03:09 PM EDT, 10/31/2024 (MT Newswires) -- Freeport-McMoRan ( FCX ) faces an investigation by the US Securities and Exchange Commission on whether the company failed to disclose risks to its $3.7 billion copper smelter complex in Indonesia from a severe earthquake, Bloomberg reported Thursday, citing people familiar with the matter.

An unidentified senior engineer who worked as a contractor for Freeport filed a whistleblower complaint in 2022 alleging that the project's engineering designs didn't meet Indonesia's code for earthquake-resistant buildings, the report said.

The engineer alleged the company disregarded expert advice and the complex might collapse into the sea during a significant tremor, Bloomberg reported.

Freeport rejected the claims in the whistleblower's complaint, and the SEC declined to comment, Bloomberg said.

The project underwent "multiple subject matter expert reviews" and its engineering design and construction were "fully compliant with all applicable Indonesian building codes," Freeport said, according to Bloomberg.

Freeport and the SEC didn't immediately reply to requests for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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