Minister of ESDM Satisfied with Freeport Smelter Construction Achievement

30 July 2022

Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif visited PT Freeport Indonesia (PTFI) new smelter project in the Special Economic Zone (KEK) JIIPE, Gresik, East Java. On his visitation on Friday (29/7).

Arifin expressed his satisfaction over progress achieved in PTFI smelter construction. “This construction progress is very different from the last observation at the groundbreaking officiated by the President, when there were only a few pilings, now there are 12,000 (pilings) with a target set for 15,000 pillings in September. This is good progress, and hopefully this acceleration can be maintained,” Arifin said in a written statement, Saturday (30/7/2022).

Besides, Arifin also explained assistance that provided by the government (the Ministry of Energy and Mineral Resources) in this PTFI smelter project construction, such as in the form of mining regulation, specifically on the downstream activity obligation, and progress monitoring.  

On the same occasion, President Director of PTFI, Tony Wenas explained the progress of the smelter construction stood at 34.9% until June 2022. He also his party has spent US$ 1,15 billion so far. “Construction is scheduled for completion by the end of 2023, and this will be followed with the pre-commissioning and commissioning activities. Smelter operations will start up and ramp up at the end of the second quarter of 2024. Together with the government we are applying an S-curve model as reference for completion under the smelter development plan. To date as of the end of June 2022, we have succeeded in following the determined plan and we remain on track to meet the year’s end target as planned according to the S-curve model,” Tony informed.

Tony added, the smelter currently being built will have a production rate of around 600 thousand tons of copper cathode per year in addition to around 35 tons of gold per year. 

As information, PTFI is currently building a new smelter with a capacity of 1.7 million DMT copper concentrate per year with an investment of around US$ 3 billion (around Rp 43 trillion). This project is PTFI's second smelter. The first smelter has been built together with Mitsubishi by forming the company PT Smelting since 1996. Currently, PT Smelting's capacity is being expanded with an additional capacity of 300 thousand DMT copper concentrate per year.

https://finance.detik.com/infrastruktur/d-6208046/menteri-esdm-ri-puas-capaian-pembangunan-smelter-freeport-di-gresik

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