Jakarta Post

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post
The Jakarta Post
Video Weather icon 26°C
DKI Jakarta, Indonesia
26°C Light Rain

Rain until tomorrow morning, starting again tomorrow afternoon.

  • Thu

    26℃ - 31℃

  • Fri

    26℃ - 32℃

  • Sat

    27℃ - 32℃

  • Sun

    26℃ - 30℃

Freeport may cut output up to 40%

  • The Jakarta Post

    The Jakarta Post

Jakarta | Mon, December 9, 2013 | 07:06 am

Freeport-McMoRan Copper & Gold Inc. is seeking government approval to continue copper concentrate exports from Indonesia next year and would have to cut output to 30 to 40 percent of the maximum if a ban is imposed, Bloomberg reported.

The company would need to lay off workers if it could not ship concentrates, said Rozik B. Soetjipto, president director at PT Freeport Indonesia. About 30,000 employees of Freeport and its contractors worked at Grasberg, he said by phone. The copper mine is the world'€™s second-largest.

Indonesia was planning a blanket ban on shipments of mineral ore from Jan. 12 to spur the development of the domestic processing industry, Energy and Mineral Resources Minister Jero Wacik said Thursday. Freeport produces concentrate that contains about 27 to 30 percent copper, according to its website.

'€œWe'€™ve tried hard to support government policy,'€ Soetjipto said from Jakarta Friday. '€œWe'€™re not exporting raw ore. The value of the copper in our concentrate is almost the same as that of the metal. We'€™re trying to persuade the government'€ to allow shipments, he said as quoted by Bloomberg.

Freeport expected to get the results of a feasibility study for a new smelter in January, said Soetjipto. About 50 percent of concentrate is sold to affiliated smelters Atlantic Copper in Spain and PT Smelting in Indonesia, its website says. The rest is mostly shipped to Asian buyers, it says. PT Smelting is the country'€™s only copper smelter.