Inside World’s Largest and Richest Gold Mine—A $40 Billion Treasure Trove
Sun Mar 02 2025
Deep in the rugged mountains of Papua, Indonesia, one of the most astonishing mining operations on Earth continues to shape the global metals market. The Grasberg Mine, often referred to as the largest and richest gold mine in the world, is a monumental operation producing millions of ounces of gold and copper annually.
Grasberg is not just a mine—it is a city in itself, complete with its own airport, seaport, roads, housing, schools, and medical facilities. This industrial giant, owned by PT Freeport Indonesia, a joint venture between the Indonesian government and Freeport-McMoRan, has been a centerpiece of global gold and copper production for decades.
According to a study published in Scientific Reports, the region where Grasberg is located holds some of the richest mineral deposits on Earth, formed by complex geological processes over millions of years.
A Gold Rush That Never Ended
Gold mining in Papua dates back to the early 20th century, but the modern Grasberg operation began to take shape in the 1960s, when Freeport-McMoRan secured rights to the site. Over the decades, Grasberg has evolved from an open-pit mine into one of the most advanced underground mining networks in the world.
Initially, the mine’s signature feature was a mile-wide open pit, where surface gold was extracted at an astonishing rate. However, as those deposits dwindled, the operation transitioned underground, with massive tunnel systems now reaching deep beneath the mountains. Today, Grasberg’s underground network consists of three major mining zones:
Each of these mines employs cutting-edge extraction techniques, allowing Grasberg to continue producing vast amounts of gold, copper, and silver. In 2023 alone, Grasberg yielded 52.9 tonnes of gold (1.7 million ounces), 680,000 tonnes of copper, and 190 tonnes of silver.
Despite operating for decades, the mine remains one of the richest gold sources in history, and with tens of billions of dollars in reserves still underground, its dominance in the global market is far from over.
A Self-Sustaining Industrial City in the Mountains
What makes Grasberg even more remarkable is the scale of its infrastructure. Given its remote location in the Papua highlands, the mine required massive investment in transport, housing, and logistics. Unlike most mining sites, which rely on existing infrastructure, Grasberg had to build an entire city from scratch to support its operations.
The mine has its own dedicated airport, used to transport workers and equipment in and out of the site. In addition, a 103-mile pipeline carries mined ore to the Amamapare port, where it is processed and exported across the globe.
To accommodate its 20,000-strong workforce, Grasberg also includes:
Grasberg’s logistical complexity rivals that of a small city, making it one of the most sophisticated mining operations on the planet.
Environmental and Political Controversies
Despite its enormous economic impact, Grasberg has been at the center of numerous controversies. Environmental groups have raised concerns about pollution, waste disposal, and the mine’s impact on local ecosystems. The mining operation releases large amounts of sediment and heavy metals into nearby rivers, affecting water quality and local communities.
In addition to environmental issues, Grasberg has also faced political instability and security threats. Located in a region with ongoing separatist tensions, the mine has been targeted by armed groups opposing the Indonesian government’s control of Papua. Over the years, Grasberg has experienced:
To maintain security, the Indonesian government has deployed military forces to the area, leading to further tensions with local communities.
Source: https://dailygalaxy.com/