Freeport targets Kucing Liar mine to begin operations in 2029

PT Freeport Indonesia is targeting its Kucing Liar underground mine, located in Mimika, Central Papua, to begin operations in 2029. “It is also planned that in 2029, the mine we are currently developing, the Kucing Liar mine, will be able to start being mined,” said PT Freeport Indonesia President Director Tony Wenas during a hearing with Commission XII of the Indonesian House of Representatives in Jakarta on Tuesday. Tony explained that the Kucing Liar mine will eventually replace the Deep Mill Level Zone (DMLZ) mine, which is experiencing a decline in production. Citing PT Freeport Indonesia’s official website, the Kucing Liar underground mine is estimated to produce more than 7 billion pounds of copper and 6 million ounces of gold over the period from 2029 to the end of 2041. At full operating capacity, annual production from the Kucing Liar underground mine is expected to reach approximately 560 million pounds of copper and 520 thousand ounces of gold. “Thus, the stability or continuity of mining can be sustained,” Tony stated. In a previous hearing, Tony revealed that the Kucing Liar underground mine was initially planned to start operations in 2028. However, a landslide incident in the Grasberg Block Cave (GBC) underground mine area in Mimika, Central Papua, on 8 September 2025, caused the plan to be delayed. Freeport Indonesia commenced long-term mine development activities for Kucing Liar in October 2021. The extension of Freeport’s Special Mining Business Permit (IUPK) after 2041 is targeted to extend the life of the project. A memorandum of understanding regarding the extension of PTFI’s IUPK was signed by Minister of Investment and Downstreaming/Head of BKPM Rosan Perkasa Roeslani, President & CEO of Freeport-McMoRan Kathleen Quirk, and President Director of PT Freeport Indonesia Tony Wenas at the U.S. Chamber of Commerce building in Washington DC, United States, on Wednesday (18/2). Through the MoU, the government, FCX and PTFI agreed on six points, namely that Freeport’s IUPK will be amended to provide an extension of operating rights for the life of the reserves; PTFI will increase its support for communities in Papua, including through funding support for the construction of a new hospital and two medical education facilities. Thirdly, PTFI will increase exploration spending and accelerate the implementation of studies to identify and develop long-term resources and expansion opportunities. Fourthly, PTFI will continue to prioritise domestic downstreaming through the domestic sale of processed copper, precious metals, sulphuric acid, and other products. In addition, PTFI will also have the flexibility to expand the marketing of processed copper to the United States based on market mechanisms should the United States require additional copper supply. Fifthly, in 2041, FCX will transfer a 12 percent share ownership in PTFI to the government at no cost, provided that the party receiving the shares reimburses FCX for proportional costs incurred based on the book value of investments that provide benefits for the period after 2041. FCX will retain its share ownership in PTFI at 48.76 percent until 2041, and its ownership will become approximately 37 percent starting in 2042. The sixth point is that the current governance and operational structure, as well as the provisions in the shareholders’ agreement, IUPK, and other existing agreements, will be maintained for the life of the resources.