Indonesia’s Minister of Energy declared plans to grant Freeport Indonesia a six-month export license for copper concentrates.
Indonesia has outlined to grant the mining company Freeport Indonesia a six-month license to export copper concentrate, supporting operations amid the smelter repair. The decision seeks to ensure the continuation of government royalty revenues while assisting Freeport in addressing the consequences of fire damage.
On Monday, Energy Minister Bahlil Lahadalia proclaimed the extension of the export permit, emphasizing the government’s dedication to maintaining revenue from the mining company. “We are giving six months so they can expeditiously fix the smelter so Indonesia can get state revenues from the royalties,” the Minister stated.
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Freeport Indonesia faced an export halt for copper concentrate after its permit expired at the end of 2024. Following a fire last October, the company was forced to suspend copper cathode production at its Gresik smelter facility in East Java. Currently operating at only 40% capacity, Freeport has accumulated substantial stockpiles of approximately 400,000 metric tons of copper concentrate.
Last week, Freeport expressed its intent to secure approval for exporting up to 1.2 million tons of concentrate. The newly issued permit provides relief by enabling the company to manage its growing stockpile of copper concentrate.
The export permit holds great importance in light of Indonesia’s strict policy on mineral exports. The country has enforced stringent rules prohibiting the export of raw minerals, including copper and nickel, to promote its goal of elevating domestic processing industries.
During the announcement, Minister Bahlil celebrated the inauguration of Freeport’s $630 million precious metals refinery within the Gresik smelter complex. Capable of processing copper, gold, silver, platinum, and palladium, the refinery supports Indonesia’s goal of promoting domestic processing, adding local value over exports. The step is expected to drive economic growth and create essential jobs during global changes.
The temporary export permit enables Freeport to address operational challenges while optimizing its royalty contributions to the Indonesian government. Specific details regarding the approved export quotas remain unclear.
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