So The Requirement For Extending The IUPK, The Minister Of Energy And Mineral Resources Asks Freeport To Immediately Build A Smelter

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif opened his voice about PT Freeport Indonesia (PTFI)'s plan to build a smelter in Papua.

Arifin said, later after obtaining a contract extension from 2041 to 2060, his party asked Freeport to accelerate the construction of a smelter.

The construction of this smelter is one of the requirements for the extension of the PTFI Special Mining Business Permit (IUPK) operation.

However, Arifin also asked PTFI to review the possibility of development by considering balance with existing raw mineral reserves.

"This is an extension starting from 2041, but we ask for it as soon as possible. Of course, he has to calculate the balance supply, the ore is enough ore is not enough. The excess of ore is brought to industrial areas in Fakfak," Arifin told the media at the ESDM Building, Friday, November 17.

Moreover, he said, in the near future the government will soon start groundbreaking for the construction of a fertilizer factory in the industrial area in Fakfak.

With the fertilizer and smelter factories, later the area will become an integrated industrial area.

"In Fakfak, we want to groundbreaking the fertilizer factory, later there will be a lot of industrial complexes. This can encourage economic growth," he said.

Furthermore, Arifin added, if there is Pupuk and Smelter in this industrial area, the government will also help build a number of supporting infrastructures so that more industries enter.

"If the industry enters with all the details, of course, the cost will be competitive," concluded Arifin.

Previously, President Joko Widodo received Freeport Chairman McMoRan Richard Adkerson on the sidelines of a visit in Washington DC, United States, Monday, November 13, Local Time.

During the meeting, President Jokowi welcomed the discussion about the addition of Freeport shares in Indonesia to the extension of the mining permit which had reached the final stage.

"I am pleased to hear that the discussion on the addition of 10 percent of Freeport's shares in Indonesia and the extension of mining permits for 20 years has reached the final stage," said President Jokowi to Richard Adkerson.

President Jokowi also hopes that this can be resolved by the end of November this year.