What the changes say
- Freeport-McMoRan faces severe operational risks from the September 2025 mud rush at Grasberg and subsequent remediation costs.
- Regulatory uncertainty in Indonesia threatens PTFI mining rights through 2031 and 2041 extensions.
- Compliance investigations under the FCPA regarding PT Smelting add potential legal liabilities.
What changed since the prior 10-K
New
- NewFinancial risks
tensions or conflicts (including trade policies such as tariffs and other controls on exports and imports), and foreign currency exchange rate fluctuations
Price volatility and supply availability of consumables like natural gas, diesel, sulfuric acid, and steel impact our production costs and development projects.
- NewInternational risks
Accordingly, our activities in and outside of the U.S. may be substantially affected by many external factors beyond our control, any of which could have a material adverse effect on our cash flows, results of operations, financial condition and trading price of our common stock
We are investigating whether our Indonesian joint venture PT Smelting violated the U.S. Foreign Corrupt Practices Act, which could lead to fines or penalties.
- NewInternational risks
Refer to Note 10 for further discussion of the March 2025 Regulation
PTFI may not secure its IUPK extension through 2041 if it fails to comply with laws, and future Indonesian regulations may conflict with contractual rights.
- NewOperational risks
The mud removal and other remediation activities, and the phased restart and ramp-up of the Grasberg Block Cave underground mine following the September 2025 mud rush incident may not be achieved as planned which could adversely impact our results of operations and financial condition
A September 2025 mud rush at the Grasberg Block Cave underground mine caused seven fatalities and suspended operations, significantly impacting 2026 results.
- NewOperational risks
environment remains polarized following the national legislative elections, including the presidential election, held in Chile during 2025
Civil unrest and a polarized political environment following Chile's 2025 elections could disrupt our South American operations and sales targets.
- NewOperational risks
We have experienced targeted and non-targeted cybersecurity events in the past and may experience events of a similar nature, with potentially greater exposure, in the future
Cybersecurity events could cause production downtimes, unauthorized information release, destruction of assets, or environmental damage.
- NewRegulatory, environmental and social risks
and other transportation equipment; purchased electricity, which powers core facilities and certain on-site metal processing operations; and coal and natural gas, which provide electricity at certain operations
Climate change laws and our 2030 greenhouse gas reduction targets will result in additional operational compliance costs.
Dropped
- DroppedFinancial risks
obligations. For additional information regarding recent macroeconomic and geopolitical factors, see the risk factor below regarding the price and availability of consumables and components we purchase and constraints on supply and logistics, and transportation services
Macroeconomic commodity price volatility and global economic and political conditions.
- DroppedFinancial risks
released by the IRS, we have determined that the provisions of the Act did not impact our financial results for the years 2024 or 2023
- DroppedInternational risks
The mining industry is subject to extensive regulation within Indonesia, and there have been major developments in laws and regulations applicable to mining concession holders, some of which have conflicted with PT-FI’s contractual rights and may conflict with PT-FI’s contractual rights in the future
- DroppedInternational risks
regulatory matters, including those related to export licenses, export duties, export proceeds, smelter assurance bonds and PT-FI’s new smelter and PMR (collectively, PT-FI’s new downstream processing facilities) in Eastern Java, Indonesia
- DroppedOperational risks
system represents the best alternative for tailings management given the volume of tailings produced and the site-specific conditions of the area
- DroppedOperational risks
could be diminished or curtailed, and our operations and any future expansions at Morenci, Safford (including Lone Star) and Sierrita could be adversely affected unless we are able to acquire alternative water sources
- DroppedHuman capital risks
We have in the past and could in the future experience labor disruptions such as work stoppages, work slowdowns, union organizing campaigns, strikes, or lockouts that could adversely affect our operations. There were no strikes or lockouts at any of our operations for the three years ended December 31, 2024
- DroppedRegulatory, environmental and social risks
with these laws and regulations imposes substantial costs, which we expect will continue to increase over time because of increased regulatory oversight, adoption of increasingly stringent environmental standards, and other factors
Pillar Two global minimum tax rules under OECD framework.
