Coordinating Minister of Economy Airlangga Hartarto and Investment Minister/Head of Investment Coordination Agency BKPM Bahlil Lahadalia, accompanied by PT Freeport Indonesia (PTFI) President Director Tony Wenas, formally launched commencement of PTFI’s new copper smelter recently in the Java Integrated Industrial and Port Estate (JIIPE) Special Economic Zone (SEZ) in Gresik, East Java.
“I can only describe this plant as extraordinary. In the span of just 30 months from the project’s groundbreaking by the President, its construction was (able to be completed) on time. This is indeed extraordinary,” Hartarto said in his address. He said Freeport’s smelter development is part of agreement reached over the IUPK special mining operation permit awarded to the company.
The construction process has been completed on time, and the smelter is now operating, with production commencing in August and full capacity to be achieved in December 2024. “So this (smelter) is indeed very timely, with renewable energy currently trending, along with demand for critical minerals, one of which is copper,” the Coordinating Minister said.
He said with the PTFI smelter’s presence, mining activity and the refining process are now able to be conducted domestically. This is expected to positively impact the nation’s economy, with value added minerals now available for utilisation in the country.
Investment Minister Bahlil Lahadalia in his address conveyed thanksgiving and happiness on the Freeport smelter’s commencing operation, bearing in mind the challenges the development process had encountered. “Today I am happy and thankful as this was a long journey. I am very well aware this smelter development was not an easy undertaking, and at one point was facing jettisoning, the dynamics involved were truly excruciating. In 2021, just as we reached the decision to begin development immediately, the COVID-19 pandemic hit us. But now today we are together witnessing this (commencement of smelter operation). This substantiates Freeport management’s commitment to implementing IUPK requirements,” Lahadalia said.
Acting Director General of Minerals and Coal Bambang Suswantono who was representing the Energy and Mineral Resources (ESDM) Minister said the ESDM Ministry monitored and closely followed the Freeport smelter development. “This launching of Freeport smelter operation in Gresik marks commencement of the minerals downstreaming drive directed by the President (Joko Widodo). Alhamdulillah (Praise be to God), Freeport, the Gresik Regency and East Java Province governments, have supported timely completion of the Freeport smelter development that marks the beginning of minerals downstreaming in the country.”
PTFI President Director Tony Wenas said development of this new smelter was a consequence of PT Freeport Indonesia commitment to support the copper mineral downstreaming policy launched by the government. He said going ahead, vast amounts of copper will be in high demand globally. Other countries are racing to take part in energy transition, and will need vast amounts of copper. “The President’s calling for the IUPK to require new smelter development was an unerring intuitive judgment. Global demand for copper will continue to rise, accelerating establishment of an ecosystem for electric vehicles, accelerating Indonesian gold,” he said.
The official launching of PTFI smelter’s operation took place in the area across from the sulphuric acid tank. The launching was marked by the pushing of a siren button, followed by monument inscription signing. Also attending the event were Acting East Java Province Secretary Bobby Soemiarsono, on behalf of the Acting Governor of East Java, and Gresik Regent Fandi Akhmad Yani.
PTFI’s new smelter can refine copper concentrate at a production capacity of 1.7 Mt/y to produce around 600,000-700,000 t of copper cathode. In addition to producing copper cathode, the smelter will produce anode slime that will subsequently undergo refining in the Precious Metals Refinery (PMR) to turn out gold and silver bullion, as well as Platinum Group Metals (PGM). As of the end of May 2024, PTFI investment in development of the world’s biggest copper smelter with a single line design amounted to US$3.67 billion.