Domestic Factories Expected to Absorb Freeport's Copper Metal

22 March 2022

President Director of PT Freeport Indonesia (PTFI) Tony Wenas hopes that the metal or copper cathode produced from his copper smelter can be absorbed by domestic factories. He explained that the PTFI copper smelter would later produce copper cathodes used by other industries in Indonesia.

"If this industry does not grow, it's a shame that all of the copper cathodes will be exported. Hopefully, the Ministry of Industry and other ministries work together to see how the downstream industry can grow more, so what we do by producing copper cathodes will be used by other industries directly," said Tony at the CNBC Indonesia Economic Outlook 2022, Tuesday (22/3/2022).

It is known that PTFI is currently building a copper smelter in the JIIPE Integrated Industrial Estate in Gresik, East Java. The smelter, which is predicted to start operating in at least 2024, is said to be able to process 1.7 million tons of copper concentrate into 600 thousand tons of copper cathode per year. Not only producing copper cathodes, but this smelter also has a precious metal refining facility that produces gold, silver, and other precious metals. The government has encouraged the mineral and coal mining sector to create added value. In this way, Indonesia will no longer sell raw mining goods.

Meanwhile, until 2024, the government targets 53 processing and refining facilities for mining products or smelters to operate that consist of 4 copper smelters, 30 nickel smelters, 11 bauxite smelters, 4 iron smelters, 2 manganese smelters, and, 2 lead and zinc smelters. "This downstream program is a good program and needs to be implemented and must be carried out in a comprehensive and integrated manner so that other sectors will benefit from it," said Tony.

Previously, President Joko Widodo (Jokowi) ensured that he would boost the downstream of mining commodities in 2022. This assurance was conveyed by Jokowi when giving a keynote speech at CNBC Indonesia Economic Outlook 2022. "We will continue to downstream with more and more varied product derivatives. This will open up greater investment and create more jobs," he said. According to Jokowi, the value of exports will continue to increase, leading to an improvement in the balance of payments and strengthening domestic fiscal and monetary conditions.

 

http://www.cnbcindonesia.com/news/20220322102049-4-324803/pabrik-domestik-diharap-bisa-serap-logam-tembaga-freeport

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