13 July 2023
A by-product such as sulfuric acid will be one that can be produced from the PT Freeport Indonesia (PTFI) refining facility or smelter, when later on said processing facility is operating at full capacity. Of said refining facility, one of the main products that afterwards will be produced is copper cathodes at a production level/rate of up to 600.000 tons per year.
The state-owned mining company, that is part of the state-owned mining holding MIND, is currently establishing/preparing a smelter in the Java Integrated Industrial Port Estate in the Gresik Special Economic Zone, East Java (Kawasan Ekonomi Khusus Kawasan Pelabuhan Industri Terpadu Java/KEK JIIPE). The world’s largest single-line copper smelter will have a total area span of 100 hectares (ha).
The main products that will be produced are copper cathodes, pure gold and silver bars, and platinum group metals (PGM). “Thus, the smelter producing this (copper) concentrate from Papua, which is subsequently purified into copper cathodes having a purity level of 99%. In addition, the PT Freeport Indonesia smelter will produce gold and silver bars because we also have a start-off metal refining facility, or PMR (precious metal refinery),” stated PT Freeport Indonesia Smelter Construction Manager, Yoga Amaliasari, to ‘Team Jelajah BUMN Bisnis Indonesia 2023’, or 2023 Indonesian Business SOE Exploring Team.
To inform, the meant pure gold and silver bar products represent the processed anode sludge residue of the copper cathodes processing. The PT Freeport Indonesia smelter mentioned/stated that anode sludge that can be produced per year is able to reach 6.000 tons.
Of said 6.000 tons residue sludge, PT Freeport Indonesia will pump this into the Precious Metal Refinery to produce 50 tons of gold, 210 tons of silver, and 2.200 tons of cobalt or lead. “This is a first in Indonesia, initially (anode sludge) was just exported to Japan,” Yoga said.
In addition to said main products, the smelter, which has already absorbed an investment value of Rp.33 trillion, will produce various other by-products. For example, 1.5 million tons of sulfuric acid a year from the combustion copper sand, as well as slag and gypsum.
Currently, PT Freeport Indonesia is pushing for the completion of overall construction targeted to be for December of 2023. Then, the smelter is targeted to start commissioning and pre-commissioning by mid-2023, and be at full operational capacity at the end of 2024.
When operating at full capacity, the smelter is projected to be able to produce up to 1.7 million dry metric tons (dmt) of copper per year. In line herewith, Freeport is also pursuing the development of their first smelter also located in Gresik, (PT Smelting), to achieve the total capacity target of 1.3 million dmt.
Additionally, Yoga mentioned the offtakers of the by-product from the copper refining number quite many hailing from the said area. That was the rationale behind developing said smelter. “We were considering various reasons, mainly those I already mentioned, side products from the PT Freeport Indonesia smelter, whereby the offtakers of said by-products many of whom originate from our vicinity around here,” Yoga said.
On the other hand, infrastructure facilities in terms of more integrated transportation and logistics, were also considered to have encouraged the government to develop said smelter in the Java Integrated Industrial Port Estate in the Special Economic Zone. Moreover, the said smelter area will eventually be complemented by a port, which construction/development is in collaboration with PT Pelabuhan Indonesia (Persero), or Pelindo.
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