Freeport Indonesia to Produce 1.1 Billion Pounds of Copper Cathode at Grasberg Mine for 2026
On 13 April 2026, Freeport Indonesia CEO Tony Wenas announced that his company is ramping up production to reach 1.1 billion pounds of copper cathode and 0.8 million ounces of gold for 2026. For 2027, the target is 1.5 billion pounds of copper cathode and 1.3 million ounces of gold.
This move is a return to normalcy after the landslide incident in September 2025. At that time, #copper world prices spiked, since this single mine accounts for nearly 4% of global output. Freeport-McMoRan (NYSE: FCX) has been involved in Indonesia since 1988, following the discovery of the Grasberg copper-gold deposit, which turned out to be one of the most profitable in the world.
After extracting and exporting copper and gold for decades, Freeport Indonesia divested its stake and transferred control to the Government of Indonesia with a 51% stake in 2018. In 2023, Jakarta issued a broad ban on the export of raw mineral ores, including copper concentrates. Only refined copper, at a minimum cathode level, can be exported.
Now, Indonesia boasts the world’s largest single-line copper smelter at Gresik, East Java. Hungry for copper for the buildout of AI data centers, the USA approached Indonesia to secure this critical metal.
However, Indonesia has seen this movie before with China for its nickel, one of the #CriticalMinerals needed for making batteries of Electric Vehicles, a sector where China’s ambitions to be a world leader. Led by Zhejiang Tsingshan and Jiangsu Delong, Chinese companies obtained 90% of the mining concessions and controlled 70% of the refining capacity. This large concentration in Chinese hands left Jakarta highly dependent on Chinese capital, technology, and pricing.
Therefore, Jakarta does not want the ‘China Play’ for nickel to become the ‘American Way’ for copper. Indonesia’s policy is structured to ensure ‘balance’, equity control, and upholding national interests.
However, many challenges lie ahead. First, the government must strike the right balance between strategic control and commercial attractiveness to avoid scaring away further investment. In addition, communities living near mining operations have voiced concerns about environmental degradation.
In other words, Indonesia must navigate judiciously between the two superpowers and assert its mineral sovereignty. Critics have called the new policy ‘resource nationalism’, but Indonesia is leading the way on how to get a fair share of a mining deal. The race for #CriticalMinerals is full on and now is the time to cash in on the boom.