ASIATODAY.ID, JAKARTA – Indonesia has been jolted by the discovery of a massive new underground mineral reserve.
The Kucing Liar Project, operated by PT Freeport Indonesia (PTFI), is projected to produce an average of 750 million pounds of copper and 735,000 ounces of gold annually—more than 35% above initial estimates.
The find is being hailed as a “giant treasure” that could further cement Indonesia’s position as one of the world’s leading copper and gold producers.
Production Surge, Extended Mine Life
According to the latest corporate update from Freeport-McMoRan (FCX), the Kucing Liar underground development—launched in 2022—could increase ore processing capacity from 90,000 tons to 130,000 tons per day.
As a result, PTFI’s total mineral reserves are expected to rise by 20%, reaching approximately:
– 8 billion pounds of copper
– 8 million ounces of gold
– Mine life extended through 2041
Mining experts describe reserve growth as the lifeblood of long-term operations, ensuring production continuity and investment certainty.
Fourth Underground Operation in Grasberg
Kucing Liar will become the fourth underground mine in the Grasberg district, following:
Grasberg Block Cave (GBC)
Deep Mill Level Zone (DMLZ)
Big Gossan
The project requires an additional USD 500 million investment, around 10% higher than initial projections. Capital expenditure (capex) could reach USD 500 million annually over a seven- to eight-year development period.
Major Economic Impact for Papua and Indonesia
As part of Indonesia’s state-owned mining holding MIND ID, PTFI’s expansion is expected to generate substantial economic benefits, including:
Higher state revenues
Increased regional income for Papua
Job creation
Stronger local economic activity
The project also aligns with Indonesia’s downstream mineral processing policy, supported by the completion of a new smelter facility targeted for 2025.
License Extension Toward 2061?
Alongside reserve expansion, FCX has confirmed plans to apply in 2026 for an extension of PTFI’s Special Mining Business License (IUPK).
The current license runs until 2041, but the Indonesian government has opened discussions on a possible extension through 2061, based on projections that mineral production could peak around 2035.
Shareholding Structure: 49% Until 2041
FCX intends to maintain its 49% stake in PTFI until 2041, after which it plans to divest additional shares to Indonesian state-owned enterprises in 2042.
Under this framework, FCX’s ownership could decline to approximately 37% post-2041, while majority control remains with Indonesia through MIND ID.
Strategic Momentum for Indonesia’s Mining Industry
The Kucing Liar development represents more than just higher output. It signals:
Stronger national mineral resilience
Enhanced downstream value creation
Greater leverage in global supply chains
With multibillion-dollar investments and significant reserve additions, the project could become a cornerstone of Indonesia’s economic strength over the next two decades.
The critical question now: how effectively will these extraordinary resources translate into sustainable and inclusive development for Papua and the nation as a whole? (AT Network)
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