Freeport McMoRan CEO Richard Adkerson's promises on Environmental Impacts (12/2014)

Freeport McMoRan investors sue over safety violations and worker deaths.

Freeport McMoRan is currently facing class action alleging the following: 

---------------

Freeport-McMoRan Inc. (FCX) Securities Class Action Lawsuit



Freeport-McMoRan Inc. (FCX) Securities Lawsuit Case Details

Case Name: Reed v. Freeport-McMoRan Inc., et al.
Case No.: 2:25-cv-04243-GMS
Jurisdiction: U.S. District Court, District of Arizona
Filed on: November 13, 2025

A securities fraud class action has been filed against Freeport-McMoRan Inc. (NYSE: FCX) in the U.S. District Court for the District of Arizona. The case covers investors who acquired Freeport securities from February 15, 2022 through September 24, 2025. Investors allege the company and senior executives misrepresented the adequacy of safety practices at the Grasberg Block Cave mine in Indonesia and failed to disclose the heightened risks that flowed from those shortcomings. In September 2025, Freeport reported a major wet-material flow incident that trapped workers, followed by disclosures of fatalities, missing personnel, and production deferrals through 2027—contradicting earlier safety assurances. Following these revelations, Freeport's stock fell 5.9% on September 9 and 16.95% on September 24, contributing to investor losses.

Allegations in the Freeport-McMoRan Inc. (FCX) Securities Class Action Lawsuit

The complaint targets Freeport-McMoRan Inc., along with executives Kathleen L. Quirk, Richard C. Adkerson, and Maree E. Robertson. According to investors, these defendants told the market that Freeport prioritized health and safety and addressed Indonesian operating risks, while the company allegedly failed to ensure adequate safety at the Grasberg Block Cave mine.

The story begins on February 15, 2022, when Freeport filed its 2021 Annual Report on Form 10-K. In that filing, Adkerson and Quirk warned of political, economic, and social uncertainties in Indonesia, and the company stated, "Our highest priority is the health, safety and well-being of our employees and contractors," emphasizing safety as fundamental to operations.

The pattern continued as Adkerson and Robertson signed subsequent annual reports. On February 15, 2023 the Company filed its 2022 Annual Report on Form 10-K, then on February 16, 2024 the Company filed its 2023 Annual Report on Form 10-K, and on February 15, 2025 the Company filed its 2024 Annual Report on Form 10-K, with Freeport repeating risk disclosures substantially similar to those in the 2021 report. According to the complaint, these risk disclosures signaled to investors that the Company's approach to Indonesian risks and mine safety remained steady and reliable.

Meanwhile, investors allege a different reality. The complaint asserts Freeport did not adequately ensure safety at the Grasberg Block Cave mine; that inadequate precautions created a foreseeable risk of worker death; and that these conditions carried undisclosed regulatory, litigation, and reputational risks. As a result, the complaint alleges the Company's statements about its business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis throughout the Class Period.

The Truth Emerges

On September 9, 2025, Freeport issued a press release reporting that “a large flow of wet material from a production drawpoint occurred in one of five production blocks in the Grasberg Block Cave underground mine.” The company stated that access to certain areas was blocked, evacuation routes for seven team members were restricted, and management said the workers' location was known and they were believed to be safe.

On September 24, 2025, Freeport issued another press release with an update on the Grasberg Block Cave mine incident. Freeport announced two workers were fatally injured, five remained missing, and approximately 800,000 metric tons of wet material had entered the mine. The company suspended production and warned of significant production deferrals through 2027, while noting that PTFI had opened an investigation into an incident it called unprecedented in its multi-decade block cave operations. According to the complaint, these disclosures revealed that prior representations about adequate safety measures and safety being the highest priority were false.

Market Reaction

Markets reacted to the September disclosures. On September 9, 2025, after the initial incident announcement, Freeport's stock fell $2.77 per share, or 5.9%, to close at $43.89.

The losses deepened after the September 24 update disclosing fatalities and production impacts. On that news, the stock fell $7.69 per share, or 16.95%, to close at $37.67. The following day, September 25, 2025, after a Bloomberg article about potential strain on Indonesia relations published before the market opened, shares fell another $2.33 per share, or 6.18%, to close at $35.34.

Arizona lead poisoning highest near mines, smelters.




