26 August 2021
PT Freeport Indonesia (PTFI) has elected to continue building the new copper smelter and precious metal refinery in the Java Integrated Industrial Post and Estate (JIIPE) Gresik, East Java. Said area is considered to provide a number of advantages/benefits, particularly in terms of the facilities aspect.
Construction of the new copper smelter and precious metal refinery in the JIIPE Gresik is the result of a cooperation agreement between PT Freeport Indonesia and PT Chiyoda International Indonesia (PTCII). Both have officially signed an Engineering, Procurement and Construction (EPC) Cooperation Contract on July 15, 2021.
The contract comprises construction of a smelter project with a capacity of 1.7 million tonnes of processed concentrate per year, as well as, a Precious Metal Refinery (PMR) facility in the Java Integrated Industrial and Port Estate, Gresik, East Java. This project will be one of the largest smelter facilities in the world.
President Director of PT Freeport Indonesia, Tony Wenas, explained there are a number of aspects that were considered in electing to decide on JIIPE Gresik as the location for developing the smelter. The aspects are land readiness, licensing, administration and forms of infra structure support. The infra structure in question are a port, roads, laydown area and utility availability. Including therein, sewage treatment, electricity, gas and water supplies. It also analyses the economic aspect and ease reach for off takers.
“We also generate by products from the smelter process. There is copper, and the by products are sulphuric acid, slag and gypsum,” Tony explained. By building the smelter in JIIPE Gresik, Tony mentioned they are able to economize, particularly from the capital expenditure (Capex). In addition, avoiding or reducing potential losses incurred from constructing a smelter.”
Tony also highlighted the status of the technology and manufacturing special economic zone (Kawasan Ekonomi Khusus/KEK) obtained by JIIPE Gresik. By having this status Tony is optimistic that the development of the Freeport smelter will run accordingly with the various facilities, such as the ease of being able to meet the procurements and supply needed.
“Undoubtedly we will be able to obtain many things. Including incentive facilities for the special economic zone. We can obtain those as an additional facility as is embedded in the IUPK or Special Mining Business License,” he stated.
The development of the Freeport smelter in the JIIPE Gresik location requires an investment of US$350 million. As per schedule, at the beginning of October 2021 the physical construction will commence. The entire smelter construction is scheduled to be completed in 2024, depending on the Covid-19 pandemic situation.
Kami menghimbau para pencari kerja untuk berhati-hati dan mewaspadai beragam modus penipuan perekrutan yang mengatasnamakan PT Freeport Indonesia. Dalam setiap proses rekrutmen dan penerimaan karyawan, PT Freeport Indonesia maupun konsultan rekruitmennya tidak memungut biaya apapun.
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