Core Viewpoint - Freeport-McMoRan Inc. is facing significant operational disruptions due to a mud rush incident at its Grasberg Block Cave mine in Indonesia, which has resulted in fatalities and missing workers, leading to a reassessment of production outlook and financial implications [1][3][4]. Incident Overview - A mud rush on September 8 at the Grasberg mine resulted in the death of two workers, with five still unaccounted for. Search and recovery efforts are ongoing under the supervision of Indonesian authorities [1][2]. - Approximately 800,000 metric tons of wet material caused damage to the mine's infrastructure, halting development work and suspending operations in the Grasberg district [3]. Production Outlook - The mine is crucial for Freeport's copper and gold production, with third-quarter sales expected to decline by about 4% for copper and 6% for gold compared to previous guidance [4]. - Preliminary assessments indicate that 2026 production could be 35% lower than earlier estimates, with a phased restart anticipated in mid-2025 and full output not expected until 2027 [4]. Financial Implications - Freeport has declared force majeure with customers and is pursuing claims under property and business interruption insurance policies, which could cover up to $1 billion, with a cap of $700 million for underground incidents after a $500 million deductible [5]. Market Reaction - Following the incident update, Freeport's shares fell by 9.70%, reflecting investor concerns over lost output and the extended timeline for recovery [6][7].