Smelter Progress 80 Percent, Freeport Asks For Export Relaxation Extended Until December 2024

Illustration of smelter (photo: between)

PT Freeport Indonesia (PTFI) has again expressed its desire that the company's relaxation of copper concentrate exports will be extended until the purification or smelter facility operates at full capacity.

Previously, the government had issued export relaxation permits until May 10, 2024.

"We hope that the relaxation of export copper concentrate can continue until the smelter is fully operational," said PTFI President Director Tony Wenas in his statement to the media while accompanying Trade Minister Zulkifli Hasan, Tuesday, November 28.

Tony said that he is optimistic that the second PTFI smelter will start operating at the end of May 2024 and gradually ramp-up production will be full until December 2024.

"The smelter progress is currently estimated at 83 percent. PTFI continues to complete several works to complete physical construction at the end of December 2023," he continued.

In early 2024, he continued, pre-commissioning and commissioning will be carried out to ensure all equipment and facilities are functioning.

"We are optimistic that the smelter construction project will be completed on schedule," he said.

In the construction of this second smelter, PTFI invested 2.9 billion US dollars or equivalent to Rp43 trillion as of the end of October 2023, out of a total budget of 3 billion US dollars.

After fully operational, the smelter is capable of processing copper concentrate with a production capacity of 1.7 million dry metric tons (dmt) and produces copper cathodes of up to 600,000 tons per year.

The first PTFI smelter was built in 1996 under the name PT Smelting Gresik.

"These two smelter facilities are PTFI's commitment and seriousness in supporting the national downstream program. PTFI and the Indonesian government continue to work hand in hand so that both smelters can provide maximum benefits for all parties," concluded Tony.