Freeport-McMoRan weighs boosting molybdenum supply at Colorado mine, CEO says

Freeport-McMoRan (FCX) is considering plans to raise production of molybdenum at its Climax mine in Colorado due to supply challenges and growing demand, while prices of the metal used in aerospace and semiconductors are up more than 50% this year, CEO Kathleen Quirk said Tuesday, according to Bloomberg.

FCX's Earnings Call Insights: Here's what you need to know

"We're very positive on the outlook for moly," Quirk said during the company's earnings conference call, using the metal's shortened name. "We do have some opportunities to expand primary at Climax... so we're kind of dusting off our old schedules."

Some 60% of global molybdenum supply is generated as a byproduct of copper mining, and a major part of the moly supply squeeze comes from Chile, where operational setbacks have slashed production of copper as well as molybdenum; output from the country fell 8% in H1 2026 from a year earlier.

Molybdenum demand rose at a 4.4% annual average rate during 2020-25 before jumping to 8.5% in this year's H1, and prices have jumped more than 50% YTD, BMO Capital said in a note that forecasts a sixth consecutive annual market deficit in 2027.

Besides raising output at the Climax mine, Freeport's (FCX) proposed expansion of the Bagdad copper mine in Arizona would add 10M-12M lbs/year of molybdenum production, and Quirk said boosting copper output remains the company's top priority.

Recommended For You

Create Your Free Account to Keep Reading

Get the confidence to navigate an uncertain market with free breaking news and stock alerts.