Indonesian Government Facilitates Copper Concentrate Deal Between Freeport and Amman Mineral

Minister's Request Sparks Business-to-Business Talks

Indonesia's Minister of Energy and Mineral Resources, Bahlil Lahadalia, has initiated discussions between PT Freeport Indonesia (PTFI) and PT Amman Mineral Tbk regarding the potential purchase of copper concentrate. The minister met with PTFI's President Director, Tony Wenas, and instructed him to engage in B2B negotiations with Amman Mineral to supply concentrate to Freeport's smelter.

Operational Challenges at Freeport's Grasberg Block Cave Mine

The development comes as Freeport's Grasberg Block Cave (GBC) underground mine has remained non-operational since September 2025. The smelter, which is currently facing technical difficulties and is in a state of 'kahar', is unable to operate at full capacity. Bahlil emphasized that the government will act as a regulator while the material purchase negotiations are conducted on a business-to-business basis.

Strategic Implications for Indonesia's Mining Sector

This proposed transaction between two major mining companies in Indonesia could have significant implications for the country's mining industry. It demonstrates the government's proactive approach to supporting mining operations and maintaining smelter utilization. The deal could provide mutual benefits by ensuring a steady supply of copper concentrate for Freeport while supporting Amman Mineral's operations.