Freeport Indonesia sees output ramping up at Manyar smelter in Q3 next year
Recasts with Freeport Indonesia comments
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.N, 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.
Reporting by Bernadette Christina and Fransiska Nangoy; Editing by Martin Petty
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
