Freeport Will Increase Investment Of 18.6 Billion US Dollars Until 2041

Chairman of the Board and CEO Freeport-McMoRan Richard C. Adkerson (Photo: Doc. ANTARA)

JAKARTA - Freeport-McMoRan Chairman of the Board and CEO Richard C. Adkerson said that his party has prepared an additional investment of 18.6 billion US dollars to support operational activities throughout 2021-2041.

Adkerson said that during 1970-2021, Freeport had invested nearly 20 billion US dollars in the development of the mining operation in Papua.

"We plan to disburse almost 20 billion more US dollars and then more than 3 billion US dollars in Gresik, to build a smelter," he said as quoted by Antara, Tuesday, October 4.

In detail, based on the material presented, the investment of 18.6 billion US dollars is divided into 15.6 billion US dollars for investment and 3 billion US dollars for smelter development.

Adkerson admits that Freeport has spent a lot of money to support mining operations in the mountains of Papua. He even said that the person who discovered the mine initially had doubts about the development of the copper mine.

"From 1970 to 2021 we invested nearly 20 billion US dollars in developing this operation, in Papua, in the mountains, where the people who discovered the mines said they could never be developed," he said.

Adkerson added, although the capital issued was so large, the economic impact was enormous.

He said that during 1992-2022 or the 20-year contract period, the direct benefits received by the Indonesian government in the form of taxes, royalties, other fees and dividends reached up to US$23.1 billion.

"Going forward, with our growing operations and a better copper market, we believe that in the next 20 years there will be at least US$80 billion in immediate benefits," he said.

Adkerson also said the long-term opportunity is still very large because there are potential ore resources to be developed of 3 billion tons, excluding reserves.

"We have resources, not including ore reserves, but we haven't dug to that depth to find resources that we might get. So it's a big opportunity for all stakeholders, workers, local communities, Indonesians and shareholders," he said.

Since the Grasberg open pit was completed in 2020, Freeport still has several other reserves, such as the Deep Ore Zone Block Cave until 2022, Big Gossan Stope until 2038, Deep Mill Level Zone Block Cave until 2040, Grasberg Block Cave until 2044, and Kucing Liar Block Cave until 2052.