Common Infrastructure Project ù Development for the Future of PT Freeport Indonesia

PT Freeport Indonesia operates a large copper and gold mining operation near Tembagapura, Papua (formerly, Irian Jaya), Indonesia. This is a remote location with its own set of unique operational characteristics. The mining and concentrating operations typically produce a concentrate containing 2500 tpd of copper and 6000 oz of gold per day from the combined mining of a 45 000 tpd (ore) block cave operation (DOZ Mine) and a 190 000 tpd (ore) open pit mining operation (Grasberg Open Pit). The Grasberg Open Pit mine will be exhausted in 2015 at which time FreeportÆs operations will entirely underground mining methods. The Common Infrastructure Project (CIP) incorporates the elements required for the shift to underground mining at a production rate approaching 200 000 tpd. The AB Adit portion of the CIP will provide deep level access to the Grasberg Block Cave (below the Open Pit), Kucing Liar, Big Gossan, and the Mill Level Zone orebodies. Commencement of the project was September 2003. The Grasberg Block Cave is planned to start production in 2014. This paper provides details on the project scope, innovative contractual framework, advancement of mining methods throughout the life of the operation, equipment selection, manpower selection, training, geological, and socio-political conditions related to the project.