Freeport Smelter Project in Gresik Achieves 34.9 Percent Progress as of June 2022

30 July 2022

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif says PT Freeport Indonesia (PTFI) achieved 34.9 percent progress in its new copper smelter development project in Gresik, East Java, as of the end of June 2022.  This was disclosed during a working tour of Java Integrated and Industrial Port Estate (JIIPE) in Gresik. "As measured, (development) progress has exceeded the target of 34.9 percent at the end of June 2022, with more than US$ 1.15 billion spent so far,” said Arifin, who was attended by PTFI President Director  Tony Wenas at the smelter development site, as cited from an official release on Saturday (30/7).

Currently, 10,500 piles have been driven along with activity for concrete pouring for the structural foundation. "50 percent progress is targeted by the end of 2022. It is hoped construction will be completed by the second quarter of 2023, primarily at the existing facility’s expansion project,” he said. 

In support of development of the smelter with a capacity of 1.7 million dry metric tons (dmt), 3,500 construction workers have been recruited, 98 percent of whom are Indonesian nationals, with 50 percent of these comprising locals from East Java. It was hoped this would help to accelerate progress towards achieving earliest completion possible. "Project progress must stay on track. To this end, the use of local workers is being optimized,” he said. 

Smelter development includes capacity expansion at the existing smelter run by PT Smelting, by 0.3 million dmt per year, and construction of a precious metal refinery with a production rate of 6,000 tons per year. PTFI has set aside US$ 3 billion in capital expenditures for the smelter development project. Arifin underscores, the government will consistently push for accelerated development, among others through issuance of mining regulation and regulation on mandatory downstream activity.   

On the same occasion, PTFI President Director Tony Wenas averred current development progress was satisfactory and has exceeded the original target of 34.3 percent. “At this time, we have installed 11 thousand pilings out of a total of 16 thousand, along with pouring 20 thousand cubic meters of concrete, out of a planned total of 220 thousand cubic meters,” he revealed. 

Currently development is conducted intensively in conjunction with the contractor PT Ciyoda International Indonesia (CII), with the focus on ground compaction with help from Adhi Karya and several other local contractors. Freeport Indonesia has secured a smelter development master list from the government. Double Flash Smelting & Converting technology will be applied and developed in the smelter development, adopted from various countries including China, India, European nations, and the USA. The smelter’s primary products will be copper cathode, pure gold and silver bullions, and Platinum Group Metals (PGM), along with sulfuric acid, slag, gypsum, and lead, which are the byproducts. 

https://www.cnnindonesia.com/ekonomi/20220730115449-85-828147/progres-proyek-smelter-freeport-di-gresik-349-persen-juni-2022

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