Australian copper stocks dominate gains on the ASX after Indonesian mine tragedy impacts supply

Shares in Australian copper miners are surging after the fallout from an Indonesian mine disaster becomes clear.

Key points
  • Freeport-McMoran says mining at its major Grasberg mine will not restart any time soon.
  • The company is still looking for missing employees after a mudslide at the mine.
  • Shares in Australian copper miners are surging on commodity supply concerns.
Pile of copper pipes.

Image source: Getty Images

Shares in Australian copper producers are surging higher following a commodity price spike. Mining at a major mine in Indonesia remains on hold and won't be coming back any time soon.

New York Stock Exchange-listed Freeport-McMoran Inc (NYSE: FCX) announced overnight that mining at its Grasberg Block Cave Mine (GBC) in Indonesia remained on hold while the company continued to search for five employees who had been missing since a mudslide on September 8.

Two staff members have so far been confirmed killed in the incident.

Freeport shares tumbled almost 17% on the news overnight, while copper futures prices spiked more than 4%, according to Trading Economics. The price of copper traded at the London Metals Exchange was up 3.63%.

Freeport said the mining stoppage would lead to a 4% fall in its copper sales for the third quarter of 2025 and a 6% fall in its gold output.

The company said the impact would also not be resolved quickly.

Sufficient information is not currently available to forecast future production estimates. Preliminary assessments indicate that the impacts are likely to result in the deferral of significant production in the near-term (fourth quarter of 2025 and the year 2026) as repairs are completed and a phased restart and ramp-up of operations commences. A return to pre-incident operating rates could potentially be achieved in 2027.

Shares in Australian copper miners were up sharply in early trade, with Capstone Copper Corp (ASX: CSC) more than 8% higher at $12.18, Sandfire Resources Ltd (ASX: SFR) up 7.4% to $13.63, and Rio Tinto Ltd (ASX: RIO) up 3.3% to $121.38.

Shares in BHP Group Ltd (ASX: BHP), which mines copper at the massive Olympic Dam mine in South Australia, as well as the major Escondida mine in Chile, were 2.9% higher at $41.44.

At the smaller end of the market, shares in South Australian copper miner Hillgrove Resources Ltd (ASX: HGO) were more than 10.5% higher at 4.2 cents.

Freeport-McMoran said it had declared force majeure over its copper supply contracts, and intended to seek recovery of damages under its insurance policies which cover it for losses up to US$1 billion.

It said a phased restart of GBC could begin in the early half of 2026.

Under this phased restart and ramp-up scenario, which is subject to a number of factors and could change, PT Freeport Indonesia production in 2026 could potentially be approximately 35% lower than pre-incident estimates (previous production estimates for 2026 approximated 1.7 billion pounds of copper and 1.6 million ounces of gold).   

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

a man with a hard hat and high visibility vest stands with a clipboard and pen in front of a large pile of rock at a mining site.
Resources Shares

Yancoal shares in focus after Hunter Valley mine approval

Yancoal Australia gains NSW approval to extend Hunter Valley Operations mining until 2045, supporting jobs and regional growth.

Read more »

Cheerful businessman with a mining hat on the table sitting back with his arms behind his head while looking at his laptop's screen.
Resources Shares

Liontown Resources approves $389m Kathleen Valley lithium expansion

Liontown Resources approved a $389 million expansion at Kathleen Valley, aiming to boost production by 56% and further cement its…

Read more »

Red buy button on an Apple keyboard with a finger on it.
Broker Notes

Expert names Woodside and BHP shares as top buys today

A leading expert forecasts more outperformance from BHP and Woodside shares.

Read more »

Woman and man worker in quarry on excavation machine looking at a clipboard.
Resources Shares

Should I buy BHP shares in October?

Are the mining shares a buy, sell or hold now?

Read more »

Three guys in shirts and ties give the thumbs down.
Resources Shares

Northern Star Resources rejects $38.7bn Gold Fields takeover offer

Northern Star Resources has rejected a $38.7bn takeover offer from Gold Fields, citing undervaluation and material risk.

Read more »

Woman and man worker in quarry on excavation machine looking at a clipboard.
Resources Shares

Lynas Rare Earths vs Mineral Resources: Which ASX mining stock shines?

Lynas and Mineral Resources both appeal, but I see more upside in one over the other.

Read more »

Retirement plan written on a chalkboard with increasing bar graphs and dollar signs on top.
Superannuation

Why I'd invest $50,000 of superannuation in New Hope, Mineral Resources and BHP shares

New Hope, Mineral Resources, and BHP shares offer surprising diversity for your superannuation investment.

Read more »

Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.
Resources Shares

This ASX uranium stock could rise 40%: Broker

This company's main project is progressing well.

Read more »