Freeport Targets 75% Production in First Half of 2027 as Recovery Continues
PT Freeport Indonesia (PTFI) has revealed that the company’s mining production target could reach 75% of normal production in the first half of 2027. This is projected to increase from the company’s production target of 65% of normal production by the end of 2026.
President Director of PT Freeport Indonesia Tony Wenas said the company is currently focused on clearing residual landslide material at the Grasberg Block Cave (GBC) mine. He assured that technical work is being accelerated so that mine operations can gradually return to normal levels to maintain stability of contributions to the state.
“Going forward, production capacity is expected to increase to 75% in the first half of 2027 and gradually approach full capacity by the end of 2027,” he said in a speech at the 81st Independence Day ceremony in Tembagapura, Central Papua.
The underground mine recovery effort involves the removal of approximately 800,000 tonnes of wet mud material as well as repairs to various supporting infrastructure affected by the incident. The company is also modifying a number of heavy equipment because the ore characteristics found in the field turned out to be wetter than initially estimated.
“We continue to carry out this recovery phase, there are some equipment modifications because the ore turned out to be wetter than we previously estimated. So the equipment needs to be modified slightly but it is now ongoing, all on target of 65% this year, 75% in the first half and heading towards 100% in the second half,” he added.
Until the end of 2026, PTFI projects production capacity to reach a volume of 800 million pounds of copper and 700,000 ounces of gold. Although not yet operating at maximum capacity, the company projects its contribution to state revenue this year can still reach Rp 47 trillion.
“Next year will certainly be higher because next year we can reach 75% in the first half and by the end of next year we are heading towards 100%. And if we are already at 100%, the contribution to the state could be extraordinarily large, more than Rp 100 trillion, perhaps Rp 120 trillion annually,” he said.
The smooth recovery process is key to the sustainability of PTFI’s long-term investment, including the development of the Kucing Liar underground mine project. The company projects that Kucing Liar could begin production in 2029.
As such, the company is committed to maintaining strict occupational safety standards during the process of increasing production capacity towards the 100% level at the end of 2027.
“This investment shows that amid the recovery period, Freeport Indonesia continues to move forward and continues to build the foundation for the company’s sustainability and its benefits for the nation and state,” he concluded.