Freeport Targets Grasberg Mine Recovery by 2027

18 hours ago 12

TEMPO.CO, Jakarta – PT Freeport Indonesia (PTFI) has yet to fully restore production capacity at its Grasberg mine following a landslide in September 2025, with output expected to reach only around 65 percent of normal capacity this year.

PTFI President Director Tony Wenas said the company is still conducting recovery work and ensuring safety across the mining area before gradually increasing production.

"Due to the landslide in September 2025, the production ramp-up process is progressing more slowly than our initial estimates. This year, production capacity is still around 65 percent," Tony said during a hearing with House of Representatives Commission XII on Tuesday, July 14, 2026.

Freeport Targets Full Recovery by End of 2027

PTFI aims to raise production capacity to around 75 percent in the first half of 2027 before returning to full capacity by the end of the year.

As mining operations recover, Freeport also expects its downstream facilities to increase output in line with the recovery of copper concentrate supply.

The company’s new smelter in Gresik, East Java, is targeted to produce around 600,000 tons of copper cathodes annually. Combined with PT Smelting Gresik, Freeport’s total copper cathode production capacity is expected to reach around 800,000 tons per year.

The Precious Metal Refinery (PMR) facility in the same area is also projected to produce up to 50 tons of gold annually by processing anode mud containing gold, silver, and other precious metals.

Grasberg Output Hit by DMLZ Suspension

From the mining side, Freeport estimates ore production in 2026 will average around 124,000 tons per day, down from approximately 139,000 tons per day in 2025.

Tony said the decline was mainly caused by the suspension of production at the Deep Mill Level Zone (DMLZ) mine following the landslide.

For 2026, PTFI targets producing around 800 million pounds of copper and 700,000 ounces of gold, equivalent to approximately 21 tons.

Tony projected production would gradually recover, reaching around 170,000 tons of ore per day in 2027, 208,000 tons per day in 2028, and 226,000 tons per day in 2029.

"That is our normal production level, or 100 percent capacity," Tony said.

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