Freeport's Gresik Smelter at 36.2% Progress; Operation Starts in May 2024

TEMPO.CO, Jakarta - The Minister of Investment and head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, ensured that the downstreaming of mining products by Freeport Indonesia (IDX: PTFI) is on track. The activities include the construction of a new smelter project in Gresik.

According to Bahlil, the copper smelting facility by PTFI in Gresik—carried out through PT Smelting (PTS)—has made 32 shipments since the start of its operation in January 2022. Yesterday, 8,600 tons of copper concentrate were brought to the container ships.

"So that this transportation can also create multiplier effects that benefit the community, especially those around PTFI's operating areas in Papua," he said in a written statement, Tuesday, August 16.

Bahlil visited Freeport Indonesia's site yesterday as a follow up to the business forum with Freeport-McMoRan during the sidelines of President Joko Widodo's visit for the US-ASEAN Summit in Washington DC, May 2022.

PTFI president director Tony Wenas said the company is now completing the construction of a second copper smelter at the Java Integrated Port & Industrial Estate (JIIPE) in Gresik, East Java.

Construction progress has now reached 36.2 percent, and is targeted for completion at the end of 2023. The pre-commissioning and commissioning phases will continue after that, and the smelter is expected to be in operation by May 2024.

"Once our new smelter is operating, 100 percent of PTFI's copper concentrate products will be processed domestically. We hope that it can provide meaningful multiplier effects for the nation and state," Tony said.

ARRIJAL ARRACHMAN

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