Freeport to Prioritize Indonesian Market Despite US Offering 0% Tariff on Copper Exports

Jakarta. Copper and gold mining giant Freeport Indonesia has reaffirmed its commitment to prioritizing the domestic market, even as the United States introduces a zero percent import tariff on Indonesian copper concentrate and copper cathodes. "Our primary focus remains on meeting the needs of Indonesia's domestic industry," Freeport Indonesia spokesperson Katri Krisnati said on Monday. Katri added that Freeport's copper products are currently marketed within Indonesia and across Asia -- not in the United States. 

Despite growing US interest in Indonesian copper, Freeport Indonesia President Director Tony Wenas said the company has no plans to shift its main export market from China to the US. Advertisement "Relocating the market to the US?

Shipping there takes about 45 days, whereas shipments to China only take seven," Tony explained. "And let's not forget -- China accounts for 50 percent of global copper consumption." The statement comes after Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto, announced that a 19 percent reciprocal tariff from the US on Indonesian imports will take effect starting August 7. However, copper concentrate and copper cathodes will be exempt under a strategic mineral trade agreement between the two countries.

Airlangga added that Indonesia no longer exports raw ores but instead sells "industrial commodities" that have undergone secondary processing. This year, Freeport Indonesia aims to produce 441,000 tons of copper cathode from its new smelter facility in Gresik, East Java. The plant is designed to be one of the largest copper concentrate processing facilities in the world, with a processing capacity of 1.7 million tons per year and annual copper cathode output reaching up to 600,000 tons.

The new smelter complements Freeport's existing processing facility in Gresik, which has been operating since 1997.

In addition, the new facility includes a precious metals refinery equipped with advanced hydrometallurgical technology, allowing the company to extract gold, silver, and other valuable metals from the anode sludge generated during copper refining.

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