Freeport-McMoRan Boosts 2026, 2027 Capex, Advancing Copper Projects

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Written by Danny Levin, Deputy Editor for IIR News Intelligence (Sugar Land, Texas)

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Summary

Freeport-McMoRan projects $4.3 billion-$4.5 billion in capital expenditures for 2026 and 2027, respectively, up from $3.9 billion in 2025, which comes as the company is advancing its global and domestic copper footprint.

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Freeport-McMoRan's Capex Plan

"Freeport is strongly positioned for the future as a leading producer of copper with large-scale, geographically diverse operations and an exciting portfolio of growth projects to provide additional supplies of copper to a growing market." That's what Freeport-McMoran (Phoenix, Arizona) Chief Executive Officer Kathleen Quirk said in a press release regarding the company's fourth-quarter and full-year 2025 financial results.

In the related conference call, Quick said Freeport supplies 70% of the refined copper produced in the U.S., which is home to "a large portion of our reserves, resources, and future growth."

"We're driving a series of initiatives to enhance our U.S. business through innovation, automation, and investment in expanded facilities ... the U.S. is strongly positioned with the potential for an over 50% increase in copper production as we go through the next four to five years."

Chief Financial Officer Maree Robertson noted the company's planned $4.3 billion-$4.5 billion in capital expenditures (capex) for 2026 include $150 million to advance engineering and early works for the expansion of its copper and molybdenum mine in Bagdad, Arizona. The company is at work on a $170 million expansion of tailings management infrastructure, while Quirk said she expects an investment decision on the mine and processing operations expansion during the first half of the year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can read information on the Bagdad tailings and mine projects.

According to the quarterly earnings presentation, construction of the Bagdad expansion is expected to take three to four years with an incremental investment of about $3.5 billion (under review).

Freeport breaks out its capex in two categories: planned (maintenance and sustaining capital) and discretionary (growth investment).

In all, Freeport estimates 45% of 2026's discretionary capex (which totals $1.6 billion) will go toward early works at Bagdad.

An additional 42% of the discretionary spend is estimated for the development of the Kucing Liar copper-gold mine in Indonesia (part of the Grasberg Copper-Gold Silver Mine Complex), with ramp-up expected in the 2030s; 13% is attributed to Freeport subsidiary Atlantic Copper's recycling facility addition ("CirCular") at its Huelva Copper Smelter & Refinery in Spain, with construction expected to wrap up this year. Subscribers can read more information on the Kucing Liar and recycling facility projects.

According to the earnings presentation, capital spend on Kucing Liar has already reached $1.1 billion, with another $4 billion remaining.

Major Projects in the Planning Phase

In Arizona, Freeport expects to complete a pre-feasibility study at its Lone Star Copper Mine in Safford this year. A substantial resource, the company is targeting an additional 300 million-400 million pounds per year from the mine expansion. Subscribers can read the project report.

Another major proposed project is the expansion of its El Abra copper mine in Chile. According to the earnings presentation, the miner is targeting an environmental impact statement (EIS) submission in the first half of the year, while the permitting process could take three years and construction four years--with a potential start-up in 2033. Freeport is reviewing about $7.5 billion in investment for the project, which excludes $2 billion for extending leach operations. See a list of related project reports.

Copper Demand in the Global Market

In the call, Quick said U.S. customers in particular are indicating that data center demand represents the most significant source of growth for power cable and building wire, with the growing sector "offsetting weakness in traditional demand sectors, residential construction, and autos."

On a general level, "massive investment in the power grid, renewable generation, technology infrastructure, and transportation are driving increased demand for copper and forecasts call for above-trend growth and demand for the foreseeable future. As we review the fundamentals, we continue to expect the market will require additional copper supplies to meet growing demand."

Freeport-McMoRan's Financial Results

Freeport reported strong fourth-quarter results, with copper sales slightly better than 2025 guidance, although they were impacted by about 10% due to a fatal incident in September that caused force majeure at the Grasberg complex--the company's largest copper mine and the second largest in the world. Operations are expected to start up in the second quarter.

It occurred when wet material flooded the Grasberg Block Cave (GBC), one of the mines at the complex.

But the company showed strength in its Americas business during the fourth quarter, as Quick said strength in copper prices led to strong performance in the U.S.--with operating income three-and-a-half times the level in fourth-quarter 2024.

U.S. production was up 5% in the fourth quarter year over year, as well as for the year 2025 versus 2024.

Total net income reached $406 million for the fourth quarter, up from $274 million in the year-ago quarter, driven by higher copper and gold prices, despite the Grasberg incident.

Key Takeaways

• Freeport-McMoRan expects $4.3 billion-$4.5 billion in capital expenditures for 2026 and 2027.
• Nearly half of 2026's growth expenditures are attributed to an expansion of the Bagdad mine in Arizona.
• Total Q4 net income reached $406 million.
• Data centers are expected to drive copper demand in the U.S, with global demand also buoyed by power and transportation needs.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resource's Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).