ESDM Minister Asks Freeport to Speed Up Smelter Development
The Ministry of Energy and Mineral Resources (ESDM) has asked PT Freeport Indonesia to accelerate the completion of the construction of a copper mineral refining facility (smelter) in Gresik, East Java. This was conveyed by ESDM Minister Arifin Tasrif after his work visit on September 1.
"I hope the PT Freeport smelter project can be completed soon, we will continue to encourage this because when this is completed we will only encourage its downstream industry to develop," said Arifin.
The construction of the Freeport smelter will be carried out within 5 years and is planned to be completed by the end of 2023. The investment for this project is worth the US $ 3 billion. It's just that the smelter construction is currently being affected by Covid-19. This is because vendors and contractors are constrained activity restriction policies in each country.
Freeport has also submitted a request to delay the construction of the smelter for 12 months. This means that the smelter construction target will be delayed to 2024.
Director-General of Mineral and Coal at the Ministry of Energy and Mineral Resources Ridwan Djamaluddin said the realization of the smelter construction progress was lower than the proposed work plan. Progress until July was 5.86%. Meanwhile, the target planned should be to reach 10.5% in 6 months. He also asked Freeport to put more effort into completing the smelter construction.
"The point is don't give up before we die. So roughly, don't say you can't, do your best. If it comes to the time you can't, want
how? but don't say now you can't, ”he said.
Deputy President Director of Freeport Indonesia Jenpino Ngabdi previously revealed that the 5.86% progress includes completing a feasibility study, finalizing a detailed design (front end engineering design / FEED), and land maturation.
"The US $ 290 million per July is for development," he said.
He said the Covid-19 pandemic delayed the construction of the smelter. This is because vendors and contractors are constrained by the policy of limiting activities in their respective countries. As a result, it is difficult for vendors to finalize financing.
Investor Daily, Page-10, Friday, Sept 4, 2020
0 Response to "ESDM Minister Asks Freeport to Speed Up Smelter Development"
Post a Comment