Freeport Indonesia Production Drops Nearly 90% in Q4 2025
PT Freeport Indonesia faced a critical situation in the fourth quarter of 2025, with copper and gold production dropping nearly 90%. This was due to technical issues related to a ‘mud rush’ incident at the Grasberg underground mine in Papua, Indonesia. According to Freeport-McMoRan’s financial report, copper production during this time was only 49 million pounds, which is an 88.58% decrease compared to the same period last year, when 429 million pounds were produced. Gold production fell to 61,000 ounces, a drop of 85.75% compared to 428,000 ounces in the fourth quarter of 2024.
Freeport management explained that the sharp decline in performance was due to the ‘mud rush’ incident that occurred in September 2025, forcing the company to temporarily suspend mining operations in Grasberg Block Cave. The disruption also impacted the supply chain, as concentrate deliveries to smelting facilities in East Java were halted.
These disruptions led to significant cost increases for the company: Freeport incurred $454 million or 7.65 trillion Indonesian Rupiah in idle facility and direct recovery costs. In total, expenses related to the mud rush incident rose to $625 million or 10.53 trillion Rupiah throughout 2025.
Despite this setback, PTFI has started recovery efforts. The company’s ultimate goal is to restart operations at Grasberg Block Cave by the second quarter of 2026 and achieve 85% capacity in the second half of the year. Preparatory work is ongoing in all directions, including mud clean-up and infrastructure repairs.
Freeport-McMoRan President and CEO Kathleen Quirk confirmed that the company remains focused on a safe and sustainable recovery of operations at Grasberg in the upcoming 2026.
