Freeport McMoran Delays Construction of Smelter in Gresik
4:31 PM
4 Comments
Freeport McMoran, a shareholder of PT Freeport Indonesia, plans to postpone the construction of a smelter in Gresik, East Java following the Covid-19 pandemic.
The US mining company is cutting its capital expenditure (capital expenditure), including one of them for projection melt in Indonesia. Freeport McMoran President & Chief Executive Officer Richard Adkerson said he was committed to building a smelter as part of an agreement in the Special Mining Business License (IUPK) he stressed. However, the construction of this project has been delayed due to restrictions on workers in the field in Gresik and supply chain problems.
Richard C Adkerson
It also reviewed a number of issues related to smelter construction that would benefit both Freeport Indonesia and the government. Because at the same time, like other governments in the world, the Government of Indonesia is also struggling to maintain state revenues due to declining economic activity and investment. In fact, although construction has started since 2014, the project The Freeport Indonesia smelter has no significant progress.
Until last March, the construction of a smelter with a capacity of 2 million tons of copper concentrate only reached 4.88 percent. The slow progress of the smelter was alleged because Freeport wanted the certainty of operations following the expiration of the Contract of Work (CoW) next year. This is in line with Adkerson's statement in a conference call.
"We reluctantly decided that we are committed to building a smelter to get a resolution related to our old problem with the Indonesian Government regarding extending our mining rights," he said.
However, he denied that his party was renegotiating with the government related to the construction of this smelter. In 2020, he continued, Freeport McMoran predicted that there would be no significant investment in the smelter project due to delays in development. However, his party is still committed to run the smelter construction in Gresik.
"If the government does not approve changes due to current conditions, we will fulfill our commitment to building a smelter," said Adkerson.
Kathleen Quirk
Freeport McMoran Executive Vice President & Chief Financial Officer Kathleen Quirk added, globally, the company cut its spending capital to the US $ 800 million to the US $ 2 billion following the Covid-19 pandemic. The budget cuts include Indonesia in the amount of US $ 200 million.
"About half of it is due to the upgrading mill that we postponed for one year due to a pandemic and restrictions on international contractors. We also reduced expenses related to the smelter project following the project delay and discussions with the government, "explained Kathleen.
The Freeport Smelter is located in the Java Integrated Industrial and Port Estate (JIIPE) industrial area in Gresik, East Java. The smelter project is designed to be integrated with the slime anode purification facility. The copper smelter from this project is planned to have a capacity of 2 million tons of concentrate, while the slime anode smelter capacity is 6,000 tons. Initially, Freeport Indonesia committed to complete this smelter no later than 21 December 2023.
Investor Daily, Page-9, Monday, April 27, 2020
In your Rolodex or contact supervisor, research your rundown of key contacts. Likewise glance through your industry's affiliation enrollment catalog, and call each one you realize who has an occupation in your field that may be happy to assist you with work leads. Industrial Asbestos Removal
ReplyDeleteLead generation companies also offer comprehensive results about your investment, so you know exactly how many leads were generated, how, and within how much time. construction company web design
ReplyDeleteMake or propose extra online assets for your items and administrations and definitely, incorporate tributes, surveys, suggestions and media notices of your organization to sell your organization while you rest. Local builders
ReplyDeleteHere are some other things you should consider when trying to find the best lead generating system. Business lead generation
ReplyDelete