{"id":53576,"date":"2025-09-24T14:08:36","date_gmt":"2025-09-24T18:08:36","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/copper-surges-as-freeport-mcmoran-declares-force-majeure-at-grasberg-mine-after-fatal-accident\/53576\/"},"modified":"2025-09-24T14:08:36","modified_gmt":"2025-09-24T18:08:36","slug":"copper-surges-as-freeport-mcmoran-declares-force-majeure-at-grasberg-mine-after-fatal-accident","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/copper-surges-as-freeport-mcmoran-declares-force-majeure-at-grasberg-mine-after-fatal-accident\/53576\/","title":{"rendered":"Copper Surges as Freeport-McMoRan Declares Force Majeure at Grasberg Mine After Fatal Accident"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Freeport-McMoRan (<a href=\"\/stock\/FCX\">FCX<\/a>)<\/strong> declared <em>force majeure<\/em> at its <strong>Grasberg mine<\/strong> in Indonesia following a fatal accident on September 8, leading to a significant cut in <strong>Q3 copper and <a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">gold<\/a> sales guidance<\/strong>.<\/li>\n<li>The disruption at <strong>Grasberg<\/strong>, which accounts for approximately <strong>3.2% of global mined copper<\/strong>, caused <em>copper prices to surge<\/em> by over <strong>3%<\/strong> on the London Metal Exchange, reaching a <strong>15-month high<\/strong>.<\/li>\n<li>The incident involved a <em>mud flow<\/em> that resulted in <strong>two confirmed fatalities<\/strong> and <strong>five workers still missing<\/strong>, prompting a halt in operations and a projected <strong>35% reduction<\/strong> in <strong>Grasberg&#39;s 2026 production<\/strong> compared to previous estimates.<\/li>\n<\/ul>\n<p>Copper prices experienced a sharp rally on Wednesday after <strong>Freeport-McMoRan (<a href=\"\/stock\/FCX\">FCX<\/a>)<\/strong> announced it had declared <em>force majeure<\/em> on contracted supplies from its <strong>Grasberg mine<\/strong> in Indonesia. The declaration follows a severe accident at the mine on September 8, which led to a halt in operations and a subsequent reduction in the company&#39;s <strong>third-quarter copper and gold sales guidance<\/strong>.<\/p>\n<p>The global mining giant now expects consolidated <strong>Q3 copper sales<\/strong> to be approximately <strong>4% lower<\/strong> and <strong>gold sales 6% lower<\/strong> than its prior forecasts of <strong>1 billion pounds of copper<\/strong> and <strong>350 thousand ounces of gold<\/strong>. This downward revision immediately impacted the market, sending <strong>copper futures<\/strong> on the London Metal Exchange up by more than <strong>3%<\/strong> to their highest level in over <strong>15 months<\/strong>, trading above <strong>$10,172 per ton<\/strong>. CME futures also traded above <strong>$10,496 per ton<\/strong>, up <strong>2.74%<\/strong> for the day.<\/p>\n<p>The incident at <strong>Grasberg<\/strong>, one of the world&#39;s largest copper and gold deposits, involved a <em>large flow of wet material<\/em> that blocked access to parts of its underground mine. While two workers have been confirmed fatally injured, the search continues for five others who remain missing. The mine, which produces a significant <strong>3.2% of global mined copper<\/strong>, has been fully shut for nearly two weeks, underscoring the <em>vulnerability of global commodity supply chains<\/em> to operational disruptions.<\/p>\n<p>Analysts from BMO Capital Markets noted that while a downward revision was anticipated, the preliminary <strong>35% cut<\/strong> to <strong>Grasberg&#39;s 2026 production outlook<\/strong> is an incremental negative, with output not expected to return to pre-incident levels until <strong>2027<\/strong>. The <strong>Grasberg Block Cave<\/strong> ore body alone represents <strong>50%<\/strong> of <strong>PT Freeport Indonesia&#39;s<\/strong> estimated proven and probable reserves and approximately <strong>70%<\/strong> of its previously forecast copper and gold production through <strong>2029<\/strong>.<\/p>\n<p>Shares of <strong>Freeport-McMoRan (<a href=\"\/stock\/FCX\">FCX<\/a>)<\/strong> reacted sharply to the news, falling as much as <strong>10.4%<\/strong> in New York trading. Conversely, shares of rival mining companies like <strong>Glencore PLC (<a href=\"\/stock\/GLEN\">GLEN<\/a>)<\/strong>, <strong>Teck Resources (<a href=\"\/stock\/TECK\">TECK<\/a>)<\/strong>, and <strong>Antofagasta (<a href=\"\/stock\/ANTO\">ANTO<\/a>)<\/strong> saw gains, benefiting from the prospect of a tighter copper market. The disruption at Grasberg is further compounded by other supply-side issues, including <strong>Hudbay Minerals (<a href=\"\/stock\/HBM\">HBM<\/a>)<\/strong> halting operations at its Constancia mine in Peru due to ongoing political protests.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Freeport-McMoRan (FCX) declared force majeure at its Grasberg mine in Indonesia following a fatal accident on September 8, 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