News
PTFI Smelter at JIIPE Begins Operation
WINDONESIA June 28, 2024
Coordinating Economic Minister Airlangga Hartato, Investment Minister/BKPM Head Bahlil Lahadalia, ESDM Ministry Mineral, Coal Director-General Bambang Suswantono, East Java Regional Secretary Bobby Soemiarsono, and Gresik Regent Fandi Akhmad Yani jointly
Coordinating Economic Minister Airlangga Hartarto and Investment Minister/Investment Coordinating Board (BKPM) Head Bahlil Lahadalia inaugurated the Freeport Indonesia (PTFI) smelter at the Java Integrated Industrial and Port Estate (JIIPE) Special Economic Zone (SEZ) in Gresik Regency, East Java Province alongside PTFI President Director Tony Wenas.
“This [smelter] factory is extraordinary. It is amazing that it is able to [finish construction] on time within 30 months since we were groundbreaking alongside the President" Airlangga stated.
He said the PTFI smelter's construction was part of the company's Special Mining Business Permit (IUPK) agreement. The smelter will start operating in August 2024, and it is expected to begin reaching full capacity production by December 2024.
"So this [smelter] is very timely because now renewable energy is trending and critical minerals [for them] are needed, one of which is copper," the Coordinating Minister said.
Airlangga added that copper mining activities and the ore's refining process could take place domestically with the PTFI smelter. The smelter is expected to have a positive impact on the Indonesian economy, and the mining products' added-value could be enjoyed domestically.
Investment Minister/BKPM Head Bahlil Lahadalia expressed his gratitude and happiness with the Freeport smelter being set to start operating, because the facility's construction process faced several challenges.
“Today I am happy and grateful because this [project] has been a long journey. I know very well that building this smelter is not easy, it was facing delays and the dynamics of the project was not favorable. There was the COVID-19 pandemic in 2021 when we decided for it to be constructed immediately. But today we can all witness that this smelter [is expected to operate]. That is proof of Freeport management's realized commitment to enact IUPK requirements." Bahlil said.
Energy and Mineral Resources (ESDM) Ministry Mineral and Coal Director-General Bambang Suswantono said the ESDM ministry monitored and supervised the PTFI smelter's construction.
"The inauguration of the Freeport smelter operation in Gresik marks the start of mineral downstreaming in line with President [Joko Widodo]'s direction. Alhamdulillah, the Gresik Regency and the East Java Provincial Government gave their support so the Freeport smelter is completed on time" Bambang said.
PTFI President Director Tony Wenas said that the construction of the new smelter is part of PTFI's commitment to support the government's copper mineral downstreaming policy.
He added that copper will be really needed by the world in the future. Other countries are accelerating their energy transition, which would need huge amounts of copper.
"What the President announced in the IUPK to build another new smelter is the right intuition. Global copper demand will continue to increase, accelerating the formation of an electric vehicle ecosystem and, accordingly, speeding up the realization of the Vision Indonesia Gold 2023," Tony said.
The inauguration of the PTFI smelter's operation took place in front of the project's Sulfuric Acid Tank area. The ceremony was marked by pressing the siren button, the start of smelter operation, followed by the signing of the project's inscription. Also present at this event was the East Java Provincial Secretary Bobby Soemiarsono, in representation for East Java, and Gresik Regent Fandi Akhmad Yani.
PTFI's new smelter is capable of refining copper concentrate with a production capacity of 1.7 million tons. Apart from producing copper cathodes, the smelter also produces anode mud which is then refined at the Precious Metal Refinery (PMR) into gold and silver bullion as well as Platinum Group Metals (PGM).
The amount PTFI has invested building a copper smelter with the largest single line design in the world has reached US$3.67 billion US dollars (around Rp58 trillion) by the end of May 2024
Source: www.pasificpos.com
