Freeport-McMoRan targets 20 billion pounds of copper in Chile expansion

Freeport-McMoRan Inc. is advancing a slate of expansion projects across its global copper portfolio that could add hundreds of millions of pounds of annual production capacity, positioning the miner to capture rising demand from electrification and AI infrastructure buildout.

Key Takeaways:

El Abra in Chile holds an estimated 20 billion recoverable pounds of copper
Bagdad expansion could boost output by 200 million to 250 million pounds annually
Kucing Liar in Indonesia targets 130,000 metric tons of ore per day by 2030

LME copper traded near $9,800 per tonne on Friday, up 12% year-to-date, as supply constraints and growing demand from power grid and data center construction support prices. Freeport's expansion pipeline, spanning three continents, targets the next phase of production growth.

"The scale of Freeport's organic pipeline is among the largest in the industry, with projects that can meaningfully shift the company's output trajectory over the next decade," said Omar Tariq, commodities analyst at Edgen. "Effective execution will be key to capturing the demand wave."

At El Abra in northern Chile, Freeport completed a study defining a large sulfide resource estimated at roughly 20 billion recoverable pounds of copper. The company is evaluating a major mill project similar in scale to the concentrator at its Cerro Verde operation in Peru, one of the world's largest copper mines.

In Arizona, Freeport is advancing pre-feasibility studies at its Safford/Lone Star operations, with completion targeted for 2026, to assess a sizable sulfide expansion opportunity. At Bagdad, also in Arizona, technical and economic studies have identified the potential to more than double concentrator capacity, adding 200 million to 250 million pounds of annual copper production.

Kucing Liar Targets 130,000 Tonnes Per Day

At PT Freeport Indonesia, the company is developing the Kucing Liar ore body within the Grasberg district, one of the largest copper-gold deposits globally. Studies completed in 2025 showed an opportunity to increase Kucing Liar's design capacity to 130,000 metric tons of ore per day, with reserves rising by roughly 20% at low incremental costs. Ramp-up is targeted to begin in 2030.

Peer Expansion Race Intensifies

Freeport's pipeline sits alongside major expansion plans from peers. Southern Copper Corp. is advancing the Tía María, Los Chancas and Michiquillay projects in Peru, while BHP Group in March submitted an Environmental Impact Declaration for the Escondida New Concentrator in Chile, a $4.4 billion to $5.9 billion investment targeting 220,000 to 260,000 metric tons of new annual copper capacity to replace the aging Los Colorados plant.

Global copper mine supply grew just 1% in 2025, according to the International Copper Study Group, while refined output in China — the world's largest producer — rose 8% to 14.72 million tons, widening the gap between mine supply and smelting capacity. Treatment charges for Chinese smelters fell to zero in 2026, reflecting the structural shortage of concentrate.

Freeport's ability to deliver its expansion projects on schedule will determine whether it can capture a disproportionate share of the demand growth expected from grid modernization, electric vehicle adoption and AI data center construction, sectors that the International Energy Agency estimates could require an additional 6 million tons of copper annually by 2040.

This article is for informational purposes only and does not constitute investment advice.