PT Freeport Indonesia (PTFI) officially inaugurated its new copper smelter operations in the Java Integrated Industrial and Port Estate (JIIPE) Special Economic Zone in Gresik, East Java.

Key Points:

• The mining resources can be utilized and more manageable within the country
• Unlocking the significant economic potential of copper

The inauguration ceremony was attended by Coordinating Minister for Economic Affairs Airlangga Hartarto, along with Investment Minister/Head of BKPM Bahlil Lahadalia, and PTFI President Director Tony Wenas. The smelter's operational launch took place at the Sulfuric Acid Tank area, marked by a siren button press signifying the start of operations followed by the unveiling of a commemorative plaque. Also present were the Acting Governor of East Java represented by the Acting Secretary-General Bobby Soemiarsono, and Gresik Regent Fandi Akhmad Yani.

The new PTFI smelter is capable of purifying copper concentrate with a production capacity of 1.7 million tons. In addition to producing copper cathodes, the smelter also yields anode sludge, which is further refined into bullion gold, silver, and Platinum Group Metals (PGM) at the Precious Metal Refinery (PMR).

Opening up significant economic potential from copper, PTFI President Director Tony Wenas stated that the construction of the new smelter underscores PT Freeport Indonesia's commitment to supporting the government's copper mineral down streaming policy. He emphasized the global demand for copper, particularly as other countries are accelerating their energy transition efforts, which will require substantial amounts of copper.

"The President's decree to build another new smelter aligns perfectly. Global demand for copper will continue to rise, accelerating the formation of the electric vehicle ecosystem and boosting Indonesia's position in gold," he said.

With a construction timeline of 30 months, Wenas noted that the Freeport smelter's development was part of the Special Mining Business License (IUPK) agreement. Construction proceeded on schedule, with operations commencing in August and reaching full capacity by December 2024.

"So, this smelter is very timely as renewable energy is now a trend and requires critical minerals, including copper," the Minister added.

By the end of May 2024, PTFI had invested USD 3.67 billion (approximately IDR 58 trillion) in the construction of the world's largest single-line copper smelter. With the establishment of this smelter, mining activities through to refining now occur domestically.

Investment Minister Bahlil Lahadalia expressed gratitude for the successful launch of the Freeport smelter, despite challenges such as the Covid-19 pandemic during its construction phase. Acting Director General of Minerals and Coal Bambang Suswantono, representing the Ministry of Energy and Mineral Resources (ESDM), confirmed that the ministry closely monitored the Freeport smelter's development.

"The timely completion of the Freeport smelter marks the beginning of mineral down streaming in our country," Bambang stated.

It is expected that this development will positively impact the domestic economy, ensuring added value from mining activities is enjoyed within the country.

Source: https://www.goodnewsfromindonesia.id/topic/internasional