Freeport-McMoRan Inc. (NYSE: FCX) provided an update on the mud rush at its Grasberg Block Cave mine in Indonesia, which killed two workers and left five missing. Recovery efforts are ongoing, with an independent investigation expected to be completed by the end of 2025. Operations in the Grasberg district are suspended.

Approximately 800,000 metric tons of wet material surged through the mine, causing infrastructure damage and halting development work. Freeport expects third-quarter sales to be lower than guidance, with production estimates for 2026 potentially 35% below prior estimates. A phased restart is expected in mid-2025.

The company has declared force majeure with customers and will pursue insurance claims, with coverage extending up to $1 billion. Freeport’s shares dropped after the update, reflecting concerns over lost output and the extended recovery timeline. The board also approved a dividend of 15 cents per share.

FCX shares are trading lower by 9.70% at 440.96 at the last check on Wednesday. Investors are monitoring the situation closely as the company navigates the aftermath of the mud rush and its impact on operations and financial performance.

Read more at Yahoo Finance: Freeport-McMoRan Confronts Hard Questions After Fatal Mud Rush In Indonesia