Freeport McMoran (FCX), the parent company of PT Freeport Indonesia (PTFI), announced that its underground Grasberg Block Cave (GBC) mine in Papua is unlikely to resume full operations until 2027 after a massive landslide disrupted production earlier this month.

The incident, which occurred on September 8, 2025, involved the collapse of wet material totaling around 800,000 tons. PTFI is currently assessing the impact on future production plans, warning of significant delays through the fourth quarter of 2025 and throughout 2026.

“Restoring the mine (GBC) to pre-incident operating levels is potentially achievable in 2027,” the company said in a media release on Thursday, September 25, 2025.

According to FCX data, the GBC mine accounts for about 50 percent of PTFI’s mineral reserves as of 2024 and represents 70 percent of projected copper and gold output through 2029.

The landslide struck one of the mine’s five production blocks but also damaged critical infrastructure needed to support other blocks. PTFI’s current production comes from three underground mines: GBC, Deep Mill Level Zone (MLZ), and Big Gossan. The company said that both Deep MLZ and Big Gossan, which were unaffected by the landslide, are expected to restart operations by mid-fourth quarter 2025.

In 2024, PTFI produced an average of 208,400 metric tons of ore per day, with GBC contributing 133,800 metric tons or 64.2 percent of the total. During the first half of 2025, GBC output dropped to 104,100 metric tons per day, or 60.5 percent of overall production.

The suspension of GBC operations will result in “very limited sales of copper and gold in the fourth quarter of 2025,” the company said. The disruption is also expected to weigh heavily on 2026 performance, with production projected to fall by 35 percent compared to earlier estimates. Prior to the incident, output for 2026 was forecast at 1.7 billion pounds of copper and 1.6 million ounces of gold.

Despite the setback, PTFI emphasized that it will optimize production plans and allocate resources to ensure safe recovery efforts. The company also confirmed plans to file an insurance claim under its property and business interruption policies, covering potential losses of up to US$1 billion (Rp16.73 trillion).