The Indonesian government has announced that it will extend the copper concentrate export permits for Freeport Indonesia and Amman Mineral Nusa Tenggara (Amman). The current permits are set to expire on May 31, but President Joko Widodo has confirmed that the details of the extensions are still being worked out.
Both Freeport Indonesia and Amman are in the process of building copper smelters, which are expected to start operations in June. However, the companies have stated that the new smelters will need several months to ramp up their capacity to fully absorb the copper concentrate output.
In his remarks to reporters, President Widodo (also known as Jokowi) noted that the permit extensions demonstrate the companies’ “strong desire to start downstreaming in the country,” which aligns with the government’s policy priority of increasing mineral processing within Indonesia.
An Amman spokesperson expressed that the permit extension will help the company continue its mining and expansion projects. Freeport Indonesia also confirmed that it is in ongoing discussions with the government, but did not provide additional details.
According to sources, Freeport Indonesia is preparing to ship up to 900,000 metric tons of copper concentrate, starting in June, from its Grasberg mine after positive talks with the Indonesian government to extend the export license.
The permit extensions for Freeport and Amman are seen as a move by the Indonesian government to support the companies’ efforts to increase mineral processing capabilities within the country, in line with the country’s policy priorities.