Freeport-McMoRan stock gets Bagdad boost from $4.5 billion plan

Freeport-McMoRan is advancing a major U.S. copper project after its board approved a 4.5-billion-dollar expansion and modernization program for the wholly owned Bagdad mine in Arizona on November 4. Mining Technology reported the decision on November 5, citing the company’s plans to more than double mining and milling rates at the long-running operation.

More copper from Arizona

The project is designed to lift Bagdad’s annual copper production to more than 400 million pounds, an increase of approximately 225 million pounds a year. Molybdenum output is expected to exceed 20 million pounds annually, representing an increase of about 12 million pounds.

Bagdad would become the second-largest copper mine in the United States after Freeport-McMoRan’s Morenci operation once the expansion is complete. The plan includes a new concentrator with about 115,000 tonnes per day of additional processing capacity, along with a primary crusher, an overland conveyor, water and power infrastructure, and new mining equipment.

Freeport-McMoRan is also building on a fully autonomous haulage fleet introduced at Bagdad in 2025. The company expects modern technology, automation, higher volumes and molybdenum by-product credits to reduce long-term unit net cash costs by about 20 percent, according to Mining Technology.

Long construction runway

Construction is expected to last roughly three and a half years, with initial production targeted for mid-2030. The project therefore strengthens Freeport-McMoRan’s long-term U.S. supply position but does not materially add to near-term production. More than 4,000 direct and indirect jobs are expected during construction, while the enlarged operation is intended to support thousands of long-term roles.

Freeport president and chief executive Kathleen Quirk described Bagdad as an important step in the company’s U.S. copper growth strategy. The mine has operated since 1945 and has a reserve life of more than 80 years, excluding additional mineral resources, according to Mining Technology.

Stock remains tied to execution

Freeport-McMoRan stock traded at 55.62 euros on Lang & Schwarz at 1:11 p.m. CET on Thursday, November 12, 0.38 percent below the Xetra close of Wednesday, November 11. The quote was 55.40 euros on Xetra at 1:27 p.m. CET, with the previous close at 55.83 euros.

For investors, the Bagdad approval adds a defined U.S. growth project to Freeport-McMoRan’s existing copper portfolio, while shifting the main financial test toward capital discipline and delivery through 2030. Progress on construction, spending and the targeted cost reduction will be central to assessing whether the expansion delivers the planned production uplift.

U.S. mining shares remain sensitive to copper prices and expectations for domestic supply growth; see current S&P 500 market reports.

More company-specific coverage is available in More news and analyses on Freeport-McMoRan stock.

Mining Technology reported the Bagdad expansion plans and the expected production and cost effects.