations, the Indonesia government has looked to PT-FI to provide logistical and infrastructure support and assistance for these necessary services because of the limited resources of the Indonesia government and the remote location of and lack of development in the province of Central Papua. PT-FI’s financial support of the Indonesia government security institutions assigned to PT-FI’s operations area represents a prudent response to PT-FI’s requirements and commitments to protect its workforce and property, better ensuring that personnel are properly fed and lodged and have the logistical resources to patrol PT-FI’s roads and secure its area of operations. In addition, the provision of such support is consistent with our philosophy of responsible corporate citizenship and reflects our commitment to pursue practices that protect and respect human rights.
PT-FI’s support costs for the government-provided security totaled $24 million in 2024 and $25 million in both 2023 and 2022. This supplemental support consists of various infrastructure and other costs, including food, housing, fuel, travel, vehicle repairs, allowances to cover incidental and administrative costs, and community assistance programs conducted by the military and police. Refer to Item 1A. “Risk Factors” for further discussion of security risks in Indonesia.
MINING PRODUCTION AND SALES DATA
| Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||
| Production | Sales | |||||||||||||||||||||||||||||||||||||
| COPPER (millions of recoverable pounds) | 2024 | 2023 | 2022 | 2024 | 2023 | 2022 | ||||||||||||||||||||||||||||||||
| (FCX’s net interest in %) | ||||||||||||||||||||||||||||||||||||||
| North America | ||||||||||||||||||||||||||||||||||||||
| Morenci (72%)a | 505 | 575 | 636 | 517 | 578 | 639 | ||||||||||||||||||||||||||||||||
| Safford (100%) | 249 | 245 | 285 | 246 | 250 | 281 | ||||||||||||||||||||||||||||||||
| Sierrita (100%) | 165 | 185 | 184 | 167 | 183 | 186 | ||||||||||||||||||||||||||||||||
| Bagdad (100%) | 146 | 146 | 165 | 146 | 148 | 169 | ||||||||||||||||||||||||||||||||
| Chino (100%) | 133 | 141 | 130 | 133 | 143 | 127 | ||||||||||||||||||||||||||||||||
| Tyrone (100%) | 43 | 51 | 59 | 44 | 53 | 59 | ||||||||||||||||||||||||||||||||
| Miami (100%) | 9 | 12 | 11 | 10 | 12 | 11 | ||||||||||||||||||||||||||||||||
| Other (100%) | (4) | (5) | (3) | (6) | (6) | (3) | ||||||||||||||||||||||||||||||||
| Total North America | 1,246 | 1,350 | 1,467 | 1,257 | 1,361 | 1,469 | ||||||||||||||||||||||||||||||||
| South America | ||||||||||||||||||||||||||||||||||||||
| Cerro Verde (55.08%)b | 949 | 985 | 974 | 958 | 988 | 964 | ||||||||||||||||||||||||||||||||
| El Abra (51%) | 219 | 217 | 202 | 219 | 212 | 198 | ||||||||||||||||||||||||||||||||
| Total South America | 1,168 | 1,202 | 1,176 | 1,177 | 1,200 | 1,162 | ||||||||||||||||||||||||||||||||
| Indonesia | ||||||||||||||||||||||||||||||||||||||
| Grasberg minerals district (48.76%)c | 1,800 | 1,660 | 1,567 | 1,632 | 1,525 | 1,582 | ||||||||||||||||||||||||||||||||
| Consolidated | 4,214 | 4,212 | 4,210 | 4,066 | d | 4,086 | d | 4,213 | d | |||||||||||||||||||||||||||||
| Less noncontrolling interests | 1,465 | 1,414 | 845 | 1,384 | 1,344 | 840 | ||||||||||||||||||||||||||||||||
| Net | 2,749 | 2,798 | 3,365 | 2,682 | 2,742 | 3,373 | ||||||||||||||||||||||||||||||||
| Average realized price per pound | $ | 4.21 | $ | 3.85 | $ | 3.90 | ||||||||||||||||||||||||||||||||
| GOLD (thousands of recoverable ounces) | ||||||||||||||||||||||||||||||||||||||
| (FCX’s net interest in %) | ||||||||||||||||||||||||||||||||||||||
| North America (100%) | 19 | 15 | 13 | 20 | 16 | 12 | ||||||||||||||||||||||||||||||||
| Indonesia (48.76%)c | 1,861 | 1,978 | 1,798 | 1,817 | 1,697 | 1,811 | ||||||||||||||||||||||||||||||||
| Consolidated | 1,880 | 1,993 | 1,811 | 1,837 | 1,713 | 1,823 | ||||||||||||||||||||||||||||||||
| Less noncontrolling interests | 953 | 952 | 337 | 931 | 808 | 339 | ||||||||||||||||||||||||||||||||
| Net | 927 | 1,041 | 1,474 | 906 | 905 | 1,484 | ||||||||||||||||||||||||||||||||
| Average realized price per ounce | $ | 2,418 | $ | 1,972 | $ | 1,787 | ||||||||||||||||||||||||||||||||
| MOLYBDENUM (millions of recoverable pounds) | ||||||||||||||||||||||||||||||||||||||
| (FCX’s net interest in %) | ||||||||||||||||||||||||||||||||||||||
| Climax (100%) | 18 | 17 | 21 | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
| Henderson (100%) | 12 | 13 | 12 | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
| North America copper mines (100%)a | 30 | 30 | 29 | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
| Cerro Verde (55.08%)b | 20 | 22 | 23 | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
| Consolidated | 80 | 82 | 85 | 78 | 81 | 75 | ||||||||||||||||||||||||||||||||
| Less noncontrolling interest | 9 | 10 | 11 | 9 | 10 | 10 | ||||||||||||||||||||||||||||||||
| Net | 71 | 72 | 74 | 69 | 71 | 65 | ||||||||||||||||||||||||||||||||
| Average realized price per pound | $ | 21.77 | $ | 24.64 | $ | 18.71 |
a.Amounts are net of Morenci’s joint venture partners’ undivided interest.
b.Our economic interest in Cerro Verde is 55.08%, and prior to September 2024 it was 53.56%.
c.Our economic interest in PT-FI is 48.76% and prior to 2023, it approximated 81% (refer to Note 2 for further discussion).
d.Consolidated sales volumes exclude purchased copper of 158 million pounds in 2024, 103 million pounds in 2023 and 124 million pounds in 2022.
