Freeport Boosts Copper Output As Rivals Search For Deals

Freeport-McMoRan is ramping up copper production across three continents without participating in the buyout frenzy sweeping the mining industry.

Freeport produces 9% of global copper supplies. I Photo: Freeport-McMoRan Facebook

Analysts say this strategy positions the company well to benefit from the growing demand for copper driven by the clean energy transition, Reuters’ Ernest Scheyder reported.

Copper’s excellent conductivity and malleability make it essential in wiring, engines, electronics, and construction equipment. Global demand is projected to increase by at least 60% by 2050, according to the International Energy Agency (IEA).

Jefferies analysts expect copper prices to rise more than 40% over the next two years. However, new copper mines are difficult to develop due to opposition from Indigenous groups, conservationists, and local communities.

In contrast to rivals like BHP, Rio Tinto, and Glencore, which are pursuing deals to increase copper production, Freeport, headquartered in Phoenix, produces 9% of global copper supplies.

The company is focusing on expanding its existing mines, avoiding the distractions of acquisitions while capitalizing on the rising demand.