Freeport-McMoRan is preparing to ship as much as 900,000 metric tons of copper concentrate starting in June from its Grasberg mine in Indonesia, according to two sources with knowledge of the situation. This comes after positive talks with the Indonesian government to extend the company’s export license, which is set to expire at the end of May.
The Indonesian government has urged authorities to allow the U.S. copper giant to continue shipping copper concentrate from the Grasberg mine, which Freeport operates. Exports of copper concentrate, produced from crushing mined ore, in the second half of the year would help smelters facing shortages.
Copper prices have hit two-year highs at $10,208 a ton last week, up more than 20% so far this year, driven in part by major Chinese smelters planning to cut output after disruptions to mine supply, such as those at First Quantum’s Cobre mine in Panama.
Freeport is talking to customers about selling Grasberg output in the second half of 2023, according to three sources, reflecting the company’s confidence that the Indonesian government will allow continued exports.
Initial commercial discussions on sales of Grasberg output were held in Santiago, Chile, on the sidelines of an industry conference in mid-April, two of the sources said.
Freeport did not respond to requests for comment on the potential export volumes from the Grasberg mine.