PT Freeport Indonesia (PTFI) is developing a new underground mining block, known as the Kucing Liar mine, with total investment projected to reach up to IDR 72 trillion. The project is expected to become one of the company’s key future sources of production and to support the long-term sustainability of mining operations in the Grasberg area, Central Papua.
PTFI President Director Tony Wenas said development of the Kucing Liar underground mine is ongoing and forms part of the company’s long-term operational strategy. He emphasized that the substantial investment reflects Freeport Indonesia’s continued commitment to supporting national economic development and maintaining sustainable mining operations.
“Development of the Kucing Liar underground mine, which will become one of the company’s main production sources in the future, is continuing,” Wenas said during the 81st Indonesian Independence Day ceremony in Tembagapura, Mimika Regency, Central Papua, on Monday, August 17, 2026. “Investment in this underground mine has already reached IDR 25 trillion and will eventually total IDR 72 trillion.”
The Kucing Liar mining project is scheduled to begin production in 2029, with an expected production capacity of approximately 130,000 metric tons of ore per day. The mine is designed to help maintain PTFI’s overall production target of around 240,000 metric tons of ore per day. Over its operating life, the Kucing Liar mine is projected to produce more than 7 billion pounds of copper and approximately 6 million ounces of gold. Wenas said the development demonstrates that Freeport Indonesia continues to advance its long-term investment plans despite the current recovery period.
The Kucing Liar Block is considered critical to offset the anticipated natural decline in production at the Grasberg Block Cave (GBC) mine in the coming years. In addition, if the company receives confirmation of an extension to its Special Mining Business Permit (IUPK) beyond 2041, PTFI plans to continue exploring the area for potential new mineral reserves beyond the existing mining blocks.
According to Freeport-McMoRan’s first-half 2026 report, PTFI had invested at least US$1.4 billion, equivalent to approximately IDR 24.9 trillion, in the development of the Kucing Liar mine as of June 30, 2026. PTFI began developing the underground mine in the Grasberg mineral district in 2022. The project was initially targeted to begin operations in 2028 but was postponed to 2029 following a wet-material landslide at the Grasberg Block Cave mine in September 2025.
Freeport-McMoRan stated that PTFI has been undertaking long-term mine development activities at the Kucing Liar deposit since 2022. Production from the mine is expected to ramp up gradually from around 2030 before reaching its design capacity of approximately 130,000 metric tons of ore per day. At full capacity, Kucing Liar is estimated to produce an average of 750 million pounds of copper and approximately 735,000 ounces of gold annually. The project is therefore expected to play an important role in maintaining production continuity and strengthening Freeport Indonesia’s long-term presence in the Grasberg area.
August 18, 2026, CNBC Indonesia
(https://www.cnbcindonesia.com/news/20260818180638-4-760403/freeport-kembangkan-tambang-baru-investasinya-bisa-capai-rp72-triliun)