Freeport Indonesia to start Grasberg Block Cave production within weeks

PT Freeport Indonesia is preparing to begin production at its Grasberg Block Cave (GBC) underground mine in Central Papua within the next two to three weeks, marking the start of a phased ramp-up following last year’s disruption.

President Director Tony Wenas said initial output will come from production blocks 2 and 3 before gradually increasing to support the company’s 2026 production targets.

“In the next two to three weeks, we will start production in blocks 2 and 3, and then gradually ramp up,” Tony said over the weekend, as quoted by Bisnis.com.

The restart aligns with earlier guidance from parent Freeport-McMoRan, which had projected a phased resumption of GBC operations in the second quarter of 2026 after a mud rush incident in September 2025 forced a suspension and sharply reduced output.

The GBC underground mine is expected to become the backbone of Freeport Indonesia’s future production, replacing declining output from older sections of the Grasberg complex.

Read also : Freeport targets Grasberg restart in Q2 2026 after Q4 output drop

For 2026, the company is targeting production of 1.1 billion pounds of copper and 800,000 ounces of gold, as it focuses on operational performance amid volatile global commodity prices.

 “Revenue depends on prices, but what we can control is production and operations,” Tony said, adding that maintaining output remains the company’s top priority.

Freeport Indonesia’s production was significantly impacted in 2025, with copper output falling to about 1.0 billion pounds and gold to around 0.9 million ounces, well below typical levels, following the suspension of GBC operations in the fourth quarter.

The company said most of its challenges this year are technical, particularly related to the development and safe restart of the underground mine. It also flagged potential increases in operating costs amid broader global uncertainties, including geopolitical tensions affecting the energy sector.

Despite these challenges, the company said it has prepared mitigation measures to ensure operations run smoothly as production resumes.

Looking ahead, production at GBC’s block 1 is scheduled to begin next year, as part of a broader effort to restore output levels. Freeport has previously said it expects to recover around 85% of normal production capacity in the second half of 2026 as the ramp-up progresses.

Editing by Reiner Simanjuntak