Freeport to Invest Rp72 Trillion in New Mining Project

PT Freeport Indonesia (PTFI) is set to inject substantial additional investment to develop the Kucing Liar underground mine project in the Grasberg mineral district, Papua. Citing Freeport-McMoRan’s (FCX) first-half 2026 performance report, the company estimates the additional capital expenditure for the Kucing Liar project will reach approximately US$4 billion, or around Rp71.69 trillion (assuming an exchange rate of Rp17,923 per US dollar), through to 2033. This investment aims to support the mine’s development until it reaches full production capacity, which is targeted to ramp up around 2030. As of 30 June 2026, PTFI had already spent approximately US$1.4 billion, or around Rp25 trillion, on the project’s development. Once fully operational, the Kucing Liar mine is projected to have a capacity of around 130,000 metric tonnes of ore per day, with average annual production reaching 750 million pounds of copper and 735,000 ounces of gold. Freeport views the project as a strategic investment to sustain underground mining production in the Grasberg area while leveraging existing infrastructure. The development of Kucing Liar has been ongoing since 2022. In a separate note on first-half 2026 production, FCX reported that gold output from its Tembagapura operations fell to 276,000 ounces, down from 595,000 ounces in the same period last year. President and CEO Kathleen Quirk attributed the decline to upstream constraints following a mud overflow incident at the Grasberg Block Cave underground mine in September 2025. Copper production also decreased to 300 million pounds from 655 million pounds in the prior-year period. Quirk stated the team remains focused on advancing safe and sustainable operational capacity recovery.