TEMPO.CO, Jakarta - The Indonesian Smelters Association suggested that the government should offer private companies to process and refine Freeport Indonesia's copper concentrate, since the giant mining company has not yet built smelters.
"For copper, the government should take over and offer the refinery to other companies. The government should confirm whether Freeport will build a smelter or not. If not, the government can find other investors," Indonesia Smelter Association chairman R. Sukhayar said in a discussion held in Jakarta on Thursday, December 15, 2016.
Sukhayar added that the government could invite investors to refine Freeport's copper concentrate, if the company keeps delaying its smelter development. Sukhayar also suggested that the same could apply to other mining companies, such as Newmont Nusa Tenggara and Gorontalo Mining.
According to Sukhayar, since bans on raw mineral exports were enforced in January 2014, three investors have expressed interest in the smelting business to facilitate mineral refinery for companies reluctant to build smelters.
"The problems center on supply sustainability and other technical issues. There’s no need for legal basis because it’s a business-to-business affair,” Sukhayar explained.
Sukhayar pointed out that the scheme was worth trying, because Indonesia has a huge amount of supplies to meet demands on copper in Asia. China, Sukhayar added, could be one of the most potential investors to be offered due to its high demands on copper.
ANTARA