Freeport completes US$3.7 billion copper smelter

old and copper mining company PT Freeport Indonesia (PTFI) is set to begin operating a new smelter in Gresik, East Java, after having finished constructing the US£3.7 billion facility. The smelter will increase the company's processing capacity to 3 million tonnes of copper concentrate per year from the previous annual rate of 1 million tonnes. The mining giant is expected to produce over 900,000 tonnes of copper cathode annually, up from the existing 300,000 tonnes.

Freeport Indonesia president director Tony Wenas said on Thursday that the smelter's completion meant the company had officially fulfilled the government mandate stipulated in the special mining license (IUPK) the company was issued in 2018. Though the smelter was operational, Tony said it would still need another six to 10 weeks to begin producing its first copper cathode, which he estimated would take place in August. The smelter was expected to begin full production by year-end, he added.

"Hopefully the smelter will begin production before Independence Day," he said during a live broadcast of the ceremony in Gresik on Thursday.

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Smelters have been the government's main method to push the downstream agenda in the country, as it seeks to increase exports of processed minerals, which have a higher value than their raw forms.

References

1. ^ View More Newsletter (www.thejakartapost.com)