Freeport Indonesia to pay higher duties on copper concentrate exports

Indonesia will allow copper miner PT Freeport Indonesia to resume copper concentrate exports but it will impose higher export duties as a penalty, the Jakarta Post reported on Thursday citing the mining minister. Bahlil Lahadalia was reported as saying the higher duties were because the company's smelter in Gresik had failed to operate on schedule after a fire in 2024. Indonesia has banned exports of copper concentrate, but the government had given Freeport an extension until December last year while they ramped up production at their new smelter.

However, the smelter is still being repaired after a fire in October, and Freeport cannot currently process copper concentrate at the plant. Freeport has requested an export quota of 1.3 million tons for this year. The company currently has around 400,000 tons of copper concentrate in their inventories, and it estimated concentrate excess could potentially amount to 1.5 million tons this year, chief executive Tony Wenas said on Wednesday.

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