Freeport-McMoRan's Strategy for Water Efficiency in Mining

The use of water in industrial processes is a key area where sustainability efforts are making an impact. With a changing climate and rising water demand, efficient use of this increasingly valuable commodity is a strategic necessity.

The spotlight on water usage has intensified in recent years, due in part to the growth of data centres and their cooling needs. 

Copper mining giant Freeport-McMoRan has integrated water stewardship as a central pillar of its business strategy, viewing it not just as a compliance requirement but as a critical driver of long-term operational resilience and production growth.

As global mines struggle to meet demand amid supply chain disruptions, companies like Freeport-McMoRan are investing in advanced technology to improve efficiency and achieve long-term savings. Although increasing labour costs and human error remain significant issues in large-scale mining, the adoption of AI and automation helps make operations more precise, efficient, and productive.

Water usage

Freeport-McMoRan’s sustainability strategy focuses on maximising water-use efficiency while transitioning to more sustainable water sources.

In 2025, 83% of the water used for global operations came from recycled or reused sources, the company reported in its latest sustainability annual report. The company achieved an average water use efficiency of 89% across its global operations over the past five years.

Freeport-McMoRan also completed internal water stewardship plans for seven operations identified as having the highest water stress.

“We commend the ongoing work across the organisation to protect existing water supplies, prepare for future water risks, optimise water-use efficiency, and enhance the resilience of operations and surrounding communities,” says Frances Fragos Townsend, Corporate Responsibility Committee Chair at Freeport-McMoRan.

“The CRC encourages management’s ongoing engagement with stakeholders and investments in innovation and technology, both of which are essential to navigating future challenges and opportunities.”

Impact on business performance

Water stewardship directly influences Freeport-McMoRan’s ability to maintain high production volumes and manage volatile costs. 

It has placed focus on initiatives designed to increase copper recovery from legacy stockpiles while simultaneously supporting water and energy efficiency. Freeport-McMoRan is targeting an incremental 300 million pounds of copper from these initiatives in 2026 by deploying internally developed leaching additives.

By using lower-quality water sources, such as treated municipal wastewater, Freeport-McMoRan reduces its dependence on scarce freshwater supplies. For instance, its Miami operation recycles 87% of its water on average each year, mitigating risks associated with regional water scarcity.

At its Cerro Verde site in Peru, a strategic agreement with the local municipality for water and sanitation management strengthens community relations, which is vital for maintaining a "social license to operate" in water-scarce regions, the company said.

Strategic resilience

Freeport-McMoRan uses water models and climate scenario analyses to prepare for physical risks such as extreme weather and drought. 

These tools allow it to analyse potential impacts on water availability and adjust infrastructure plans—such as tailings storage and desalination facilities—to ensure continuous production even under stressed environmental conditions.

Elsewhere, the company is also advancing its climate strategy to reduce its impact and contribute to global sustainability. Freeport-McMoRan supports the global energy transition by supplying essential copper while simultaneously decarbonising its own operational footprint.

In 2025, 47% of the purchased power for its Americas Copper subsidiary came from renewable sources. Its El Abra site, in renewables-rich Chile, already runs on 100% certified renewable energy.  

Meanwhile, the company is trialling a prototype battery-electric haul truck from Caterpillar at its Sierrita operation, utilising Dynamic Energy Transfer (DET) technology to charge batteries while trucks climb uphill.