The following is a 2023 letter urging the EPA to adopt more tough standards than the 2024 Copper Rule ended up with, due to the emissions impacts on neighboring  communities. It talks about OUR communities in Gila and Pinal counties....





As you can see, while the San Carlos tribe was on top of this, it's not just the Indigenous land that's been poisoned with irresponsible, exploitative resource extraction techniques, folks - for those who only care about their own hood. It's everywhere, from Puget Sound in Washington State to Hayden, Arizona, generations of miners, smelter workers, and the neighbors who support them have been exposed to carcinogenic levels of arsenic, and toxic levels of  lead in particular due to a  century of unregulated industry. 

And with international copper mining and smelting taking many hits of late, Arizona will be ramping up its own production. That's why its so important to get Freeport to put a baghouse on their Miami smelter ASAP - they're about to be kicking out more arsenic and lead emissions then ever.

If you are an immediate neighbor of Freeport's Miami smelter, there is actually a lot you can do to reduce the impact of their operations on your family and community, In fact, citizens have more power than anyone else to change how business is being done in our town - unless we choose to give that power away by not exercising it,

1. If you qualify to have your soil tested and it is toxic, your property may be eligible for total soil replacement/ remediation, which reduces the levels of toxic dust in the air - the biggest source of ingestible lead and other contamination for our area. The place to find out your eligibility for that is the PinalValleySoilProgram.com This work can do a lot of good for the community.

2. Whether or not they have symptoms, all 12 and 24 month old children in high risk zip codes need to be tested for lead. Grownups can get poisoned as well, but the impact on children is devastating and irreversible, and will occur before you see signs of attention deficit disorder, depression, or developmental delays that are common among children with lead poisoning. 

No amount of lead in the blood of a child is safe - NONE.

3. Contact Eli Crane, the Congressman representing the Miami-Globe and San Carlos communities. He's apparently already in Copper's pocket, so send me copies of your emails to him or other legislators - lets document our expectations well and share them. Sometimes people in power wont listen or act when you talk directly to them, but they will if you are speaking about them to others whose opinions they care about. Tell him we want congress to override the presidential order waiving Freeport's obligation to abide by the 2024 Copper Rule, to protect workers and their communities. Cut and paste your message (if you use the online form) and email it to me with any reply you get - I will publish them.

Crane doesn't live out here and doesn't seem to care about the residents, given how he failed to support us with FEMA. I think he just  got the job by putting an R next to his name. Make him earn his pay, now, and give him grief for neglecting us and letting this happen. This should be a very pressing issue for the next election; he needs to answer to us.  

4. Educate yourself, neighbors and co-workers, especially if you work for Freeport. Assert that the community has the right to have Freeport abide by the highest environmental standards, and that is not okay for ANYONE's family to be poisoned when it can be prevented. Host or attend community meetings, talk to public officials, engage your family's medical provider in addressing the impacts of mining byproducts in our community. Mitigating harm to Arizona's children means refusing to settle for less.

And contact me. Lets work together. 


That's Peggy Plews at   resilientseedsrising@gmail.com or  PO Box 112 Claypool, AZ 85532

We aren't talking about shutting down the mine or smelter - we are talking about pressuring Freeport to invest in employee and community health where it is being harmed by their business model. That's a pretty American demand to make.











Multiple health organizations object to USA copper smelter emissions

In 2023 a number of national medical and health organizations like the American Lung Association wrote to the head of the Environmental Protection Agency to assert that the proposed Copper Rule wasn't stringent enough in reducing emissions from the AZ smelters. The Copper Rule was nonetheless passed by the Biden Administration - then suspended by Trump for "National Security" reasons

Here's another article about that.

Oh, here's an even more interesting article from the industry side of things about the US Copper Rule and its exemptionTrump Reverses Biden’s Copper Smelter Emissions Standards in 2025

 

AI-generated image from Discoveryalert.com/au
(The World's Fastest Mining & Energy News Publisher)
 

 This is their 2023 letter, which details the harm already experienced by our neighbors with the San Carlos Apache Community. Had the EPA and the Trump administration listened to these folks, Miami, AZ kids would have been even more protected from lead poisoning then under the Clean Air Act. 

 Am posting this as an example of good community advocacy, we need to build networks of support too.

Lead testing and soil replacement for Freeport Miami Neighbors.

