PT Freeport Indonesia (PTFI) continues to develop its long-term underground mining, namely the Kucing Liar deposit located in the Grasberg district, Central Papua.
According to the performance report for the first quarter of 2024 from Freeport-McMoRan Inc. (FCX), the Kucing Liar deposit is projected to produce over 7 billion pounds of copper and 6 million ounces of gold between 2029 and the end of 2041. Therefore, it is deemed necessary for Freeport to its Special Mining Business License (IUPK) extended beyond 2041.
The pre-production development phase of Kucing Liar commenced in 2022 and is expected to continue for about 10 years.
“Capital investment is estimated to average around US$400 million per year during this period,” the report said as quoted on Saturday, April 27, 2024.
The mine is expected to produce approximately 90,000 metric tons of ore per day when fully operational. Meanwhile, on an annual basis, the Kucing Liar mine is projected to produce 560 million pounds of copper and 520,000 ounces of gold.
“Based on PTFI’s experience in developing underground mining, Kucing Liar will benefit from substantial shared infrastructure,” the report stated.
Moreover, in its mine development, PTFI plans to switch to using liquefied natural gas as an energy source, shifting from coal usage. This transition will reduce greenhouse gas emissions in the Grasberg mining area.
PTFI is also planning to invest in new combined-cycle facilities fueled by gas. “Capital expenditure for the new facilities, to be spent over the next 4 years, is estimated to reach US$1 billion, representing an additional cost of US$0.4 billion compared to previously planned investments for renewing existing coal-fired units,” the report noted.