Reworded
- 89% rewrittenFinancial risks
Fluctuations in the price and availability of consumables and components for key machines and equipment we purchase, and constraints on supply and logistics could affect our profitability and operating plans. Further, significant delays or increases in costs affecting transportation services may affect our business
Added energy supply shortages as a factor causing price volatility for consumables and components.
- 83% rewrittenInternational risks
Because our operations in Indonesia are material to our business, our business may be adversely affected by political, economic, regulatory and social uncertainties in Indonesia
Added downstream operations to the economic significance of the Grasberg minerals district in Indonesia.
- 80% rewrittenFinancial risks
Changes in and interpretations of tax laws and regulations could have a material adverse effect on our financial condition
Added risks regarding new limitations on using U.S. Net Operating Losses due to future tax law changes.
Was: Changes in tax laws and regulations could have a material adverse effect on our financial condition
- 79% rewrittenRegulatory, environmental and social risks
Significant adjustments to these estimates are likely to occur in the future as additional information becomes available. The actual environmental costs may exceed our current and future accruals for these costs, and any such changes could be material
Added climate and energy transition plan expectations to environmental remediation and compliance risks.
- 77% rewrittenOperational risks
Our operations, including future expansions or developments, depend on the availability of secure water supplies
Reordered text to emphasize water rights maintenance and physical availability for continuous production.
Was: Our operations, including future expansions or developments, depend on the availability of significant quantities of secure water supplies
- 73% rewrittenOperational risks
Our information and operational technology systems have been and in the future may be adversely affected by cybersecurity events, disruptions, damage, failure and risks associated with implementation and integration
Added artificial intelligence (AI) as an operational technology system utilized in our business.
- 72% rewrittenInternational risks
Under the terms of its IUPK, PTFI has been granted mining rights through 2031, with rights to extend its mining rights through 2041, subject to certain terms and conditions. Refer to Note 11 for a summary of the IUPK’s key fiscal terms
Updated reserve recovery percentages expected to be mined prior to the end of 2031 from 40% to 34%.
Was: Under the terms of PT-FI’s IUPK, PT-FI has been granted mining rights through 2031, with rights to extend its mining rights through 2041, subject to certain terms and conditions. Refer to Note 11 for a summary of the IUPK’s key fiscal terms
- 62% rewrittenRegulatory, environmental and social risks
The costs of compliance with environmental, health and safety laws and regulations applicable to our operations may constrain existing operations or expansion opportunities. Related permit and other approval requirements may delay or result in a suspension of our operations
Minor phrasing adjustments regarding environmental, health, and safety compliance constraints.
- 56% rewrittenHuman capital risks
Labor disputes or labor unrest could disrupt our operations
- 55% rewrittenInternational risks
Our operations are subject to evolving geopolitical, economic, regulatory and social risks
- 53% rewrittenHuman capital risks
Our success depends on our ability to recruit, retain, develop and advance qualified personnel
- 51% rewrittenOperational risks
Managing these environmental challenges at our Indonesia operations could result in reputational harm, social unrest and increased costs that could be significant
Was: Managing these environmental challenges at our Indonesia operations could result in reputational harm and increased costs that could be significant
- 51% rewrittenRegulatory, environmental and social risks
The physical impacts of changing climate conditions may adversely affect our mining operations, workforce, communities, biodiversity and ecosystems, supply chains and customers, which may result in increased costs
Was: The physical impacts of climate change may adversely affect our mining operations, workforce, communities, biodiversity and ecosystems, supply chains and customers, which may result in increased costs
- 50% rewrittenOperational risks
Failure to successfully implement, advance or develop new technology systems and increased exposure to risks associated with the use of these systems may adversely affect our business
Was: Failure to successfully implement or develop new technology systems and increased exposure to risks associated with the use of these systems may adversely affect our business
- 48% rewrittenOperational risks
Our Indonesia mining operations are susceptible to difficult and costly environmental challenges, and future changes in Indonesia environmental laws could increase our costs
- 47% rewrittenRegulatory, environmental and social risks
