Freeport US Copper Refining Capacity: Tariffs and Miami Smelter Expansion in Focus

Freeport-McMoRan

Freeport is moving to lift Freeport US copper refining capacity as domestic demand and premiums rise. The company is evaluating a Miami, Arizona, smelter expansion to boost throughput. As a result, Freeport US copper refining capacity could increase while import tariffs reshape market spreads. Freeport says it already provides 70% of US refined copper, underscoring the scale of Freeport US copper refining capacity today.

Tariffs, premiums and the Miami smelter opportunity

Freeport could benefit from the announced 50% US copper import tariff. Therefore, higher US premiums may add about $1.7bn annually, according to management. The firm is assessing Miami smelter expansion to capture that uplift. However, the company also expects a 5% cost increase from broader tariffs.

Mixed global production, stronger US volumes and profits

US copper production rose 13% in the second quarter to 336mn lbs. Freeport plans to sell 1.3bn lbs from US operations in 2025. That compares with 1.257bn lbs sold in 2024. Meanwhile, total production fell 7% to 963mn lbs, but sales rose 9% to 1.02bn lbs. South America slipped 10% to 268mn lbs in the quarter. Indonesia declined to 359mn lbs after a smelter fire, though the plant reopened in May. Molybdenum output increased 10% to 22mn lbs, with sales up 5% to 22mn lbs. As a result, quarterly profit improved to $772mn, up from $616mn a year earlier.

Freeport aims to align smelting with mine output as premiums firm. Therefore, a Miami upgrade could reduce reliance on third-party treatment options. In turn, integrated refining may cushion volatility in treatment and refining charges.

The Metalnomist Commentary

A Miami smelter expansion would harden US midstream resilience if premiums stay elevated. Watch tariff implementation and domestic demand; both will determine the pace and payback of new refining capacity.