Freeport-McMoRan (FCX) announced on November 4, 2026 that its board of directors approved a US$ 4.5 billion expansion and modernization program for the Bagdad copper and molybdenum mine in northwestern Arizona. The operation is 100% owned by the company. The brownfield project is expected to more than double the mine's mining and processing rates.
With the investment, long-term annual copper production is expected to exceed 400 million pounds, an increase of about 225 million pounds per year. Molybdenum production is expected to exceed 20 million pounds per year, an increase of 12 million pounds. Bagdad would become the second-largest copper mine in the United States, behind Morenci, also owned by Freeport.
The project includes new concentrator facilities, with about 115,000 metric tons per day of additional processing capacity, as well as a primary crusher, conveyor, water pipeline, power line and mining equipment. The company estimates a reduction of about 20% in long-term net unit cash costs. The project's breakeven is supported by a copper price of about US$ 4.00 per pound, with molybdenum at US$ 20 per pound.
Construction is expected to take about 3.5 years, with initial production expected in mid-2030. About 20% of costs are expected to be spent in 2027, 30% to 35% in 2028 and the remainder in 2029 and 2030. The spending will be included in the company's updated capital expenditure outlook and classified as discretionary. Freeport warns that inflationary pressures may affect cost estimates.
CEO Kathleen Quirk said the project is an "important step" in the company's strategy to grow copper production in the United States. According to the executive, it builds on Bagdad's reserve base, existing infrastructure and experienced team.
