HOUSTON - Freeport-McMoRan hopes US President Donald Trump declares copper a critical mineral, a move that would unlock tax credits needed to boost American production of the red metal and offset global rivals, CEO Kathleen Quirk said on Monday.

Trump told the US Congress last week he would "take historic action to dramatically expand production of critical minerals," although he has yet to provide details. Copper is used widely across the global economy in power generation, electronics and construction.

The US Geological Survey lists lithium, nickel and 48 other minerals as critical. Adding copper would help Freeport generate more than $500-million annually in tax credits tied to the US Inflation Reduction Act, Quirk told Reuters on the sidelines of the CERAWeek energy conference in Houston.

"Having the incentives and clarity around those would be a big plus for the domestic copper industry," said Quirk, who became CEO of Phoenix-based Freeport last year.

"People are understanding more what copper is used for and its importance in our economy. It's just a matter of time before it's classified as a critical mineral."

Former President Joe Biden's administration extended the tax credit to critical minerals last October. Copper producers cannot access it unless their product is labeled as critical.

All the copper that Freeport produces at its seven US mines is consumed domestically, making it the country's largest producer of the metal. Freeport also operates one of two US copper smelters and produces more than 200-million pounds of the metal annually using leaching.

The average grade, or percentage of copper in rock deposits in Freeport's US mines, is lower than elsewhere, boosting costs and making the US Freeport's least profitable region.

"We're not looking for handouts, but if the government is trying to incentivize domestic production, it's important to recognise that the US doesn't have the same grades that we have internationally," said Quirk.

Last month, Trump launched a probe into potential new tariffs on copper imports to help rebuild US production.

US copper tariffs could boost Freeport's profits by $400-million annually, yet the company is worried about their impact on the global economy, Quirk said.

"We're not out there advocating one way or the other. We're wanting to make sure that there's education so that there's informed decisions about all of this," Quirk said.

GLOBAL OPERATIONS

In Indonesia, where Freeport operates the Grasberg copper and gold mine, Quirk said the company expects to reach an agreement soon with Jakarta that would allow copper concentrate exports by the end of the month.

Elsewhere, Trump has expressed interest in minerals projects in Greenland and Ukraine. Quirk said Freeport would "always look" at potential international investments, but that Greenland and Ukraine are "not on our near-term priority list."

The US State Department said on Sunday it was open to exploring critical minerals partnerships with the Democratic Republic of Congo (DRC), which is rich in cobalt, lithium and other minerals. Freeport sold its DRC operations in 2016, but is eyeing a return, Quirk said.

"We would be interested in going back (to the DRC) for the right opportunity," said Quirk, adding that would mean Freeport would be the operator of any mine. Quirk declined to comment when asked if Freeport is in negotiations with the DRC government.