Bahlil Proposes Freeport To Source Copper Concentrate From Amman Mineral

Jakarta, Indonesia – The Indonesian government is facilitating a potential strategic partnership between two of the nation's mining giants to address a critical supply disruption. Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has urged PT Freeport Indonesia (PTFI) to initiate business talks with PT Amman Mineral Nusa Tenggara (AMNT) regarding the purchase of copper concentrate. This proposal comes as Freeport's flagship Grasberg Block Cave (GBC) mine in Papua remains shut down following a significant landslide in September 2025, severing the raw material supply to its new smelter in Gresik, East Java.

Minister Bahlil emphasized that this is a business-driven suggestion, not a government mandate. Following a meeting with Freeport Indonesia's President Director, Tony Wenas, Bahlil stated he asked both companies to engage in direct "business-to-business (B2B)" communication. "I requested that Amman and Freeport conduct B2B talks so their material can be purchased by Freeport to be processed at Freeport's smelter at an economical price. This is a B2B matter; the government is only a regulator," Bahlil clarified at the ESDM Ministry office. He stressed that the final transaction terms, including price, are to be negotiated solely between the two companies.

The supply crisis at Freeport is severe. The landslide at the GBC mine, which contributes approximately 70% of Freeport's total ore production, forced a complete halt to mining operations. Consequently, Freeport's state-of-the-art smelter in Manyar, Gresik, which was operating at 70% capacity in August, has been rendered idle due to the lack of concentrate. The company's smelting operations are currently limited to its other facility, PT Smelting, which is now receiving priority supply.

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On the other side, Amman Mineral finds itself with exportable concentrate but a non-operational smelter. The company's own copper smelter in West Sumbawa has been under a force majeure (or kahar) status since a fire in late July 2025, halting its operations. In line with existing regulations, the government has granted AMNT an export relaxation permit for approximately 480,000 dry metric tons of copper concentrate for a six-month period. This permit allows Amman to export its stockpile while its smelter is repaired.

Minister Bahlil's proposal aims to create a symbiotic solution. By channeling Amman's concentrate to Freeport's empty smelter, the government hopes to maintain smelter operations and preserve jobs in Gresik. Simultaneously, it offers Amman a potential domestic buyer, aligning with the broader national policy of increasing domestic mineral processing. "Thus, PTFI's copper smelter can still operate with a supply of copper concentrate from Amman Mineral. On the other hand, Amman Mineral later would not need to export its copper concentrate," Bahlil explained.

Freeport Indonesia has confirmed it is evaluating the option. President Director Tony Wenas acknowledged that preliminary discussions with Amman have taken place but stated that everything is still in the discussion stage, with no final decision made. The company's immediate focus remains on the complex recovery and investigation efforts at the GBC mine, with a target for partial resumption of operations by March 2026. The Manyar smelter is expected to restart in the second quarter of 2026.

Amman Mineral has expressed openness to the idea. Rachmat Makkasau, President Director of AMNT, stated that the company is open to selling concentrate to any party, including Freeport, as long as the deal is mutually beneficial. This potential domestic transaction is seen as a pragmatic step that could benefit both companies' operational and financial standings during a period of adversity.

The outcome of this proposed arrangement carries significance for Indonesia's mining and downstream industry. A successful deal would demonstrate adaptive problem-solving within the sector and help mitigate the economic impact of the Grasberg mine shutdown. As both companies proceed with their evaluations, the Indonesian government maintains its role as a facilitator, hoping its proposed bridge between these two industry leaders will lead to a resilient and collaborative solution.

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Amman Mineral Bahlil Lahadalia Copper Concentrate ESDM Freeport Indonesia Indonesia Mining Smelter Supply