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Freeport-McMoRan: Transforming AI in mining | Digital | McKinsey & Company
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data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mck-c-full-text-c__content-block FullTextC_mck-c-full-text-c__content-block--module-center-aligned__qo8OU mdc-u-grid mdc-u-grid-gutter-xxl mdc-u-grid-col-sm-1 mdc-u-grid-col-md-4"><div class="mck-c-full-text-c__column mdc-u-grid-col-md-span-4"><div class="FullTextC_mck-c-full-text-c__text-content__3NKIh mck-u-links-inline mdc-o-content-body"><p style="text-align:center">Jump to Section: <a href="#opportunity">Opportunity</a> | <a href="#solution">Solution</a> | <a href="#impact">Impact</a> | <a href="#lessons">Lessons learned</a></p></div></div></div></div></div></div><div data-component="mdc-c-module-wrapper" data-module-theme="light" data-module-background="white" data-module-category="" class="mck-c-module-wrapper mck-c-module-wrapper--turn-off-padding"><div class="mck-o-container"><div class="UpModule_mck-c-up__irSw8"><div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="mck-o-edge-to-edge"><div id="" data-layer-region="ceros-body"><div class="Ceros_mck-c-ceros-section__l2zpJ mck-u-screen-only"><style>.ceros-experience-holder-experience-648b36e14b387 { padding: 0 0 464% } @media screen and (min-width: 768px) { .ceros-experience-holder-experience-648b36e14b387{padding: 0 0 54.69% } }</style><div class="Ceros_mck-c-ceros-holder__OAdU8"><div class="ceros-experience-holder-experience-648b36e14b387 Ceros_mck-c-ceros-holder__ceros-experience-holder__O5ch7" data-break-on="768" data-sm-id="experience-648b492bb74ba" data-lg-id="experience-648b36e14b387" data-sm-src="//view.ceros.com/mckinsey/freeport-intro-quote-mobile-1?heightOverride=1740" data-lg-src="//view.ceros.com/mckinsey/freeport-intro-quote-desktop?heightOverride=700" data-sm-padding="464%" data-lg-padding="54.69%"><iframe class="ceros-experience Ceros_mck-c-ceros-holder__ceros-experience__H4rRu" loading="lazy" allowfullscreen="" frameBorder="0" title="Freeport-McMoRan: Unlocking new mining production through AI transformation"></iframe></div></div></div><div class="mck-u-sr-only"></div></div></div></div></div></div><div data-component="mdc-c-module-wrapper" data-module-theme="light" data-module-background="white" data-module-category="StandalonePromo" data-module-gradient-position="top-right" class="mck-c-module-wrapper" data-module-name="one-up-medium"><div class="mck-o-container"><div class="UpModule_mck-c-up__irSw8"><div class="UpModule_mck-c-up__header__OR_Vx"><h2 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-c-heading--title___5qyOB_2734c4f mdc-u-align-center UpModule_mdc-c-heading--title__4XbMT"><div>Keep Exploring</div></h2></div><div class="mck-c-up__content mdc-u-grid mdc-u-grid-col-sm-1 mdc-u-grid-gutter-xl mdc-u-grid--align-start"><div class="mdc-u-grid mdc-u-grid-gutter-xl mdc-u-grid-col-sm-1 mdc-u-grid--align-start GenericItem_mck-c-generic-item__sGwKL GenericItem_mck-c-generic-item--with-hover-effect__hmVy2 GenericItem_mck-c-generic-item--1by1__6krte"><div class="GenericItem_mck-c-generic-item__image__F_tIc"><a data-component="mdc-c-link" href="/capabilities/mckinsey-digital/how-we-help-clients?cid=njt-ste-crk-mbm-mbm--2403-promo02-njt-bam-web" class="mdc-c-link___lBbY1_2734c4f"><picture data-component="mdc-c-picture"><img alt="Never just tech" src="/~/media/mckinsey/business%20functions/mckinsey%20digital/how%20we%20help%20clients/2024/never-just-tech_thumb_1536x1536.jpg?cq=50&mw=767&car=16:9&cpy=Center" loading="lazy"/></picture></a></div><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-u-grid-gutter-xs GenericItem_mck-c-generic-item__content__gq1m0"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f"><h2 