Freeport Targets Full Production Recovery by End of 2027

PT Freeport Indonesia (PTFI) President Director Tony Wenas stated that the company’s production will recover gradually after being impacted by a landslide at the Grasberg Block Cave (GBC) underground mine. PTFI is targeting a return to 100 per cent production capacity by the end of 2027. The recovery is being carried out alongside repairs to the mine area and the restoration of concentrate supply to the smelter in Gresik. The new smelter is scheduled to begin processing concentrate from Papua again in September 2026, before undergoing a ramp-up process until the end of the year. “This year it will still reach 65 per cent of total capacity. In the first half of next year it will reach 75 per cent of capacity and towards the end of 2027 it will reach 100 per cent capacity,” Tony said during a hearing with House of Representatives Commission XII at the Parliament Complex in Senayan, Jakarta, on Tuesday. He explained that the landslide which occurred on 8 September 2025 at the Grasberg Block Cave halted the supply of concentrate to the smelter. This condition meant the refining facility only processed remaining concentrate stocks in the warehouse before finally ceasing operations in December 2025. PTFI utilised the operational shutdown to carry out maintenance and improvements across all smelter facilities. This step was taken to ensure the entire system is ready to operate again when the concentrate supply from Papua returns to normal. “The plan is for the new smelter to begin processing and refining concentrate from Papua this September, then undergo a ramp-up process until the end of the year,” Tony said. Currently, PT Smelting continues to operate and processes about half of the concentrate produced by PTFI in Papua. On the upstream side, mine production this year is estimated to reach 124,000 tonnes of ore per day, lower than last year’s realisation of 139,000 tonnes per day. In 2026, PTFI is targeting production of approximately 800 million pounds of copper and 700,000 ounces of gold, equivalent to about 21 tonnes. Production is projected to increase to 1.2 billion pounds of copper and 1 million ounces of gold, or around 31 tonnes, in 2027. Production capacity will rise again in 2028 to approximately 1.6 billion pounds of copper and 1.4 million ounces of gold, or about 43 tonnes. Ore production is also expected to increase to 208,000 tonnes per day before reaching around 226,000 tonnes per day in 2029. “In 2029, the mine we are currently developing, the Kucing Liar Mine, is planned to begin operations. This mine is being prepared to replace DMLZ, which is starting to experience a decline in tonnage,” Tony said. The Kucing Liar Mine is being prepared to maintain production continuity after DMLZ enters its decline phase. With the development of this new mine, PTFI is targeting a long-term production rate of approximately 220,000 tonnes of ore per day.