Covid-19’s spread has not significantly affected Freeport McMoRan’s (FCX) supply chain or product shipments, the company said Monday in an operational update.
However, the company is closely monitoring the virus’s spread and will manage its production plans—and any related costs—accordingly. The virus has already substantially impacted global copper prices.
According to Richard C. Adkerson, FCX’s president and chief executive officer, despite the virus putting downward pressure on copper prices, the company is maintaining course on a growth strategy because the metal has a positive long-term outlook.
Part of FCX’s strategy entails growing its copper volumes by 30-40pc by 2021. One way it intends to do is that is by increasing output from its underground mines in Papua, Indonesia, which will come in addition to the 35,000mt of ore produced daily between Jan 1 and March 5 at Grasberg Block Cave—a 35pc increase over the previous quarter.
Additionally, the company’s Lone Star project in Arizona will be commissioned this year.
FCX is headquartered in Phoenix and mines for copper, gold, and molybdenum through operations in North and South America.