PT Freeport Indonesia (PTFI) suspended copper cathode production at its Manyar smelter in Gresik, East Java, following a fire that broke out on 14 October. 

According to a company spokesperson, the blaze was brought under control by the emergency response team, and no casualties were reported, but the sulphuric acid unit was affected. The company is currently assessing the damage and investigating the cause of the incident.  

The US$3.7Bn facility was completed in June, began output in September, and was expected to reach full capacity in January 2025. However, production was delayed until November following technical delays due to water and steam leakage during an initial test period. Following the fire, the production delay is likely to be further extended.  

The Manyar smelter is critical to global copper supply, with an annual processing capacity of 1.7Mt of copper concentrate, producing around 900kt of copper cathode. The incident, which may lead to additional delays in cathode production, could further tighten an already constrained copper market. Adding to the pressure, both PTFI and PT Amman Mineral have requested extensions of their copper concentrate export licences due to the slow ramp-up of their respective smelters. With global supply chain disruptions persisting, these delays at key smelters could place additional upward pressure on copper prices, which are already being impacted by a tightening supply-demand balance.