Freeport Indonesia Chief Executive Tony Wenas said on Tuesday that the company would need to reduce ore production by 40% in 2024 if it is not allowed to export concentrate before the smelter reaches full operating capacity.
Indonesia will stop exporting copper concentrate from May. The move comes after the Indonesian government delayed a ban from June that was meant to allow companies such as Freeport to complete smelter construction.
Freeport-McMoRan's Indonesian subsidiary is building a $3 billion copper smelter in East Java but has faced delays due to the outbreak.
Speaking at a business conference in Jakarta, Mr Venas said the smelter was expected to start operations in May 2024 but would take time to reach full capacity.
"It will take five to six months to reach 100 percent capacity," he said, adding that the company would need to cut production at the Grasberg mine if exports were not allowed.
He said the company had expressed its concerns to the government.
