Freeport Continues to Negotiate Smelter Development Target
PT Freeport Indonesia is still negotiating with the Ministry of Energy and Mineral Resources (ESDM) regarding changes to the target for completion of facility construction copper smelter. The project, which is located in Gresik, East Java, was originally targeted for completion by the end of 2023.
However, the Covid-19 pandemic delayed the smelter construction, so Freeport submitted a request for a target adjustment for 12 months. That way the smelter will be completed in 2024.
Freeport has officially sent a letter requesting a postponement to the Ministry of Energy and Mineral Resources since last April. The request was responded to via ESDM Minister Arifin Tasrif's working visit to the smelter on September 1 yesterday. After the visit, the Minister asked Freeport to immediately complete the smelter construction.
Freeport Indonesia President Director Tony Wenas revealed that the Minister of Energy and Mineral Resources saw firsthand the progress of smelter construction. He called on location the project has no development activities. This is because vendors and contractors from abroad are still affected by the Covid-19 restriction policy. He emphasized that his party had not yet accepted the Ministry of Energy and Mineral Resources' official position in rejecting the request to delay the smelter construction.
"We haven't received a rejection letter. We continue to discuss the smelter construction schedule, "said Tony.
Tony emphasized that PTFI is committed to building a smelter as stated in the agreement to issue a Special Mining Business Permit (IUPK). He said the smelter progress had completed a feasibility study, finalized front end engineering design / FEED, and land compaction. It's just that currently being affected by Covid-19.
"(Due to Covid-19, smelter construction stages) What we are doing now is the administrative process," he said.
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. The progress until July was only 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.
Member of Commission VII of the House of Representatives, Rofik Hananto, previously emphasized that the construction of the Freeport smelter must be completed by 2023. This is because Law No. 3 of 2020 states that unrefined mineral exports are given a time limit until 2023. This means that there is no relaxation of processed mineral exports. He rejected whatever reasons Freeport gave regarding the delay in smelter construction.
"If the government provides relaxation then the government is the same as violating a law that has only been published for a lifetime," he said.
The Freeport smelter is located in the Java Integrated Industrial and Port Estate (JIIPE) industrial area in Gresik, East Java. This smelter project was designed.
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's capacity is 6,000 tons. Initially, Freeport Indonesia was committed to completing this smelter by December 21, 2023.
Investor Daily, Page-10, Saturday, Sept 5, 2020
0 Response to " Freeport Continues to Negotiate Smelter Development Target"
Post a Comment