JAKARTA, RAKYAT NEWS – The giant mining PT Freeport Indonesia (PTFI) has confirmed that its copper smelter in Gresik will remain non-operational until the end of the first half of 2025. The suspension follows a fire incident in October 2024 that severely impacted the facility.

Repair work is ongoing, and the company plans to gradually resume operations by the second quarter of 2025.

The disruption has created significant logistical challenges, as copper concentrate storage facilities at PTFI’s Amamapare port and smelter site are nearing full capacity. To address this issue, PTFI is temporarily exporting its copper concentrate abroad. This strategy ensures the company can maintain mining and processing operations while continuing to contribute financially to the Indonesian government.

In response to the delays, the Indonesian government has granted export relaxations for PTFI and PT Amman Mineral Nusa Tenggara. Initially set to expire on December 31, 2024, these relaxations have been extended into early 2025 to accommodate setbacks in smelter construction and recovery.

The export policy is intended to provide mining companies with the necessary time to complete their smelter projects without disrupting operations.

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia explained that while Indonesia aims to halt the export of unprocessed copper concentrate, the temporary relaxation is essential. The measure allows companies to navigate unforeseen challenges, such as the fire at PTFI’s facility, and align with the nation’s broader industrial goals.

The Gresik smelter was initially expected to reach peak production by December 2024, but this timeline has been postponed due to the fire. As a result, the government is considering a further extension of export relaxations by one to two months into 2025, ensuring that the sector can remain operational during the transitional period.

The delays highlight broader challenges in Indonesia’s effort to increase domestic processing of raw materials. However, the government remains committed to this long-term goal, viewing smelter development as critical to reducing reliance on raw exports and boosting economic value domestically.

Despite setbacks, the temporary export measures have allowed PTFI to sustain operations and maintain its contributions to the state. The incident underscores the complexities of large-scale industrial projects and the importance of contingency plans to ensure resilience in Indonesia’s mining sector. (Uki Ruknuddin)