SELECTED OPERATING DATA
| Years Ended December 31, | ||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||||
| CONSOLIDATED MINING | ||||||||||||||||||||||||||||||||
| Copper (millions of recoverable pounds) | ||||||||||||||||||||||||||||||||
| Production | 4,214 | 4,212 | 4,210 | 3,843 | 3,206 | |||||||||||||||||||||||||||
| Sales, excluding purchases | 4,066 | 4,086 | 4,213 | 3,807 | 3,202 | |||||||||||||||||||||||||||
| Average realized price per pound | $ | 4.21 | $ | 3.85 | $ | 3.90 | $ | 4.33 | $ | 2.95 | ||||||||||||||||||||||
| Gold (thousands of recoverable ounces) | ||||||||||||||||||||||||||||||||
| Production | 1,880 | 1,993 | 1,811 | 1,381 | 857 | |||||||||||||||||||||||||||
| Sales, excluding purchases | 1,837 | 1,713 | 1,823 | 1,360 | 855 | |||||||||||||||||||||||||||
| Average realized price per ounce | $ | 2,418 | $ | 1,972 | $ | 1,787 | $ | 1,796 | $ | 1,832 | ||||||||||||||||||||||
| Molybdenum (millions of recoverable pounds) | ||||||||||||||||||||||||||||||||
| Production | 80 | 82 | 85 | 85 | 76 | |||||||||||||||||||||||||||
| Sales, excluding purchases | 78 | 81 | 75 | 82 | 80 | |||||||||||||||||||||||||||
| Average realized price per pound | $ | 21.77 | $ | 24.64 | $ | 18.71 | $ | 15.56 | $ | 10.20 | ||||||||||||||||||||||
| NORTH AMERICA COPPER MINES | ||||||||||||||||||||||||||||||||
| Operating Data, Net of Joint Venture Interests****a | ||||||||||||||||||||||||||||||||
| Copper (millions of recoverable pounds) | ||||||||||||||||||||||||||||||||
| Production | 1,246 | 1,350 | 1,467 | 1,460 | 1,418 | |||||||||||||||||||||||||||
| Sales, excluding purchases | 1,257 | 1,361 | 1,469 | 1,436 | 1,422 | |||||||||||||||||||||||||||
| Average realized price per pound | $ | 4.29 | $ | 3.93 | $ | 4.08 | $ | 4.30 | $ | 2.82 | ||||||||||||||||||||||
| Molybdenum (millions of recoverable pounds) | ||||||||||||||||||||||||||||||||
| Production | 30 | 30 | 29 | 34 | 33 | |||||||||||||||||||||||||||
| 100% Operating Data | ||||||||||||||||||||||||||||||||
| Leach operations | ||||||||||||||||||||||||||||||||
| Leach ore placed in stockpiles (metric tons per day) | 609,400 | 692,000 | 676,400 | 665,900 | 714,300 | |||||||||||||||||||||||||||
| Average copper ore grade (%) | 0.20 | 0.23 | 0.29 | 0.29 | 0.27 | |||||||||||||||||||||||||||
| Copper production (millions of recoverable pounds) | 842 | 941 | 1,019 | 1,056 | 1,047 | |||||||||||||||||||||||||||
| Mill operations | ||||||||||||||||||||||||||||||||
| Ore milled (metric tons per day) | 311,700 | 308,500 | 294,200 | 269,500 | 279,700 | |||||||||||||||||||||||||||
| Average ore grade (%): | ||||||||||||||||||||||||||||||||
| Copper | 0.30 | 0.32 | 0.37 | 0.38 | 0.35 | |||||||||||||||||||||||||||
| Molybdenum | 0.02 | 0.02 | 0.02 | 0.03 | 0.02 | |||||||||||||||||||||||||||
| Copper recovery rate (%) | 83.2 | 81.8 | 81.8 | 81.2 | 84.1 | |||||||||||||||||||||||||||
| Copper production (millions of recoverable pounds) | 601 | 633 | 695 | 649 | 647 | |||||||||||||||||||||||||||
| SOUTH AMERICA OPERATIONS | ||||||||||||||||||||||||||||||||
| Copper (millions of recoverable pounds) | ||||||||||||||||||||||||||||||||
| Production | 1,168 | 1,202 | 1,176 | 1,047 | 979 | |||||||||||||||||||||||||||
| Sales | 1,177 | 1,200 | 1,162 | 1,055 | 976 | |||||||||||||||||||||||||||
| Average realized price per pound | $ | 4.16 | $ | 3.82 | $ | 3.80 | $ | 4.34 | $ | 3.05 | ||||||||||||||||||||||
| Molybdenum (millions of recoverable pounds) | ||||||||||||||||||||||||||||||||
| Production | 20 | 22 | 23 | 21 | 19 | |||||||||||||||||||||||||||
| Leach operations | ||||||||||||||||||||||||||||||||
| Leach ore placed in stockpiles (metric tons per day) | 164,300 | 191,200 | 163,000 | 163,900 | 160,300 | |||||||||||||||||||||||||||
| Average copper ore grade (%) | 0.42 | 0.35 | 0.35 | 0.32 | 0.35 | |||||||||||||||||||||||||||
| Copper production (millions of recoverable pounds) | 295 | 317 | 302 | 256 | 241 | |||||||||||||||||||||||||||
| Mill operations | ||||||||||||||||||||||||||||||||
| Ore milled (metric tons per day) | 415,500 | 417,400 | 409,200 | 380,300 | 331,600 | |||||||||||||||||||||||||||
| Average ore grade (%): | ||||||||||||||||||||||||||||||||
| Copper | 0.33 | 0.34 | 0.32 | 0.31 | 0.34 | |||||||||||||||||||||||||||
| Molybdenum | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | |||||||||||||||||||||||||||
| Copper recovery rate (%) | 83.6 | 81.3 | 85.3 | 87.3 | 84.3 | |||||||||||||||||||||||||||
| Copper production (millions of recoverable pounds) | 873 | 885 | 874 | 791 | 738 |
a.Amounts are net of Morenci’s joint venture partners’ undivided interest.
SELECTED OPERATING DATA (Continued)
| Years Ended December 31, | ||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||||
| INDONESIA OPERATIONS | ||||||||||||||||||||||||||||||||
| Copper (millions of recoverable pounds) | ||||||||||||||||||||||||||||||||
| Production | 1,800 | 1,660 | 1,567 | 1,336 | 809 | |||||||||||||||||||||||||||
| Sales | 1,632 | 1,525 | 1,582 | 1,316 | 804 | |||||||||||||||||||||||||||
| Average realized price per pound | $ | 4.19 | $ | 3.81 | $ | 3.80 | $ | 4.34 | $ | 3.08 | ||||||||||||||||||||||
| Gold (thousands of recoverable ounces) | ||||||||||||||||||||||||||||||||
| Production | 1,861 | 1,978 | 1,798 | 1,370 | 848 | |||||||||||||||||||||||||||
| Sales | 1,817 | 1,697 | 1,811 | 1,349 | 842 | |||||||||||||||||||||||||||
| Average realized price per ounce | $ | 2,418 | $ | 1,972 | $ | 1,787 | $ | 1,796 | $ | 1,832 | ||||||||||||||||||||||
| Mill operations | ||||||||||||||||||||||||||||||||
| Ore milled (metric tons per day) | 208,400 | 198,300 | 192,600 | 151,600 | 87,700 | |||||||||||||||||||||||||||
| Average ore grade: | ||||||||||||||||||||||||||||||||
| Copper (%) | 1.27 | 1.22 | 1.19 | 1.30 | 1.32 | |||||||||||||||||||||||||||
| Gold (grams per metric ton) | 1.00 | 1.12 | 1.05 | 1.04 | 1.10 | |||||||||||||||||||||||||||
| Recovery rates (%): | ||||||||||||||||||||||||||||||||
| Copper | 88.4 | 89.7 | 90.0 | 89.8 | 91.9 | |||||||||||||||||||||||||||
| Gold | 76.9 | 77.9 | 77.7 | 77.0 | 78.1 | |||||||||||||||||||||||||||
| MOLYBDENUM MINES | ||||||||||||||||||||||||||||||||
| Ore milled (metric tons per day) | 28,000 | 27,900 | 26,100 | 21,800 | 20,700 | |||||||||||||||||||||||||||
| Average molybdenum ore grade (%) | 0.16 | 0.15 | 0.18 | 0.19 | 0.17 | |||||||||||||||||||||||||||
| Molybdenum production (millions of recoverable pounds) | 30 | 30 | 33 | 30 | 24 | |||||||||||||||||||||||||||
MINERAL RESERVES
Our estimates of mineral reserves have been prepared using industry accepted practice and conform to the disclosure requirements of Subpart 1300 of SEC Regulation S-K. Proven and probable mineral reserves were determined from the application of relevant modifying factors to geological data to establish an operational, economically viable mine plan. The estimates are based on mapping, drilling, sampling, assaying and evaluation methods generally applied in the mining industry. Mineral reserves, as used in the mineral reserve data presented here, means the economically mineable part of a measured or indicated resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted. Proven mineral reserves mean the economically mineable part of a measured mineral resource, from geological evidence revealed in outcrops, trenches, workings or drill holes with grades and/or quality estimates from detailed, closely spaced sampling, and geologic characterization that defines the size, shape, depth and mineral content to a high degree of confidence. Probable mineral reserves means the economically mineable part of an indicated mineral resource, for which quantity and grade are estimated from information similar to that used for measured mineral resources where the samples are farther apart, and the geological characterization is adequate. Probable mineral reserves can also include remaining portions of a measured mineral resource. The degree of assurance, although lower than that for proven mineral reserves, is high enough to assume continuity between points of observation.
