Freeport-McMoRan remains confident that underlying demand for copper will continue to expand even as the market reacts to uncertainty stemming from the Iran conflict, CEO Kathleen Quirk said on the sidelines of the CERAWeek by S&P Global conference in Houston.
Quirk, who assumed the role of CEO in 2024, described the drivers behind copper consumption as predominantly secular in nature - tied to electrification, data centers and other high-technology applications - and therefore likely to sustain demand over time despite short-term market jitters. Copper, prized for its conductivity and widespread use in motors, computers, batteries and wiring, has earned the nickname "Dr. Copper" for its sensitivity to shifts in global economic activity.
She noted that the artificial intelligence industry in particular is increasing its copper use as it builds out server farms and related facilities, and said discussions between Freeport and customers earlier this month were dominated by the technology sector's requirements for the metal. "I don’t think that’s going to get derailed," she said, summing up the conversations held at the company's Phoenix headquarters.
That confidence comes against a backdrop of lower prices: the red metal has fallen nearly 10% since strikes by the U.S. and Israel on Iran began in late February, a decline Quirk acknowledged while stressing that the market is factoring in uncertainty about global growth. "The market is pricing in some uncertainty about global economic growth, and Dr. Copper is something that affects the perception of global risk," she said, adding that the fundamental forces pushing copper demand are longer term.
Operationally, Freeport said it remains a leading global copper producer. The company produced 1.3 billion pounds (589,670 metric tons) of copper in the United States last year, all of which was sold domestically, and 3.38 billion pounds (1,533,142 metric tons) worldwide.
On policy and strategy, Quirk said Freeport is urging the U.S. federal government to offer more support to the domestic copper industry, arguing that economic incentives would encourage companies to invest in U.S. projects rather than pursue opportunities abroad. She referenced the previous administration's tariff approach, noting that a 50% tariff imposed last July applied to semi-finished copper products while excluding copper inputs such as ores, concentrates and cathodes that Freeport produces. She also said the administration had indicated it might revisit that tariff decision later in the year.
Quirk indicated the company would consider acquisitions if suitable opportunities emerged but emphasized that Freeport's primary emphasis is on its own growth programs, including efforts to leach copper from waste rock. Regarding potential re-entry into the Democratic Republic of Congo - a jurisdiction Freeport exited in 2016 and has said it would like to return to - she said the company has not yet identified an appealing development target. "We’re open to the idea, but there’s not any obvious development opportunity for us to go back," she said.
Freeport is simultaneously advancing a large-scale project in Chile. Last week the company filed an environmental application for a $7.5 billion expansion of its El Abra copper mine. The filing followed Chile's inauguration of right-leaning President Jose Antonio Kast by a matter of days; Quirk described a renewed appetite within the Chilean government to encourage investment. "What’s exciting in Chile is that there is a real desire by the government to encourage investment," she said. "The new president coming in is going to want to advance investment even more."
Context and company stance
Freeport's commentary reflects a view that the long-term structural demand for copper driven by electrification and technology infrastructure will outweigh near-term price reactions to geopolitical events. The company is seeking policy measures in the U.S. to bolster domestic investment, pursuing internal technical initiatives to increase supply from existing assets, and advancing a major expansion proposal in Chile while remaining open to acquisitions that meet its strategic criteria.
What was said about prices and demand
Quirk acknowledged recent price weakness but attributed it to market pricing of global growth risk rather than to a fundamental shift in demand drivers. She underscored the role of the tech sector, including the AI industry, as a growing source of copper consumption for servers and related infrastructure.