Freeport says Grasberg on track for full production by end of 2027

PT Freeport Indonesia has reaffirmed plans to restore the giant Grasberg mine in Indonesia to full production by the end of 2027 despite the process taking “longer than expected,” according to a report by Reuters.

“In the second half next year, we are approaching full ramp up,” its chief executive officer Tony Wenas told Reuters in an interview on Wednesday. The Freeport-McMoRan (NYSE: FCX) unit currently serves as operator of Grasberg, one of the world’s largest copper and gold producers, and holds a 48.76% interest in the asset. The Indonesian government owns a majority interest at 51.24%.

The mine complex, located in the remote highlands of the Sudirman Mountain Range in Central Papua, was hit by a severe mudslide last September, resulting in the death of seven workers. The incident forced the company to pause production at the underground mine and declare force majeure on shipments.

Since then, mining has resumed at certain parts, namely the Deep Mill Level Zone and Big Gossan deposits. Operations at the Grasberg Block Cave (GBC), the site of the incident, only restarted recently and is being restored to full production gradually.

“We found out that the ore at the GBC, now, because of the incident, has more water … since the ore is going to be a lot wetter than what we thought, we have to modify the chute,” Wenas said, adding that the company is also building new infrastructure to prevent a repeat of the accident.

65% capacity this year

The update follows mixed reports on Freeport’s return-to-production timeline for GBC. The company initially detailed in a quarterly report that a slower-than-expected progress on work related to mining infrastructure could delay the full production to early 2028, but its US-based parent later called reports of a delay “misleading” and reiterated its end-of-2027 target.

In Wednesday’s interview, Wenas confirmed that Grasberg is now running at 50% of capacity and is expected to reach 65% later this year. Production is anticipated to reach 800 million lb. of copper cathode and 700,000 oz. of gold in 2026, then rising to 1.2 billion lb. and 1 million oz. respectively in 2027, he estimates.

The Freeport Indonesia chief also noted that about $20 billion has been earmarked for fresh investment in Grasberg after 2041, when the company’s current mining permit expires. A memorandum of understanding to extend the permit was signed earlier this year during a meeting between Indonesian President Prabowo Subianto and US President Donald Trump.

The extension will coincide with the transfer of a further 12% stake in Freeport Indonesia to the Indonesian government, Wenas also confirmed.

Shares of Freeport-McMoRan shot up 3% to a one-week high on the update. It trades at a market capitalization of $87 billion.