Grasberg minerals district Feasibility Study: $14.50B Capex
Freeport-McMoRan's Grasberg minerals district in Central Papua, Indonesia has a Feasibility Study outlining initial capital of $14.50B.
Freeport-McMoRan's Grasberg minerals district has reported Feasibility Study results for the copper project in Central Papua, Indonesia. It reflects Freeport-McMoRan's (FCX) latest disclosed economics for the asset.
Economics. Initial capital expenditure is estimated at $14.50B. Economics are based on Reserves: $3.00/lb Cu, $1,500/oz Au, $20/oz Ag; Resources: $3.50/lb Cu, $1,500/oz Au, $20/oz Ag (DOM $1.50 Cu/$500 Au/$10 Ag, GB $2.20 Cu/$1,000 Au/$20 Ag, GBT open-pit $3.00 Cu/$1,200 Au/$20 Ag).
Production and mine plan. The project envisions an underground & open-pit operation.
Resources and ownership. The company holds a 48.76% interest in the project.
These figures are extracted from Freeport-McMoRan's technical disclosures and reflect the most recent Feasibility Study on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven | 309 | 1.26 %EqCu, 0.92 % Cu, 3.15 g/t Au | 7,177 M lbs Cu, 6,013 k oz Au, 18,192 k oz Ag |
| Probable | 501 | 1.00 %EqCu, 0.65 % Cu, 3.81 g/t Au | 9,305 M lbs Cu, 6,896 k oz Au, 35,711 k oz Ag |
| Total (Proven & Probable) GBC Underground | 810 | 0.54 %EqCu, 1.10 % Cu, 0.75 g/t Au, 3.55 g/t Ag | 16,481 M lbs Cu, 12,909 k oz Au, 53,903 k oz Ag |
| Total Mineral Reserves (100%) | 1,621 | 1.03 %Cu, 0.76 g/t Au, 4.12 g/t Ag | 30,833 M lbs Cu, 26,295 k oz Au, 121,299 k oz Ag |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 347 | 0.78 %Cu, 0.57 g/t Au, 4.02 g/t Ag | 6,008 M lbs Cu, 6,401 k oz Au, 44,952 k oz Ag |
| Indicated | 2,555 | 0.69 %Cu, 0.58 g/t Au, 3.88 g/t Ag | 39,049 M lbs Cu, 48,050 k oz Au, 319,054 k oz Ag |
| Measured & Indicated | 2,903 | 0.70 %Cu, 0.58 g/t Au, 3.90 g/t Ag | 45,057 M lbs Cu, 54,450 k oz Au, 364,006 k oz Ag |
| Inferred | 353 | 0.46 %Cu, 0.39 g/t Au, 2.69 g/t Ag | 3,619 M lbs Cu, 4,438 k oz Au, 30,578 k oz Ag |
| Total Mineral Resources (100%) | 3,256 | 0.68 %Cu, 0.56 g/t Au, 3.77 g/t Ag | 48,676 M lbs Cu, 58,888 k oz Au, 394,584 k oz Ag |
Our Analysis
- Initial capex
- $14.50B
costlier than 100% of 35 projects we track
- Study price assumption
- Reserves: $3.00/lb Cu, $1,500/oz Au, $20/oz Ag; Resources: $3.50/lb Cu, $1,500/oz Au, $20/oz Ag (DOM $1.50 Cu/$500 Au/$10 Ag, GB $2.20 Cu/$1,000 Au/$20 Ag, GBT open-pit $3.00 Cu/$1,200 Au/$20 Ag)
- Spot copper today
- $6.52/lb
A feasibility study on a copper project in Central Papua, Indonesia, carrying a $14.50B initial capex bill, does not rank as an outlier among the 35 copper projects we track; it sits in the lower tier of that peer group on capital cost. That position is not a condemnation, but it frames the risk precisely: this is a scale play where the financing hurdle is the project's defining feature, not its grade or its jurisdiction. The study's own price assumptions, with reserves at $3.00/lb Cu against a live spot of $6.52/lb, are conservative enough to absorb a meaningful correction in the copper price before the economics break, which is the one genuine cushion these numbers offer.
The confidence you can place in those numbers is high, because this is a feasibility study, the build-ready estimate with a typical plus or minus 15% band. That is the most weight these figures will ever carry; the question is not whether the engineering holds, but whether the balance sheet does. A $14.50B initial capex is not something a diversified portfolio of 19 tracked projects quietly absorbs; it is a corporate-defining commitment that will require external financing, and the market's skepticism on that point is rational. The two-sided read on any valuation gap here is that either the market has not priced the asset's full potential, or it is discounting the dilution and execution risk of funding a build of this magnitude.
The jurisdiction adds a layer of operational and permitting complexity that a feasibility study can model but not eliminate, and Central Papua carries its own social and logistical friction. What decides whether this project works is not the copper price, which has ample headroom, nor the study's technical credibility, which is established. It is whether the company can secure the capital to build a $14.50B asset without destroying shareholder value in the process. That is the single question that separates this from a well-engineered plan on paper.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.