Freeport weighs doubling Bagdad mine capacity with investment of about $4.5 billion
Key Facts
Freeport-McMoRan aims to make an investment decision by the end of 2026 on expanding the Bagdad mine in Arizona, a project that could double concentrator capacity and raise annual copper output by 200 to 250 million pounds. The company said in its third-quarter results that technical and economic studies also cover adding 10 to 12 million pounds of molybdenum a year. It estimated the additional capital cost at about $4.5 billion, but said estimates remain under review. The decision and its timing will depend on copper market conditions and other factors, the company said. The project comes as the company seeks to add long-term production capacity, with Bagdad reserves extending beyond its current 80-year mine life.
The plan includes a new concentrator, mining equipment and expanded infrastructure, and could take 3 to 4 years to complete after construction begins. Freeport said the project's economics are supported at an incentive copper price of about $4.00 per pound. That price is a level the company uses to assess the investment's viability, while the final spending amount remains under review. If carried out as the company is studying it, the expansion would make Bagdad the second-largest copper mine in the United States after Morenci. The proposed capacity increase would give the mine a larger role in the company's domestic production, but would require substantial capital spending and years to complete.
In an operational update issued on 2 October 2026, Freeport said it was working to complete preparations for an investment decision by year-end to double capacity at its Bagdad operations. That puts the targeted decision in the fourth quarter, while it remains contingent on copper market conditions and other factors. Third-quarter data provide operational context for the project: consolidated copper production was 832 million pounds, down from 912 million in the same period of 2025. Copper sales, excluding purchases, also fell to 749 million pounds from 977 million. The figures highlight the contrast between plans to increase capacity in the future and the year-over-year decline in production and sales in the latest reported quarter.
Financially, the company's third-quarter 2026 revenue rose to $7.546 billion from $6.972 billion in the third quarter of 2025. Net income attributable to common shareholders climbed to $1.174 billion, compared with $674 million a year earlier. The average realized copper price was $6.54 per pound, versus $4.68 in the same period of 2025. In the market data provided, the company's shares closed at $62.45 on 30 October 2026. The next expected step remains the company's investment decision by the end of 2026, with the project taking 3 to 4 years to complete if it proceeds.