Our estimates of recoverable proven and probable mineral reserves are prepared by and are the responsibility of our employees. These estimates are reviewed and verified regularly by independent experts in mining, geology and reserve determination. Our mineral reserve estimates are based on the latest available geological and geotechnical studies. We conduct ongoing studies of our ore bodies to evaluate economic values and to manage risk. We revise our mine plans and estimates of recoverable proven and probable mineral reserves as required in accordance with the latest available studies. Refer to Item 1A. “Risk Factors” for discussion of risks associated with our estimates of proven and probable mineral reserves.
Estimated recoverable proven and probable mineral reserves at December 31, 2024, were determined using metal price assumptions of $3.25 per pound for copper, $1,600 per ounce for gold and $12.00 per pound for molybdenum. For the three-year period ended December 31, 2024, LME copper settlement prices averaged $4.00 per pound, London PM gold prices averaged $2,044 per ounce and the weekly average price for molybdenum quoted by Platts Metals Daily averaged $21.41 per pound.
The estimated recoverable proven and probable mineral reserves presented in the table below represent the estimated metal quantities from which we expect to be paid after application of estimated metallurgical recoveries and smelter recoveries, where applicable.
| Estimated Recoverable Proven and Probable Mineral Reserves at December 31, 2024 | ||||||||||||||||||||
| Copper****a (billion pounds) | Gold (million ounces) | Molybdenum (billion pounds) | ||||||||||||||||||
| North America | 41.6 | 0.6 | 2.51 | |||||||||||||||||
| South Americab | 28.4 | — | 0.66 | |||||||||||||||||
| Indonesiac | 27.0 | 22.4 | — | |||||||||||||||||
| Consolidated basis****d | 97.0 | 23.0 | 3.16 | |||||||||||||||||
| Net equity interest****e | 70.2 | 11.5 | 2.87 |
Note: May not foot because of rounding.
a.Estimated consolidated recoverable copper reserves include 1.4 billion pounds in leach stockpiles and 0.3 billion pounds in mill stockpiles (refer to “Mill and Leach Stockpiles” for further discussion).
b.Excludes the El Abra mill project discussed in “Operations – South America” (estimated potential addition of approximately 20 billion recoverable pounds of copper in concentrate and cathode).
c.Estimated recoverable proven and probable mineral reserves from Indonesia reflect estimates of minerals that can be recovered through the life of the IUPK in 2041. We believe an extension would provide additional material reserves. Refer to Note 11 for discussion of PT-FI’s IUPK.
d.Consolidated mineral reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America (refer to Note 2 for further discussion of our Morenci joint venture). Excluded from the table above are our estimated recoverable proven and probable silver reserves of 318 million ounces, which were determined using $20 per ounce.
e.Net equity interest mineral reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership (refer to Note 2 for further discussion of our ownership in subsidiaries). Excluded from the table above are our estimated recoverable proven and probable silver reserves of 213 million ounces.
| Estimated Recoverable Proven and Probable Mineral Reserves | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| at December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Proven Mineral Reserves | Probable Mineral Reserves | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Million Metric Tons | Average Ore Grade | Million Metric Tons | Average Ore Grade | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FCX’s | Processing | FCX’s | 100% | Copper | Gold | Moly | Silver | FCX’s | 100% | Copper | Gold | Moly | Silver | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest | Method | Interest | Basis | % | g/t | % | g/t | Interest | Basis | % | g/t | % | g/t | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| North America | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Morenci | 72% | Mill | 525 | 730 | 0.33 | — | 0.02 | — | 50 | 69 | 0.32 | — | 0.03 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Crushed leach | 63 | 88 | 0.36 | — | — | — | 1 | 2 | 0.31 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ROM leach | 1,787 | 2,481 | 0.17 | — | — | — | 313 | 435 | 0.15 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bagdad | 100% | Mill | 2,032 | 2,032 | 0.35 | — | a | 0.02 | 1.46 | 380 | 380 | 0.33 | — | a | 0.02 | 1.36 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ROM leach | 11 | 11 | 0.34 | — | — | — | 7 | 7 | 0.26 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Safford, including Lone Star | 100% | Crushed leach | 659 | 659 | 0.43 | — | — | — | 87 | 87 | 0.41 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sierrita | 100% | Mill | 1,824 | 1,824 | 0.23 | — | a | 0.03 | 1.08 | 382 | 382 | 0.25 | — | a | 0.02 | 1.16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Chino, including Cobre | 100% | Mill | 201 | 201 | 0.49 | 0.05 | — | 0.92 | 100 | 100 | 0.52 | 0.05 | — | 0.96 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ROM leach | 61 | 61 | 0.24 | — | — | — | 8 | 8 | 0.25 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tyrone | 100% | ROM leach | 62 | 62 | 0.19 | — | — | — | 7 | 7 | 0.21 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Henderson | 100% | Mill | 31 | 31 | — | — | 0.16 | — | 13 | 13 | — | — | 0.16 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Climax | 100% | Mill | 130 | 130 | — | — | 0.15 | — | 11 | 11 | — | — | 0.10 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 7,385 | 8,309 | 1,361 | 1,502 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| South America | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cerro Verde | 55.08% | Mill | 347 | 629 | 0.36 | — | 0.02 | 1.90 | 1,755 | 3,186 | 0.34 | — | 0.01 | 1.79 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ROM leach | 10 | 17 | 0.41 | — | — | — | 34 | 62 | 0.19 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| El Abra | 51% | Crushed leach | 232 | 454 | 0.48 | — | — | — | 29 | 57 | 0.39 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ROM leach | 45 | 89 | 0.25 | — | — | — | 6 | 11 | 0.18 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 633 | 1,189 | 1,824 | 3,316 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Indonesia | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Grasberg Block Cave | 48.76% | Mill | 93 | 191 | 1.27 | 0.90 | — | 3.48 | 257 | 528 | 0.89 | 0.58 | — | 3.61 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DMLZ | 48.76% | Mill | 37 | 77 | 0.92 | 0.74 | — | 4.07 | 122 | 250 | 0.68 | 0.55 | — | 3.45 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Big Gossan | 48.76% | Mill | 10 | 20 | 2.43 | 1.03 | — | 15.15 | 14 | 28 | 2.10 | 0.90 | — | 12.68 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kucing Liarb | 48.76% | Mill | 49 | 100 | 1.17 | 1.03 | — | 6.16 | 131 | 268 | 1.08 | 0.91 | — | 5.55 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 189 | 388 | 524 | 1,074 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total FCX – 100% Basis | 9,886 | 5,893 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total FCX – Consolidated basis****c | 8,963 | 5,751 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total FCX – Net equity interest****d | 8,207 | 3,708 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note: Totals may not foot because of rounding.
a.Amounts not shown because of rounding.
b.PT-FI has commenced long-term mine development activities for the Kucing Liar deposit. See “Operations – Indonesia” for discussion of Kucing Liar capital investments.
c.Consolidated reserves represent estimated quantities after reduction for Morenci’s joint venture partner interests (refer to Note 2 for further discussion).
d.Net equity interest represents estimated consolidated quantities further reduced for noncontrolling interest ownership (refer to Note 2 for further discussion of our ownership in subsidiaries).
