Copper production at Freeport-McMoRan’s Manyar smelter in Indonesia has been postponed until November due to issues with water and steam leakage during initial testing. This delay comes as the $3.7 billion smelter, one of the largest in the world, was initially expected to produce its first output in September, with samples to be delivered to clients in October for quality testing.
The construction of the Manyar smelter was completed in June, and Freeport had aimed for a full production ramp-up by the end of 2024. The company confirmed that they are addressing the startup issues, which are not uncommon for large, complex facilities, and do not anticipate significant delays in reaching full capacity.
The Manyar smelter is designed to process copper concentrate from Freeport’s Grasberg mine, which is the second-largest in the world. Currently, Freeport has no plans to sell any unused copper concentrate to other smelters facing shortages this year. The Manyar smelter has the capacity to process 1.7 million metric tons of copper concentrate annually, producing up to 480,000 tons of copper, representing nearly 3% of global mined copper supplies.
As Freeport focuses on resolving the leaks, the concentrate from Grasberg will be stored for future processing. Analysts suggest that the delay in production may support copper prices as new supplies are not expected to hit the market as soon as previously anticipated.