Freeport Proposes Extension of Concentrate Export Permit
12:37 PM
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PT Freeport Indonesia submitted an application for an extension of copper concentrate permit recommendations to the Ministry of Energy and Mineral Resources (ESDM). This is in line with the expiration of the export period on March 8.
According to the provisions, export licenses can be extended for one year if they meet the requirements including the progress of the construction of a mineral refining facility (smelter).
Riza Pratama
Freeport Indonesia spokeswoman Riza Pratama said the request for an extension was accompanied by an attachment to the progress of the smelter. The smelter's progress was verified by an independent verifier. The annex is the basis for the Ministry of Energy and Mineral Resources to evaluate.
Tony Wenas
In a hearing with Commission VII in mid-February yesterday, Freeport Indonesia President Director Tony Wenas revealed the smelter's progress exceeded the proposed work plan. The verification results stated that the smelter's progress reached 4.88%, exceeding the work plan target of 4.09%.
The 4.88% progress is in the form of land compaction and is targeted to be completed within the next two months. After that, an EPC auction is held to enter the construction stage. The smelter construction is targeted to be completed in 2023.
JIIPE
The smelter has a capacity of 2 million tons of copper concentrate and is integrated with a slime anode smelter of 6,000 tons. The investment reached the US $ 3 billion with the majority of funding coming from banking syndication. The location of the smelter is in the Gresik industrial area, East Java (Java Integrated Industrial and Port Estate / JIIPE).
Riza said in the application for extension of export licenses accompanied by concentrated export volumes. He did not disclose the amount of export volume proposed. Riza only mentioned that the requested export quota was higher than the previous volume.
Freeport Indonesia's Gold Mine
Freeport Indonesia's export quota of 198,200 tons was recorded in March 2019 yesterday. Then get additional concentrate from the stockpile so the quota becomes 700 thousand tons.
Freeport Gold Bar Production
The export volume in 2019 was lower than in the previous period. Because Freeport's production last year entered a transition period from the Grasberg open-pit mine to an underground mine. In 2020, the Grasberg open pit will no longer be dredged by Freeport. Riza revealed that the export volume was higher compared to the 2019 period because production had been supplied from underground mines.
Richard C. Adkerson
Freeport McMoran President and Chief Executive Officer Richard Adkerson previously revealed production from underground mines will continue to increase going forward, at a lower cost. Because of that, his side focused on managing and developing their rights in Indonesia in collaboration with the Government of Indonesia.
"Gross income from reserves that will be produced for the next 20 years, namely US $ 3 for copper and the US $ 1,500 for gold, will reach around the US $ 150 billion, or about 50% higher than those obtained over the past 30 years," said Richard C. Adkerson
Ore production in Grasbers
Block Cave is estimated to increase to 30 thousand tons per day in 2020 and reach 130 thousand tons per day in 2023. While ore production in the Deep Mill Level Zone (DMLZ) is planned to increase to 28 thousand tons per day in 2020 and reach peak production of 80 thousand tons per day in 2022. So, in 2023, the total ore production from the Freeport Indonesia underground mine will reach 210 thousand tons per day.
the Deep Mill Level Zone (DMLZ)
"The peak production of these two ore bodies is projected to be an average of 1.3 billion pounds for copper and 1.3 million ounces for gold each year," Adkerson said.
Investor Daily, Page-9, Thursday, March 5, 2020
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