September 26, 2025

Hold tight, copper fans! A sudden disaster at Indonesia’s Grasberg mine has set the copper market on fire. Here’s the scoop: On September 8, a deadly mudflow swept across the Grasberg Block Cave mine, operated by Freeport-McMoRan Inc., killing two workers and leaving five missing. This mine isn’t just any mine—it’s the world’s second-largest copper mine! Freeport quickly declared force majeure, which means they can’t supply their usual copper because work has stopped while search efforts continue. Picture this: around 800,000 metric tons of wet mud rushed into the mine, smashing through several underground levels where workers were busy. This disaster damaged not only the mine but also vital infrastructure supporting other production areas. The stakes are high! Grasberg holds about 50% of Freeport Indonesia’s proven copper and gold reserves and makes up roughly 70% of their expected production through 2029. With production paused, copper supply has tightened worldwide. And guess what happened next? Copper prices zoomed like a rocket! On global exchanges, copper futures jumped—trading above $10,496 per tonne in the US and hitting a 15-month high of $10,172 per tonne in London. Spot copper prices soared close to all-time highs, bringing big smiles to producers but worry for industries depending on copper. Back at home, Hindustan Copper’s shares took a big leap, climbing 6.45% to Rs 328.25 on the BSE. Everyone’s watching how this mining disaster will reshape copper trade and business. However, Freeport’s shares took a hit, dropping over 10% as investors worried about losing production. Other mining giants like Glencore, Teck Resources, and Antofagasta gained on hopes of better prices and supply chances. Industry experts say this event could mean a tough second half for Freeport, with potential cuts of 35% to 2026 production. Grasberg might not bounce back fully until 2027. So, what’s next? Will copper prices keep sizzling or cool down? One thing’s for sure, the copper world is shaken and stirred by this dramatic mudflow! Stay tuned for more updates on this copper saga.

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Tags: Hindustan copper, Freeport-mcmoran, Grasberg mine, Copper prices, Mine accident, Global copper supply,