Freeport Develops New Mine, Investment Could Reach Rp72 Trillion
PT Freeport Indonesia (PTFI) is developing a new underground mine block, Kucing Liar. The development of the new mine is projected to require total investment of up to Rp72 trillion.
PTFI President Director Tony Wenas explained that the construction process for the new mine area is ongoing. This is also in line with the company’s long-term operational targets.
Tony emphasised that the large investment for the Kucing Liar Block is part of the sustainability programme for the country.
“The development of the Kucing Liar underground mine, which will become one of the company’s main future production sources, is continuing. Investment in this underground mine has reached Rp25 trillion and will ultimately total Rp72 trillion,” he explained during the 81st Independence Day ceremony in Tembagapura, Mimika Regency, Central Papua, on Monday (17/8/2026).
The Kucing Liar Block mine project is targeted to enter the production phase in 2029, with projected output of 130,000 tonnes of ore per day. The mine is designed to support the company’s total production capacity so that it can continue to achieve the target level of 240,000 tonnes of ore per day.
“This mine is projected to produce more than 7 billion pounds of copper and 6 million ounces of gold over its operational life. This investment shows that amid the recovery period, Freeport Indonesia continues to move forward,” he added.
The presence of the Kucing Liar block is considered important to offset the projected natural production decline at the Grasberg Block Cave (GBC) mine in the future.
If the company also obtains certainty regarding the extension of its Special Mining Business Permit (IUPK) after 2041, the company also plans to conduct further exploration to find potential new reserves beyond the current blocks.
“This will truly support us because GBC will also eventually be depleted, it will decline, so we can continue to stabilise production at the level of 240,000 tonnes of ore per day,” he stressed.
As is known, in Freeport-McMoRan’s (FCX) first half 2026 report, as of 30 June 2026, PTFI had invested approximately US$1.4 billion, or around Rp24.9 trillion, for the development of the Kucing Liar mine project.
PTFI itself began developing the new underground mine located in the Grasberg area, Central Papua, in 2022. Initially, the mine was targeted to operate in 2028, but was pushed back to 2029 due to a wet material landslide incident at the Grasberg Block Cave (GBC) in September 2025.
“Since 2022, PTFI has carried out long-term mine development activities at the Kucing Liar deposit located within the Grasberg minerals district,” Freeport-McMoRan (FCX) wrote in its first half 2026 performance report.
According to the FCX report, production from the Kucing Liar mine is targeted to begin ramping up around 2030 until it reaches the design capacity of approximately 130,000 metric tonnes of ore per day.
At full operation, Kucing Liar is estimated to be capable of producing an average of 750 million pounds of copper and approximately 735,000 ounces of gold per year. This is considered one of the company’s strategies to maintain production sustainability in the Grasberg area.