Scrutiny, action and evolving expectations from stakeholders and other third parties with respect to our sustainability-related practices, performance, commitments and disclosures may impact our reputation, increase our costs and impact our access to capital or business strategy
Was: Increasing scrutiny, action and evolving expectations from stakeholders and other third parties with respect to our ESG practices, performance, commitments and disclosures may impact our reputation, increase our costs and impact our access to capital or business strategy
- 41% rewrittenOperational risks
South America countries have historically experienced periods of economic growth, as well as recession, periods of high inflation and general socio-economic and political instability
Was: South America countries have historically experienced periods of economic growth, as well as recession, periods of high inflation and general economic and political instability
- 31% rewrittenFinancial risks
Changes in or the failure to comply with the requirements of mine closure and reclamation regulations could have a material adverse effect on our business
- 30% rewrittenOperational risks
For a discussion of risks specific to our tailings management, see the risk factors below relating to our management of waste rock and tailings, including our river transport system for tailings management in Indonesia
- 26% rewrittenOperational risks
We are exposed to security risks relating to loss and theft of refined precious metals at the PMR. Any such loss or theft could lead to financial loss or a failure to satisfy our customer commitments, which could have an adverse impact on our reputation and business
Was: We also expect to be exposed to security risks relating to loss and theft of refined precious metals at the PMR. Any such loss or theft could lead to financial loss or a failure to satisfy our customer commitments, which could have an adverse impact on our reputation and business
- 24% rewrittenFinancial risks
Our debt and other financial commitments may limit our financial and operating flexibility
All 41 risk factors
Headings as the filing states them, in filing order.
Financial risks
- 01Additional factors affecting gold prices may include purchases and sales of gold by governments and central banks, demand from China and India (two of the world’s largest consumers of gold), and global demand for jewelry containing gold
- 02Fluctuations in the price and availability of consumables and components for key machines and equipment we purchase, and constraints on supply and logistics could affect our profitability and operating plans. Further, significant delays or increases in costs affecting transportation services may affect our business89% rewritten
- 03tensions or conflicts (including trade policies such as tariffs and other controls on exports and imports), and foreign currency exchange rate fluctuationsNew
- 04Our debt and other financial commitments may limit our financial and operating flexibility24% rewritten
- 05Changes in or the failure to comply with the requirements of mine closure and reclamation regulations could have a material adverse effect on our business31% rewritten
- 06Unanticipated legal proceedings or negative developments in pending legal proceedings or other contingencies could have a material adverse effect on our financial condition
- 07Changes in and interpretations of tax laws and regulations could have a material adverse effect on our financial condition80% rewritten
International risks
- 08Our operations are subject to evolving geopolitical, economic, regulatory and social risks55% rewritten
- 09Accordingly, our activities in and outside of the U.S. may be substantially affected by many external factors beyond our control, any of which could have a material adverse effect on our cash flows, results of operations, financial condition and trading price of our common stockNew
- 10In addition, our insurance does not cover most losses caused by the risks described above. For example, we do not maintain political risk insurance
- 11Because our operations in Indonesia are material to our business, our business may be adversely affected by political, economic, regulatory and social uncertainties in Indonesia83% rewritten
- 12Refer to Note 10 for further discussion of the March 2025 RegulationNew
- 13Under the terms of its IUPK, PTFI has been granted mining rights through 2031, with rights to extend its mining rights through 2041, subject to certain terms and conditions. Refer to Note 11 for a summary of the IUPK’s key fiscal terms72% rewritten
Operational risks
- 14The mud removal and other remediation activities, and the phased restart and ramp-up of the Grasberg Block Cave underground mine following the September 2025 mud rush incident may not be achieved as planned which could adversely impact our results of operations and financial conditionNew
- 15Our operations are subject to significant operational risks that could adversely affect our business, including the ability to smelt and refine, and our underground mining operations have higher risks than a surface mine
