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Grasberg Mine a source of frustration in Indonesia

Grasberg Mine a source of frustration in Indonesia

The Grasberg Mine, owned by Freeport-McMoRan, has long been the source of some controversy, with contractual disputes halting operations at the world’s second largest copper mine.

The mine has been a source of controversy due to the revenue share that both Indonesia and Papua get, as well as a lack of clarity over the impact of its tailings and water systems.

The Grasberg Mine

The Grasberg Mine is part of the Grasberg minerals district, which is home to a number of open-pit and underground mines.

Located in the remote highlands of the Sudirman Mountain Range in the province of Papua, Indonesia, the Grasberg mine was discovered back in 1988. After years of production, the mine stands as one of the world’s largest recoverable copper reserve and the largest gold reserve.

Freeport owns 90.64 percent, which is also made up of 9.36 percent owned through the subsidiary, PT Indocopper Investma) and 9.36 percent of the Government of Indonesia.

Production began at the Grasberg open-pit back in 1990. Crushing and conveying systems are integral to the mine and provide the capacity to transport up to 150,000 mtd of ore to the mill and 75,000 mtd of overburden to the overburden stockpiles. The remaining overburden is moved by haul trucks

Freeport has several projects in progress at the Grasberg district, which over the next few years are expected to process an aggregated amount of 240,000 metric tons of ore per day.


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