(Bloomberg) — Freeport-McMoRan Inc. is in talks with the Indonesian government to extend its licenses to export copper concentrate because a fire has disrupted the company’s smelter operations in the Southeast Asian nation.
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Freeport’s Indonesian subsidiary has temporarily suspended operations at its copper smelter after a fire last week damaged infrastructure used to produce sulphuric acid, the US metals producer said Tuesday in its earnings report. Freeport said the subsidiary “is working with the Indonesia government to allow continuity of copper concentrate exports until smelter operations are restored.”
Freeport secured licenses in July to export copper concentrates and anodes until the end of the year, following requirements that producers commission smelters in Indonesia to refine the raw material. The permits are part of a government push to leverage Indonesia’s mineral wealth to secure investment in industrial development.
Chief Executive Officer Kathleen Quirk said on Tuesday’s earnings call that the company will need to replace some equipment and piping that was damaged during the fire. She declined to give a timeline for the repairs.
“Our teams have been on the ground, inspecting the damaged equipment and determining what needs to be replaced,” she said. “We’re working to figure out the root cause of this.”
(Updated with comments from Freeport CEO)
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