Freeport seeks extension of Grasberg mining licence beyond 2041
Wednesday, August 5 2026 - 07:10 AM WIB
PT Freeport Indonesia (PTFI) has formally applied to the Indonesian government for an extension of its special mining licence to secure continued operations at the Grasberg copper and gold mine beyond the expiry of its current permit in 2041, its parent company Freeport-McMoRan said.
The application was submitted in June and follows a memorandum of understanding (MoU) signed with the government in February on extending PTFI's mining rights based on the remaining life of resources at Grasberg, Freeport-McMoRan said in its first-half 2026 financial report.
"PTFI submitted its application for the IUPK extension, and FCX, together with PTFI, is working closely with the Government of Indonesia to complete the formal licensing process," the U.S. miner said.
The extension is intended to ensure the long-term sustainability of operations at Grasberg, one of the world's largest copper and gold mines, while allowing development of its remaining mineral reserves.
Under the MoU, Freeport-McMoRan will retain its 48.76% stake in PTFI through 2041. From 2042, its ownership will be reduced to about 37%, while the existing corporate governance structure, shareholder agreements, operating mechanisms and other contractual arrangements will remain in place for the life of the mine, the company said.
Separately, Freeport-McMoRan said recovery at the Grasberg Block Cave underground mine remained on schedule following an external mud rush incident in September 2025 that disrupted production.
Production has gradually recovered after mining resumed in Production Blocks 2 and 3 at the end of March, with second-quarter output meeting the company's recovery targets, it said.
PTFI is expected to operate at around 65% of capacity in the second half of 2026, rising to 80% by the middle of 2027 and approaching full production by the end of 2027.
During the April-June quarter, PTFI produced 205 million pounds of copper and sold 153 million pounds. Gold production totalled 184,000 ounces, while gold sales reached 118,000 ounces, as the company continued ramping up its underground mining operations.
Editing by Reiner Simanjuntak