Freeport’s exports halted amid force majeure ruling, production drops to 60 percent | INSIDER – Indonesia Business Post

PT Freeport Indonesia's (PTFI) export activities remain suspended following a force majeure ruling related to a fire incident near the end of last year, despite its readiness to resume exports by the end of the month, a senior government officials said. "The investigation has concluded, and the result is force majeure," Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources (ESDM), Tri Winarno, said on Friday, February 14, 2025. The inquiry determined there was no intentional element involved in the fire, making the incident eligible for insurance coverage.

However, the government has yet to approve an export permit for Freeport, which is currently requesting authorization until December. "Not yet," Winarno stated regarding the permit decision, noting that recommendations for export approval must come from the ESDM Ministry after gathering input from multiple sources. Amid export restrictions, Freeport's mining and milling operations have also been impacted.

"Production is currently at 60 percent," Winarno revealed, though he could not confirm when the reduction began. Limited stockpile capacity has contributed to the decrease, and recent maintenance efforts have further affected output. Freeport's request to resume exports remains under review, with final approval contingent on recommendations from the ESDM Ministry.

Until then, production and exports remain at a standstill, affecting both operational output and revenue streams. As previously reported, PTFI has submitted a request for copper concentrate export relaxation after the export permit expired on December 31, 2024. This request was submitted following a fire incident at its smelter facility located in the Gresik Special Economic Zone (KEK), East Java in October last year, which caused the cessation of copper cathode production operations.

President Director of PTFI, Tony Wenas, has revealed that all smelter operations were still halted for the repair process. "It's still completely stopped. If it's being repaired, it's impossible to produce," Tony spoke to the media at the Office of the Coordinating Ministry for the Economy on January 3, 2025.

Meanwhile, a senior official at the Coordinating Ministry for the Economy, Elen Setiadi, said that based on PTFI's report, the smelter could only gradually return to production in July 2025. "Ramp-up is targeted to start in July, but its capacity is only 40 percent of total production," he said. Tony Wenas ensured that PTFI had conducted a thorough investigation to determine the cause of the fire and identify the damage.

The incident occurred at the gas cleaning plant facility, which functions to clean CO2 gas from the concentrate combustion process.

The gas cleaning plant facility that caught fire plays an important role in converting CO2 gas into sulfuric acid, which is used for the fertilizer industry, nickel HPAL factories, and various other needs.