Freeport-McMoRan weighs more molybdenum output at Colorado Climax mine

what happened

Freeport-McMoRan is considering raising molybdenum production at its Climax mine in Colorado. CEO Kathleen Quirk said on Tuesday, according to Bloomberg, that supply problems and growing demand give the company room to expand primary output at Climax.

About 60% of global molybdenum supply comes as a byproduct of copper mining. A large part of the squeeze stems from Chile, where operational setbacks cut copper and molybdenum output, which fell 8% in the first half of 2026 from a year earlier. Molybdenum demand grew 8.5% annually in the first half, against an average of 4.4% over 2020-25, and prices have risen more than 50% this year.

BMO Capital, in a note, forecasts a sixth consecutive annual market deficit in 2027. Besides Climax, Freeport is weighing an expansion of its Bagdad copper mine in Arizona, which would add 10M-12M lbs per year of molybdenum. Quirk said boosting copper output remains the company's top priority.

why it matters

For markets, this points to continued tightness in molybdenum: a deficit, rising demand and dependence on copper mining make supply sensitive to problems at large mines. The story concerns metals and mining companies, not crypto mining.

market impact

Molybdenum: supply deficit supports prices; Freeport shares tied to plans to lift output

• ▲Molybdenum pressure up — supply deficit and rising demand as Chilean output falls

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