Indonesia Extends Freeport Copper Export Permit for Repairs

Indonesia has granted Freeport Indonesia a six-month export permit for approximately 1.27 million metric tons of copper concentrate as the company repairs its damaged smelter, following a fire incident last October. Energy Minister Bahlil Lahadalia emphasized that this permit is crucial for maintaining government royalty payments while allowing Freeport to manage its significant stockpiles, which have reached around 400,000 metric tons due to halted operations. The permit extension follows the expiration of Freeport's previous authorization at the end of 2024 and aims to support the company during its repair efforts. Freeport's operations are currently running at only 40% capacity, and they have indicated a need to navigate the regulatory process efficiently to facilitate exports. Additionally, the Indonesian government’s strict regulations on unprocessed mineral exports reflect its commitment to bolstering domestic processing capabilities. The announcement coincided with the launch of Freeport's new $630 million precious metals refinery at the Gresik smelter complex, enhancing its operational capacity.