Freeport-McMoRan (NYSE:FCX) has approved a US$4.5 billion ($6.4 billion) expansion of its Bagdad copper-molybdenum mine in Arizona, a move that would make it one of the largest copper producers in the US.
The project aims to more than double mining and milling rates at Bagdad through the construction of a new concentrator and the addition of mining equipment and supporting infrastructure.
According to Freeport, the expansion will draw on Bagdad’s substantial mineral reserve base, currently estimated at 2.6 billion tonnes of ore grading 0.43% copper equivalent.
Construction is expected to take approximately three and a half years, with initial production targeted for mid-2030.
Production boost
Once completed, the expansion is expected to add approximately 102,000 tonnes of copper and 5,400 tonnes of molybdenum to Bagdad’s annual output.
This would lift Bagdad’s annual copper production to more than 181,000 tonnes, making it the second-largest copper mine in the US behind Freeport’s Morenci operation.
Bagdad would also become the country’s largest molybdenum producer, with annual output reaching approximately 9,000 tonnes.
Lower production costs
Freeport also expects the expansion to reduce Bagdad’s long-term unit net cash costs by approximately 20%, turning it into one of the lowest-cost operations in its US portfolio.
The anticipated savings would come from economies of scale, technology improvements, and additional molybdenum by-product credits, the company says.
Freeport CEO Kathleen Quirk calls the expansion “an important step” in advancing the company’s US 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 US copper and molybdenum production,” Quirk says.
Bagdad has been operating since 1945 and currently has a reserve life exceeding 80 years, excluding additional mineral resources.
In 2025, Freeport completed the conversion of Bagdad’s haulage fleet, making it the first major US mine to operate a fully autonomous haulage fleet.
Molybdenum ambitions
The Bagdad expansion comes as Freeport looks to increase its molybdenum production to capitalise on rising prices for the metal.
As previously reported by Mining.com.au, the company is also exploring opportunities to increase production at its Climax molybdenum mine in Colorado.
“We’re very positive on the outlook for moly,” Quirk said in an analyst call last week, adding that Freeport is looking at ways to increase primary production at Climax.
Write to Jackson Chen at Mining.com.au
Main Image: Freeport-McMoRan
