Freeport Indonesia Adjusts 2026 Production Plans After Fatal Accident at Grasberg Mine

Freeport Indonesia announced on Monday that it has revised its 2026 production plans for the Grasberg mine. This decision follows a fatal accident in September that led to the death of seven individuals.

A mud flow at Freeport’s Grasberg Block Cave (GBC) operation caused the mine to suspend operations. GBC contributes a significant portion of the Grasberg complex’s output. Notably, Grasberg is the world’s second – largest copper mine and the largest gold mine.

In late October, Freeport resumed operations at the Big Gossan and Deep Mill Level Zone, two other parts of the Grasberg complex, as they were not affected by the mud flow.

Freeport now anticipates producing 478,000 metric tons of copper cathode and 26 tons of gold in 2026. This is a decrease from the earlier projections of around 700,000 tons of copper cathode and 45 tons of gold, as informed by CEO Tony Wenas to Parliament members.

Wenas stated, “We continue to conduct the recovery at Grasberg Block Cave with a target to begin operating this mine in the first quarter of 2026.” Full recovery of GBC is expected in 2027.

The company forecasts $8.3 billion in sales next year, a slight reduction from the initial expectation of $8.5 billion, despite predicting higher copper and gold prices.

Freeport’s copper sales volume in 2025 is likely to be 30% lower than initially planned, and gold sales 50% lower. However, due to higher copper prices, revenues may decline by only 18%. For 2025, the company estimates 537,000 tons of copper metal sales and 33 tons of gold sales.

Wenas also disclosed that the company has engaged in discussions with Amman Mineral Internasional regarding a potential copper concentrate supply deal for Freeport’s smelter, but no agreement has been reached yet. Amman did not respond promptly to a comment request.

Given the current limited production capacity at its mines, Freeport can only supply ...