In December 2018, PTFI was granted with a new special mining license (IUPK) from the Government of Indonesia, which enables PTFI to conduct operations in the Grasberg mineral area until 2031. Under the terms of the IUPK, PTFI is allowed to extend the mining rights until 2041, subject to PTFI completing the new construction of a new smelter and fulfilling its taxation obligations to the Government of Indonesia.
In line with the IUPK, PTFI has started to build a new smelter, called Manyar Smelter. This is going to be the second smelter of PTFI, after it built the first copper smelter in Indonesia, known as PT Smelting, in 1996. The first smelter was built as part of PTFI’s compliance to the Contract of Work II (PTFI’s operating license in 1991-2018), which required all the holders to perform treatment and refining processes in the country.
Both of these smelter facilities demonstrate PTFI’s concrete commitment to support domestic refining. In the future, PTFI and the Indonesian Government will continue to work together so these two smelters can provide the maximum benefits to all parties, through various kinds of efforts such as maintaining a healthy investment climate and expanding the downstream industries that are capable of processing PTFI’s copper concentrates.