CHARTS: The coming critical minerals trade war is BRICS short of a load
"While a large number of countries around the world continue to talk about securing raw material supply, China is actually doing something about it."
Freeport Indonesia would need to reduce ore production by 40% in 2024 if the copper miner is not allowed to export concentrate before its smelter reaches full operating capacity, CEO Tony Wenas said on Tuesday.
Indonesia is set to stop exports of copper concentrate from May after the government delayed the implementation of a ban from June this year to allow companies such as Freeport to complete their smelter constructions.
The Indonesian unit of Freeport-McMoRan is building a $3 billion copper smelter in East Java but has faced delays due to the pandemic.
The smelter is expected to start operation in May 2024 but would need time to reach full capacity, Wenas said at a business conference in Jakarta.
“It needs five to six months to reach 100% capacity,” he said, and the company would need to slash output from its Grasberg mine if it is not allowed to export.
He said the company has conveyed this concern to the government.
(By Dewi Kurniawati and Fransiska Nangoy; Editing by Jason Neely and Kirsten Donovan)
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