 For our immediate neighbors (from Miami to Fry's):

Below is the map indicating the eligible neighborhoods, which includes ours, across the street from Freeport's copper smelter. The program proposes to test residential soil to see if it exceeds certain levels of toxins like lead, which is the greatest concern for neighborhood children. If your soil is eligible and is indeed too toxic to keep, they will replace it. Even if you dont have kids yourselves, it will help those in the neighborhood reduce exposure to removed that source of toxic dust.

This is the link to the contact page of the Pinal Valley Soil Program. Let them know if you fall in the map's area you want to be tested. 


This 2022 state lead screening report on Gila county (page 20 here), from the state's public health website, indicates a jump in the number of kids testing positive for lead in 2022 from 2021. it more then doubled. So, please read carefully, then consider getting your soil tested/replaced if toxic, if not for your own family's health, then for that of the other kids in the hood.



The Pinal Valley Soil Program contact person is Julie Ontiveros at 520-240-1608 if you'd rather call for the paperwork needed. 

If you do reach out to get your soil tested, please let me know at resilientseedsrising@gmail.com we want to keep track of the progress in testing and results! 


Miami, AZ community betrayed by Freeport and the EPA...

 This is an informative Reprint from New York Times 12/28/2025 detailing the sweet deal the EPA made to accommodate the alleged "hardship" Freeport McMoRan would face upgrading its Miami copper smelter to meet cleaner air standards - a roughly 60 million dollar investment to reduce their lead and other particulate emissions.

Where are our elected officials on this? Were they blindsided too, or are they complicit? 

Perhaps there should be another kind of class action suit filed against them. Investors are suing them right now over fraudulently covering up safety problems at mines like Grasberg in Indonesia, where 7 workers were killed in a mudslide this fall. That falsely inflated the stocks value, which has plummeted due to the accident and mine shutdown. Maybe neighbors should assert our rights as a class, too?

Children need to be tested more often for lead, especially in our high risk zip codes (Miami/Globe). Its in the air we breathe and the soil kids play in, and on the clothes their folks bring home from work. The effects of lead on kids can be devastating. Don't wait for symptoms.

We should insist that Freeport move ahead with upgrading its smelter as originally required under the Copper Rule - despite the EPA waiver - to provide the best possible protection for its workers, its neighbors, and the community's kids. Copper prices are higher then ever now, they have no lack of resources to invest.

They should also get on with this soil testing and removal project. Everyone knows all about that, right? (I'll post more soon)

Just my initial thoughts on this, folks. Please share widely and send your thoughts to 

me (Peggy Plews) at  resilientseedsrising@gmail.com

I think we need to organize a community meeting ASAP. Ill see what I can do.

--------------------------

A Top Source of Lead Pollution Faced Tighter Rules.  

Then Trump Intervened.

NEW YORK TIMES                  Dec. 26, 2025

The president exempted a copper smelter in Arizona from air-quality rules.

An E.P.A. official guided the company that sought the exemption, emails show.

Maxine Joselow and Caitlin O’Hara reported from Miami, Ariz.

—-----------------


photo credit: Caitlin O'Hara

Lee Becquet doesn’t like to leave the house with his 2-year-old son, Eugene.


That’s because their home in Miami, Ariz., is downhill from an industrial facility that is one of the country’s largest sources of pollution containing lead, a powerful neurotoxin that can harm children’s health.


“I have a toddler, and I’m not putting him outside in that,” Mr. Becquet, 29, said in a recent interview. “So we stay inside for days sometimes.”


The facility, one of only two remaining copper smelters in the country, processes copper for use in electronics, construction materials and a range of other products.


Under rules put in place by the Biden administration, the facility’s owner, Freeport-McMoRan, would have been required to install technology to reduce its toxic emissions. But in October President Trump exempted the smelter from complying with limits on lead, arsenic, chromium and other hazardous pollutants for the next two years.


Freeport did not have to present an exhaustive argument for why it deserved a reprieve. There was no economic analysis or engineering study. It was as easy as sending an email to the Environmental Protection Agency, where a senior official provided guidance to a lawyer for the company, according to emails and documents reviewed by The New York Times.


It’s one of many efforts by the Trump administration to weaken or waive environmental protections that companies view as overly burdensome. In the past year, the administration has proposed rolling back more than a dozen regulations governing air pollution, water contamination and planet-warming greenhouse gas emissions.


The new emails and documents show “secret coordination on a free pass to pollute,” said Vickie Patton, the general counsel at the nonprofit Environmental Defense Fund, which obtained the records by filing a Freedom of Information Act request.


