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Freeport exports depend on Indonesian permits

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Fire halted copper output at Freeport's Manyar smelter

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Manyar expected to start ramping up production in Q3 2025

LONDON, Dec 9 (Reuters) - Copper concentrate exports

from Freeport-McMoRan's ( FCX ) unit in Indonesia will ease

global shortages, but probably only briefly and if the

Indonesian government allows them, industry sources said.

Shortages due to stoppages, including at operations owned by

First Quantum, and China's massive expansion of smelters

to produce copper metal have intensified competition for

concentrate since last year.

A fire at PT Freeport Indonesia's (PTFI) $3.7 billion Manyar

smelter halted operations in October. PTFI is owned by Freeport

and state-owned Indonesian company MIND ID, with stakes of 48.8%

and 51.2% respectively.

"The amounts Freeport exports depend on how long it takes to

fix the problem," said one source with knowledge of the matter,

adding: "If the (Indonesian) government doesn't grant (export)

permits Freeport may have to stop mining."

Manyar has capacity to process 1.7 million metric tons of

concentrate and produce 480,000 tons of copper cathode a year.

The cause of the fire is still under investigation and has

yet to be corrected, sources with knowledge of the matter said.

Freeport McMoRan ( FCX ) said in response to a request for comment:

"PTFI has substantially completed initial damage assessments and

remediation plans are in progress ... PTFI currently expects to

recommence start-up operations by mid-2025."

"PTFI is working with the Indonesian government to allow

continued exports of copper concentrates until full ramp-up of

PTFI's new downstream processing facilities is achieved,

including seeking an increase to the permitted quota for 2024."

Indonesia's mining minister Bahlil Lahadalia told an

industry summit last week the government had yet to decide

whether to approve Freeport's request for an export licence.

Manyar was built to process copper concentrate from

Freeport's flagship Grasberg mine in Indonesia, the world's

second biggest copper-gold mine, due to the Indonesian

government trying to discourage exports of concentrate.

Indonesia's government wants miners to produce metal locally

to add value and boost its revenues.

Industry sources said Freeport's concentrate will not

resolve the problem of shortages, which have hit the treatment

and refining charges (TC/RCs) paid by miners when they sell

concentrate to be turned into metal.

Chilean miner Antofagasta ( ANFGF ) and Jiangxi Copper

recently agreed significantly lower copper

concentrate processing fees for 2025, according to sources.

Treatment charges turned negative in April for the first

time ever, meaning smelters had to pay miners to turn

concentrate into metal instead of being paid.