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f"><a data-component="mdc-c-link" href="/capabilities/mckinsey-digital/how-we-help-clients?cid=njt-ste-crk-mbm-mbm--2403-promo02-njt-bam-web" class="mdc-c-link-heading___Zggl8_2734c4f mdc-c-link-heading--with-icon___ssPll_2734c4f mdc-c-link___lBbY1_2734c4f"><span>Creating value beyond the hype</span></a><span data-component="mdc-c-icon" class="mdc-c-icon___oi7ef_2734c4f mck-arrow-right-fat-icon mdc-u-ts-6 mdc-c-heading__icon___TbFKK_2734c4f"></span></h2><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-7"><div class="mck-u-links-inline mck-c-generic-item__description">Let’s deliver on the promise of technology from strategy to scale.</div></div><div data-component="mdc-c-link-container" class="mdc-c-link-container___xefGu_2734c4f mdc-c-link-container--align-left"><a data-component="mdc-c-link" href="/capabilities/mckinsey-digital/how-we-help-clients?cid=njt-ste-crk-mbm-mbm--2403-promo02-njt-bam-web" class="mdc-c-link-cta___NBQVi_2734c4f" aria-label=""><span class="mdc-c-link__label___Pfqtd_2734c4f">Get started</span><span data-component="mdc-c-icon" class="mdc-c-icon___oi7ef_2734c4f mck-link-arrow-right-icon"></span></a></div></div></div></div></div></div></div></div><div data-component="mdc-c-module-wrapper" data-module-theme="dark" data-module-background="deep-blue" data-module-category="StandalonePromo" class="mck-c-module-wrapper mck-o-edge-to-edge" data-module-name="one-up-medium"><div class="mck-o-container"><div class="UpModule_mck-c-up__irSw8 mck-o-container--wrapped mck-o-container--mobile-spacing"><div class="UpModule_mck-c-up__header__OR_Vx"><h2 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-c-heading--title___5qyOB_2734c4f mdc-u-align-center UpModule_mdc-c-heading--title__4XbMT"><div>The solution<a id="solution"></a></div></h2><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f UpModule_mck-c-up__header-dek-container__2p51y UpModule_mck-c-up__header-dek-container--center-aligned__O4IWd"><h3 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-2 mdc-u-align-center"><div><h2>Bringing next level operations to mining with data and AI</h2></div></h3></div></div></div></div></div><div data-component="mdc-c-module-wrapper" data-module-theme="dark" data-module-background="deep-blue" data-module-category="" class="mck-o-edge-to-edge mdc-u-container-padding-primary mck-c-module-wrapper mck-c-module-wrapper--collapse-top-spacing mck-c-module-wrapper--collapse-top-padding mck-c-default-scrolly" data-module-name="scrolly-container"><div class="mck-o-container"><div class="mck-o-container--wrapped"><div class="DefaultScrolly_mck-c-default-scrolly__scrolly-content__a5dCJ"><div class="DefaultScrolly_mck-c-default-scrolly__scrolly-media-content__PFuk7" data-module-background="deep-blue" data-module-theme="dark"><div class="DefaultScrolly_mck-c-default-scrolly__container-sticky__vuA_2"><div class="media-container-edcc2e37-963f-416b-abb0-89bc2e8f15fb DefaultScrolly_mck-c-default-scrolly__media-container__IFEZ5"><div class="DefaultScrolly_mck-c-default-scrolly__media__7OJZA DefaultScrolly_mck-c-default-scrolly__media--visible__hDr4Z mck-u-animation-fade-in"><picture data-component="mdc-c-picture"><img alt="Data engineers, metallurgists, and mining engineers from Freeport collaborated with McKinsey’s data scientists and experts to improve operations at a single aging mine in Bagdad AZ" src="/~/media/mckinsey/business%20functions/mckinsey%20digital/how%20we%20help%20clients/impact%20stories/freeport%20mcmoran/freeport-scrollytelling_1_1000x1000.jpg?cq=50&cpy=Center" loading="eager"/></picture><div class="mck-u-sr-only"></div></div><div class="DefaultScrolly_mck-c-default-scrolly__media__7OJZA mck-u-animation-fade-out"><picture data-component="mdc-c-picture"><img