Freeport approves $4.5 billion Bagdad mine expansion in Arizona

Freeport (FCX) said in a press release attached to a regulatory filing on Nov. 4 that its board approved a $4.5 billion expansion and modernization program for its wholly owned Bagdad copper and molybdenum operation in northwest Arizona.

Shares were little changed in after-hours trading as of 5:30 p.m. ET, from a regular-session close of $62.64.

The brownfield project is designed to more than double Bagdad's mining and milling rates, the company said. Freeport expects annual long-term copper production to rise to more than 400 million pounds, an increase of about 225 million pounds. Molybdenum output would reach more than 20 million pounds a year, about 12 million pounds more.

President and Chief Executive Officer Kathleen Quirk said: "We are pleased to proceed with the Bagdad expansion, an important step in advancing Freeport's U.S. copper growth strategy."

Quirk also called it a "low-risk brownfield project" that builds on Bagdad's reserve base, operating history and workforce.

The expansion would make Bagdad the second-largest copper mine in the U.S., behind the company's Morenci operation, and one of the lowest-cost operations in its U.S. portfolio, the company said.

The plan includes a new concentrator with about 115,000 tons per day of incremental nameplate capacity, a new primary crusher, an overland conveyor, a water pipeline, a power line and a fully autonomous truck fleet. Construction is expected to take about 3.5 years, with initial production targeted in mid-2030.

The company expects its long-term unit net cash costs to fall about 20%, aided by economies of scale, technology and molybdenum by-product credits. Break-even economics are supported at a copper price of about $4.00 per pound and a molybdenum price of $20 per pound, the company said.

Planned capital expenditures will be incorporated into the company's updated capital expenditure outlook and classified as discretionary under its financial policy. About 20% of project costs are expected in 2027, 30% to 35% in 2028, and the balance in 2029 and 2030.

Capital cost estimates reflect current market conditions, and ongoing inflation and cost escalation could affect them, the company said. Freeport aims to finish the project within current cost estimates and timelines.

Bagdad has operated since 1945 and has a reserve life exceeding 80 years before additional mineral resources are considered. In 2025 it completed its fleet conversion, becoming the first U.S. mine with a fully autonomous haulage fleet, the company said.

The company said the project would create more than 4,000 direct and indirect jobs during construction, along with thousands of long-term employment opportunities in Arizona.