PT Freeport Indonesia (PTFI) targeting underground mining volume to reach 96,000 tons of ore per day in 2020 - Photo by EMR Ministry

JAKARTA (TheInsiderStories) PT Freeport Indonesia (PTFI) targeting underground mining volume to reach 96,000 tons of ore per day in 2020. In the following year, the production is planned to reach 160,000 tons, 2022 it will be 216,000 tons, and in 2023 become 217,000 tons a day.

Is estimating the miner will invest around US$15.1 billion in the project until 2041.

During his visit to the Grasberg mine, minister for energy and mineral resources (EMR), Arifin Tasrif expect the unit of United States Freeport McMoran Copper & Gold Inc. (NYSE: FCX) and PT Indonesia Asahan Aluminium (MIND ID), could implement the plan soon.

The underground mines its expecting will replace the Grasberg open pit in the DOZ, Big Gossan, DMLZ and Grasberg Block Cave areas. Currently PTFI has six prospect blocks and the mines.

On February, vice chairman, president & CEO Richard C. Adkerson explained, around $1.2 billion of funds will distribute for major projects owned by Freeport, primarily for underground development in Indonesia and Lone Star Oxide Project. While, $900 million for other mining.

In addition, PTFI also prepared an initial investment $3 billion to build smelter in the country. The construction of the smelter its expected begin in 2020 and ready to operate in Dec. 21, 2023

“In connection with the extension of PTFI’ mining rights from 2031 to 2041, we committed to construct a new smelter in Indonesia. A site for the new smelter has been selected and ground preparation is in progress,” said Freeport McMoran in an official statement.

Currently, the Arizona’ miner has a 48.76 percent ownership interest in PTFI and manages its mining operations while MIND ID. As a result of the December 2018 transaction regarding PTFI’ long-term mining rights and share ownership, FCX’ economic interest in its unit is expected to around 81 percent through 2022.

The Phoenix, Arizona-based company has been in lengthy discussions with the government of Southeast Asia’ largest economy over a number of issues that will affect its operations in the world’ second-biggest copper mine. The giant miner targeting about two-thirds of the copper concentrate it produces from the Grasberg mine, while keeping the remainder to be processed domestically.

This year, Freeport has target to produce copper 3.9 Billion lbs, gold 2.4 Million oz and Molybdenum 91 Million lbs.

by Linda Silaen, Email: linda.silaen@theinsiderstories.com