Freeport Boss: Copper Demand Increases Due To Electrification

JAKARTA - President Director of PT Freeport Indonesia Tony Wenas said the demand for copper has the potential to increase along with the trend of clean and green energy transitions that occur in various countries.

"The demand for copper has increased because it is needed in the energy transition, one of which is for electrification," Tony said as quoted by ANTARA, Tuesday, June 10.

He explained that copper is a much-needed form of metal to support the transition to clean and renewable energy, as well as a key role for global decarbonization targets.

Tony said 65 percent of the world's copper is used in electric conductivity applications.

Then, 1.5 tons/mw of copper plays a role in wind-powered power plants and 5.5 tons/mw of copper in solar-powered power plants.

"In addition, electric vehicles (EVs) use more copper than conventional vehicles," Tony said.

He said the company was committed to supporting economic growth through copper and gold production, each of which is targeted to reach 1.6 billion pounds and 1.65 million ounces this year.

In addition, he also said the company had deposited up to IDR 7.78 trillion from net profit in 2024 to the government, consisting of IDR 3.1 trillion for the central government and IDR 4.63 trillion for local governments.

"It's probably almost the same as that (for this year's target)," Tony added.

On the other hand, Tony, who is also Deputy Chair of the Downstreaming Division of the Indonesian Chamber of Commerce and Industry (Kadin), highlighted how other mining commodities such as nickel also have great potential for Indonesia, both for the energy transition agenda and economic growth.

"Prospects, yes, it must be good, we are one of the largest exporters, then nickel is also good, good, it's downstreaming, the added value is huge," he said.