The reserve table above and the tables on the following pages utilize the abbreviations described below:
-
g/t – grams per metric ton
-
Moly – Molybdenum
| Estimated Recoverable Proven and Probable Mineral Reserves | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| at December 31, 2024 (continued) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Proven and Probable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Million Metric Tons | Average Ore Grade | Recoveries****a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FCX’s | Processing | FCX’s | 100% | Copper | Gold | Moly | Silver | Copper | Gold | Moly | Silver | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest | Method | Interest | Basis | % | g/t | % | g/t | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| North America | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Morenci | 72% | Mill | 575 | 799 | 0.33 | — | 0.02 | — | 82.8 | — | 44.1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Crushed leach | 64 | 90 | 0.36 | — | — | — | 83.2 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ROM leach | 2,100 | 2,916 | 0.17 | — | — | — | 49.7 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bagdad | 100% | Mill | 2,412 | 2,412 | 0.35 | — | b | 0.02 | 1.44 | 84.2 | 59.1 | 77.1 | 49.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ROM leach | 18 | 18 | 0.31 | — | — | — | 43.8 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Safford, including Lone Star | 100% | Crushed leach | 746 | 746 | 0.43 | — | — | — | 70.1 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sierrita | 100% | Mill | 2,206 | 2,206 | 0.23 | — | b | 0.03 | 1.10 | 81.2 | 59.1 | 78.0 | 49.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Chino, including Cobre | 100% | Mill | 301 | 301 | 0.50 | 0.05 | — | 0.93 | 79.5 | 77.9 | — | 78.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ROM leach | 69 | 69 | 0.25 | — | — | — | 37.4 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tyrone | 100% | ROM leach | 69 | 69 | 0.19 | — | — | — | 57.8 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Henderson | 100% | Mill | 44 | 44 | — | — | 0.16 | — | — | — | 87.8 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Climax | 100% | Mill | 141 | 141 | — | — | 0.15 | — | — | — | 88.8 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 8,746 | 9,811 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| South America | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cerro Verde | 55.08% | Mill | 2,102 | 3,815 | 0.34 | — | 0.01 | 1.81 | 85.6 | — | 54.4 | 44.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ROM leach | 43 | 79 | 0.24 | — | — | — | 48.9 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| El Abra | 51% | Crushed leach | 261 | 511 | 0.47 | — | — | — | 50.3 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ROM leach | 51 | 100 | 0.24 | — | — | — | 39.3 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2,457 | 4,505 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Indonesia | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Grasberg Block Cave | 48.76% | Mill | 351 | 719 | 0.99 | 0.66 | — | 3.57 | 85.1 | 67.3 | — | 58.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DMLZ | 48.76% | Mill | 159 | 326 | 0.74 | 0.60 | — | 3.60 | 83.0 | 77.8 | — | 63.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Big Gossan | 48.76% | Mill | 23 | 48 | 2.23 | 0.95 | — | 13.69 | 91.4 | 68.5 | — | 63.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kucing Liarc | 48.76% | Mill | 180 | 369 | 1.10 | 0.94 | — | 5.72 | 79.2 | 55.5 | — | 45.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 713 | 1,462 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total FCX – 100% Basis | 15,779 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total FCX – Consolidated basis****d | 14,714 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total FCX – Net equity interest****e | 11,916 |
Note: Amounts may not equal the sum of proven and probable mineral reserves as presented on the previous page because of rounding. In addition, totals may not foot because of rounding.
a.Recoveries are net of estimated mill and smelter losses.
b.Amounts not shown because of rounding.
c.PT-FI has commenced long-term mine development activities for the Kucing Liar deposit. See “Operations – Indonesia” for discussion of Kucing Liar capital investments.
d.Consolidated reserves represent estimated quantities after reduction for Morenci’s joint venture partner interests (refer to Note 2 for further discussion).
e.Net equity interest represents estimated consolidated quantities further reduced for noncontrolling interest ownership (refer to Note 2 for further discussion of our ownership in subsidiaries).
| Estimated Recoverable Proven and Probable Mineral Reserves | ||||||||||||||||||||||||||||||||||||||
| at December 31, 2024 (continued) | ||||||||||||||||||||||||||||||||||||||
| Recoverable Mineral Reserves | ||||||||||||||||||||||||||||||||||||||
| Copper | Gold | Moly | Silver | |||||||||||||||||||||||||||||||||||
| FCX’s | Processing | billion | million | billion | million | |||||||||||||||||||||||||||||||||
| Interest | Method | lbs. | ozs. | lbs. | ozs. | |||||||||||||||||||||||||||||||||
| North America | ||||||||||||||||||||||||||||||||||||||
| Morenci | 72% | Mill | 4.8 | — | 0.17 | — | ||||||||||||||||||||||||||||||||
| Crushed leach | 0.6 | — | — | — | ||||||||||||||||||||||||||||||||||
| ROM leach | 5.4 | — | — | — | ||||||||||||||||||||||||||||||||||
| Bagdad | 100% | Mill | 15.7 | 0.2 | 0.86 | 55.2 | ||||||||||||||||||||||||||||||||
| ROM leach | 0.1 | — | — | — | ||||||||||||||||||||||||||||||||||
| Safford, including Lone Star | 100% | Crushed leach | 4.9 | — | — | — | ||||||||||||||||||||||||||||||||
| Sierrita | 100% | Mill | 9.2 | 0.1 | 0.96 | 38.4 | ||||||||||||||||||||||||||||||||
| Chino, including Cobre | 100% | Mill | 2.6 | 0.4 | — | 7.1 | ||||||||||||||||||||||||||||||||
| ROM leach | 0.1 | — | — | — | ||||||||||||||||||||||||||||||||||
| Tyrone | 100% | ROM leach | 0.2 | — | — | — | ||||||||||||||||||||||||||||||||
| Henderson | 100% | Mill | — | — | 0.14 | — | ||||||||||||||||||||||||||||||||
| Climax | 100% | Mill | — | — | 0.40 | — | ||||||||||||||||||||||||||||||||
| 43.6 | 0.6 | 2.53 | 100.6 | |||||||||||||||||||||||||||||||||||
| Recoverable metal in stockpilesa | 1.1 | — | b | 0.03 | 0.2 | |||||||||||||||||||||||||||||||||
| 100% operations | 44.7 | 0.6 | 2.55 | 100.8 | ||||||||||||||||||||||||||||||||||
| Consolidated | 41.6 | 0.6 | 2.51 | 100.8 | ||||||||||||||||||||||||||||||||||
| Net equity interest | 41.6 | 0.6 | 2.51 | 100.8 | ||||||||||||||||||||||||||||||||||
| South America | ||||||||||||||||||||||||||||||||||||||
| Cerro Verde | 55.08% | Mill | 24.6 | — | 0.65 | 99.4 | ||||||||||||||||||||||||||||||||
| ROM leach | 0.2 | — | — | — | ||||||||||||||||||||||||||||||||||
| El Abra | 51% | Crushed leach | 2.6 | — | — | — | ||||||||||||||||||||||||||||||||
| ROM leach | 0.2 | — | — | — | ||||||||||||||||||||||||||||||||||
| 27.7 | — | 0.65 | 99.4 | |||||||||||||||||||||||||||||||||||
| Recoverable metal in stockpilesa | 0.7 | — | 0.01 | 0.8 | ||||||||||||||||||||||||||||||||||
| 100% operations | 28.4 | — | 0.66 | 100.2 | ||||||||||||||||||||||||||||||||||
| Consolidated | 28.4 | — | 0.66 | 100.2 | ||||||||||||||||||||||||||||||||||
| Net equity interest | 15.5 | — | 0.36 | 55.2 | ||||||||||||||||||||||||||||||||||
| Indonesia | ||||||||||||||||||||||||||||||||||||||
| Grasberg Block Cave | 48.76% | Mill | 13.4 | 10.3 | — | 48.3 | ||||||||||||||||||||||||||||||||
| DMLZ | 48.76% | Mill | 4.4 | 4.9 | — | 23.9 | ||||||||||||||||||||||||||||||||
| Big Gossan | 48.76% | Mill | 2.2 | 1.0 | — | 13.5 | ||||||||||||||||||||||||||||||||
| Kucing Liarc | 48.76% | Mill | 7.1 | 6.2 | — | 31.0 | ||||||||||||||||||||||||||||||||
| 100% operations | 27.0 | 22.4 | — | 116.6 | ||||||||||||||||||||||||||||||||||
| Consolidated | 27.0 | 22.4 | — | 116.6 | ||||||||||||||||||||||||||||||||||
| Net equity interest | 13.2 | 10.9 | — | 56.8 | ||||||||||||||||||||||||||||||||||
| Total FCX – 100% basis | 100.1 | 23.0 | 3.21 | 317.5 | ||||||||||||||||||||||||||||||||||
| Total FCX – Consolidated basis****d | 97.0 | 23.0 | 3.16 | 317.5 | ||||||||||||||||||||||||||||||||||
| Total FCX – Net equity interest****e | 70.2 | 11.5 | 2.87 | 212.8 |
Note: Totals may not foot because of rounding.
a.Refer to “Mill and Leach Stockpiles” for additional information.
b.Amounts not shown because of rounding.
c.PT-FI has commenced long-term mine development activities for the Kucing Liar deposit. See “Operations – Indonesia” for discussion of Kucing Liar capital investments.
d.Consolidated mineral reserves represent estimated metal quantities after reduction for Morenci’s joint venture partner interests (refer to Note 2 for further discussion).
e.Net equity interest mineral reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership (refer to Note 2 for further discussion of our ownership in subsidiaries).
