Freeport Find Opportunities To Develop Processing Facilities In Papua

Chairman of the Board & CEO of Freeport Mc-MoRan, Richard C Adkerson. (Photo: Doc. Antara)

JAKARTA - Chairman of the Board & CEO of Freeport Mc-MoRan, Richard C Adkerson said his party would look for opportunities to develop processing facilities in Papua. Currently Freeport is focusing on completing the construction of a second copper smelter in the Java Integrated Industrial Port Estate (JIIPE) Special Economic Zone, Manyar, Gresik, East Java, which is targeted for completion in 2024. "In the future, we will look for opportunities to develop processing facilities in Papua. But now the government has warned us to move quickly," he said in Scientific Oration: Economic Transformation through Downstreaming with Local wisdom which was held at Cenderawasih University, Papua, quoted from Antara, Monday 10 October. Richard admitted that initially Freeport promised to complete the smelter construction in 2023. However, with the COVID-19 pandemic and changes in the supply chain that occurred in the world, inevitably the target had to be delayed. "We are 40 percent complete, we will finish in 2024. In the future, there will be our opportunity to build industrial facilities, electricity facilities to support industrial development in Papua. We are committed to doing that," he added. Based on Richard's presentation, Freeport's new smelter at JIIPE Gresik, East Java, will be the largest single-line smelter in the world with a copper processing capacity of up to 1.7 million tons of concentrate per year. Freeport will also increase its first copper smelter capacity, namely PT Smelting, which is also in Gresik from 1 million tons to 1.3 million tons of concentrate per year. In addition, there will also be a precious metal refining facility of 6,000 tons per year. With an investment of US$3 billion, by the end of July 2022, the progress of physical development has reached 39.9 percent with a total absorption of around US$1.2 billion. The concrete work has almost reached 10 percent with 98 percent absorption of Indonesian workers. Freeport targets the advancement of physical development by the end of 2022 to reach 50 percent with an absorption of around 1.5 billion US dollars. On the same occasion, the Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia emphasized the importance of downstreaming for the open job opportunities in the regions, including Papua. However, the condition is that there must be collaboration with entrepreneurs and MSMEs in the area. "Downstreaming that makes local children masters in their own country," said Bahlil. Nevertheless, as a Papuan son, Bahlil admits that Freeport's success is still not optimal in involving Papuan children. He also invited the Papuan people to be able to improve their quality so that they could be more involved in Freeport's business on Earth of Cenderawasih. "We have to pick up our quality," he said.