SEC Investigates Freeport-McMoRan Over Earthquake Risk at Indonesian Smelter
The U.S. Securities and Exchange Commission (SEC) is investigating Freeport-McMoRan Inc. regarding its alleged failure to disclose earthquake risks associated with its newly built $3.7 billion Manyar copper smelter in Indonesia. The investigation was prompted by an anonymous complaint from a former contractor who claimed the complex could be at risk of collapsing into the sea during a major earthquake, according to a report by Bloomberg News.
In response to inquiries, an SEC spokesperson stated that the agency does not comment on the existence or nonexistence of potential investigations. Freeport-McMoRan and its subsidiary PT Freeport Indonesia did not immediately respond to requests for comment from S&P Global Commodity Insights.
The Manyar smelter, which caught fire in mid-October—less than a month after its inauguration—has faced some challenges. Freeport-McMoRan CEO Kathleen Quirk stated on October 22, during a third-quarter earnings call, that the fire affected only a relatively small area of the complex, and repair work is ongoing.
The Manyar smelter has an annual input capacity of 1.7 million metric tons of copper concentrate, with the potential to produce 650,000 metric tons of copper cathode, 50 metric tons of gold, and 210 metric tons of silver annually.
