Freeport Has New Mining Project, Could Produce 6 Million Ounces of Gold

PT Freeport Indonesia (PTFI) is developing a new underground mining block, Kucing Liar, in the Grasberg district of Mimika Regency, Central Papua.

The project is projected to produce more than 7 billion pounds of copper and 6 million ounces of gold over its operational life to sustain national production.

PT Freeport Indonesia President Director Tony Wenas said the new mine is expected to begin initial production in 2029.

“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 and build a foundation for the company’s sustainability and its benefits for the nation and state,” he said in a speech at the 81st Indonesian Independence Day ceremony in Tembagapura, Mimika Regency, Central Papua, on Monday (17/8/2026).

He said the development of the Kucing Liar block requires a major financial commitment, with total investment projected to reach Rp 72 trillion.

To date, the company has spent around Rp 24-25 trillion to prepare supporting facilities and underground mining access.

“The development of the Kucing Liar underground mine, which will become one of the company’s main future production sources, continues. This underground mine investment has cost Rp 25 trillion and will eventually reach Rp 72 trillion overall,” he added.

The Kucing Liar mine is projected to have a production capacity of 130,000 tonnes of ore per day. The Kucing Liar block is considered important to offset the natural production decline at the Grasberg Block Cave (GBC) so that the company’s total output remains stable.

“We plan for Kucing Liar to reach 130 thousand tonnes of ore per day. This will really support because GBC will also be depleted and decline, so we can keep production stable at 240 thousand tonnes of ore per day,” he said on the sidelines of the event.

The company stressed that the project’s sustainability also depends on certainty regarding the extension of its Special Mining Business Permit (IUPK) after 2041. With legal certainty, Freeport is committed to continuing to explore reserve potential at deeper levels to extend the mine’s life.

“The point is that if the mine stops in 2041, no one benefits. The government also loses because there is no more revenue from Freeport, 30 thousand employees would be gone, and our community development programmes would be gone. So if it is extended, all parties benefit,” he concluded.