Freeport-McMoRan Pushes for Copper’s Critical Mineral Status Amid U.S. Policy Shifts
Freeport-McMoRan is urging U.S. President Donald Trump to designate copper as a critical mineral, a move that would unlock substantial tax credits under the Inflation Reduction Act and bolster domestic production, CEO Kathleen Quirk said Monday.
Trump recently told Congress he would take “historic action to dramatically expand production of critical minerals,” though details remain unclear.
Copper plays a crucial role in power generation, electronics, and construction, yet it is absent from the U.S. Geological Survey’s critical minerals list, which currently includes lithium, nickel, and 48 other minerals.
If classified as critical, Freeport could gain over $500 million annually in tax credits, strengthening its ability to compete globally, Quirk told Reuters at the CERAWeek energy conference in Houston.
“Having incentives and clarity around this would be a big plus for the domestic copper industry,” said Quirk, who took over as CEO of Phoenix-based Freeport last year. “It’s only a matter of time before copper is recognized for its essential role in the economy.”
Freeport operates seven U.S. mines, supplying all of its domestically mined copper to the American market, making it the country’s largest producer. It also runs one of only two U.S. copper smelters and produces over 200 million pounds of copper annually via leaching.
However, lower ore grades in Freeport’s U.S. mines increase costs, making its domestic operations less profitable than international projects.
“We’re not asking for handouts,” Quirk said. “But if the government wants to incentivize domestic production, it must recognize the geological challenges in the U.S.”
Last month, Trump launched a probe into potential tariffs on copper imports to boost domestic mining. If implemented, tariffs could increase Freeport’s profits by $400 million annually, but the company remains cautious about potential global economic impacts.
“We’re not advocating for or against tariffs,” Quirk said. “We just want informed decision-making.”
In Indonesia, where Freeport operates the Grasberg copper and gold mine, the company expects to finalize a deal with the Jakarta government to resume copper concentrate exports by the end of the month.
Meanwhile, Trump has shown interest in minerals projects in Greenland and Ukraine, but Quirk stated these are not Freeport’s near-term priorities.
In Africa, the U.S. State Department is exploring critical minerals partnerships with the Democratic Republic of Congo (DRC), which holds rich cobalt and lithium deposits. Freeport sold its DRC assets in 2016 but is now considering a return.
“We’d be interested in going back for the right opportunity,” Quirk said, emphasizing that Freeport would only re-enter as the operator of any future project. She declined to confirm whether negotiations with the DRC government are underway.
With shifting U.S. policies and increasing global demand, Freeport’s next moves will be critical in shaping the copper industry’s future.
SOURCE:mining.com
98 total views , 1 views today
