Freeport Indonesia to ramp up concentrate exports ahead of ban

PT Freeport Indonesia expects to use 90% of a copper concentrate export quota that expires next month, requiring a major ramp up in shipments.

 

 

As of mid-August, the local unit of Freeport McMoRan Inc. had used up just 65% of the quota granted by the Indonesian government in March. Weather conditions and the need to support the start up of its two copper smelters have impacted exports, the firm said in a statement on Thursday.

 

Hitting the target will require the company to ship about 350,000 wet tons of concentrate in a month, which may provide relief to the overseas smelting industry. Copper processors everywhere have been grappling with terrible margins for producing the refined metal due to a vast expansion of capacity coinciding with a shortage of raw material.

 

Although still deeply negative, spot charges to treat and refine copper have recently increased due to unexpectedly large sales from Freeport. A Fastmarkets index rose for a seventh straight week to -$59.60 a ton on Aug. 14.

 

Freeport Indonesia, which operates the giant Grasberg mine, has faced persistent issues with its own smelters in the past twelve months. Last year, a fire delayed the commissioning of its Manyar plant, while issues with an oxygen plant have delayed the start up of its Gresik facility.

 

After Sept. 16, Freeport Indonesia will no longer be able to export concentrate without an additional permit from the government, which is also a major shareholder in the company. That could further tighten the market for copper ore. 

https://www.mining.com/web/freeport-indonesias-copper-concentrate-exports-may-reach-90-of-its-quota-by-september-16-official-says/