Freeport Restarts Two Smelters to Ramp Up Copper Cathode Production
Wed 07 Oct 2026, 08:33 AM
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Two copper processing facilities owned by PT Freeport Indonesia (PTFI) have resumed operations after disruptions, paving the way for increased concentrate processing and stronger domestic mineral downstreaming. PT Smelting and the Manyar Smelter in Gresik, East Java, are projected to play a key role in developing Indonesia’s domestic copper industry supply chain.
Indonesia Mining & Energy Watch (IMEW) Executive Director Ferdy Hasiman welcomed the resumption of operations at both facilities. He said Freeport’s processing capacity could help optimize copper concentrate processing. “Yes, of course, it is positive because Freeport’s copper smelter is the largest. This will allow concentrate processing to be more optimal,” Ferdy said when contacted, as quoted on Wednesday (October 7, 2026).
PT Smelting was temporarily shut down on August 8, 2026, for repairs to its furnace, which is used to smelt concentrate. Meanwhile, the Manyar Smelter resumed operations after previously being affected by a shutdown following an incident at the Grasberg mine.
According to Freeport-McMoRan’s third-quarter 2026 report, the combined smelting capacity of PT Freeport Indonesia, including PT Smelting, is targeted to produce up to around 800,000 tonnes of copper cathodes annually.
Center of Reform on Economics (CORE) Indonesia researcher Yusuf Rendy Manilet said the recovery of Freeport’s processing facilities marked a positive development. The Manyar Smelter resumed receiving concentrate in August and began producing copper cathodes in September, after limited concentrate supplies had previously been prioritized for PT Smelting.
According to Yusuf, smelter capacity could continue to increase gradually as production at the Grasberg mine recovers, with the recovery targeted for completion by the end of 2027.
He said the development could provide an opportunity to strengthen Indonesia’s domestic downstream copper industry ecosystem. Increased smelter capacity needs to go hand in hand with the development of further processing industries to generate greater economic value from copper commodities domestically.
Downstream Industry Remains a Challenge
The next challenge lies in what happens after copper cathodes are produced. Yusuf noted that around three-quarters of PT Smelting’s cathode output is still exported because Indonesia’s domestic cathode processing industry remains too small. This shows that the challenges of downstreaming extend beyond building and operating smelters. Indonesia also needs industries capable of absorbing copper cathodes and processing them into various products used in the manufacturing sector.
The government, through PT Mineral Industri Indonesia (MIND ID), the state-owned mining industry holding company and a shareholder in PT Freeport Indonesia, continues to push for stronger copper downstreaming. The aim is to ensure that mining commodities move beyond initial processing and are developed into industrial raw materials and downstream products.
Yusuf said there was still considerable room for development. Indonesia has substantial copper reserves, making the availability of raw materials a potential foundation for expanding further processing industries.
However, developing downstream industries requires market certainty. Products must have buyers, meet industry requirements and specifications, and be supported by reliable long-term supply arrangements. “The issue is not simply whether demand exists. Price, certainty of long-term contracts, product specifications, and industrial supply arrangements are also determining factors,” Yusuf said when contacted.
He said industrial development could move toward higher-value-added products, including copper rods, wire, cables, and copper foil, which can support the electric vehicle ecosystem.
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