Freeport Discloses Why It Elected to Build Smelter in Gresik

16 September 2021

PT Freeport Indonesia (PTFI) has established its plan to build a copper processing smelter in the Gresik Special Economic Zone, Java Integrated Industrial Port and Estate (JIIPE), East Java, with a contract period of 80 years. PT Freeport Indonesia President Director, Tony Wenas, stated the company received a number of options when planning the construction of the smelter. This subsequently led Freeport to conduct an in-depth evaluation in terms of the requirements that will support the operation of the copper smelter, eventually.

“The choice of the location needs to be carefully determined,” he explained during an event ‘The Role and Challenge of the Special Economic Zone Encourage Exports’, Kompas Daily, Thursday (9/16). Tony went on to explain that consideration of the port infra structure, roads, energy supply, waste treatment and licencing processes comprise the main elements being assessed before deciding on the location for the copper processing smelter. Furthermore, Tony explained the selection of the location in Gresik is considered to meet the requirements of human resources needed for the process of building the smelter; because the project will need some 40.000 workers.

Meanwhile, once the copper processing smelter is operational Freeport Indonesia will also need about 750 to 1,000 workers. “As a special economic zone this will greatly facilitate our construction/development process. Besides, there are of course also fiscal and non-fiscal incentives extended to us as per our IUPK or Special Mining Business License,” stated Tony.

Earlier, on August 27, 2021, a subsidiary of PT AKR Corporindo Tbk., PT Berkah Kawasan Manyar Sejahtera (BKMS) and PT Freeport Indonesia signed a long-term land lease agreement. Meanwhile, PT Freeport Indonesia, needs additional land and services, as well as facilities and the Gresik JIIPE Special Economic Zone for expansion, development, smelter operation and copper refining, as well as, supporting infra structure and related facilities. President Director AKR Corporindo, Haryanto Adikoesoemo, explained that the JIIPE Special Economic Zone will provide land to lease, including utilities and other supporting services to PT Freeport Indonesia.

“This agreement replaces the previous agreement, namely for a long-term lease of 80 years, divided into an initial lease term of 18 years, followed by another 2 years, which may be extended for six periods of respectively 10 years, in accordance with the terms and conditions in the land lease agreement,” he concluded.

 

https://ekonomi.bisnis.com/read/20210916/44/1443298/freeport-ungkap-alasannya-pilih-bangun-smelter-di-gresik

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