Freeport Indonesia Adjusts Concentrat Production Due To Full Storage Capacity

PT Freeport Indonesia (PTFI) has adjusted the production of concentrates at the upstream level because the capacity of concentrate storage in PTFI is full.

"The adjustment of production upstream has to be carried out because currently the capacity of PTFI's concentrate storage, both in Amamapare, Central Papua and in PTFI smelters, Gresik, East Java, is full," said VP Corporate Communications of PT Freeport Indonesia Katri Krisnati, quoted by Antara, Friday, February 14.

The statement also confirmed the statement by the Director General of Mineral and Coal (Minerba) of the Ministry of Energy and Mineral Resources (ESDM) Tri Winarno who conveyed that PT Freeport Indonesia (PTFI) reduced the production of copper concentrate mines to 60 percent of its production capacity.

Previously, Tri explained that the production reduction was due to the fact that the copper concentrate storage area or stockpile had exceeded the available capacity.

The concentrate that exceeds the storage capacity is due to the export license of a copper concentrate that has not been granted by the government.

The export license for copper concentrate has expired since December 31, 2024. However, in October 2024, a fire broke out that hit the electrophic acid treatment unit belonging to the Freeport smelter in Gresik.

The incident caused Freeport not to be able to produce because Freeport's operations in Gresik were temporarily suspended. This is what underlies Freeport in submitting an extension of exports to the government.

Tri said that until now, the government has not given Freeport a concentrate export permit, because it has just completed the investigation process of the burning smelter.

Based on the results of the investigation, Tri said that there was no intentional element.

"If there is an intention, the insurance will not be disbursed. It will be insured," he said.

The smelter, which experienced the fire, is planned to resume operations in July, and will gradually increase to 100 percent by December 2025.

However, Tri has not confirmed whether a copper concentrate export license will be granted once the smelter repairs are completed.

"Anyway, it's still in process," Tri said.