In September 2025, a severe landslide struck the Grasberg mine in Indonesia, one of the world's largest copper and gold mines. The accident disrupted production and sparked concerns in global commodity markets. Preliminary reports indicate that operations at several key mining sites have been suspended for safety inspections while authorities assess the scale of damage and potential casualties.
The Grasberg mine, operated by Freeport-McMoRan in partnership with the Indonesian government, contributes significantly to global copper supply. Market analysts warn that even a short-term production halt could lead to tight copper concentrate supplies, pushing up refined copper prices. Copper prices have already come under upward pressure in recent years due to strong demand from renewable energy, electric vehicles, and infrastructure projects.
Global copper futures rose over 2% in early Asian trading following the landslide, as traders anticipated potential supply disruptions. Downstream industries, including wire and cable producers and copper sheet and pipe manufacturers, may face higher raw material costs in the coming weeks.
Driven by international copper prices, the main Shanghai copper contract, 2511, surged approximately 3.5% in a single day, approaching 83,000 yuan/ton, its highest point since June 2024. "The incident caused copper prices to continue to rise. As of the morning of September 25, the overseas LME copper price reached a high of $10,364/ton, a new high since May 30, 2024."
The Indonesian government has pledged to prioritize worker safety and ensure that mine operations will only resume after a thorough risk assessment. However, industry experts warn that the incident highlights the vulnerability of the global copper supply chain to environmental and geological risks.
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Post time: Sep-30-2025