Freeport Indonesia asks for copper concentrate export license

Freeport Indonesia's chief executive has said that the company has asked the government to relax the ban on copper exports and allow it to export 1.3 millions metric tons (worth $5 billion) of copper concentrate by December.

Indonesia, a country rich in natural resources, has banned the export of unprocessed ore to encourage domestic processing and add value. But Freeport, which operates a new smelter at Manyar in East Java that is currently undergoing repairs after sustaining damage in a fire last October, said it was in need of leniency.

Freeport's inventory is increasing because it hasn't exported any copper since the expiration of its last export license at the end 2024. According to Chief Executive Tony Wenas, the firm's copper mine is currently operating at 40% capacity due to a growing stockpile.

We continue to talk with the government. Wenas stated, "We are confident we can receive (export relaxation), as the process is still ongoing." Indonesian officials have previously said that they could ease the export ban if Freeport met certain requirements.

Wenas stated that the firm could guarantee repairs to its Manyar smelter will be completed by the end of the third week in June and the smelter will be operational by the end of the fourth. Freeport will resume copper concentrate shipments from Indonesia in this month. This was reported by two knowledgeable sources last week.

(source: Reuters)