alt="Data engineers, metallurgists, and mining engineers from Freeport collaborated with McKinsey’s data scientists and experts " src="/~/media/mckinsey/business%20functions/mckinsey%20digital/how%20we%20help%20clients/impact%20stories/freeport%20mcmoran/freeport-scrollytelling_2_1000x1000.jpg?cq=50&cpy=Center" loading="eager"/></picture><div class="mck-u-sr-only"></div></div></div></div></div><div class="DefaultScrolly_mck-c-default-scrolly__scrolly-text-content__epRca mck-o-container--mobile-spacing"><div class="DefaultScrolly_mck-c-default-scrolly__text-container__YYFld mck-c-default-scrolly__text-container--align-right"><div class="DefaultScrolly_mck-c-default-scrolly__content-text__lFvee text-content-edcc2e37-963f-416b-abb0-89bc2e8f15fb" data-id="348D78E6CF6A4710876F6913CD910EC4" data-react-scrollama-id="react-scrollama-0"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-u-grid-gutter-md"><h2 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-5"></h2><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-u-links-inline"><div><p>Data engineers, metallurgists, and mining engineers from Freeport collaborated with McKinsey’s data scientists and experts to improve operations at a single aging mine in Bagdad, Arizona. The goal was to create a digital solution that could improve every aspect of operations, prove its value, and be easily scalable to all Freeport’s mines. This was the start of agile and analytics journey for Freeport.</p> <p><strong>“Modern mining is a complex and technical undertaking. Technologies such as cloud, centralized data warehouse, wireless mesh networks, and IoT sensing, allowed us to bring the data closer to the field and learn from past experiences.”<br/> </strong>—<em>Bertrand Odinet, Chief Information Officer and Chief Innovation Officer</em></p></div></div></div></div><div class="DefaultScrolly_mck-c-default-scrolly__content-text__lFvee text-content-edcc2e37-963f-416b-abb0-89bc2e8f15fb" data-id="D5DB930D5D004C78872ABAA4544FC9DA" data-react-scrollama-id="react-scrollama-1"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-u-grid-gutter-md"><h2 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-5"></h2><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8 mck-u-links-inline"><div><p>McKinsey helped Freeport create a digital roadmap using AI, advanced analytics, and agile work methods to increase productivity at every step of Freeport’s processes. The new approach favored minimum viable products that could be continuously improved, rather than the traditional goal of “perfecting” a solution before it was deployed. To entrench this capability, McKinsey brought in agile coaches to train teams to operate faster and better.</p> <p><strong>“We put in the recommended AI engine and saw 10% improvement in production. And we thought if we do the implementation at all seven of our sites right, it's almost like having a brand-new plant without having to go through permitting process and disturbing a new area. It's in the billions of dollars that we're offsetting by going through the transformation.”<br/> </strong> —<em>Cory Stevens, President, Mining Services</em></p> <p>Freeport had a big leg up for its AI transformation because it had built a central cloud-based data architecture. A key component was a data warehouse to store the data collected from sensors installed on the company’s trucks, shovels and stationary machines, allowing Freeport to capture second-by-second performance readings. It used that data to train an AI model custom-designed and built by McKinsey to find operational improvements that could increase output at lower cost. Instead of running the plant at a single setting all day, Freeport could now adjust settings every hour to maximize production from a given type of ore, quickly boosting production by 5-10%. The amount of additional copper production Freeport is projected to unlock over five years is equivalent to one new processing facility without the eight to ten year wait to bring a new facility online. Once the AI models were built in a modular way, Freeport was able to easily adapt and scale throughout its mines in the Americas.