PT Freeport targets full smelter operation by December 2025

By Calvin Purba

Copper and gold mining company PT Freeport Indonesia (PT-FI) aims to have its new copper smelter in Gresik, East Java, fully operational by December 2025. The company is working to repair equipment damaged by a recent fire, with the repairs expected to be completed by June, followed by a gradual ramp-up.

“Repairs will be completed in June, and ramp-up will continue until December,” said Dilo Seno, Director of Portfolio and Business Development at MIND ID, during the MINDialogue event on Thursday (January 9). State-owned mining holding company MIND ID owns more than 51% of PT Freeport, with the remainder held by US-based Freeport McMoRan Inc.

Regarding the Precious Metal Refinery (PMR), Dilo explained that it continues to operate, though not at full capacity. “Our PMR located in JIIPE is still operating but only at 40% capacity,” he said.

On the subject of export permits, Dilo mentioned that PT-FI initially requested an extension until the end of the year, but it is unlikely that the government will grant the full extension.

“We initially requested a one-year extension to continue exports due to force majeure. However, it seems the government, in its efforts to accelerate repairs, may not grant the permit until December,” Dilo said.

Read also : PT Freeport's export permit still under review, minister says

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia had previously confirmed that PT-FI's request for a new copper concentrate export permit is still under review. The government is assessing several factors during the evaluation process.

The government aims to ensure that the export policy delivers benefits for the company while maximizing added value for the country. “We are reviewing the export volume and permit duration,” Bahlil said on Wednesday (January 8).

On January 1, 2025, the government officially implemented a ban on exports of raw and unrefined minerals, including copper concentrate. Initially, as mandated by the Mining Law, the government intended to enforce the ban by June 2023.

However, delays in domestic smelter construction due to the COVID-19 pandemic led to the relaxation of the policy, allowing continued exports. A second extension, lasting until December 2024, was granted for smelters that were completed but not yet operating at full capacity.

If copper smelters continue to underperform, domestically produced concentrate may go unused, disrupting mining operations and negatively affecting state revenues.

Editing by Reiner Simanjuntak