Freeport Prepares Funds of US $ 600 Million
4:20 PM
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PT Freeport Indonesia has budgeted around US $ 600 million for the construction of a smelter in the Java Integrated Industrial and Port Estate (JIIPE), Gresik, East Java, out of a total investment of US $ 3 billion.
the Java Integrated Industrial and Port Estate (JIIPE)
PT Freeport Indonesia's Managing Director Tony Wenas believes that with the construction of the world's largest smelter, the company is able to produce 550,000 tons of copper cathode and 6,000 anode sludge per year. At present there are 15 bank financing institutions, both from within and outside the country, which expressed its support for the project which is expected to begin construction in August 2020.
Tony Wenas
The smelter has two facilities namely to process copper concentrates into copper cathodes and precious metal refinery (PMR) earthing facilities. According to. he said, the smelter targeted for completion in 2023 was capable of processing 2 million tons of copper concentrate per year and could produce as much as 550,000 tons of copper cathode annually.
In terms of capacity, the PMR facility can process 6,000 anode sludge per year. The derivative products that can be produced are gold, silver, platinum, palladium, selenium, bismuth, and lead.
"Especially for gold products, the smelter can produce 35 tons per year. We are talking to Antam to take the gold produced, "he said in RDP Commission VII of the Indonesian Parliament,
PT Smelting
At present, he continued, PTFI only has one smelter that processes and refines PTFI concentrates in the country, namely PT Smelting Gresik. PTFI holds 25% ownership and the rest is owned by Mitsubishi Corporation.
copper cathodes
PT Smelting can process around 300,000 tons of copper cathodes per year or around 40% of PTFI's copper concentrate production. Meanwhile, the remaining 60% is directly exported to a number of countries, such as Japan, Korea, the Philippines, India and China.
"Smelters at JIIPE will later process 60% of PTFI's production concentrate. While 40% has been processed at the PT Smelting smelter, "he said.
JIIPE
Nevertheless, he hopes that there will be growth in the downstream industry that can buy 100% of PT FI's copper cathode production. Because, if the PTFI smelter at JIIPE is completed but there is no downstream industry, 100% will be exported.
"There needs to be an industry that grows so that it can buy the cathode. The added value of copper mining, this is in the upstream starting from the ore mine to about 95% concentrate. While the concentrate becomes pure copper with 5% added value, with an investment cost of US $ 53 billion, "he said.
copper slab
Tony added that the smelter construction was certainly carried out in JIIPE, Manyar, Gresik. Initially the company did have two Regional options, one of which was one Region with the Gresik Petrochemical factory.
However, after the study was conducted, the company assessed that the decision to build in JIPE was more feasible and efficient. Regarding overall investment, the American mining company has set aside about US $ 20 billion in 20 years going forward, or until 2041.
Bisnis Indonesia, Page-23, Thursday, Feb 20, 2020.
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