Can you provide an overview of Freeport-McMoRan’s operations in the southwestern US, particularly the Lone Star project?

We are based in Phoenix, Arizona. In this state, we operate the Morenci, Bagdad, Sierrita and Safford copper mines, along with our smelting facility in Miami, Ariz. In New Mexico, we operate the Tyrone and Chino copper mines. We also have two mines in Colorado – Henderson and Climax – that are primary producers of molybdenum.

We always knew that Lone Star would be a huge opportunity for us. During the past two years, we were able to get the oxide resources into service and production. We started at a rate of about 200 million lbs/y copper, and now are looking at 300 million lbs/y. We’re continuing to focus on mining and developing that oxide resource, which is not only generating a good return on investment, but is also exposing a major sulfide ore body. Lone Star has the potential to become a cornerstone asset for Freeport.

What expansion efforts are you carrying out at Bagdad?

In Bagdad, we process about 90,000 t/d of material to produce copper and molybdenum concentrate. Freeport sees a huge opportunity to expand and double the size of the concentrator and annual output. We have been doing engineering and scoping work over the past few years and recently began a pre-feasibility study on the project. Should we make the decision today to build a new facility at Bagdad, it would not come into production before 2026-2028 at the earliest. This fits into our broader strategy of leveraging existing assets in our portfolio for growth.

How does Freeport leverage new technological advancements?

We have been working with analytics for a while. Bagdad was a pilot where we used AI and modelling to leverage data we had gathered over time, and we have been using these tools elsewhere since. Freeport’s IT group did a tremendous job in structuring our systems and in-house tools to leverage that data. Over the past few years, we continued to implement new tools that allow us to optimize processes. Our philosophy is not to use technology for technology’s sake, but rather to improve operations. Leach technologies that help with copper recovery are a good example.

We have approximately 38 billion lbs of copper in our stockpiles that have been deemed unrecoverable based on current technology. We have a variety of leaching initiatives under way to optimize this resource. On the concentrator and sulfide side, we have started leveraging AI to model our data. Using AI for leaching is promising and something we are excited about.

What are the benefits of operating in Arizona?

Many of our operations have been around for decades – and even more than a century in the case of Morenci and Bagdad. This means we have long-standing relationships with our host communities, local governments and the state of Arizona. We work continuously to foster those important relationships, maintain trust and contribute to long-term shared value and resilience.

In 2021, our site in Miami, Arizona became the first of our US sites to be awarded the Copper Mark, which is a comprehensive assurance framework that promotes responsible production practices and demonstrates the industry’s contribution to the United Nations Sustainable Development Goals.

Today, all our Arizona sites have been awarded the Copper Mark, bringing the company’s total to 11, leaving only one site remaining.

How do you see copper trends evolving in the long term?

Copper is fundamental to achieve our societal goals, whether these are in terms of decarbonization or achieving net zero by 2050. We remain bullish on the long term: there is not going to be enough copper in the world to meet the demand driven by electrification and decarbonization trends. As a society, we need to recognize that and facilitate the responsible production of copper.

What are the key priorities for Freeport over the next years?

During the next two or three years, Freeport will focus on leveraging our existing assets, such as brownfield-type growth opportunities. We will continue to improve our understanding of the resources near our existing operations. We already have a great set of assets and are excited about further exploring our brownfield opportunities.