</p></div></div></div></div></div></div></div></div></div></div><div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="StandalonePromo" class="Factoid_mck-c-factoid__iaOxL mck-c-module-wrapper mdc-u-grid mdc-u-grid-gutter-xl" data-module-name="factoid"><div class="mck-o-container"><div class="UpModule_mck-c-up__irSw8"><div class="mck-c-up__content mdc-u-grid mdc-u-grid-col-sm-1 mdc-u-grid-gutter-xl mdc-u-grid--align-start"><div class="UpModule_mck-c-up__header__OR_Vx"><h2 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-c-heading--title___5qyOB_2734c4f mdc-u-align-center UpModule_mdc-c-heading--title__4XbMT"><div>The Impact<a id="impact"></a></div></h2></div></div></div></div><div data-component="mdc-c-module-wrapper" data-module-theme="light" data-module-background="white" data-module-category="StandalonePromo" class="Factoid_mck-c-factoid__inner-module-wrapper__Rj84R mck-c-module-wrapper mck-c-module-wrapper--collapse-top-spacing"><div class="mck-o-container"><div class="UpModule_mck-c-up__irSw8"><div class="mck-c-up__content mdc-u-grid mdc-u-grid-col-sm-1 mdc-u-grid-gutter-xl mdc-u-grid--align-start Factoid_mck-c-factoid__items-wrapper__2rAfP mdc-u-grid mdc-u-grid-gutter-xxl mdc-u-grid-col-md-3 mdc-u-grid-col-lg-3"><div class="FactoidItem_mck-c-factoid-item__GissZ FactoidItem_mck-c-factoid-item--with-separator__IZLxE"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-c-content-block--align-center___KRLtu_2734c4f mdc-u-grid-gutter-lg" aria-label="200M increase in pounds in annual copper production across mines"><div aria-hidden="true"><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-fluid-76 mck-c-factoid-item__title FactoidItem_mck-c-factoid-item__title--theme-light__pjYLX">0M</div><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f FactoidItem_mck-c-factoid-item__subtitle__w4Rvf mck-c-factoid-item__subtitle--large">increase in pounds </div><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8">in annual copper production across mines</div></div><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8"></div></div></div><div class="FactoidItem_mck-c-factoid-item__GissZ FactoidItem_mck-c-factoid-item--with-separator__IZLxE"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-c-content-block--align-center___KRLtu_2734c4f mdc-u-grid-gutter-lg" aria-label="$350M+ (up to $500M) EBITDA improvement by scaling AI"><div aria-hidden="true"><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-fluid-76 mck-c-factoid-item__title FactoidItem_mck-c-factoid-item__title--theme-light__pjYLX">$0M+ </div><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f FactoidItem_mck-c-factoid-item__subtitle__w4Rvf mck-c-factoid-item__subtitle--large">(up to $500M) </div><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8">EBITDA improvement by scaling AI</div></div><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8"></div></div></div><div class="FactoidItem_mck-c-factoid-item__GissZ FactoidItem_mck-c-factoid-item--with-separator__IZLxE"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-c-content-block--align-center___KRLtu_2734c4f mdc-u-grid-gutter-lg" aria-label="$1.5-2B The cost of a new processing facility that could be avoided."