- 16For a discussion of risks specific to our tailings management, see the risk factors below relating to our management of waste rock and tailings, including our river transport system for tailings management in Indonesia30% rewritten
- 17Our management of waste rock and tailings are subject to significant environmental, safety and engineering challenges and risks that could adversely affect our business
- 18Our Indonesia mining operations are susceptible to difficult and costly environmental challenges, and future changes in Indonesia environmental laws could increase our costs48% rewritten
- 19Managing these environmental challenges at our Indonesia operations could result in reputational harm, social unrest and increased costs that could be significant51% rewritten
- 20We are exposed to security risks relating to loss and theft of refined precious metals at the PMR. Any such loss or theft could lead to financial loss or a failure to satisfy our customer commitments, which could have an adverse impact on our reputation and business26% rewritten
- 21South America countries have historically experienced periods of economic growth, as well as recession, periods of high inflation and general socio-economic and political instability41% rewritten
- 22environment remains polarized following the national legislative elections, including the presidential election, held in Chile during 2025New
- 23Our operations, including future expansions or developments, depend on the availability of secure water supplies77% rewritten
- 24Our information and operational technology systems have been and in the future may be adversely affected by cybersecurity events, disruptions, damage, failure and risks associated with implementation and integration73% rewritten
- 25We have experienced targeted and non-targeted cybersecurity events in the past and may experience events of a similar nature, with potentially greater exposure, in the futureNew
- 26Failure to successfully implement, advance or develop new technology systems and increased exposure to risks associated with the use of these systems may adversely affect our business50% rewritten
- 27Major public health crises may have an adverse impact on our business
Human capital risks
- 28Labor disputes or labor unrest could disrupt our operations56% rewritten
- 29Our success depends on our ability to recruit, retain, develop and advance qualified personnel53% rewritten
Risks related to development projects and mineral reserves
- 30Development projects are inherently risky and may require more capital and have lower economic returns than anticipated, and the development of our underground mines are also subject to other unique risks
- 31We may not be able to maintain or grow our mineral reserves
- 32Estimates of mineral reserves and mineral resources are uncertain and the volume and grade of ore actually recovered may vary from our estimates
Regulatory, environmental and social risks
- 33The costs of compliance with environmental, health and safety laws and regulations applicable to our operations may constrain existing operations or expansion opportunities. Related permit and other approval requirements may delay or result in a suspension of our operations62% rewritten
- 34We incur significant costs for remediating environmental conditions on or related to properties in the U.S. that have not been operated in many years
- 35Significant adjustments to these estimates are likely to occur in the future as additional information becomes available. The actual environmental costs may exceed our current and future accruals for these costs, and any such changes could be material79% rewritten
- 36and other transportation equipment; purchased electricity, which powers core facilities and certain on-site metal processing operations; and coal and natural gas, which provide electricity at certain operationsNew
- 37The physical impacts of changing climate conditions may adversely affect our mining operations, workforce, communities, biodiversity and ecosystems, supply chains and customers, which may result in increased costs51% rewritten
- 38Scrutiny, action and evolving expectations from stakeholders and other third parties with respect to our sustainability-related practices, performance, commitments and disclosures may impact our reputation, increase our costs and impact our access to capital or business strategy47% rewritten
- 39Failure or the perceived failure to manage our relationships with the communities and/or Indigenous Peoples where we operate or that are near our operations could harm our reputation and social license to operate
Risks related to our common stock
- 40Our holding company structure may impact our ability to service our debt, declare dividends, and repurchase shares and debt
- 41Anti-takeover provisions in our charter documents and Delaware law may make an acquisition of us more difficult
Other Freeport-Mcmoran 10-Ks
- FY2024 10-K risk factors42 risks
Freeport-McMoRan faces dominant risks from volatile copper and gold prices, extensive regulatory and political exposures in Indonesia, and complex environmental and tailings management challenges.
Filed Feb 14, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.