Freeport Indonesia's Gold Production Hit by Landslide Incident

Operational Disruption

PT Freeport Indonesia is facing significant operational challenges following a landslide at its Grasberg Block Cave (GBC) mine in Papua, Indonesia. The incident, which occurred in September 2025, has forced the company to halt operations, resulting in a substantial reduction in gold production. According to Jenpino Ngabdi, Vice President Director of Freeport Indonesia, the company's gold production is expected to decline by 30% in 2026 compared to normal production levels.

Production Impact

Under normal circumstances, Freeport Indonesia's smelter in Gresik can produce around 50-60 tons of gold per year. However, due to the current operational disruptions, production for 2025 is expected to be significantly lower, potentially capped at 15 tons. The majority of Freeport's gold output is supplied to PT Aneka Tambang Tbk (ANTM), highlighting the interconnectedness of major players in Indonesia's precious metals market.

Recovery Prospects

The company anticipates returning to normal production levels by 2027, assuming that the operational issues at the GBC mine are fully resolved. The landslide incident underscores the operational risks faced by major mining operations, particularly in complex geological environments like Papua. Freeport Indonesia's ability to manage these risks will be crucial in maintaining its production stability and meeting market expectations.