TEMPO.CO, Jakarta - Freeport Indonesia (IDX: PTFI) plans to start building its smelter in the first quarter of 2020. The smelter will be located in Gresik, East Java.
"We are currently compacting the soil as [the smelter] would be built on a land that was once a swamp," Inalum corporate secretary Rendi A. Witular said in Jakarta, October 28.
According to Rendi, Freeport's copper smelter would be the largest in the world; producing downstream products including 550,000 tons per year of copper cathode, 1.3 million tons of slag, 150,000 tons of gypsum, 6,000 tons of anode mud per year.
The main output, which is gold, will be processed with a capacity between 30 and 60 tons per year. Indonesia's domestic gold consumption is roughly 10 tons, and so the remainder will be exported.
The smelter will also produce 240 tons of silver.
Freeport Indonesia's smelter will be built inside the Java Integrated Industrial and Port Estate (JIIPE) industrial area in Gresik, East Java. The smelter, which will process 2 million tons of concentrates, needs an investment fund of around US$2.8 billion