The story of the Grasberg mine began in the mid-1930s when Dutch colonists discovered copper deposits in the Jayawijaya Mountain glaciers in the Indonesian part of New Guinea. Mining operations commenced in 1972, however the mine was largely exhausted by the mid-1980s. It wasn’t until 1988 when PT Freeport Indonesia (subsidiary of Freeport-McMoRan Copper & Gold,Inc.) began exploring additional deposits in the area, that they discovered it had the potential to become an exceptionally profitable site.
Located in the providence of Papua, the Grasberg mine sits at an altitude of 14,000 feet in the remote highlands of the Sudiman Mountain Range. The mine is a joint venture between Freeport-McMoRan and mining juggernaut Rio Tinto, with Freeport owning 60 percent of the mine and Rio Tinto owning the remaining 40 percent. Freeport owns a 90.64 percent interest in PT Freeport Indonesia, which operates the mine. In its first full year of operations the Grasberg mine produced 196,000 ounces of gold, making it an immediate success.
Grasberg requires careful management owing to its vast and often complex nature. Freeport is able to conduct exploration, mining and production activities in the 24,700-acre area in agreement with the government of Indonesia. Mining operations include an open-pit mine, an underground mine, and four concentrators. A number of processes are used on site, including various stages of drilling, blasting, sorting, hauling, and crushing of ore.
Visible from space, nestled high in Indonesian mountains, the Grasberg mine is a true titan of copper and gold production! What’s the most awe-inspiring (or challenging) aspect of operating a mine at such an immense scale and extreme altitude? Share your thoughts!
