According to Reuters, Freeport Indonesia CEO Tony Wenas said on Tuesday that the company would need to reduce ore production by 40% in 2024 if copper concentrate is not allowed to be exported before the smelter reaches full capacity.
Indonesia plans to stop exports of copper concentrate from May 2024. Previously, the Indonesian government postponed a ban that was implemented in June this year to allow companies such as Freeport to complete the construction of smelters.
Freeport-McMoRan's Indonesian unit is building a $3 billion copper smelter in East Java but faces delays due to the pandemic.
The smelter is expected to start operations in May 2024 but will take time to reach full capacity, Wenas told a business conference in Jakarta.
"It will take five to six months to reach full capacity," he said, adding that if exports are not allowed, the company may need to significantly cut production from the Grasberg mine.
He said the company had expressed this concern to the Indonesian government.