PT Freeport Indonesia stated that the construction process of a copper cathode smelter in the Java Integrated and Industrial Port Estate (JIIPE) area in Gresik, East Java had reached more than 50% as of the end of last year.
Vice President Corporate Communications PT Freeport Indonesia, Riza Pratama explained, the development of copper cathode smelter construction until the end of 2022 has reached more than 50%.
“We are targeting completion of construction in December 2023,” he explained to Kontan.co.id, Wednesday (11/1).
Riza explained that after the completion of construction, PTFI will continue with the pre-commissioning and commissioning process so that the new refining facility can start operating at the end of May 2024.
The production capacity of the smelter under construction by PTFI in the Special Economic Zone (SEZ), JIIPE – Gresik is 1.7 million tons of copper concentrate. The smelter will later produce copper cathodes of 550,000 tons per year.
For information, in December 2018, PTFI has received a Special Mining Business Permit (IUPK) from the Government of Indonesia which allows PTFI to continue operating in the Grasberg mineral mining area until 2031.
In the IUPK, it is stated that PTFI has the right to extend operations until 2041, provided that PTFI completes the construction of a new smelter and fulfills tax obligations to the Government of Indonesia.
In line with the IUPK, PTFI has started to build a new smelter under the name Manyar Smelter. This is PTFI’s second smelter after in 1996 PTFI built the first copper smelter in Indonesia, now known as PT Smelting Gresik.
The first smelter was built as a form of PTFI’s compliance with Contract of Work II (PTFI’s operating license in 1991-2018) which requires all holders to carry out the domestic processing/refining process.
This time PT Smelting wants to increase the smelter’s production capacity. In Kontan.co.id note, Senior Section Manager of General Affairs of PT Smelting Saptohadi Prayetno said that currently the smelter managed by PT Smelting has a production capacity of 300,000 tons of copper cathodes per year.
It will increase the smelter’s capacity by 30% to 330,000 tons per year. For this reason, PT Smelting will disburse an investment of IDR 3.2 trillion.
Image source >>> KONTAN/Andy