Freeport Indonesia breaks ground on $3 billion copper smelter
12/10/2021 07:47
JAKARTA, Oct 12 (Reuters) - American mining giant Freeport
McMoRan FCX.N broke ground on Tuesday in construction of one
of the world's biggest copper smelters near its existing
refining operations in Indonesia.
The $3 billion facility in Gresik, East Java, will have
capacity of 1.7 million tonnes of copper concentrate and is
expected to start operations in late 2023 or early 2024.
"The smelter is built with a single line design, which is
the largest in the world," Indonesian President Jokowi Widodo
told a televised groundbreaking ceremony on Tuesday.
"I hope that Freeport Indonesia's presence in this special
economic zone in Gresik will be an attraction for other
industries to enter," he said.
The commencement follows months of deliberation between
building a copper smelter in partnership with China's Tsingshan
Holding Group in Weda Bay, or one near its existing operations
in Gresik.
Freeport Indonesia said in July said the two companies had
failed to reach an agreement.
It also said it had signed an engineering, procurement and
construction contract with Japan's Chiyoda 8185.T .
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The new smelter will also have an output of 600,000 tonnes
of copper cathode and include a $200 million precious metal
refinery, with output capacity of up to 54 tonnes, Coordinating
Minister of Economic Affairs, Airlangga Hartarto, told the
ceremony.
Hartarto said Indonesia can finally reap the benefits of
exporting value-added copper after decades of exporting mostly
copper concentrate.
"This is historic because it will be produced entirely in
Gresik. This project requires water, gas... The economic
benefits are huge," Hartarto said.
(Reporting by Bernadette Christina Munthe; Writing Fathin
Ungku; Editing by Martin Petty)
((fathin.ungku@thomsonreuters.com; +65 8578 6640;))