Freeport-McMoran faces potential halt of activities in Indonesia

PT Freeport Indonesia, a copper miner and subsidiary of Freeport-McMoran (NYSE: FCX), said on Thursday it has not yet received a long-awaited government permit to continue exporting its materials.

The waiting game poses a major risk of overcapacity at the company’s storage facilities in the eastern region of Papua.

Indonesia banned in June exports of raw minerals in an effort to boost its metals processing industry, but vowed to allow several companies including Freeport and Amman Mineral International to continue exporting until mid-2024.

“If these two big companies complete their smelters, that means we will no longer export raw copper because it will be processed domestically to become copper cathodes,” President Joko Widodo said at the time.

Freeport’s export permit expired on June 10, when Indonesia began its raw mineral export ban, and the company said it has not made any shipments since.

Spokesperson, Katri Krisnati, confirmed to Reuters the company is still awaiting the issuance of the export permit. 

Without it, she said Freeport’s operational activities would be suspended, resulting in significant implications for overall operations and sales of mining products.

Freeport Indonesia produced 3 million tonnes of copper concentrate in 2022, an annual record. The company has in recent years transitioned into underground mining at its flagship Grasberg mine, the world’s second-largest copper operation.

With files from Reuters