Freeport Investment at US$1.4bn/year until 2023
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10 January 2019 12:18 WIB
TEMPO.CO, Jakarta - Indonesia Asahan Alumunium (Inalum) president director Budi Gunadi Sadikin said that from this year until 2023 the company will invest US$1.1 billion to US$1.4 billion per year for the management of the Grasberg underground mine site at Freeport Indonesia. Budi said the amount excludes the costs for smelter operations.
Speaking at the KAHMI Center in Jakarta, Wednesday, Budi said that the Grasberg mine has yet to start operations.
Read: Freeport Concentrate Export Drops as Production Drops
As a result, Freeport Indonesia's EBITDA (earnings before interest, taxes, depreciation and amortization) from 2019 to 2020 will decline, especially since the open-pit mining activities will be stopped this year.
He ensured that the underground mine will start operating stably in 2023, generating revenues of up to US$7 billion a year.
Inalum acquired majority ownership of more than 51 percent in Freeport Indonesia for US$3.85bn. To finance the acquisition, Inalum issued US$4bn global bonds with BNP Paribas, Citigroup, and MUFG acting as coordinating underwriters.
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