Freeport Indonesia in talks with government on copper concentrate exports

PT Freeport Indonesia (PTFI) is in discussions with the government about being able to continue copper concentrate exports until its new Manyar smelter returns to full operations, a spokesperson for the miner said on Friday. The company was allowed to export copper concentrate until the end of December, as its new smelter was then expected to process its mine output domestically. However, the Manyar smelter is currently shut down after a fire in October.

Repairs are ongoing and a ramp-up to operations is now expected to begin around mid-year, spokesperson Katri Krisnati said. "This will certainly have an impact on our concentrate storage capacity both at the Amamapare port and at the PTFI smelter, which will be full going forward," she told Reuters. "We are currently discussing with the government to sell concentrate that should be refined at the PTFI smelter abroad until the smelter is fully operational," she added.

Energy and Mineral Resources Minister Bahlil Lahadalia told reporters the government is considering PTFI's request and that a decision will be taken in a meeting with President Prabowo Subianto. Local media reported that PTFI CEO Tony Wenas met with officials of the Coordinating Ministry for Economic Affairs on Friday. News site Kontan reported that ministry official Elen Setiadi said they discussed plans to quickly repair the smelter.

(Reporting by Fransiska Nangoy and Bernadette Christina; Additional reporting by Gayatri Suroyo, editing by John Mair and Jason Neely) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy.

This article is strictly for informational purposes only.

It is not a solicitation to make any exchange in commodities, securities or other financial instruments.

Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.