Freeport Indonesia moves to extend mining license and divest 12% stake

PT Freeport Indonesia (PTFI) has submitted an application to extend its Special Mining Business License (IUPK) beyond 2041. As part of the extension, the company has offered a draft agreement to divest an additional 12% of its shares to the state‑owned PT Mineral Industri Indonesia (MIND ID), which would raise government ownership in PTFI to about 63%. The move follows a September 2025 landslide at the Grasberg Block Cave underground mine that cut production capacity.

President Director Tony Wenas also confirmed that copper concentrate from Papua has begun flowing again to the Manyar smelter in East Java. He said the smelter is slated to restart operations in September 2026, once sufficient concentrate volumes are secured. Production capacity at the Grasberg mine is expected to recover to 50% in the first half of 2026, 65% in the second half, 75% in early 2027, and reach full capacity by the end of 2027.