Freeport Indonesia to Finalize USD 2.3 Billion Smelter Development Plan

BANDUNG, October 31 (EngineeringDaily) -- US-based mining company Freeport-McMoRan, through its subsidiary Freeport Indonesia, will soon finalize development plans for a new smelter in Gresik, East Java Province. Once complete, the smelter will have a production capacity of 1.8 million tons of copper concentrate.

Though a foreign corporation, Freeport has the largest portion of copper and gold mines in Indonesia. The company has operated in Indonesia since 1967, and for many years has processed its mining products in overseas plants. However, under the new laws regarding the processing of minerals (Minerba Law), the company is under greater pressure to build a domestic processing plant.

According to President Director of PT Freeport Indonesia, Rozik B. Soetjipto, Gresik was chosen for the new smelter site because the area already has adequate infrastructure in place, as well as a wide range of industries ready to utilize smelter products. He also shared that this project will require an investment of about USD 2.3 billion, and expressed the company’s intention to cooperate with Indonesian state-owned mining company PT Aneka Tambang (Antam) for construction.

The next steps of the project will require Freeport to begin making the smelter’s basic design, run the analysis of the environmental impact, and identify construction constraints.

Meanwhile, the Governor of East Java, Soekarwo, expressed his commitment to supporting construction of the smelter. He promised to complete the permitting within 14 working days to facilitate a smooth start to the construction. However, he also requested that Freeport be open with all project details and follow the rules and regulations to ensure proper completion of the project.

By Ismail Al Anshori