Home Investor Corner Freeport Indonesia Gets Permit to Export 500,000 Tons of Copper

Freeport Indonesia Gets Permit to Export 500,000 Tons of Copper

The Energy and Mineral Resources ministry give a license for PT Freeport Indonesia (PTFI) to increase copper export quotas with amount 500,000 tons, said the official today (09/13) - Photo by the Company

JAKARTA (TheInsiderStories) – The Energy and Mineral Resources ministry give a license for PT Freeport Indonesia (PTFI) to increase copper export quotas with amount 500,000 tons, said the official today (09/13). In total, the export quota obtained by the unit of American-based Freeport McMoran Copper & Gold Inc. (NYSE: FCX) is 700,000 tons of copper.

Director at the EMR ministry Yunus Saefulhak, said the permit on the addition of the export quota had been issued this week based on the company’ work plan and Budget. The amount three times more than last March’ export quota of 198,282 tons of copper.

He assured, that the addition of the quotas did not affect the production target’ of the miner. This year, PTFI has pocketed a production quota of 1.3 million tons (MT) of copper concentrate. Of this amount, around 1 MT of Copper will be supplied to smelter own by PT Smelting Gresik in East Java.

During the first half of 2019, the company had used export quota around 180,000 MT of copper concentrate. In the same period, PTFI opened an additional area to extend mining in the Grasberg open pit into third-quarter and potentially longer.

The mine sequencing changes in the open pit delayed access to the high-grade material previously expected to be produced during 2Q of 2019, but are expected to meet previous estimates for copper and gold production for the year 2019.

The copper production of the Grasberg mine in 1H of 2019 was 270 MT of Copper, fell 58.97 percent compared to 1H of 2018′ production 658 MT of copper. The declining also occurred when viewed quarterly, amounting to 63.98 percent from 347 MT of copper in the 2Q of 2018 to 125 MT of copper in the 2Q of 2019.

The decrease in production had an impact on sales. Its reported the miner’ sales fell 48.81 percent to 325 MT of copper in the 1H of 2019 compared to the same period last year. When compared quarterly, copper sales also decreased by 52.21 percent in the 2Q of 2019 to 151 MT compared to the same period last year of 316 MT.

Not only on copper, but gold production also experienced similar conditions. The production in the 1H of 2019 was recorded at 316,000 ounces, down 76.32 percent compared to the same period last year of 1.33 million ounces.

Quarterly, the calculation also decreased by 79.18 percent in the 2Q of 2019 compared to the same period last year of 740,000 ounces to 154,000 ounces.

Gold sales also declined by 67 percent in 1H of 2019 compared to the same period last year from 1.27 million ounces to 420,000 ounces. Likewise with quarterly calculations where gold sales were recorded at 185,000 ounces in 2Q of 2019 or fell 72.4 percent compared to the same period last year of 671,000 ounces.

PTFI‘ production is estimated to begin to increase significantly in 2021 as the development of underground mines progresses. The companies projected sales volumes and unit net cash costs for the year 2019 are dependent on a number of factors, including operational performance, mine sequencing changes, the timing of shipments and export quotas.

Written by Staff Editor, Email: theinsiderstories@gmail.com