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Investment Minister Encourages Freeport to Build Smelter in Timika
WINDONESIA June 8, 2024
Investment Minister and ex-officio BKPM Head Bahlil Lahadalia. (Liputan 6).
Investment Minister Bahlil Lahadalia, ex-officio Investment Coordinating Board (BKPM) Head announced that the Freeport Indonesia's (PTFI) smelter with an investment value of US$3 billion, in Gresik Regency, East Java, will commence operations on July 1, 2024.
"Starting Jul. 1, Freeport's plant will process copper concentrate from Timika District, Mimika Regency, Central Papua Province in Gresik. This plant will produce 60 tons of pure gold, 400,000 tons of copper cathodes, and various other derivative products annually," Bahlil said in a public lecture at Universitas Islam As-Syafi'iyah, Bekasi, as per a written statement on Friday, May 31, 2024.
He added that the Indonesian government is also encouraging PTFI to build a smelter in Timika near the Freeport mine. According to Bahlil, the request aligns with the government's plan to increase Indonesia's ownership stake in PTFI to 61 percent by 2041.
"We are considering, once the regulations are issued, acquiring an additional 10 percent of shares. Currently, we hold 51 percent, and we want Indonesia to have a majority stake again. Negotiations are complete, and Freeport has agreed to the 10 percent share increase after 2041," he stated.
Bahlil emphasized that the construction of the smelter and the process of divesting Freeport Indonesia shares are part of the government's downstreaming program, which is a strategic investment to create future employment opportunities.
"The world is currently focusing on green energy and green industry. By 2035, we will reach the peak of our demographic bonus, with 65 percent of Indonesia's population being of productive age. Therefore, we must design strategies now to ensure our nation does not become merely consumptive," he explained.
Source: www.liputan6.com