Freeport and Affiliated Company AKRA Sign Manyar Port Operating Agreement

06 September 2021

PT Berlian Manyar Sejahtera (BMS), a company affiliated with PT AKR Corporindo Tbk (AKRA) and PT Freeport Indonesia (PTFI) has signed a port facility agreement at the Java Integrated and Industrial Port Estate (JIIPE) sea port in Manyar, Gresik, East Java. The agreement on the construction and use of Manyar Sejahtera Diamond Infrastructure was signed on September 3, 2021.

The agreement is valid for a period of 40 years. By means of the agreement, Berlian Manyar Sejahtera is extending Freeport Indonesia exclusive rights to the use and access the Manyar Sejahtera Diamond infrastructure, to support the development and operation of a copper smelter project and precious metal refinery in the JIIPE Gresik Special Economic Zone or Kawasan Ekonomi Khusus/KEK.

"We have taken another major step in strengthening the relationship between JIIPE and PTFI. We are collaborating to ensure the timely completion of the PTFI project and the smooth running of its commercial operations," thus stated AKRA President Director, Mr. Haryanto Adikoesoemo, in his official statement on Monday (6/9).

PT Freeport Indonesia, which is building a 1.7 million metric ton copper and precious metals smelter plant in the Gresik Java Integrated and Industrial Port Estate, intends to use the port dock facility to be built by BMS to unload PTFI goods, exclusively.

This includes the installation of equipment to support the loading and unloading activities of PT Freeport Indonesia’s ships Freeport is building a copper smelter and refinery (CSR), as well as supporting infrastructure including electricity, oxygen, water and sewage treatment, conveyor and pipelines, as well as a dock, to process copper concentrate and produce copper cathodes, including its by-products. The Freeport's precious metals refinery to be built must process the slime anode produced by the copper smelter and refinery as a by-product of the copper concentrate processing.

To support the operation of the said facility, Berlian Manyar Sejahtera will build a pier structure for PTFI, consisting of among others jetty, piers, trestle, bridge and seawater intake building in the reclamation area of Manyar Sejahtera Diamond that has (already) been completed. BMS must also operate the PT Freeport Indonesia docks to handle all PT Freeport Indonesia ships for the smelter project.

Earlier, PT Freeport Indonesia on August 27, 2021 signed an 80-year land lease agreement for the development of a copper smelter and precious metals refinery, as well as the supporting infrastructure and related facilities at the JIIPE Special Economic Zone.

The JIIPE Special Economic Zone Gresik, East Java is a joint venture between AKRA and Pelindo III and is one of the Government - Private Partnerships in Indonesia. Developed over a total area of 3,000 hectares, comprising an industrial area of 1,761 ha, a port within 400 ha, and a modern residential area covering 800 ha. The port that JIIPE owns is the deepest in East Java with a draft of -16 LWS, has 4 multifunctional docks with moorings of 6,200 meters, which are expected to be able to serve large ships with a payload of more than 100,000 DWT. Sea access, toll roads, and trains connect JIIPE with international and domestic markets.

 

https://insight.kontan.co.id/news/freeport-dan-perusahaan-afiliasi-akra-teken-perjanjian-pengoperasian-pelabuhan-manyar

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