Freeport-McMoRan Believes it can Boost Copper Production with Innovative Technology
Freeport-McMoRan, a major US mining firm, is leveraging new processing technology to significantly increase copper production without opening new mines. The company aims to add 800 million pounds of copper annually within three to five years, CEO Kathleen Quirk told Bloomberg.
Quirk emphasized the difficulty of developing new copper supply, highlighting the necessity of this initiative amid growing copper demand and limited supply. "You think about 800 million pounds of copper a year — that's the size of a big mine. That's meaningful. Our team is working very aggressively to get that done," Quirk said.
This effort comes as the global demand for copper has surged due to green policies and advancements in artificial intelligence infrastructure, outpacing current supply. The resulting supply-demand imbalance has driven copper prices to over $11,000 a ton in May, with bullish analysts predicting future prices as high as $15,000 a ton.
Freeport's innovative approach focuses on enhancing copper recovery processes. The new technology is already producing an additional 200 million pounds of copper annually, with plans to add another 200 million pounds in the next two years, reaching the goal of 800 million pounds over three to five years.
This strategy diverges from the mergers and acquisitions approach used by other mining firms to boost production. For example, BHP recently abandoned a $49 billion bid to take over Anglo American, which would have been the largest mining deal in over a decade.
Freeport's former CEO Richard Adkerson noted that the company's bullish stance on copper began 20 years ago, initially driven by China's economic rise. With the current market dynamics, Adkerson believes we are entering a "new era of copper demand."
