Freeport Indonesia reduces copper ore mining to 60% capacity

Copper miner PT Freeport Indonesia has reduced its copper ore mining to 60% capacity due to rising stockpiles, Energy and Mineral Resources Ministry senior official Tri Winarno said on Friday.

Indonesia has banned exports of unprocessed ores to encourage domestic processing and value-add. Freeport’s new smelter is undergoing repairs following a fire in October, and it has requested an export permit extension for its copper concentrate in the interim.

“When their stockpile is full, surely they have to reduce ore production,” Tri told reporters, adding the period the mining activities had been reduced was unclear.

Freeport Indonesia was forced to adjust upstream production as its concentrate storage facilities in Amamapare, Central Papua and in Gresik, East Java, are full, spokesperson Katri Krisnati said.

She did not elaborate on the miner’s current production rate.

Meanwhile, Tri said an export permit for Freeport was “in process”, adding no definite decision has been made and the company is required to meet certain conditions, which he did not elaborate on.

On Thursday, Reuters reported the company is expected to resume shipments of copper concentrate from Indonesia this month, citing two sources with knowledge of the matter.

The firm would start loading cargoes destined for China on Friday in anticipation of receiving an export licence by month end, according to one source with direct knowledge of the matter.

“They cannot export while there is no export recommendation (from the mining ministry),” Tri said when asked about the potential shipment to China.

(By Bernadette Christina Munthe and Fransiska Nangoy; Editing by John Mair and Emelia Sithole-Matarise)