Landslide at Freeport Indonesia Disrupts Gold Supply to Antam

October 14, 2025 | 05:40 pm

TEMPO.CO, Jakarta - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed that concentrate production activities at Freeport Indonesia's Grasberg Block Cave (GBC) underground mine in Papua have not been operating at full capacity since the landslide in early September 2025. He stated that this condition has directly impacted the gold supply absorbed by PT Aneka Tambang Tbk (Antam).

"We are currently conducting a total evaluation. Freeport's concentrate production is not at its maximum, resulting in a shortage of supply," Bahlil said when met at the Ministry of Energy in Central Jakarta, on Tuesday, October 14, 2025.

According to Bahlil, the production disruption at GBC also impacted the Freeport smelter in Gresik, East Java, which has not yet received an optimal supply of concentrate. "Our gold refinery is at Freeport. If 3 million tons of copper concentrate are processed in the smelter, it can produce 50 to 60 tons of gold," he said.

To address the supply impact, the Ministry of Energy is discussing measures to ensure Antam's gold needs are met. "We are currently discussing possible measures to optimize Antam's gold needs," he said.

The underground Freeport mine in GBC experienced a landslide on Monday, September 8, 2025. The incident resulted in the death of seven workers and halted production for nearly a month. The search for victims lasted for 27 days before mining activities gradually resumed.

On the other hand, to reduce its dependency on imports, Antam ensured that it would continue to absorb pure gold production from Freeport. Antam's President Director, Achmad Ardianto, explained that this collaboration has been ongoing since the Freeport smelter in Gresik started operating in April 2025.

"Freeport's pure gold product only came out this year after its smelter commenced operations. Since April, Antam has been collaborating with Freeport under the coordination of Mind ID to absorb its production," Achmad said during a meeting with the House of Commission VI on Monday, September 29, 2025.

Previously, Freeport only exported black sand concentrate containing copper, gold, and silver. Now that the Gresik smelter is operational, all concentrates are purified domestically. This results in pure gold that Antam can absorb directly. "This is an important achievement because what has been pursued together with the government and the DPR (House of Representatives) has finally been realized," Achmad added.

He estimated that by the end of 2025, Freeport is expected to be able to produce around 9 tons of pure gold, while Antam has signed a contract to absorb 25-30 tons per year. "All of Freeport's gold is currently being absorbed by Antam. Although the production is still gradual, this collaboration helps to reduce gold imports," he explained.

Achmad added that the national gold potential is quite significant. Production from large mining companies, both domestic and foreign, reaches around 90 tons per year. This figure could be higher if artisanal mining were taken into account.

With the operation of the Freeport smelter, he is optimistic that the domestic gold needs will be increasingly met from domestic production. Antam noted an increase in gold sales from 37 tons in 2024 to 43 tons in 2025, with a target of 45 tons in 2026.

Editor's Choice: Danantara Indonesia CEO Says Freeport Has Agreed to Divestment Share

Click here to get the latest news updates from Tempo on Google News

Danantara Indonesia CEO Says Freeport Has Agreed to Divestment Share

6 hari lalu

Indonesia Finalizes Deal to Acquire Additional 12% Stake in Freeport

6 hari lalu

Bank Indonesia Denies Selling 11 Tons of Gold Reserves

7 hari lalu

Freeport Mine Landslide Evacuation Completed; 7 Workers Confirmed Dead

7 hari lalu

Statistics Indonesia Reports Gold as Main Contributor to September Inflation

8 hari lalu

PT Freeport Indonesia Recovers Three Bodies from Grasberg Mine Landslide

8 hari lalu

One Worker Found Dead in Freeport Indonesia Mine Incident

9 hari lalu

Antam Gold Price Surges Rp48,000 per Gram in a Week

10 hari lalu

Freeport-McMoRan Agrees to Divest 12% Stake to Indonesia at Zero Cost

12 hari lalu

Antam Gold Price Hits Record High: Rp2.23 Million Per Gram

14 hari lalu