Indonesia will issue Freeport Indonesia a six-month permit to export copper concentrate while its smelter undergoes repairs, ensuring continued government royalty payments, Energy Minister Bahlil Lahadalia announced on Monday.
Freeport has been seeking an export permit after a fire in October 2024 damaged its new smelter in Gresik, East Java province, forcing a halt in copper cathode production.
“We are giving six months so that they can expeditiously fix the smelter so that Indonesia can get state revenues from the royalties,” Lahadalia said.
The minister did not specify the permitted export volume but previously suggested Freeport could receive a quota of around 1 million metric tons. The company had requested permission to export 1.2 million metric tons of copper concentrate last week.
Freeport has not exported copper concentrate since its last permit expired at the end of 2024. With mining operations running at 40% capacity due to rising stockpiles, the company currently holds 400,000 metric tons of copper concentrate in inventory.
Indonesia has imposed strict bans on the export of unprocessed minerals, including copper and nickel, to encourage domestic refining and processing.
Lahadalia made the announcement at the launch of Freeport Indonesia’s new $630 million precious metals refinery within the Gresik smelter complex. The facility processes gold, silver, platinum, and palladium, according to a presentation at the event.
