PT Smelting Gresik Sudden Accident! [SMM Analysis]

SMM August 11 News: According to SMM, a leakage of molten material occurred at the converter (C-Furnace) of PT Smelting's copper smelter in Gresik, East Java, Indonesia. Currently, there is no clear timeline for the recovery of the damaged equipment, and the repair is expected to take at least several weeks. Due to low copper anode inventory at the plant, the suspension of the smelting stage has directly affected metal production at the refining end. It is expected that copper cathode products will not be shipped normally in the coming weeks, and the plant is negotiating delayed deliveries with clients.

According to foreign media reports, at around 0:21 a.m. local time on August 8 in Indonesia, multiple loud bangs were heard at the PT Smelting site. Preliminary investigations indicate that the high-temperature molten material came into contact with water, generating pressure and a large amount of steam. After the incident, the plant suspended relevant operations and began equipment inspections and cause investigations. The accident resulted in no casualties, and the company stated that no impact on the health of nearby residents or the environment has been found so far.

Capacity-wise, the smelting end of PT Smelting Gresik has the capacity to process approximately 1.3 million dmt of copper concentrates annually, and the refining end has a copper cathode capacity of 342,000 mt/year. According to Freeport-McMoRan's annual report, the plant's copper anode production in 2025 was 230,300 mt, and copper cathode production was 207,200 mt. Affected by raw material supply disruptions and maintenance, these figures were notably lower than the 398,200 mt of copper anode and 335,200 mt of copper cathode in 2024.