Freeport-McMoRan Inc. (FCX) said that the construction progress of the PT Freeport Indonesia (PTFI) copper smelter project in Gresik, East Java has reached 75%. The largest copper project in the world is targeted for completion in 2024.
Quoting the Freeport-McMoran (FCX) Performance and Operations Report for the second quarter of 2023, this copper smelter project continues to experience significant progress. As for the implementation of the project which has reached 75%, construction is targeted for completion in mid-2024.
"Construction is approximately 75% complete, with an estimated completion of construction in mid-2024 at an estimated cost of US$ 3.0 billion," quoted from the company's report, Wednesday (26/7/2023).
The smelter, which is predicted to be the largest single-line smelter in the world, is claimed to be able to absorb as much as 1.7 million tons of copper concentrate per year. Later, the copper cathode product produced could reach 600 thousand tons per year.
In addition to producing copper cathode products, this smelter will produce by-products including products contained in anode sludge, namely pure gold and silver as much as 6 thousand tons per year.
Other by-products include 1.5 million tons of sulfuric acid per year, 1.3 million tons of copper slag and 150 thousand tons of gypsum per year.
The absorption of labor in the new smelter is 150 thousand workers, of which 98% are Indonesian workers including 50% local workers.
Meanwhile, for other projects such as PT Smelting's expansion, it is targeted to be completed by the end of this year. The costs incurred by PTFI to finance this project are around US$ 250 million, with the loan to be converted into equity and increasing PT-FI's ownership in PT Smelting to become majority ownership.
Furthermore, the Precious Metal Refinery (PMR) project to process gold and silver from the Manyar Smelter and PT Smelting is currently in the construction stage. The US$ 525 million project is also targeted for completion in 2024.
Image source: CNBC Indonesia/Verda Nano Setiawan
