The Digital Transformation of Freeport McMoRan: The Strategic Use of Agile, AI and Data Analytics

As 2023 neared its end, Richard Adkerson, CEO and Chairman of Freeport McMoRan, marked two decades of leadership. Dubbed "the elder statesman of the copper industry" by The Economist, Adkerson had witnessed various industry shifts. He anticipated a surge in copper demand, driven by the transition from fossil fuels to renewables. However, meeting this demand posed challenges, as copper mines take nearly a generation to become operational. With demand outstripping supply, the industry might seek copper alternatives. Recognizing these challenges, Adkerson prioritized operational efficiency and yield across Freeport’s global copper operations. Embracing the Fourth Industrial Revolution, Freeport invested heavily in technologies like artificial intelligence and data analytics to maximize copper extraction from existing mines. This strategy, initiated in Baghdad, Arizona, expanded across the U.S. under the America Concentrator program, aiming for efficiency in all American copper mines. However, competitors like BHP, Grupo Mexico, Codelco, and Rio Tinto were also adopting similar technologies. The ubiquity of these technologies raised questions about their potential as a sustainable competitive advantage for Freeport. The company faced the challenge of leveraging its human capital to maintain its edge, especially as its stock performance lagged behind rivals like Southern Copper. The future posed questions about Freeport's continued dominance in the copper industry.