Freeport Smelter Rp. 38 T
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The progress of the Freeport smelter construction is still 4.88 percent.
PT Freeport Indonesia (PTFI) will spend 600 million US dollars or the equivalent of Rp. 8.2 trillion (exchange rate of Rp. 13,702) for the construction of the initial phase of the world's largest smelter in 2020.
Java Integrated Industrial and Port Estate (JIIPE)
The construction process for the construction of a refining plant in Gresik, East Java, began. in this August 2020.
Tony Wenas
PTFI President Director Tony Wenas explained the 600 million US dollars fund was used by the company for the physical construction of the smelter. At present, the company is still conducting land compaction and will be completed in the next three months. Smelter construction land in Java Integrated Industrial and Port Estate (JIIPE), Gresik, East Java, is a former pond or has very high water content.
JIIPE PORT
"At present, the progress of smelter construction is 4.88 percent. We are doing land compaction. The hope is that in three months it will be over, then we will hold an EPC auction and in August the hope has begun construction, "said Tony at the House of Representatives Commission VII, Jakarta, Wednesday (19/2).
Tony explained, PTFI needed funds of 2.8 billion US dollars or around Rp 38 trillion for the entire construction of the smelter construction. However, from the funding requirements, around 2.8 billion US dollars will be obtained by the company from bank loans and 200 million US dollars from internal funds.
Tony did not specify where the loan was obtained. He only said, later there would be a number of banks that would provide loans for PTFI to build purification plants. About nine to 15 banks have expressed support for the project with collateral from PTFI's assets.
"Combined both at home and abroad," said Tony.
The smelter construction is targeted to be completed in 2023 and will be able to process up to two million tons of concentrated concentrate per year. Another capacity is to function for purification of anode sludge. From the storage capacity of two million copper concentrates, it will produce 500 thousand-600 thousand tons of copper cathode.
copper cathode
Meanwhile, from anode sludge, it is estimated that it can produce as much as 40 tons of gold per year. Commission VII of the DPR asked PTFI to provide clarity on the origins of bank loans for the cost of building a smelter.
"This must be submitted later, it is clearly known how much burden is borne by shareholders," said Deputy Chairman of Commission VII Eddy Soeparno.
In addition, Commission VII also asked PTFI to increase the number of employees, especially indigenous Papuans, to work at the gold mining company. PTFI was also asked to maintain and preserve local wisdom in order to foster community relations.
the Grasberg open-pit mine
At the same time, PTFI stated, production decreased after the Grasberg open-pit mine was dredged. This has an impact on economic growth in Papua, as reported by the Central Statistics Agency (BPS) which has experienced a drastic decline.
Riza Pratama
PTFI Spokesperson Riza Pratama explained, the economic growth was indeed not directly affected by mining activities. But, because so far PTFI has used local contractors to mine open pit, when the open-pit mine runs out, contracts with local contractors also run out.
"Actually, the activities were not reduced, the opening of the mine has been completed. The underground mine is still not optimal. So, actually, there is a gap not because there is a decrease in production because this is already finished, "said Riza in the DPR.
Riza detailed, throughout 2019 the company's production decreased by 50 percent. That certainly has an impact on corporate finance which also has an impact on reduced regional taxes. This is suspected to be one factor in the decline in Papua's economic growth.
"But, of course, there are some regional revenues that are reduced because our production will also be reduced, there are some local taxes that are reduced," said Riza.
However, Riza ensured that the reduction in company productivity in the open pit would not affect the condition of PTFI employees. But, he acknowledged, of all the total activities of the company, of course, there was a reduction in the activity of the involvement of local contractors for the development process.
Republika, Page-13, Thursday, Feb 20, 2020.
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