Posted on July 19, 2024 by Paul Moore
Coordinating Minister for Economic Affairs Airlangga Hartarto and Minister of Investment and Head of Investment Coordinating Board Baril Lahadalia, accompanied by PT Freeport Indonesia (PTFI) President Director Tony Wenas, officially launched the start-up of PTFI’s new copper smelter in the Java Integrated Industrial and Ports Estate (JIIPE) Special Economic Zone (SEZ) in Gresik, East Java.
“This plant is nothing short of phenomenal. It was completed on schedule, just 30 months after the president broke ground on the project. This is truly phenomenal,” Hartarto said in his speech. He noted that Freeport’s smelter development is part of the agreement on the IUPK Special Mining Concession awarded to the company.
Construction work was completed on schedule and the smelter is now up and running, with production set to begin in August and full capacity expected to be reached in December 2024. “With the current trend towards renewable energy and demand for critical minerals, including copper, this smelter comes at a timely time,” the Coordinating Minister said.
He said the presence of the PTFI smelter has allowed mining activities and refining processes to be carried out domestically, which is expected to have a positive impact on the country’s economy as value-added minerals will be made available domestically.
In his speech, Investment Minister Baril Lahadalia expressed his gratitude and joy at the Freeport Smelter’s start of operations, while keeping in mind the challenges that were faced during the development process. “I am happy and grateful today because it has been a long journey. I am well aware that developing this smelter was not an easy undertaking, that at one point it was on the brink of abandonment and that there were some truly excruciating challenges along the way. Just as we had come to the decision to immediately commence development in 2021, the COVID-19 pandemic hit us. But now we are witnessing this (the smelter’s start of operations) together. This confirms the determination of Freeport management to implement the IUPK requirements,” said Minister Lahadalia.
Acting Director General of the Minerals and Coal Agency Bambang Susuwantono, who represented the Minister of Energy and Mineral Resources (ESDM), said the ESDM ministry is monitoring and closely following the development of the Freeport Smelter. “The start of operations at the Freeport Smelter in Gresik marks the start of the mineral downstream drive led by the President (Joko Widodo). Alhamdulillah (thanks to God), Freeport, Gresik Regency and the East Java Provincial Government have supported the on-time completion of the Freeport Smelter development, which marks the beginning of the country’s mineral downstream development.”
PTFI President Tony Wenas said the development of the new smelter is the result of PT Freeport Indonesia’s commitment to supporting the government’s copper ore downstream policy. He said that going forward, large amounts of copper will be in high demand around the world. Other countries are racing to join the energy transition and will need large amounts of copper. “It was a no-brainer for the president to mandate IUPK to develop a new smelter. Global demand for copper will continue to grow, accelerating the establishment of an electric vehicle ecosystem, which will fuel demand for gold in Indonesia,” he said.
The inauguration ceremony for the PTFI smelter took place in the area opposite the sulfuric acid tanks. The ceremony began with the sounding of a siren, followed by the signing of a monumental inscription. The ceremony was also attended by Acting East Java Governor Boby Suemiarsono and Gresik Governor Fandi Ahmad Yani.
PTFI’s new smelter will have an annual capacity of 1.7 million tonnes of copper concentrate and will be able to produce approximately 600,000-700,000 tonnes of copper cathode. In addition to producing copper cathode, the smelter will produce anode slimes which will then be refined in the Precious Metals Refinery (PMR) to produce gold and silver bullion, and platinum group metals (PGMs). As of the end of May 2024, PTFI has invested US$3.67 billion in the development of the world’s largest single-line designed copper smelter.
