Progress of Freeport Smelter Construction in Gresik Reaches 76 Percent

Illustration of Smelter (Photo: dock. Antara)

JAKARTA - President Director of PT Freeport Indonesia Tony Wenas said that progress in the construction of a copper smelter or refining industry in the Java Integrated and Industrial Port Estate (JIIPE) area in Gresik, East Java has reached 76 percent. He estimates that by the end of this year the physical construction can be completed.

"At the end of August it was 76 percent complete and at the end of this year construction will be completed and in May 2024 it can start operating," said Tony to media crew when met in Jakarta, Tuesday, September 27.

Regarding the contract extension, Toni emphasized that Freeport's contract extension was not related to the progress of the smelter construction.

"Actually, it doesn't depend on that (smelter construction), so if you want to extend it, just extend it," said Tony briefly.

Just so you know, PT Freeport Indonesia's work contract from ending in 2021 will be even longer, namely in 2041.

Regarding the construction of the smelter in Papua, Tony explained that his party had not discussed the details of the development with the Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia.

"There are no details of the Minister of Investment's discussion yet," concluded Tony.

Previously, Bahlil said that the government required PT Freeport Indonesia (PTFI) to build a metal mineral refining and processing factory or concentrate smelter in Papua.

According to Bahlil, this is one of the conditions for the government to extend the Special Mining Business Permit (IUPK). It was previously known that another condition was to give 10 percent of PTFI shares to a state-owned company through the state-owned mining holding company, Mind ID.

"We ask that there be a smelter in Papua. Why? It concerns the sovereignty and self-respect of the Papuan people too, let's not continue to be deceived," said Bahlil Friday, June 30.

However, Bahlil cannot confirm the exact location of the concentrate smelter establishment. He also mentioned several areas that could allow the construction of refining and processing plants, such as Fakfak, West Papua or Timika, Central Papua.