><div aria-hidden="true"><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-fluid-76 mck-c-factoid-item__title FactoidItem_mck-c-factoid-item__title--theme-light__pjYLX">$0.5-2B</div><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f FactoidItem_mck-c-factoid-item__subtitle__w4Rvf mck-c-factoid-item__subtitle--large"></div><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8">The cost of a new processing facility that could be avoided.</div></div><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f mdc-u-ts-8"></div></div></div></div></div></div></div></div><div data-component="mdc-c-module-wrapper" data-module-theme="light" data-module-background="white" data-module-category="" class="mck-c-module-wrapper mck-c-module-wrapper--turn-off-padding"><div class="mck-o-container"><div class="UpModule_mck-c-up__irSw8"><div class="UpModule_mck-c-up__header__OR_Vx mdc-u-mt-5"><h2 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-c-heading--title___5qyOB_2734c4f mdc-u-align-center UpModule_mdc-c-heading--title__4XbMT"><div><a id="lessons"></a></div></h2></div><div data-component="mdc-c-module-wrapper" data-module-theme="default" data-module-background="transparent" data-module-category="" class="mck-o-edge-to-edge"><div id="" data-layer-region="ceros-body"><div class="Ceros_mck-c-ceros-section__l2zpJ mck-u-screen-only"><style>.ceros-experience-holder-experience-6492f4b0b4224 { padding: 0 0 528% } @media screen and (min-width: 768px) { .ceros-experience-holder-experience-6492f4b0b4224{padding: 0 0 70.31% } }</style><div class="Ceros_mck-c-ceros-holder__OAdU8"><div class="ceros-experience-holder-experience-6492f4b0b4224 Ceros_mck-c-ceros-holder__ceros-experience-holder__O5ch7" data-break-on="768" data-sm-id="experience-6492f7bdd61ed" data-lg-id="experience-6492f4b0b4224" data-sm-src="//view.ceros.com/mckinsey/freeport-quote-tiles-mobile?heightOverride=1980" data-lg-src="//view.ceros.com/mckinsey/freeport-tiles-desktop-1-1?heightOverride=900" data-sm-padding="528%" data-lg-padding="70.31%"><iframe class="ceros-experience Ceros_mck-c-ceros-holder__ceros-experience__H4rRu" loading="lazy" allowfullscreen="" frameBorder="0" title="Freeport-McMoRan: Unlocking new mining production through AI transformation"></iframe></div></div></div><div class="mck-u-sr-only"></div></div></div></div></div></div><div data-component="mdc-c-module-wrapper" data-module-theme="light" data-module-background="white" data-module-category="StandalonePromo" class="mck-c-two-up-small mck-c-module-wrapper" data-module-name="two-up-small"><div class="mck-o-container"><div class="UpModule_mck-c-up__irSw8"><div class="UpModule_mck-c-up__header__OR_Vx"><h2 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-c-heading--title___5qyOB_2734c4f mdc-u-align-center UpModule_mdc-c-heading--title__4XbMT"><div>Related case studies</div></h2></div><div class="mck-c-up__content mdc-u-grid mdc-u-grid-col-sm-1 mdc-u-grid-gutter-xl mdc-u-grid--align-start mdc-u-grid-col-md-2 mdc-u-grid-col-sm-1"><div class="mdc-u-grid mdc-u-grid-gutter-lg mdc-u-grid-col-sm-1 mdc-u-grid--align-start mck-c-two-up-small__two-up-small-generic-item mck-c-two-up-small mck-c-two-up-small--small GenericItem_mck-c-generic-item__sGwKL GenericItem_mck-c-generic-item--with-hover-effect__hmVy2 GenericItem_mck-c-generic-item--1by1-above-desktop__p_xzy"><div class="GenericItem_mck-c-generic-item__image__F_tIc"><a data-component="mdc-c-link" href="/capabilities/mckinsey-digital/how-we-help-clients/rewired-in-action/xcel-energy-driving-towards-net-zero-with-the-power-of-digital" class="mdc-c-link___lBbY1_2734c4f"><picture data-component="mdc-c-picture"><source media="(min-width: 1180px)" srcSet="/~/media/mckinsey/business%20functions/mckinsey%20digital/how%20we%20help%20clients/impact%20stories/xcel%20energy/xcel_thumb_571751995_1536x1536.jpg?cq=50&mw=767&car=1:1&cpy=Center"/><img alt="Overhead night-sky view of a large metropolis " 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