“There’s not a single instance in these records where the Trump E.P.A. officials asked about the impacts of these poisons on people in Miami,” Ms. Patton said. “And these are people who deserve to be protected by their government.”


Asked about the documents, an E.P.A. spokeswoman, Brigit Hirsch, said in an email, “E.P.A. regularly engages with a wide range of stakeholders, including entities that we may regulate, and these engagements are an essential component of our work to protect human health and the environment.”


In 2024, the copper smelter emitted more than 11.6 tons of lead and 2.5 tons of arsenic, according to data the company reported to the Arizona Department of Environmental Quality.


Linda Hayes, a spokeswoman for Freeport, which is based in Phoenix, said in a statement that the company was committed to “protecting the environment and health in the communities where we operate.” She said that two air monitors near the smelter had consistently shown levels of lead and arsenic “well below regulatory limits designed to safeguard public health.”


Still, Mr. Becquet said he planned to move away from the smelter to be near family outside Portland, Ore.


“I’m going to be able to leave because thankfully I got some help from my family,” he said. “But I’m angry on behalf of all the community members who cannot leave. They don’t want to live here, either. And they deserve to have clean air.”

photo credit: Caitlin O'Hara


In 1907, amid a mining boom in the American Southwest, there were around 80 copper smelters in the country. Today, the Freeport facility is one of two still in operation.


The other, near Salt Lake City, is owned by the multinational mining giant Rio Tinto. The rest were too costly to continue running because of stringent environmental regulations, a glut of cheap Chinese copper and other factors.


Inside the Freeport facility, a furnace melts copper at 2,300 degrees Fahrenheit into a liquid that resembles lava. This molten metal is poured into molds to produce 750-pound slabs called anodes, which are then shipped to a refinery in Texas.


The Biden administration cracked down on pollution from this process in a rule finalized last year. To comply with the rule, Freeport would have needed to install an additional baghouse, a device that uses giant fabric filters to capture tiny particles of pollution.


E.P.A. officials estimated that the baghouse would cost $59.5 million. Freeport’s annual gross profit last year was nearly $7.7 billion.


But instead of adding the device, Freeport asked a federal court to strike down the rule on the grounds that it was too strict. The San Carlos Apache Tribe, whose reservation is 10 miles from the copper smelter, argued in its own lawsuit that the rule was too weak.


Then Mr. Trump returned to the White House, and Freeport’s fortunes improved.


On March 24, the Trump administration created a novel way for companies to avoid clean-air rules: Simply send an email to the E.P.A. requesting an exemption. The administration said it was relying on an obscure provision of the Clean Air Act that allowed these exemptions if they were in the interest of national security.


The Freeport-McMoRan facility is one of just two copper smelters active in the United States.


Five days earlier, on March 19, a lawyer for Freeport emailed a Trump appointee at the E.P.A. saying that he had heard about the forthcoming move from a “mutual friend,” according to the documents reviewed by The Times.


Patrick Traylor, a partner at the law firm Vinson & Elkins, asked Abigale Tardif, a top official in the E.P.A.’s air office, for a “brief call” to discuss a possible exemption for Freeport. The call did not occur, but Ms. Tardif responded by email on March 24, giving Mr. Traylor advance notice of an E.P.A. web page on the exemption process that would go live later that day. She followed up that afternoon with a link to the web page.


Mr. Traylor wrote back that he was “inclined to submit a short request” for an exemption that included detailed information about the Freeport smelter. “Does that strike you as an approach that the E.P.A. would welcome and find helpful?” he asked.


Ms. Tardif replied, “I believe that is the right approach.”


A week later, on March 31, Freeport submitted a request claiming that compliance with the clean-air rule would cost the company as much as $309 million, or more than five times the Biden administration’s estimate. (Ms. Hayes, the Freeport spokeswoman, said the company had hired an outside engineering firm that found the “E.P.A. substantially underestimated the cost of installing additional controls at the smelter.”)


Over the following months, Mr. Trump granted exemptions from environmental rules to coal-burning power plants, steel mills, oil refineries and, finally, copper smelters. The exemption for copper smelters applied only to the facility owned by Freeport, not the one owned by Rio Tinto, which had already invested in new equipment to capture its pollution.


