Freeport expects Cu sales to rise by over 18pc in 2021

US-based mining firm Freeport-McMoRan's consolidated sales of copper products are estimated to reach a record high of 3.8bn lbs (1.72mn t) in 2021. This is an increase of 18.7pc from 3.2bn lbs in 2020 thanks to a production ramp-up at its Indonesian Grasberg mine.

Freeport operates seven copper mines in North America, two copper assets in South America and the Grasberg copper-gold mine.

The North American projects consist of Morenci, Bagdad, Safford (including Lone Star), Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico. The two South American mines are Cerro Verde in Peru and El Abra in Chile.

The company produced around 3.21bn lbs of copper products in 2020, with North America contributing 44.2pc, South America 30.5pc and Grasberg 25.2pc.

Grasberg is one of the world's largest copper-gold mines. Freeport owns 48.76pc of the mine but is responsible for its daily operations. The rest of its shares are held by the Indonesian government.

Work to ramp up underground mining operations at Grasberg is advancing according to schedule and copper production from the mine is expected to reach 1.4bn lbs in 2021, a rise of 73.1pc from 2020 levels of 809mn lbs.

Freeport may also ramp up operations at Cerro Verde and El Abra to pre-Covid-19 levels this year. The Lone Star mine will continue to ramp up production in 2021.

Freeport produced 76mn lbs of molybdenum in 2020, down by 15.6pc from 90mn lbs in 2019. Its molybdenum sales in 2021 are expected to reach 86mn lbs, up from 80mn Ibs in 2020.