The table below summarizes changes in estimated recoverable copper, gold and molybdenum in mineral reserves between December 31, 2023 and 2024, for our material properties:
| Estimated Recoverable Mineral Reserves at 100% Basis | ||||||||||||||||||||||||||||||||||||||
| Copper (billion lbs.) | Gold (million ozs.) | Molybdenum (billion lbs.) | ||||||||||||||||||||||||||||||||||||
| Morenci | Cerro Verde | Grasberg minerals district | Grasberg minerals district | Morenci | Cerro Verde | |||||||||||||||||||||||||||||||||
| Mineral reserves as of December 31, 2023a | 12.6 | 27.0 | 29.0 | 23.9 | 0.23 | 0.68 | ||||||||||||||||||||||||||||||||
| Production | (0.7) | (0.9) | (1.8) | (1.9) | — | b | (0.02) | |||||||||||||||||||||||||||||||
| Adjustmentsc | (0.8) | (0.8) | (0.1) | 0.3 | (0.06) | — | b | |||||||||||||||||||||||||||||||
| Mineral reserves as of December 31, 2024a | 11.1 | 25.2 | 27.0 | 22.4 | 0.17 | 0.66 | ||||||||||||||||||||||||||||||||
| Year-over-year percentage change | (12) | % | (7) | % | (7) | % | (6) | % | (26) | % | (3) | % |
| Estimated Recoverable Mineral Reserves at Net Equity Basis | ||||||||||||||||||||||||||||||||||||||
| Copper (billion lbs.) | Gold (million ozs.) | Molybdenum (billion lbs.) | ||||||||||||||||||||||||||||||||||||
| Morenci | Cerro Verde | Grasberg minerals district | Grasberg minerals district | Morenci | Cerro Verde | |||||||||||||||||||||||||||||||||
| (72%) | (55.08%)d | (48.76%) | (48.76%) | (72%) | (55.08%)d | |||||||||||||||||||||||||||||||||
| Mineral reserves as of December 31, 2023a | 9.1 | 14.5 | 14.1 | 11.6 | 0.17 | 0.36 | ||||||||||||||||||||||||||||||||
| Production | (0.5) | (0.5) | (0.9) | (0.9) | — | b | (0.01) | |||||||||||||||||||||||||||||||
| Adjustmentsc | (0.6) | — | b,e | (0.1) | 0.2 | (0.04) | 0.01 | e | ||||||||||||||||||||||||||||||
| Mineral reserves as of December 31, 2024a | 8.0 | 13.9 | 13.2 | 10.9 | 0.12 | 0.36 | ||||||||||||||||||||||||||||||||
| Year-over-year percentage change | (12) | % | (4) | % | (6) | % | (6) | % | (29) | % | — | % |
Note: Totals may not foot because of rounding.
a.Includes estimated recoverable metals contained in stockpiles. Refer to “Mill and Leach Stockpiles” for additional information.
b.Amounts not shown because of rounding.
c.The downward adjustments at Morenci are primarily the result of mine plan changes and updated geologic models, partly offset by increased leach recovery assumptions. The downward adjustments at Cerro Verde are primarily the result of updated geologic modeling. The adjustments at the Grasberg minerals district are primarily the result of mine design changes.
d.FCX’s interest in Cerro Verde is 55.08%, and prior to September 2024 it was 53.56%.
e.Includes the impact of the increase in FCX’s ownership percentage in 2024.
After accounting for production, changes to the estimates of mineral reserves and mineral resources for the Morenci mine and Grasberg minerals district were not material as compared to the previously filed Technical Report Summaries for each of these properties. After accounting for production, changes to the estimate of mineral reserves for the Cerro Verde mine were not material as compared to the previously filed Technical Report Summary as of December 31, 2022. However, Cerro Verde has had a material change to its estimate of mineral resources (refer to “Mineral Resources” below). See the 2024 Technical Report Summary of Mineral Reserves and Resources for the Cerro Verde mine dated December 31, 2024, filed as Exhibit 96.1 to this Form 10-K.
In defining our open-pit mineral reserves, we apply an “operational cutoff grade” strategy, wherein multiple processing options, throughput constraints, mine development and ore availability are given consideration to maximize the value of our operations. In defining our open-pit mineral resources, internal cutoff grades are applied. The internal cutoff grade is defined for a metric ton of ore as that equivalent copper grade, once produced and sold, that generates sufficient revenue to cover estimated processing and administrative costs. We use “break-even cutoff grades” to define the in-situ mineral reserves and resources for our underground ore bodies. The break-even cutoff grade is defined for a metric ton of ore as that equivalent copper grade, once produced and sold, that generates sufficient revenue to cover all estimated operating and administrative costs associated with our production.
Our copper mines may contain other commercially recoverable metals, such as gold, molybdenum and silver. We value all commercially recoverable metals in terms of a copper equivalent percentage to determine a single cutoff grade. Copper equivalent percentage is used to express the relative value of multi-metal ores in terms of one metal. The calculation expresses the relative value of the ore using estimates of contained metal quantities, metals prices as used for reserve or resource determination, recovery rates, treatment charges and royalties. Our molybdenum properties use a molybdenum cutoff grade.
The table below shows the minimum cutoff grade for mineral reserves by process for each of our existing ore bodies as of December 31, 2024:
| Copper Equivalent Cutoff Grade (%) | Molybdenum Cutoff Grade (%) | ||||||||||||||||||||||
| Mill | Crushed Leach | ROM Leach | Mill | ||||||||||||||||||||
| North America | |||||||||||||||||||||||
| Morenci | 0.22 | 0.20 | 0.03 | — | |||||||||||||||||||
| Bagdad | 0.16 | — | 0.08 | — | |||||||||||||||||||
| Safford, including Lone Star | — | 0.14 | — | — | |||||||||||||||||||
| Sierrita | 0.18 | — | — | — | |||||||||||||||||||
| Chino, including Cobre | 0.22 | — | 0.07 | — | |||||||||||||||||||
| Tyrone | — | — | 0.02 | — | |||||||||||||||||||
| Henderson | — | — | — | 0.13 | |||||||||||||||||||
| Climax | — | — | — | 0.05 | |||||||||||||||||||
| South America | |||||||||||||||||||||||
| Cerro Verde | 0.13 | — | 0.08 | — | |||||||||||||||||||
| El Abra | — | 0.14 | 0.12 | — | |||||||||||||||||||
| Indonesia | |||||||||||||||||||||||
| Grasberg Block Cave | 0.55 | — | — | — | |||||||||||||||||||
| DMLZ | 0.64 | — | — | — | |||||||||||||||||||
| Big Gossan | 1.70 | — | — | — | |||||||||||||||||||
| Kucing Liar | 0.64 | — | — | — |
Production Sequencing
The following chart illustrates our current plans for sequencing and producing our proven and probable mineral reserves at each of our ore bodies and the years in which we currently expect production from each ore body and related stockpiles. Our proven and probable mineral reserves in Indonesia reflect estimates of minerals that can be recovered through the end of 2041, and our current mine plan and planned operations are based on the assumption that PT-FI will comply with its obligations under the IUPK and receive the second 10-year extension from 2031 through 2041 (refer to Item 1A. “Risk Factors” and Note 11 for further discussion). We develop our mine plans based on maximizing the net present value from the ore bodies. Significant additional capital expenditures will be required at many of these mines in order to achieve the life-of-mine plans reflected below.
a.The ultimate timing of the start of production at Kucing Liar is dependent upon a number of factors and may vary from the date shown here. Refer to "Operations – Indonesia" for further discussion.
