MIND ID Provides Good News, Opens Options For Smelter Development At Freeport

Illustration. (Photo: Doc, Freeport Indonesia)

JAKARTA - The Indonesian mining industry holding (MIND ID) opens the option to build a Freeport smelter in Papua with a condition that the production capacity reaches 3 million tons per year.

"The construction of a smelter at Freeport depends on production capacity. If the production can reach more than 3 million tons (per year), that is indeed an option for opening a new smelter at Freeport," said Orias Main Director of Mind ID Peter Moedak in a hearing with Commission VII of the House of Representatives. in Jakarta, quoted from Antara, Wednesday, March 31.

He further said that the construction of a smelter in Papua had been discussed with the Investment Coordinating Board. A number of investors have expressed interest in working on the project.

"Preparation requires time and also investors who are interested so that we can work together. So, the option is open," said Orias.

As is known, the smelter construction plan in Papua was discussed in 2015. At that time, the Minister of Energy and Mineral Resources Sudirman Said had formed a Smelter Capacity Management Team.

The government assesses that the construction of a smelter in Papua can save the cost of sending ore to smelters in Gresik and overseas smelters, which have been used to refine Freeport's minerals.

However, over time the issue of smelter construction in Papua faded and reappeared in 2021, when many parties saw the smelter construction project in Gresik as not serious because it had only reached 6 percent.

Member of Commission VII DPR from the PDI-P Faction, Dony Maryadi Oekon, expressed his support for the option of building a smelter in Papua because it could create jobs for local communities.

"The construction of a smelter will increase employment, that is the most important thing," said Dony.

Apart from building a smelter, he continued, Indonesia also needs to build a derivative industry from products produced by smelters in order to create new jobs and drive the economic wheels of the community.

"Build smelters and build derivative industries also because Indonesia has everything from raw materials, personnel, experts, and land, so there is no longer any reason to bring raw minerals abroad," said Dony.