A major underground landslide slashes Freeport’s gold output, pressuring Indonesia’s supply stability.
PT Freeport Indonesia is bracing for a sharp decline in gold production after a deadly landslide disrupted operations at its Grasberg Block Cave mine in Papua Tengah, raising concerns over national gold supply for 2026.
Production Falls Far Below Normal Levels
Freeport Indonesia confirmed that its gold output could drop by 30 percent in 2026, a major setback from its normal annual production of 50–60 tons. This projection follows a severe underground landslide at the Grasberg Block Cave (GBC) mine in September, which shut down key access points and triggered emergency responses.
2025 Output Expected at Only 15 Tons
Wakil Presiden Direktur PTFI, Jenpino Ngabdi, stated during the Bullion Connect 2025 event in Jakarta on 12 November 2025 that output this year is expected to reach only 15 tons at maximum. Most of this reduced supply is being allocated to PT Aneka Tambang Tbk (Antam) to maintain domestic availability.
Landslide Triggered Extensive Operational Disruptions
The landslide involved a sudden flow of wet material that blocked crucial tunnels, cutting off production routes and obstructing evacuation paths. Seven workers were trapped in the incident, prompting PTFI to halt operations entirely in the Grasberg complex until evacuation and investigations were completed. The shutdown immediately affected the company’s ability to mine and process gold and other minerals.
Capacity Challenges Compound the Decline
Jenpino emphasized that even before the landslide, Freeport’s gold facilities were not running at full capacity. The company had only recently begun producing refined gold, meaning its processing infrastructure has yet to reach optimal output levels. The combination of limited refining capacity and the operational halt significantly suppressed 2025 production.
Gold Supply Recovery Expected in 2027
Despite the sharp downturn, PTFI projects that production will return to normal levels—around 50–60 tons per year—by 2027. This recovery timeline assumes full restoration of mining routes, stabilized underground conditions, and the ramp-up of refining facilities to full operational capacity.
Impact on National Gold Availability
Freeport plays a crucial role in Indonesia’s gold supply for investment and jewelry manufacturing. The prolonged decline could tighten domestic availability and pressure industry players who rely on steady input from PTFI.
Freeport’s production setback highlights the vulnerabilities of complex underground mining operations and their ripple effects on national resources. The disruption also underscores the importance of robust safety and infrastructure resilience for Indonesia, while offering a reminder to regional economies like Singapore that commodity stability remains tightly linked to operational risks within the archipelago.
Sources: Republika.co.id (2025) , IDN Times (2025)
Keywords: Freeport Production, Gold Output, Grasberg Block Cave, Jenpino Ngabdi, Indonesia Mining
