Freeport Indonesia May Receive Export Quota for 1 Million Tons of Copper Concentrate

Copper miner Freeport Indonesia could receive an export quota of approximately 1 million metric tons of copper concentrate, according to Energy and Mineral Resources Minister Bahlil Lahadalia. The quota, valid for six months, falls under a government regulation that permits mineral exports under force majeure conditions.

Indonesia, a resource-rich nation, has enforced an export ban on unprocessed minerals, including copper and nickel, to boost domestic value-added processing. However, Freeport has requested an export allowance following a halt in copper cathode production at its new Gresik smelter due to a fire in the gas cleaning unit in October.

The company has since reduced mining operations to 40% capacity as its stockpile of copper concentrate continues to grow, with the potential to reach 1.3 million tons, according to CEO Tony Wenas. Given the domestic market's limited ability to absorb the excess material, Freeport has applied for an export permit under the new regulation.

The mining ministry has yet to issue a recommendation, which is required before the Trade Ministry can grant an export permit, senior official Tri Winarno confirmed.