Freeport-McMoRan Inc. has revealed that it will continue exporting copper concentrate until mid-2025 or the second quarter of 2025.
This information was shared directly by President & CEO of Freeport-McMoRan, Kathleen Quirk, during the company's Q4-2024 financial performance presentation on Thursday, January 23.
"We expect the smelter to begin operations by the end of June, but there will be a ramp-up period. So, we will continue to do some exports in the second half of this year, but the volume will decrease significantly," Kathleen said during the Q4 2024 Earnings Conference Call.
During the same call, Kathleen mentioned that the Indonesian government had visited the PT Freeport Indonesia (PTFI) smelter site in Gresik, East Java, which had caught fire on October 14, 2024.
The visit, she said, demonstrated the government's support for extending Freeport's copper export permit.
"They (the Indonesian government) have visited the smelter site and indicated support for continuing exports in 2025," she stated.
This also follows the obligation for Freeport-McMoRan Inc. (FCX) through PTFI to pay a 7.5% export tax on their copper concentrate if they continue their exports this year.
"Yes, the current regulation in Indonesia has a 7.5% tax on exports," she added.
Furthermore, in 2026, Freeport-McMoRan targets to have its copper smelter in Indonesia fully operational, which would eliminate the obligation to pay the 7.5% export tax.
"By 2026, it’s zero. Yes, I mean, assuming we have full capacity and no exports, the export tax payments will be zero," she said.
When confirmed, a similar statement was made by the VP of Corporate Communications at PT Freeport Indonesia, Katri Krisnati.
"Based on the plan for the improvement of the PTFI smelter facilities, the ramp-up of operations is expected to begin by the end of the first half of 2025," she told Kontan on Thursday, January 30.
On the other hand, Katri also expressed optimism that under the administration of Prabowo Subianto, the request for an extension of copper concentrate exports will be granted.
"Regarding the plan for copper concentrate exports, we are in discussions with the government, and we are confident that the government will accommodate this plan due to the exceptional circumstances that occurred in October 2024," she explained.
Regarding production, PTFI reported an increase in copper production of 1.8 billion pounds, marking an 8.5% rise in 2024 compared to the same period the previous year, which stood at 1.65 billion pounds.
