Freeport announced today that its Board of Directors approved a US$4.5 billion expansion and modernisation program for its wholly owned Bagdad copper and molybdenum operation in northwest Arizona. The brownfield project is designed to maximise the full potential of the resource and is expected to more than double Bagdad’s mining and milling rates.
This investment would increase annual long-term copper production to over 400 Mlb of copper per annum (incremental production of approximately 225 Mlb per annum) and molybdenum production to over 20 Mlb per annum (incremental production of 12 Mlb per annum).
Freeport plans to deploy modern technologies, automation and leverage existing operations to improve Bagdad’s long-term cost position and performance. The expansion would position Bagdad as the second-largest copper mine in the US, behind FCX’s Morenci operation, as well as a leading US molybdenum producer and one of the lowest-cost operations in FCX’s US portfolio.
Supporting infrastructure will include a new primary crusher, overland conveyor, water pipeline, power line, mining equipment and related facilities. Modern technology will include a fully autonomous truck fleet to support efficient increases in mining rates. Bagdad currently operates 33 autonomous converted Cat 793D haul trucks using Cat Command for hauling.
Kathleen Quirk, President and Chief Executive Officer, said: “Freeport’s significant resource base provides an attractive portfolio of value-enhancing, organic growth options as we work to meet growing demand for our products. We are pleased to proceed with the Bagdad expansion, an important step in advancing Freeport’s US copper growth strategy. This low-risk brownfield project builds on Bagdad’s substantial reserve base, long operating history, existing infrastructure and experienced workforce to deliver new U.S. copper and molybdenum production and further strengthen Freeport’s position as America’s Copper Champion®.”
The Bagdad mine has operated since 1945 and has a current reserve life exceeding 80 years before considering additional mineral resources. In 2025, Bagdad completed its fleet conversion, becoming the first major US mine with a fully autonomous haulage fleet. The expansion will leverage Bagdad’s established operating history and extensive knowledge of the orebody while incorporating modern technology to strengthen Bagdad’s production profile.
FCX is advancing engineering, procurement planning and early works to support efficient project execution. Planned capital expenditures will be incorporated into FCX’s updated capital expenditure outlook and classified as discretionary under FCX’s financial policy. Current estimates indicate that approximately 20% of project costs are expected to be funded in 2027, 30-35% in 2028 and the balance in 2029-2030.
Capital cost estimates are based on current market conditions. Ongoing inflationary pressures and cost escalation could affect these estimates. Freeport says it aims to complete the project within current cost estimates and timelines.
It involves an expanded processing capacity to support a large mineral reserve base (2.6 billion metric tonnes of ore with copper equivalent grade of 0.43%). New concentrator facilities are expected to provide approximately 115,000 t/d tons of incremental nameplate processing capacity with potential to increase over time.
The expansion is equivalent to incremental growth of approximately 130,000 t of copper equivalent per annum based on life of mine. The construction period is approximately 3.5 years, with initial production targeted in mid-2030. it will bring an approximate 20% reduction in long-term unit net cash costs, with anticipated benefits from economies of scale, technology and molybdenum by-product credits.
Project break-even economics are supported at a copper price of approximately $4.00 per pound ($20 per pound molybdenum) with substantial upside to expected favourable long-term markets. There are also significant economic benefits for Arizona, including more than 4,000 direct and indirect jobs during construction and thousands of long-term employment opportunities.
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