Freeport Says Copper Downstream Added Value Only 3.5 Percent

Mine (antara)

JAKARTA - VP Government Relations of PT Freeport Indonesia (PTFI), Harry Pancasakti revealed that the added value of copper product downstreaming is still quite small, which is around 3.5 to 5 percent.

According to him, when compared to other mining commodities such as nickel or bauxite, copper downstreaming has a different value margin, while the investment value disbursed is not small.

"The investment required as we have completed in Gresik is almost IDR 60 trillion. So this margin is very small when compared to the added value that will be obtained," he said at the Detik Leaders Forum, Tuesday, September 17.

However, he believes that in 2025 Indonesia can become one of the 5 largest cathode producing countries in the world alongside China and other countries.

He said, in 2025 with the operation of PT Smelting Gresik which is 65 percent owned by Freeport Indonesia and added production from Amman Mineral, RI could produce 1.5 million tons of cathode

He added, another challenge that Freeport must face is that since operating since 1998, 50 percent of the cathode produced by PT Smelting has been exported so that the added value is enjoyed more by importing countries.

"So far, the new commitment from one of the Copper Foil industries in the Gresik special economic zone is around 100,000 tons per year. The remaining 500,000 tons, if there are no domestic consumers, we will automatically be forced to export and the exports are not far away. Southeast Asia copper from Vietnam, Thailand, and also Malaysia," he explained.

He added, so far neighboring countries have enjoyed greater added value from copper cathode production.

"So that is a challenge or a bigger view of the results of the realization that we have tried so far from the copper community side. So it's not just about adding value to the community, but how the demand is already believed, there must be, very large, that the government provides a band to be able to secure domestic demand first," he concluded.