Freeport Indonesia's Production Hit by Mining Incident

Significant Impact on Gold Production

PT Freeport Indonesia's gold production is facing a significant reduction in 2026, with projections now standing at 26 tons, down from the initial estimate of 45 tons ⁵

. This change is directly attributed to the material slide incident at the Grasberg Block Cave (GBC) mine that occurred on September 8, 2025. The incident has forced the company to revise its production plans, with the GBC mine expected to gradually return to full operation by 2027 ¹

Source 1

https://industri.kontan.co.id/news/perbaikan-tambang-freeport-indonesia-hanya-sanggup-produksi-emas-28-ton-pada-2026

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Operational Recovery Timeline

The recovery process is currently underway, with production from Deep Mill Level Zone (DMLZ) and Big Gosan currently operating at 30% capacity. Freeport's management has prioritized the recovery of GBC, which is crucial for returning to normal production levels ²

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Additional Mineral Resources

Despite the current operational challenges, Freeport has announced the discovery of significant additional mineral resources at the Grasberg mine. The company has identified 3 billion tons of mineral resources, including copper, gold, and silver, though these are not yet classified as proven reserves ³

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Impact on 2025 Performance

The incident has also affected Freeport's 2025 performance, with copper sales expected to reach only 537,000 tons, representing about 70% of the original target of 770,000 tons outlined in the Work Plan and Budget (RKAB) for 2025 ⁶

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Future Plans and Government Relations

Freeport is also in discussions with the Indonesian government regarding a potential 12% increase in government shareholding by 2041. While there is currently an understanding in place, formal agreements are still pending ⁴

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