Freeport-McMoRan probes potential compliance breaches at PT Smelting. * Published on 24/03/2026 GMT+7 * Reading time 2 minutes * Author: Julian Isaac * Editor: Annelis Putri Freeport-McMoRan Inc. (FCX) has launched an internal investigation into potential violations of the U.S. Foreign Corrupt Practices Act (FCPA) and other applicable regulations linked to activities at PT Smelting, its Indonesian joint-venture refinery. The probe, led by external legal counsel, is examining whether operations or personnel at the Gresik-based facility may have breached anti-corruption statutes or local compliance requirements. At this stage, the company has not indicated whether any specific individuals or entities are implicated, including its operating partner. Voluntary disclosure to U.S. authorities In its audited 2025 annual financial report, Freeport-McMoRan confirmed that it has proactively notified U.S. regulators of the investigation. "FCX has voluntarily notified U.S. authorities that the company has appointed external counsel to conduct an investigation into activities at PT Smelting. At this stage, FCX cannot predict the outcome of this investigation," the company stated in the report. Linda Hayes, Vice President of Communications at Freeport-McMoRan, further clarified that the company has initiated contact with both the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) regarding the matter. Ownership and operational structure PT Smelting is a joint venture between PT Freeport Indonesia (PTFI) and Mitsubishi Materials Corporation (MMC). Under the current agreement, an affiliate of Mitsubishi Materials serves as the primary operator of the facility. The probe comes at a sensitive time for Freeport's Indonesian operations. The company is currently finalizing a pivotal extension of its Special Mining Business License (IUPK) beyond 2041 and recovering from production fluctuations at its Grasberg mine in Papua. Ownership and operational structure PT Smelting is jointly owned by PT Freeport Indonesia (PTFI) and Mitsubishi Materials Corporation (MMC). Under the current arrangement, an MMC affiliate serves as the primary operator of the smelter. Heightened scrutiny amid strategic transition The investigation comes at a sensitive juncture for Freeport's Indonesian operations. The company is currently finalizing a pivotal extension of its Special Mining Business License (IUPK) beyond 2041, while also managing a phased recovery in output from its Grasberg operations following disruptions in 2025. Despite the ongoing probe, Freeport remains focused on stabilizing production, with the restart of key underground mining activities expected to support output recovery in 2026.

Freeport to seek permit for $7.5bn mine expansion, Chilean media reports. 19th March 2026 Font size: - + SANTIAGO - US miner Freeport-McMoRan has begun the process of obtaining an environmental permit for a $7.5-billion expansion of its El Abra copper mine in Chile, the company said on Thursday. The project is a joint venture between the company and Chilean state-owned copper giant Codelco. "This is a very significant project, not only in terms of the investment, but also in terms of the additional production," the firm's manager in Chile Mario Larenas told reporters at a press conference. The expansion aims to increase the mine's production to approximately 300 000 metric tons of copper per year, he added. The executive declined to comment on a question over Codelco's capacity to finance its share of the project. CHILEAN GOVERNMENT WELCOMES EXPANSION Freeport announced its intended El Abra expansion, which it had postponed for years, in mid-2024. The project involves the construction of a concentrator and a desalination plant, and is expected to start operations in the coming decade. Freeport owns 51% of El Abra, which produced 91 400 tons of copper in 2025, with the remainder held by Codelco. Chile's Mining Minister Daniel Mas welcomed Freeport's decision, saying the company expects the permit process to take about three years and emphasizing that companies must comply with environmental laws. "We have to go through all the compliance steps, and I understand that in a few months' or years' time, the companies will decide whether to proceed with the investment phase," he told reporters after meeting with company executives. Edited by Reuters Article Enquiry Email Article Save Article To advertise email [email protected] or click here Research Reports

Freeport McMoRan's fair value estimate has risen 3.8% to $66.47, reflecting updated copper price assumptions and developments at its Grasberg mine. Several Wall Street firms have lifted price targets, with BofA raising its target to $81 from $68 and Citi to $67 from $48. The company signed a memorandum of understanding with the Indonesian government to extend operations at Grasberg. Under the agreement, Freeport will transfer a 12% stake in PT Freeport Indonesia to the government in 2041 at no cost, reducing its ownership from 48.76% to approximately 37% from 2042. Jefferies estimates fourth-quarter EBITDA of $1.62 billion and earnings per share of $0.35, both above consensus. However, Bernstein downgraded the stock, highlighting divergent views on copper assumptions and execution risks.