Freeport & Amman Smelter Project Continues
PT Freeport Indonesia and PT Amman Mineral Nusa Tenggara (AM NT) claim to be serious about building a mineral processing facility (smelter). The two companies have appointed contractors for their respective smelter projects. PT Amman Mineral Industri (AMIN), which is an affiliate of AMNT, appointed a consortium of China Non-ferrous Metal Industries Foreign Engineering and Construction Co Ltd (NFC) as the engineering procurement and construction (EPC) contractor for the smelter project with a capacity of 900,000 tons per year in West Sumbawa, NTB.
Amman also appointed China Nerin Engineering Co Ltd (Nerin) as a technical service provider. This was marked by the issuance of a letter of intent (Lol) which was signed on Thursday (22/7) last week and witnessed by the Director-General of Mineral and Coal of the Ministry of Energy and Mineral Resources (ESDM).
President Director of AMIN Rahmat Makkasau explained that this process has been going on for a very long time and is full of challenges. In the bidding and negotiation process, both parties have agreed on a series of work that must be fulfilled by the EPC contractor, along with the technical and commercial terms for the contract.
"We appreciate the support from various parties, especially the agreement was made in the midst of challenges due to the Covid-19 pandemic," said Rahmat.
Based on the six-monthly verification in January 2021, the total physical progress of the smelter reached 26.6% of the target set by the government of 26.7% or 99.35% of the target set between August 2020 and January 2021.
Meanwhile, PT Freeport Indonesia confirmed that it has obtained a banking credit facility of US$ 1 billion with a tenor of 5 years to encourage existing smelter projects.
"Freeport recently signed a US$1 billion bank credit facility, five years without collateral, to advance these projects," said Freeport-McMoRan Chairman & CEO Richard C.
Freeport is planned to seek additional funding through debt financing with the cost of all the debt being divided 49% by FCX and 51% by PT Inalum. The entire smelter project is estimated to require funds of US$ 250 million. Activate Windows for the development of smelter projects in Indonesia, Richard said the additional capacity of 300,000 tons in the existing copper smelter at PT Smelting is targeted for completion by the end of 2023.
Kontan, Page-12, Monday, July 26, 2021
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