Ministry clears Freeport to restart operations


JAKARTA: The Energy and Mineral Resources Ministry has granted PT Freeport Indonesia (PTFI) permission to resume operations at two of its underground mines that were not directly affected by the deadly landslide at the Grasberg Block Cave (GBC) site in Tembagapura, Central Papua.

Mineral and Coal director-general Tri Winarno said the ministry had approved the reopening of the Deep Mill Level Zone (DMLZ) and Big Gossan mines, both of which were shut down as part of a broader precautionary halt following the September incident.

“Permission has already been granted for DMLZ and Big Gossan,” Tri told reporters at the legislative complex in Jakarta.

Tri said the two mines collectively accounted for roughly 600,000 tonnes of ore per year, equivalent to around 30% of PTFI’s total production capacity.

He emphasised that output from the two mines is expected to support the company’s new smelter in Manyar, Gresik, East Java, which recently faced shortfalls in copper concentrate supply due to the production standstill.

“Yes, it will be sent to the Manyar smelter, since they really are lacking supply,” he added.

The approval marked the government’s first major operational decision for Freeport since the Sept 8 mudslide that swept through multiple levels of the GBC mine.

The landslide released an estimated 800,000 tonnes of wet material, blocking access routes and trapping workers in the service level area.

In previous remarks in Minahasa, North Sulawesi, Tri confirmed that Freeport had sought permission to resume mining at the unaffected sections.

The government, he said, was open to the proposal so long as the company could assure a robust and comprehensive safety framework.

“If, for example, there is no impact from the landslide in that area, why wouldn’t we grant a permit for them to resume operations?” he asked on Oct 29.

Before the deadly incident, PTFI’s production came from three underground mines in Tembagapura: the Grasberg Block Cave, the Deep Mill Level Zone and Big Gossan.

Following the landslide at the GBC mine, all operations across the site were suspended as a precautionary measure.

In Freeport’s third-quarter financial report released on Oct 23, the company announced that the temporary suspension reduced its July to September production by around 408 million kg of copper and 2,268 kg of gold.

Consolidated production volume fell to 141 million kg of copper and 7,966 kg of gold, sharply lower than a year earlier.

The firm outlined an operational plan, still subject to the investigation results, in which DMLZ and Big Gossan would restart in the fourth quarter of 2025, followed by a phased ramp-up of GBC operations through 2026. — The Jakarta Post/ANN

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