Indonesian Government Approves Freeport's Resumption of Operations in Two Mines

Background

The Indonesian Ministry of Energy and Mineral Resources (ESDM) has given the green light for PT Freeport Indonesia to resume operations at two of its mines, namely Deep Mill Level Zone (DMLZ) and Big Gossan ¹

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Source 2

https://industri.kontan.co.id/news/kementerian-esdm-ungkap-sudah-beri-izin-produksi-atas-2-tambang-freeport

. This decision follows a halt in operations due to a landslide at the Grasberg underground mine on September 8, 2025. The landslide incident led to the suspension of mining activities, particularly in the Grasberg Block Cave (GBC), with operations expected to resume as early as 2027 ²

Source 2

https://industri.kontan.co.id/news/kementerian-esdm-ungkap-sudah-beri-izin-produksi-atas-2-tambang-freeport

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Production Expectations

While the resumption of operations at DMLZ and Big Gossan is seen as a positive step, the production output from these mines is not expected to be substantial. According to Tri Winarno, Director General of Mineral and Coal at the ESDM, the production capacity of these two mines is estimated to be around 600,000 tons per year ¹

. This figure indicates that while the resumption of operations is a step towards recovery, the overall impact on production levels may be limited.

Implications

The decision to allow Freeport to resume operations at DMLZ and Big Gossan reflects the government's efforts to balance safety concerns with the need for continued economic activity. The mining sector is a significant contributor to Indonesia's economy, and the resumption of operations at these mines is expected to have a positive, albeit limited, impact on the sector's overall performance.