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Freeport Indonesia sees output ramping up at Manyar smelter in Q3 next year
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Freeport Indonesia sees output ramping up at Manyar smelter in Q3 next year
Dec 4, 2024 1:18 AM

JAKARTA, Dec 4 (Reuters) - Copper miner Freeport

Indonesia expects operations of its $3.7 billion Manyar smelter

in East Java to ramp up in the third quarter of next year after

being halted by a fire in October, an official said on

Wednesday.

"Based on the repair plan for the affected facilities, it is

estimated that the ramp-up of (Freeport's) smelter operations

can begin in the third quarter of 2025," its spokesperson, Katri

Krisnati.

Separately, Freeport Indonesia parent company, MIND ID hopes

the smelter can operate normally within six months, its chief

executive Hendi Prio Santoso told a parliamentary hearing on

Wednesday.

MIND ID holds a 51.2% share of Freeport Indonesia.

Operational issues at the smelter prompted Freeport to ask

the Indonesian government to extend its copper concentrate

export license, which expires at the end of this year.

"Due to fire incident at our smelter, the operation was

stopped, and we have to repair it first. For that, we need some

flexibility to be able to export in 2025 until the smelter is

back in operation," Freeport Indonesia chief executive Tony

Wenas told reporters.

He said the company was also requesting additional export

quota for this year.

Mining minister Bahlil Lahadalia told an industry summit on

Wednesday the government had yet to decide whether to approve

the request.

Freeport Indonesia was forced to stop copper cathode output

at its newly operated smelter after the fire broke at its gas

cleaning unit.

Sources with knowledge of the matter told Reuters U.S.

mining company Freeport McMoRan ( FCX ), which operates Freeport

Indonesia's mine and smelter, would postpone sales of refined

copper from Indonesia until the second quarter of 2025.

The Manyar copper smelter was completed in June and started

output in September. However, production was delayed by a steam

and water leak.

Long production delays at the Manyar smelter, with an output

capacity of 480,000 metric tons of copper cathode a year, were

already narrowing an expected 2025 surplus of the metal and

supporting prices.

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