Mill and Leach Stockpiles
Mill and leach stockpiles generally contain lower grade ores that have been extracted from an ore body and are available for metal recovery. Mill stockpiles contain sulfide ores and recovery of metal is through milling, concentrating, smelting and refining or, alternatively, by concentrate leaching. Leach stockpiles contain oxide ores and certain secondary sulfide ores and recovery of metal is through exposure to acidic solutions that dissolve contained copper and deliver it in solution to extraction processing facilities.
Because it is impracticable to determine copper contained in mill and leach stockpiles by physical count, reasonable estimation methods are employed. The quantity of material delivered to mill and leach stockpiles is based on surveyed volumes of mined material and daily production records. Sampling and assaying of blasthole cuttings determine the estimated copper grades of material delivered to mill and leach stockpiles.
Expected copper recoveries for mill stockpiles are determined by metallurgical testing. The recoverable copper in mill stockpiles, once entered into the production process, can be produced into copper concentrate almost immediately.
Expected copper recoveries for leach stockpiles are determined using small-scale laboratory tests, small- to large-scale column testing (which simulates the production process), historical trends and other factors, including mineralogy of the ore and rock type. Total copper recovery in leach stockpiles can vary significantly from a low percentage to more than 80% depending on several variables, including processing methodology, processing variables, mineralogy and particle size of the rock. For newly placed material on active stockpiles, as much as 80% of total copper recovery may be extracted during the first year, and the remaining copper may be recovered over many years. Processes and copper recoveries for mill and leach stockpiles are monitored regularly, and recovery estimates are adjusted annually based on new information and as related technology and processing methods change. Based on our annual review of mill and leach stockpiles, we increased our estimated consolidated recoverable copper in certain leach stockpiles, net of joint venture interests, by 164 million pounds in 2024, primarily associated with Morenci leach stockpiles, partly offset by a decrease for Safford leach stockpiles.
Following are our stockpiles and the estimated recoverable copper contained within those stockpiles as of December 31, 2024:
| Recoverable | ||||||||||||||||||||||||||||||||||||||
| FCX’s | Million Metric Tons | Average | Recoveries | Copper | ||||||||||||||||||||||||||||||||||
| Interest | FCX’s Interest | 100% Basis | Ore Grade (%) | (%) | (billion lbs.) | |||||||||||||||||||||||||||||||||
| Mill stockpiles | ||||||||||||||||||||||||||||||||||||||
| Cerro Verde | 55.08% | 29 | 53 | 0.26 | 65.5 | 0.2 | ||||||||||||||||||||||||||||||||
| North America copper minesa | 11 | 11 | 0.31 | 77.1 | 0.1 | |||||||||||||||||||||||||||||||||
| 40 | 64 | 0.3 | ||||||||||||||||||||||||||||||||||||
| Leach stockpiles | ||||||||||||||||||||||||||||||||||||||
| Morenci | 72% | 5,594 | 7,775 | 0.24 | 0.6 | 0.3 | ||||||||||||||||||||||||||||||||
| Bagdad | 100% | 506 | 506 | 0.25 | 0.9 | — | b | |||||||||||||||||||||||||||||||
| Safford, including Lone Star | 100% | 489 | 489 | 0.43 | 4.4 | 0.2 | ||||||||||||||||||||||||||||||||
| Sierrita | 100% | 650 | 650 | 0.15 | 7.6 | 0.2 | ||||||||||||||||||||||||||||||||
| Miami | 100% | 498 | 498 | 0.39 | 1.3 | 0.1 | ||||||||||||||||||||||||||||||||
| Chino, including Cobre | 100% | 1,803 | 1,803 | 0.25 | 2.0 | 0.2 | ||||||||||||||||||||||||||||||||
| Tyrone | 100% | 1,223 | 1,223 | 0.28 | 1.2 | 0.1 | ||||||||||||||||||||||||||||||||
| Cerro Verde | 55.08% | 347 | 629 | 0.44 | 4.0 | 0.2 | ||||||||||||||||||||||||||||||||
| El Abra | 51% | 499 | 978 | 0.43 | 3.0 | 0.3 | ||||||||||||||||||||||||||||||||
| 11,609 | 14,551 | 1.5 | ||||||||||||||||||||||||||||||||||||
| Total FCX – 100% basis | 1.8 | |||||||||||||||||||||||||||||||||||||
| Total FCX – Consolidated basis****c | 1.7 | |||||||||||||||||||||||||||||||||||||
| Total FCX – Net equity interest****d | 1.4 | |||||||||||||||||||||||||||||||||||||
Note: Totals may not foot because of rounding.
a.Our net equity interest in all North America copper mines is 100% except for Morenci, which is 72%.
b.Rounds to less than 0.1 billion pounds of recoverable copper.
c.Consolidated stockpiles represent estimated metal quantities after reduction for Morenci’s joint venture partner interests (refer to Note 2 for further discussion).
d.Net equity interest represents estimated consolidated metal quantities further reduced for noncontrolling interest ownership (refer to Note 2 for further discussion of our ownership in subsidiaries).
Mineral Resources
In addition to mineral reserves, our properties contain mineral resources that we believe could be brought into production should market conditions warrant. However, permitting and significant capital expenditures may be required before mining of these resources could commence at these properties. A mineral resource is a concentration or occurrence of material of economic interest in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. Such a deposit cannot qualify as recoverable proven and probable mineral reserves until engineering, legal and economic feasibility are confirmed based upon a comprehensive evaluation of development and operating costs, grades, recoveries and other material factors. Mineral resources include measured, indicated and inferred mineral classifications.
-
A measured mineral resource is a resource for which the quantity and grade are estimated from detailed, closely spaced sampling, and geologic characterization that defines the size, shape, depth and mineral content to a high degree of confidence.
-
An indicated mineral resource is a resource for which quantity and grade are estimated from information similar to that used for measured mineral resources where the samples are farther apart, and the geological characterization is adequate.
-
An inferred mineral resource is a resource for which quantity and grade are estimated from information similar to that used for measured and indicated mineral resources, but with limited geological evidence and sampling. Inferred mineral resource grade and mineralization continuity have a lower degree of confidence.
Our estimates of mineral resources have been prepared in accordance with the disclosure requirements of Subpart 1300 of SEC Regulation S-K. No assurance can be given that the estimated mineral resources not included in mineral reserves will become proven and probable mineral reserves.
Estimated mineral resources as presented on the following pages were assessed using prices of $3.75 per pound for copper, $1,700 per ounce for gold, $15 per pound for molybdenum and $20 per ounce for silver. Cutoff grade strategy and expected recoveries used to evaluate mineral resources are consistent with those for mineral reserves but would require additional work to substantiate. Refer to Item 1A. “Risk Factors” for discussion of risks associated with our estimates of mineral resources.
