JAKARTA, Nov 24 (Reuters) - Freeport Indonesia on Monday

said it cut its 2026 production plans for its Grasberg mine

following a fatal accident in September that killed seven

people.

A mud flow at Freeport's Grasberg Block Cave (GBC) operation

triggered a suspension of the mine, which accounts for a

majority of the complex's output. Grasberg is the world's

second-largest copper mine and largest gold mine.

In late October, Freeport resumed operations at the Big

Gossan and Deep Mill Level Zone operations, the two other

components of the Grasberg complex, as they were unaffected by

the mud flow.

Freeport now expects to produce 478,000 metric tons of

copper cathode and 26 tons of gold in 2026, Chief Executive Tony

Wenas told members of Parliament, down from an earlier

expectation for around 700,000 tons of copper cathode and 45

tons of gold.

"We continue to conduct the recovery at Grasberg Block Cave

with a target to begin operating this mine in the first quarter

of 2026," Wenas said.

GBC's full recovery is expected in 2027, he said.

The company expects $8.3 billion in sales next year, down

slightly from an earlier expectation of $8.5 billion, as it

forecast higher copper and gold prices.

Freeport's copper sales volume is expected to be 30% lower

than initially planned in 2025, with gold sales 50% lower,

though revenues are likely to decline by just 18% due to higher

copper prices.

For 2025, the company estimates it will report 537,000 tons

of copper metal sales and 33 tons of gold sales.

Wenas also said the company has held talks with miner Amman

Mineral Internasional over a possible copper concentrate supply

deal for Freeport's smelter, but no deal has been reached.

Amman did not immediately respond to a request for comment.

With the current limited production capacity at its mines,

Freeport could only supply concentrate to a refinery operated by

PT Smelting, while its Manyar smelter sits idle, Wenas said.

The Manyar smelter is expected to remain out of commission

until the second quarter of next year.