Freeport to cut down copper concentrate output next year

Gold and copper giant PT Freeport Indonesia plans to drastically cut down its copper concentrate production next year as the government has decided to ban mineral ores export starting January 12, Bisnis Indonesia daily reported Friday.

The paper quoted Freeport Indonesia President Director Rozik B. Soetjipto as saying that the production cut forms part of the planned measures to anticipate the export ban policy.

Rozik said that Freeport plans to run production at only 40 percent of the capacity next year as that is the output level which is able to be absorbed by the only domestic copper smelter in the country, PT Smelting Gresik.

According to Kontan daily, Freeport produces between 2.3-2.5 million tons of copper concentrate per year, of which about 40 percent is sold to Smelting Gresik, while the rest for export.

Rozik said that Freeport may completely stop production, if running at lower volume proves to be uneconomical.

He was also quoted by Kontan that the government should allow Freeport to continue export copper concentrate until the planned new smelters have been constructed. Freeport has signed cooperation agreements with three companies planning to build domestic smelters, under which Freeport will supply the necessary copper concentrate. (*)