Fire Disrupts Copper Smelting Operations at Freeport McMoRan’s Manyar Smelter
Freeport McMoRan’s copper operations at the Manyar smelter in Gresik, East Java, Indonesia, came to a halt after a fire broke out on October 14, 2024. The fire damaged the clean gas separation unit, which is crucial for converting carbon dioxide into sulfuric acid for copper refining. Although the fire was extinguished by the next day, the incident led to the suspension of copper cathode production. As a result, Freeport has delayed refined copper sales, and full-scale operations will not resume until repairs are completed.
Impact on Copper Production and Refining Operations
The Manyar smelter, which began operations in September 2024, has a capacity of processing 1.7 million tonnes of copper concentrate annually, producing up to 600,000 tonnes of copper cathodes. The fire disrupted the critical clean gas separation unit, affecting the smelting process and halting copper cathode production. Tony Wenas, CEO of Freeport Indonesia, confirmed that the suspension was necessary due to the inability to process sulfuric gas, essential for copper refining. The company is working to repair the damage, but no timeline has been provided for when operations will fully resume.
Setback to Freeport’s Expansion Plans in Indonesia
The Manyar smelter plays a crucial role in Freeport McMoRan’s expansion strategy in Indonesia. The company aimed to ramp up operations to full capacity by early 2025 to increase copper output in the region. The fire has delayed these plans, particularly as Freeport has been focusing on increasing refining capacity. The incident is a significant setback to the company’s growth trajectory in Indonesia, especially as it was relying on Manyar to process copper concentrate from its Grasberg mine and other Indonesian operations.
Financial Impact and Outlook for Freeport McMoRan
Freeport McMoRan has not yet disclosed the financial impact of the fire, but the suspension of copper cathode production at Manyar will likely affect its copper sales for the remainder of 2024. With copper prices currently volatile, any delay in production could lead to missed revenue opportunities. The company is working to restore operations quickly and will revise its production forecasts once the repair timeline is clearer. The Manyar smelter is crucial to Freeport’s refining operations, and this setback highlights the challenges faced by mining companies in managing complex refining operations.
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