The country's energy minister, Bahlil Lahadalia, said that Freeport Indonesia would be granted a half-year export permit for copper concentrates. With the company's smelter currently being repaired, this move is a great way for the government to earn royalties from selling the metal.
After months of attempting to secure a license for overseas shipment of raw materials, the local branch of Freeport faced a setback in October 2024. A fire forced them to halt copper cathode production at their Gresik plant in East Java. In the meantime, the company's permit to export concentrate had expired, and a new one hadn't been signed by the authorities.
The head of the Energy Ministry has given Freeport Indonesia a six-month deadline to restart operations. Until then, the plant could supply the international market with 1.27 million tons of refined copper products, Bisnis.com reported.
Freeport Indonesia estimates it is running at only 40% of production capacity due to rising concentrate stockpiles, which have already reached 400,000 tons.