Freeport Indonesia Seeks More Concentrate Exports Until Smelter Optimization

FREEPORT-JAKARTA. PT Freeport Indonesia (PTFI) intends to apply for a relaxation of copper concentrate exports as the export permit ends in May 2024.

EVP Corporate Communications of PTFI, Agung Laksamana, revealed that the export permit extension is needed because there is a potential for unabsorbed copper concentrate. 

"PTFI's copper smelter at the Java Integrated Industrial and Ports Estate (JIIPE), Gresik, will only start operating at the end of May 2024, and will only reach full capacity (ramp-up) in December 2024," Agung told Kontan, on Friday (23/12). 

Agung explained, that with this condition, the new smelter facility will not yet be able to absorb all copper concentrate production. 

Furthermore, the inability of domestic smelters to absorb all production could potentially lead to stockpiling. In addition, it will result in a decrease in the production capacity of concentrate or ore.

"With this condition, we hope for a relaxation of the copper concentrate export permit after May 2024. Because the current copper concentrate export permit is only valid until May 31, 2024," added Agung. 

Kontan noted, that until November, the progress of PTFI's smelter has reached more than 83%. 

As known, previously PTFI had obtained a copper concentrate export permit on July 24, 2023. With this permit, PTFI received approval from the Indonesian government to export as much as 1.7 million tons of copper concentrate until May 2024. 

While still completing the ongoing PTFI copper concentrate purification facility project, namely the Manyar smelter.

This relaxation policy is stipulated in the Minister of Energy and Mineral Resources (ESDM) Regulation Number 7 of 2023 concerning the Continuation of the Development of Metal Mineral Purification Facilities in the Country, which was enacted on June 9, 2023.