Freeport Targets Smelter Progress of 50% in 2022

04 April 2022

PT Freeport Indonesia targets the smelter development progress of 50% in 2022. Freeport is currently continuing to accelerate the smelter development in Manyar, Gresik, East Java. Manyar Smelter is Freeport’s second refining and processing of copper concentrate facility that builds in the Java Integrated Industrial Estate Zone (JIIPE), Gresik, East Java with a total area of ​​around 100 hectares (ha). This smelter development is a fulfillment of Freeport's promise to comply with the requirements in the Special Mining Business Permit (IUPK) agreement.

The Manyar smelter has a copper concentrate processing capacity of 2 million tons per year. This smelter is claimed to be the largest copper processing facility in the world. The processing results of the Manyar Smelter will be added to the processing capacity of an already operating smelter, PT Smelting, with a processing capacity of 1 million tons of copper concentrate annually. Thus, once the Manyar Smelter operates, Freeport can process 3 million tons of copper concentrate per year. "(This year) we are continuing the smelter development in Manyar, Gresik with a target of 50 percent by the end of 2022," said Riza Pratama, Vice President of Corporate Communication of PT Freeport Indonesia to KONTAN, Friday (1/4).

Freeport allocates a capital expenditure of US% 3.3 billion to continue the development of Manyar Smelter this year. Cited from Freeport McMoran’s (FCX) official statement, Freeport Indonesia prepared the location in Manyar Smelter throughout 2021. His party hoped the procurement of engineering and construction activities can be accelerated during 2022 and 2023. Therefore, the smelter is expected to be completed in 2024.

In the fourth quarter of 2021, Freeport's consolidated sales amounted to 370 million pounds of copper and 392,000 ounces of gold. These sales were higher than the fourth quarter of 2020, with consolidated sales of 286 million pounds of copper and 293,000 ounces of gold. Throughout 2022, Riza said Freeport Indonesia projects a consolidated sales volume of around 1.6 billion pounds of copper and 1.6 million ounces of gold.

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