Copper prices rose about 2% Wednesday after Freeport-McMoRan warned of major production losses from the suspension of its Grasberg Block Cave mine in Indonesia following a deadly mud rush. 

Operations remain halted after two workers were killed and five remain missing, cutting Q3 copper and gold sales by about 4% and 6% versus prior estimates. The impact will be harsher in Q4, with PT Freeport Indonesia’s copper and gold output expected to be negligible compared with forecasts. 

Looking ahead, 2026 production could fall 35% below prior projections, with a full return to pre-incident levels unlikely before 2027. Freeport expects its Big Gossan and Deep MLZ mines to restart later this year, while Grasberg’s phased ramp-up begins in 2026, and it has declared force majeure with insurance recovery capped at $700 million. 

Finsum: The disruption at one of the world’s largest copper mines comes as global supplies remain tight, further lifting copper prices.