Freeport Indonesia, the majority state-owned copper miner operated by U.S. company Freeport-McMoran, has raised its output guidance for the year as it awaits an extension of its copper concentrate export permit from the Indonesian government.
According to Jenpino Ngabdi, Freeport Indonesia’s deputy chief executive, the company has lifted its copper concentrate output target for 2023 to 3.78 million metric tons, up from an initial target of 2.84 million tons. This increase is contingent on the approval of the export permit extension.
Freeport Indonesia has also raised its 2024 refined copper output target to 1.73 million pounds, up from the previous target of 1.42 million pounds.
The company’s last export permit was valid until May 31, and the new targets must be approved by the Indonesian mining ministry. Indonesia had previously banned the shipment of all raw minerals from June 2023, but Freeport Indonesia and rival copper miner Amman Mineral Internasional were granted a year-long dispensation to allow them to finish the construction of their copper smelters.
The Indonesian government has promised to extend the dispensation until the end of 2024, allowing the companies to continue exporting before their smelters reach full capacity. However, the government plans to impose additional levies on these shipments, although the details of the new regulations were not publicly available as of Monday morning.
Freeport Indonesia is targeting the operational start of its JIIPE smelter in East Java in early June, with the first copper cathode production expected in August at a feed rate of 50% for concentrate.
In 2022, Freeport Indonesia produced 3.45 million metric tons of copper concentrate and 1.68 million pounds of refined copper.