Freeport Indonesia Projects Over US$7 Billion in Annual State Contributions with Full Downstream Operations

PT Freeport Indonesia projects its annual contribution to Indonesian state revenues will surpass US$7 billion (around Rp120 trillion) once its copper downstream facilities reach full operational capacity. This significant increase is attributed to the newly established copper smelter and precious metals refinery in Gresik, East Java.

President Director Tony Wenas stated that these facilities will allow for the domestic processing of the entire copper value chain, from concentrate and copper cathodes to precious metals like gold and silver. "This marks a major leap in Indonesia's mineral downstreaming efforts," Wenas said during a hearing with the House of Representatives' Commission XII.

The Gresik facilities boast a combined annual processing capacity of approximately 3 million tons of copper concentrate. The precious metals refinery alone can process 6,000 tons of anode slime annually, yielding significant amounts of gold, silver, platinum, palladium, selenium, bismuth, and lead. The gold produced is slated for purchase by state-owned miner PT Aneka Tambang Tbk.

Freeport's operations have encountered disruptions, including a fire at the gas cleaning plant in October 2024 and a recent landslide at the Grasberg Block Cave mine, which affected concentrate supplies from Papua. The company is currently conducting inspections and improvements during this production halt. Concentrate shipments from Papua are anticipated to resume in September, with a focus on safely recovering mine operations to normalize concentrate supplies.

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With the operation of the smelter and precious metals refinery in Gresik, the entire copper value chain, from concentrate and copper cathodes to precious metals such as gold and silver, can now be processed domestically. This marks a major leap in Indonesia's mineral downstreaming efforts.