| Estimated Mineral Resources | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| at December 31, 2024****a | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Measured | Indicated | Inferred | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Million Metric Tons | Average Ore Grade | Million Metric Tons | Average Ore Grade | Million Metric Tons | Average Ore Grade | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FCX’s | Processing | FCX’s | 100% | Copper | Gold | Moly | Silver | FCX’s | 100% | Copper | Gold | Moly | Silver | FCX’s | 100% | Copper | Gold | Moly | Silver | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest | Method | Interest | Basis | % | g/t | % | g/t | Interest | Basis | % | g/t | % | g/t | Interest | Basis | % | g/t | % | g/t | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| North America | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Morenci | 72% | Milling | 607 | 843 | 0.29 | — | 0.02 | — | 493 | 685 | 0.32 | — | 0.02 | — | 293 | 406 | 0.32 | — | 0.02 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leaching | 1,409 | 1,958 | 0.17 | — | — | — | 750 | 1,042 | 0.15 | — | — | — | 441 | 613 | 0.12 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bagdad | 100% | Milling | 380 | 380 | 0.31 | — | b | 0.02 | 1.28 | 487 | 487 | 0.26 | — | b | 0.02 | 1.08 | 534 | 534 | 0.18 | — | b | 0.01 | 0.72 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leaching | — | b | — | b | 0.13 | — | — | — | 2 | 2 | 0.10 | — | — | — | 1 | 1 | 0.12 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Safford, including Lone Star | 100% | Milling | 1,350 | 1,350 | 0.38 | 0.03 | — | b | 1.15 | 1,613 | 1,613 | 0.32 | 0.01 | 0.01 | 0.93 | 432 | 432 | 0.27 | — | b | — | b | 0.93 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leaching | 557 | 557 | 0.29 | — | — | — | 410 | 410 | 0.29 | — | — | — | 118 | 118 | 0.28 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sierrita | 100% | Milling | 751 | 751 | 0.18 | — | b | 0.02 | 0.83 | 310 | 310 | 0.20 | — | b | 0.02 | 0.94 | 32 | 32 | 0.18 | — | b | 0.01 | 0.86 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Chino, including Cobre | 100% | Milling | 147 | 147 | 0.35 | 0.03 | 0.02 | 0.68 | 78 | 78 | 0.44 | 0.04 | 0.01 | 0.80 | 33 | 33 | 0.36 | 0.03 | 0.01 | 0.65 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leaching | 7 | 7 | 0.25 | — | — | — | 2 | 2 | 0.36 | — | — | — | 2 | 2 | 0.45 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tyrone | 100% | Leaching | 45 | 45 | 0.33 | — | — | — | 7 | 7 | 0.27 | — | — | — | 3 | 3 | 0.44 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Henderson | 100% | Milling | 61 | 61 | — | — | 0.16 | — | 25 | 25 | — | — | 0.13 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Climax | 100% | Milling | 304 | 304 | — | — | 0.18 | — | 53 | 53 | — | — | 0.11 | — | 9 | 9 | — | — | 0.08 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ajo | 100% | Milling | 489 | 489 | 0.39 | 0.07 | 0.01 | 0.94 | 241 | 241 | 0.32 | 0.05 | — | b | 0.70 | 19 | 19 | 0.33 | 0.04 | — | b | 1.04 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cochise/Bisbee | 100% | Leaching | 146 | 146 | 0.49 | — | — | — | 118 | 118 | 0.41 | — | — | — | 20 | 20 | 0.38 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sanchez | 100% | Leaching | 79 | 79 | 0.35 | — | — | — | 72 | 72 | 0.24 | — | — | — | 7 | 7 | 0.19 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tohono | 100% | Milling | 277 | 277 | 0.63 | 0.09 | 0.01 | 1.90 | 31 | 31 | 0.67 | 0.09 | 0.01 | 1.72 | 4 | 4 | 0.65 | 0.07 | — | b | 1.44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leaching | 249 | 249 | 0.68 | — | — | — | 48 | 48 | 0.53 | — | — | — | 25 | 25 | 0.48 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Twin Buttes | 100% | Milling | 139 | 139 | 0.65 | 0.01 | 0.04 | 6.62 | 10 | 10 | 0.63 | 0.01 | 0.03 | 6.31 | 5 | 5 | 0.77 | 0.01 | 0.02 | 8.22 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leaching | 55 | 55 | 0.24 | — | — | — | 15 | 15 | 0.21 | — | — | — | 7 | 7 | 0.25 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Christmas | 100% | Milling | 67 | 67 | 0.53 | 0.06 | — | b | 1.56 | 231 | 231 | 0.37 | 0.06 | — | b | 0.93 | 39 | 39 | 0.40 | 0.06 | — | b | 0.95 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| South America | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cerro Verde | 55.08% | Milling | 46 | 83 | 0.29 | — | 0.01 | 1.57 | 944 | 1,714 | 0.32 | — | 0.01 | 1.70 | 344 | 624 | 0.34 | — | 0.01 | 1.80 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leaching | 2 | 4 | 0.37 | — | — | — | 7 | 13 | 0.30 | — | — | — | 8 | 14 | 0.33 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| El Abra | 51% | Milling | 607 | 1,190 | 0.43 | 0.02 | 0.01 | 1.42 | 959 | 1,880 | 0.37 | 0.02 | 0.01 | 1.17 | 862 | 1,690 | 0.29 | 0.01 | — | b | 0.92 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leaching | 44 | 86 | 0.24 | — | — | — | 24 | 46 | 0.26 | — | — | — | 7 | 14 | 0.29 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Indonesia | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Grasberg minerals district | 48.76% | Milling | 197 | 404 | 0.77 | 0.62 | — | 4.00 | 1,234 | 2,530 | 0.69 | 0.57 | — | 3.70 | 149 | 306 | 0.44 | 0.37 | — | 2.53 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total FCX – 100% basis | 9,672 | 11,662 | 4,957 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total FCX – Consolidated basis****c | 8,887 | 11,178 | 4,671 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total FCX – Net equity interest****d | 8,016 | 8,162 | 3,393 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note: Totals may not foot because of rounding.
a.Mineral resources are exclusive of mineral reserves.
b.Amounts not shown because of rounding.
c.Consolidated basis represents estimated mineral resources after reduction for Morenci’s joint venture partner interests (refer to Note 2 for further discussion).
d.Net equity interest represents estimated consolidated mineral resources further reduced for noncontrolling interest ownership (refer to Note 2 for further discussion of our ownership in subsidiaries).
