Freeport Indonesia experienced an increase in gold and copper production in 2023, according to a performance report by Freeport-McMoRan. The report highlighted that gold production reached 1.97 million ounces, marking a 10.01% year-over-year increase from 1.78 million ounces in 2022. Copper production also saw a rise, reaching 1.66 billion pounds, up 5.93% from the previous year’s 1.56 billion pounds.
However, sales figures for the year indicated a slight decrease compared to the prior period. Gold sales in 2023 amounted to 1.69 million ounces, down from 1.81 million ounces in 2022. Similarly, copper sales decreased to 1.52 billion pounds from 1.58 billion pounds in the previous year.
Freeport-McMoRan’s CEO, Richard C. Adkerson, attributed the positive production performance to the full operational status of underground mines, which have been ramping up since 2019. Looking ahead to 2024, projections suggest that Freeport Indonesia’s consolidated sales could reach 1.7 billion pounds of copper and 2 million ounces of gold, with production volumes expected to surpass sales figures. A contributing factor is the allocation of approximately 90 million pounds of copper to satisfy the requirements of the Manyar Smelter in Gresik this year.
The company has received approval for its Work Plan and Budget for 2024-2026 from the Ministry of Energy and Mineral Resources, setting production targets of about 1.4 billion pounds of copper and 1.6 million ounces of gold for the current year.
As the current export permit for copper concentrate and anode sludge is set to expire in May 2024, Freeport Indonesia plans to apply for an extension. The company is in discussions with the Indonesian government to secure approval for continued exports until the Manyar Smelter project is fully operational. Furthermore, discussions are ongoing regarding the imposition of export duties, with the company having already been charged a 7.5% export duty for copper concentrate in the latter half of 2023, amounting to $307 million, of which $160 million was incurred in the fourth quarter based on revised regulations.
The report also mentions that the construction progress of the Manyar Smelter, which has exceeded 90%, may influence future assessments of export duty impositions, considering that the Special Mining Business Permit stipulates no export duties for smelter constructions exceeding 50% completion. 
