By Tanay Dhumal

(Reuters) – Freeport-McMoRan announced on Tuesday that it anticipates a rise in copper demand due to the construction of more data centers. The miner reported a quarterly profit surpassing expectations, as increased copper prices countered a drop in production.

Average copper prices surged in the third quarter, driven by signs of improved demand from top consumer China, declining inventories, and extensive stimulus measures aimed at revitalizing the country's economy.

Freeport's quarterly average realized price for copper increased by 13.2% to $4.30 per pound, despite a 3.1% decline in production, which fell to 1.05 billion recoverable pounds.

The firm highlighted strong demand for power cables and building wire linked to electrical infrastructure and data centers in the U.S. CEO Kathleen Quirk noted that these growing sectors compensated for weaknesses in traditional demand areas during a post-earnings call.

Recently, Freeport suspended copper cathode production at its Manyar smelter in Indonesia following a fire at a sulfuric acid unit. The fire, which was subsequently extinguished, triggered a delay in sales of refined copper from Indonesia until the second quarter of 2025, as reported by sources.

The firm stated that it expects the repair costs for the Manyar smelter to be underwritten by insurance.

On an adjusted basis, Freeport generated earnings of 38 cents per share in the third quarter, surpassing the average analyst estimate of 35 cents per share, according to data compiled by LSEG.

The company's shares rose by 1.1% to $48.45.