Coordinating Minister of Economy Airlangga Hartarto, Investment Minister/Head of Investment Coordination Agency BKPM Bahlil Lahadalia, and PT Freeport Indonesia (PTFI) President Director Tony Wenas have officially inaugurated PTFI’s new copper smelter in the Java Integrated Industrial and Port Estate (JIIPE) Special Economic Zone (SEZ) in Gresik, East Java.
Hartarto lauded the project’s rapid completion, stating, “In just 30 months from the groundbreaking by the President, the construction was completed on time. This achievement is indeed extraordinary.” The new smelter, which aligns with the IUPK special mining operation permit awarded to Freeport, is expected to commence production in August and reach full capacity by December 2024.
The establishment of this smelter is anticipated to positively impact Indonesia’s economy by enabling domestic mining and refining activities. It is expected to boost local mineral utilization and support the country’s renewable energy initiatives.
Investment Minister Bahlil Lahadalia expressed gratitude for the successful completion of the smelter, acknowledging the challenges faced during development, including disruptions from the COVID-19 pandemic. “I am thankful and pleased to witness this milestone, despite the difficulties encountered. This completion underscores Freeport management’s dedication to fulfilling IUPK requirements,” he said.
Acting Director General of Minerals and Coal Bambang Suswantono noted that the launch of the smelter marks the beginning of Indonesia’s minerals downstreaming drive, as directed by President Joko Widodo. He highlighted the collaborative efforts of Freeport, Gresik Regency, and East Java Province governments in achieving this significant development.
PTFI President Director Tony Wenas emphasized the smelter’s role in supporting Indonesia’s copper mineral downstreaming policy. He noted the global demand for copper, driven by the energy transition and the electric vehicle ecosystem. “The President’s decision to require new smelter development was a sound judgment. Global copper demand will continue to rise, and this smelter will play a crucial role in supporting that growth,” he said.
The smelter, located near the sulphuric acid tank, was officially launched with a siren button activation and monument inscription signing. The event was attended by Acting East Java Province Secretary Bobby Soemiarsono and Gresik Regent Fandi Akhmad Yani.
With an investment of US$3.67 billion, PTFI’s new smelter is set to refine copper concentrate at a production capacity of 1.7 million tons per year, producing approximately 600,000-700,000 tons of copper cathode. Additionally, the smelter will generate anode slime for further refining into gold, silver bullion, and Platinum Group Metals (PGM) at the Precious Metals Refinery (PMR).
