Ma'ruf Amin: Freeport Smelter Will Generate Multiplier Effects

07 February 2023

Vice President Ma'ruf Amin expressed appreciation for the economic contribution made by PT Freeport Indonesia (PTFI) and the multiplier effects generated by the Manyar smelter project underway. He said PTFI has so far spent US$ 1.63 billion or equivalent to Rp 25 trillion, out of a total investment cost of US$ 3 billion, equivalent to Rp 45 trillion.   

Ma'ruf says PTFI’s investment has contributed to encouraging economic growth in East Java such that 5.58% growth was achieved in the third quarter of 2022, compared with the (year on year) figure for Q3 2021. "This is an outstanding investment, it has opened up jobs and business opportunities for surrounding communities in the smelter area, providing multiplier effects from the Manyar smelter development process and future operation,” he said during a working visit to the JIIPE special economic zone (KEK) in Gresik, East Java on Tuesday (7/2/2023).

The number two man in Indonesia went on to assert PTFI supports the government’s downstream government through massive investments made in the ongoing Manyar smelter development. As such, he said the government expects this huge investment will boost the local economy in Gresik and its surroundings, as well as national downstream industries in general. "The government of Indonesia deeply appreciates PTFI's commitment to prioritizing a workforce at the Manyar smelter project that is 98 percent comprised of local workers. The smelter will not only provide added value for Indonesia in social and economic terms but will also serve to boost human resources competitiveness and quality and the minerals industry in the country,” he said. 

For the record, as of December 2022, Manyar smelter construction had achieved 51.7 percent progress and is targeted for completion in December 2023, in consistency with the S-curve timeline approved by the government.  Upon construction completion, the project will continue with the pre-commissioning and commissioning stages over a period of five months to begin the smelter operation in May 2024.

Meanwhile, PTFI President Director Tony Wenas says PT. Freeport Indonesia’s copper smelter located in the Java Integrated and Ports Estate (JIIPE) in the Gresik KEK is the company’s second smelter and will be the world’s biggest single-line smelter. “The smelter will have a capacity of 1.7 million tons of concentrate from PT Freeport Indonesia with expansion amounting to 300,000 or 0.3 million tons per year from PT Smelting. There will be an addition of 2 million tons of concentrate from PTFI, bringing the total to 3 million tons of concentrate. So, all of the copper concentrates from PTFI will be refined inside the country,” he divulged.   

The total capital expenditure (CapEx) comes to US$ 3 billion or equivalent to approximately Rp 45 trillion. Current physical progress achieved is 54 percent for a cumulative cost of US$ 1.78 billion or approximately Rp 27 trillion. The smelter project has advanced with piling work 100 percent completed; 50 percent of concrete work achieved, equal to a volume of 110,000 cubic meters, along with 13 percent of steel works or equivalent to 4,800 tons installed. Steelworks in the smelter’s tanks area has achieved 15 percent progress or equivalent to 1,000 tons installed, and port development has achieved 90 percent progress.  

The project employs a workforce of 13,000, of which 98 percent are Indonesian nationals, and 50 percent are local workers from East Java. Substantial construction completion is targeted in late December 2023, to be followed by pre-commissioning and commissioning until the end of May 2024. Smelter operation is targeted to begin in late May 2024, with ramp-up operations expected to bring about the full operation by the end of 2024. 

 

http://kabar24.bisnis.com/read/20230207/15/1625594/maruf-amin-smelter-freeport-bisa-ciptakan-multiplier-effects

Back to List

Next News

news thumb 3
17 May 2017

Thousands of workers at Ridge Camp received a first taste of a major i...

07 July 2017

The Company realize that it is important to utilize rapid change of mi...