| Estimated Mineral Resources | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| at December 31, 2024****a (continued) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Measured + Indicated | Total Mineral Resources | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Million Metric Tons | Million Metric Tons | Average Ore Grade | Contained Metalb | Cutoff Gradec | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FCX’s | Processing | FCX’s | 100% | FCX’s | 100% | Copper | Gold | Moly | Silver | Copper | Gold | Moly | Silver | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest | Method | Interest | Basis | Interest | Basis | % | g/t | % | g/t | billion lbs. | million ozs. | billion lbs. | million ozs. | Grade % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| North America | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Morenci | 72% | Milling | 1,100 | 1,527 | 1,392 | 1,934 | 0.31 | — | 0.02 | — | 13.1 | — | 0.98 | — | 0.16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leaching | 2,159 | 3,000 | 2,600 | 3,613 | 0.16 | — | — | — | 12.3 | — | — | — | 0.03 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bagdad | 100% | Milling | 868 | 868 | 1,401 | 1,401 | 0.24 | — | d | 0.02 | 1.00 | 7.5 | 0.1 | 0.56 | 45.0 | 0.11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leaching | 2 | 2 | 2 | 2 | 0.11 | — | — | — | — | d | — | — | — | 0.04 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Safford, including Lone Star | 100% | Milling | 2,963 | 2,963 | 3,395 | 3,395 | 0.34 | 0.01 | — | d | 1.02 | 25.2 | 1.5 | 0.37 | 111.0 | 0.14 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leaching | 967 | 967 | 1,085 | 1,085 | 0.29 | — | — | — | 6.9 | — | — | — | 0.11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sierrita | 100% | Milling | 1,061 | 1,061 | 1,093 | 1,093 | 0.18 | — | d | 0.02 | 0.86 | 4.4 | 0.1 | 0.52 | 30.2 | 0.14 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Chino, including Cobre | 100% | Milling | 225 | 225 | 258 | 258 | 0.38 | 0.04 | 0.01 | 0.71 | 2.2 | 0.3 | 0.08 | 5.9 | 0.18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leaching | 9 | 9 | 11 | 11 | 0.30 | — | — | — | 0.1 | — | — | — | 0.06 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tyrone | 100% | Leaching | 52 | 52 | 55 | 55 | 0.33 | — | — | — | 0.4 | — | — | — | 0.04 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Henderson | 100% | Milling | 86 | 86 | 86 | 86 | — | — | 0.15 | — | — | — | 0.29 | — | 0.12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Climax | 100% | Milling | 357 | 357 | 366 | 366 | — | — | 0.16 | — | — | — | 1.33 | — | 0.05 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ajo | 100% | Milling | 729 | 729 | 748 | 748 | 0.36 | 0.06 | 0.01 | 0.87 | 6.0 | 1.5 | 0.11 | 20.8 | 0.15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cochise/Bisbee | 100% | Leaching | 264 | 264 | 284 | 284 | 0.45 | — | — | — | 2.8 | — | — | — | 0.14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sanchez | 100% | Leaching | 151 | 151 | 159 | 159 | 0.29 | — | — | — | 1.0 | — | — | — | 0.09 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tohono | 100% | Milling | 308 | 308 | 312 | 312 | 0.64 | 0.09 | 0.01 | 1.87 | 4.4 | 0.9 | 0.04 | 18.8 | 0.17 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leaching | 297 | 297 | 322 | 322 | 0.64 | — | — | — | 4.6 | — | — | — | 0.14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Twin Buttes | 100% | Milling | 149 | 149 | 155 | 155 | 0.65 | 0.01 | 0.04 | 6.65 | 2.2 | — | d | 0.12 | 33.1 | 0.19 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leaching | 70 | 70 | 78 | 78 | 0.24 | — | — | — | 0.4 | — | — | — | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Christmas | 100% | Milling | 297 | 297 | 337 | 337 | 0.41 | 0.06 | — | d | 1.06 | 3.0 | 0.6 | 0.02 | 11.4 | 0.22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| South America | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cerro Verde | 55.08% | Milling | 990 | 1,797 | 1,334 | 2,421 | 0.32 | — | 0.01 | 1.72 | 17.2 | — | 0.63 | 133.8 | 0.11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leaching | 9 | 17 | 17 | 30 | 0.32 | — | — | — | 0.2 | — | — | — | 0.08 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| El Abra | 51% | Milling | 1,566 | 3,070 | 2,427 | 4,760 | 0.36 | 0.02 | 0.01 | 1.14 | 37.4 | 2.6 | 0.81 | 174.9 | 0.12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leaching | 68 | 133 | 75 | 147 | 0.25 | — | — | — | 0.8 | — | — | — | 0.10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Indonesia | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Grasberg minerals district | 48.76% | Milling | 1,431 | 2,934 | 1,580 | 3,240 | 0.67 | 0.56 | — | 3.62 | 48.1 | 58.3 | — | 377.5 | 0.53 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total FCX – 100% basis | 21,334 | 26,291 | 200.3 | 65.9 | 5.86 | 962.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total FCX – Consolidated basis****e | 20,065 | 24,736 | 193.2 | 65.9 | 5.59 | 962.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total FCX – Net equity interest****f | 16,178 | 19,571 | 141.9 | 34.7 | 4.91 | 623.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note: Totals may not foot because of rounding. In addition, amounts for “Measured + Indicated” and “Total Mineral Reserves” may not equal the sum of measured, indicated and inferred (as presented on the prior page) because of rounding.
a.Mineral resources are exclusive of mineral reserves.
b.Estimated recoveries are consistent with those for mineral reserves but would require additional work to substantiate.
c.All sites report a % equivalent copper grade except for Climax and Henderson, which report a % molybdenum grade. Our underground mines report a breakeven cutoff grade, and our open-pit mines report an internal cutoff grade.
d.Amounts not shown because of rounding.
e.Consolidated basis represents estimated mineral resources after reduction for Morenci’s joint venture partner interests (refer to Note 2 for further discussion).
f.Net equity interest represents estimated consolidated mineral resources further reduced for noncontrolling interest ownership (refer to Note 2 for further discussion of our ownership in subsidiaries).
The table below summarizes changes in estimated contained copper, gold and molybdenum in mineral resources between December 31, 2023 and 2024, for our material properties:
| Estimated Contained Mineral Resources at 100% Basis | |||||||||||||||||||||||||||||||||||
| Copper (billion lbs.) | Gold (million ozs.) | Molybdenum (billion lbs.) | |||||||||||||||||||||||||||||||||
| Morenci | Cerro Verde | Grasberg minerals district | Grasberg minerals district | Morenci | Cerro Verde | ||||||||||||||||||||||||||||||
| Mineral resources as of December 31, 2023 | 30.3 | 23.0 | 48.2 | 58.4 | 1.72 | 0.78 | |||||||||||||||||||||||||||||
| Adjustmentsa | (4.8) | (5.5) | (0.1) | (0.2) | (0.74) | (0.15) | |||||||||||||||||||||||||||||
| Mineral resources as of December 31, 2024 | 25.5 | 17.5 | 48.1 | 58.3 | 0.98 | 0.63 | |||||||||||||||||||||||||||||
| Year-over-year percentage change | (16) | % | (24) | % | — | % | — | % | (43) | % | (19) | % |
| Estimated Contained Mineral Resources at Net Equity Basis | ||||||||||||||||||||||||||||||||||||||
| Copper (billion lbs.) | Gold (million ozs.) | Molybdenum (billion lbs.) | ||||||||||||||||||||||||||||||||||||
| Morenci | Cerro Verde | Grasberg minerals district | Grasberg minerals district | Morenci | Cerro Verde | |||||||||||||||||||||||||||||||||
| (72%) | (55.08%)b | (48.76%) | (48.76%) | (72%) | (55.08%)b | |||||||||||||||||||||||||||||||||
| Mineral resources as of December 31, 2023 | 21.8 | 12.3 | 23.5 | 28.5 | 1.24 | 0.42 | ||||||||||||||||||||||||||||||||
| Adjustmentsa | (3.5) | (2.7) | — | c | (0.1) | (0.53) | (0.07) | |||||||||||||||||||||||||||||||
| Mineral resources as of December 31, 2024 | 18.3 | 9.6 | 23.5 | 28.4 | 0.71 | 0.35 | ||||||||||||||||||||||||||||||||
| Year-over-year percentage change | (16) | % | (22) | % | — | % | — | % | (43) | % | (17) | % |
Note: Totals may not foot because of rounding
a.The downward adjustments at Morenci are primarily the result of higher cost assumptions and updates to the geologic modeling, partially offset by increased leach recovery assumptions. The downward adjustments at Cerro Verde are primarily the result of updates to geologic modeling. The slight downward adjustments at Grasberg minerals district are primarily the result of reassessment of the resource shapes.
b.FCX’s interest in Cerro Verde is 55.08%, and prior to September 2024 it was 53.56%.
c.Rounds to less than 0.1 billion pounds
Internal Controls over the Mineral Reserves and Mineral Resources Estimation Process
We have internal controls over the mineral reserves and mineral resources estimation processes that result in reasonable and reliable estimates aligned with industry practice and reporting regulations. Annually, qualified persons and other employees review the estimates of mineral reserves and mineral resources, the supporting documentation, and compliance with the internal controls and, based on their review of such information, recommend approval to use the mineral reserve and mineral resource estimates to our senior management. Our controls utilize management systems including but not limited to, formal quality assurance and quality control protocols, standardized procedures, workflow processes, supervision and management approval, internal and external reviews and audits, reconciliations, and data security covering record keeping, chain of custody and data storage.
Our systems cover exploration activities, sample preparation and analysis, data verification, mineral processing, metallurgical testing, recovery estimation, mine design and sequencing, and mineral reserve and resource evaluations, with environmental, social and regulatory considerations. Our quality assurance and control protocols over sampling and assaying of drill hole samples include insertion of blind samples consisting of standards, blanks, and duplicates in the primary sample streams, as well as selective sample validation at secondary laboratories.
These controls and other methods help to validate the reasonableness of the estimates. The effectiveness of the controls is reviewed periodically to address changes in conditions and the degree of compliance with policies and procedures. Refer to Item 1A. “Risk Factors” for discussion of risks associated with our estimates of mineral reserves and mineral resources.