Taylor Rogers, a White House spokeswoman, said in an email that Mr. Trump had lifted onerous constraints on processing copper, a crucial component of electrical wiring, military vehicles and artificial intelligence data centers. “President Trump is providing regulatory relief and reducing burdensome restrictions to an industry vital to our national and economic security,” she said.


A Mining Town


The copper smelter supports around 950 permanent jobs in the Miami area.


On a drive around the Miami area, Freeport’s fingerprints are everywhere.


The mining company owns the field where the Little League team plays baseball and softball. Its donations support an “innovation lab” at the elementary school, where its smelter is visible from the playground. And a banner hanging from a gazebo at a public park lists Freeport as a sponsor of a Christmas display featuring a dozen animatronic reindeer.


In interviews, many residents said they were unaware of the exemption for the smelter, which came on a Friday evening and does not appear to have been reported in the local newspaper. Many were also reluctant to criticize Freeport, which supports around 950 permanent jobs in the area.


Cherish Hinton, 38, a former welder at Freeport’s copper mine in Morenci, Ariz., said it was hard to follow politics while caring for her 3-year-old son, Journey. Upon learning of the exemption, she said: “It’s for two years, right? Maybe give it a year and see if there are health impacts in the community.”


Even members of the San Carlos Apache Tribe, which has argued in court that the Biden-era rule was too weak, were hesitant to criticize Freeport, a major employer on the reservation.


“You can’t say all the cancer or all the biggest health problems here are coming from the mining industry,” said Yvonne Lees, an epidemiologist with the tribe’s Department of Health and Human Services. “There are so many factors.”


In Gila County, which includes Miami, more than two-thirds of voters supported Mr. Trump in the 2024 election. Many liberal residents voiced more concern about the exemption than their conservative counterparts.


James Potts, 75, a retired machinist who considers himself a moderate Democrat, said he worried about the effects of breathing in the smelter’s emissions. “The air here is bad enough as it is,” said Mr. Potts, who has battled prostate cancer for the past decade.


But Izora Ayers, 84, a volunteer for a local church and a staunch Republican, said she was unbothered by the president’s proclamation. “He’s doing a lot of strange things, but I voted for him, and I’m still for him,” she said.


Ms. Ayers, who can see the smelter from her front windows, said the air quality had improved since she was growing up in Miami. Back then, she said, a sulfurous smog hung in the air, leaving the taste of rotten eggs in her mouth. The smog cleared after Freeport installed equipment to capture its sulfur dioxide emissions, she said. (Ms. Hayes, the Freeport spokeswoman, said this equipment had been added from 2013 to 2017 at a cost of $250 million.)


The smelter has still not installed the additional baghouse to capture more emissions of lead. High levels of exposure to lead in childhood can result in stomach pain, vomiting, fatigue, learning difficulties, developmental delays and seizures. While the most common source of exposure is paint in older homes, lead from industrial facilities like smelters can also accumulate in soil, research shows.

Evan Schmitz, an environmental health specialist at the Gila County health department, gets a phone call about once a month from a parent whose child was poisoned by lead, he said. But there is little data on the problem, he said, since few parents have their children’s blood tested for lead.


And when the county recently offered free testing for contaminants in well water, no one signed up, said Joshua Beck, the department’s director of public health and community services. “It’s a mining community, and they just don’t believe that these things are bad for them, or they don’t want to believe it,” he said.



More data on the health effects of the smelter could be available soon.


In July, a contractor for Freeport began notifying residents of free testing for arsenic, lead and copper in the soil on their properties. After the contractor has collected and analyzed samples, it will remove and replace any contaminated soil.


It is unclear how long that process will take. But several residents said they were anxiously awaiting the results.


“I tried planting rose bushes, but nothing survives in this dirt,” said Sonia Yanez, 46, a public health educator and journalist who has lived in the area for her entire life.


“Since we were kids, the sunsets over the smelter have been really pretty orange colors,” Ms. Yanez added. “But imagine what they’re spewing into the air that we cannot see.”


Mr. Becquet, for his part, said he hopes to have moved by the time the results are ready.


Lisa Friedman contributed reporting from Washington and Hiroko Tabuchi contributed from New York.


Maxine Joselow covers climate change and the environment for The Times from Washington.


A version of this article appears in print on Dec. 28, 2025, Section A, Page 17 of the New York edition with the headline: Email to E.P.A. Led to Smelter’s Exemption From Air-Quality Rule .