President Joko Widodo (Jokowi) has announced that he will ban the export of raw bauxite minerals starting in June 2023. This is also in line with Law No.3 of 2020 concerning Mineral and Coal Mining (Minerba Law).
Based on the Mineral and Coal Law, no later than June 10, 2023, the export of raw minerals is officially prohibited. The mineral products that are allowed to be exported are those that have gone through the processing and refining process or downstream first in the country.
So, what about PT Freeport Indonesia, which is currently still exporting copper concentrate? What about the progress of the construction of its new smelter in Gresik, East Java?
President Director of PT Freeport Indonesia (PTFI) Tony Wenas said that his party is currently speeding up the completion of the construction of its new copper processing and refining facility (smelter) located in the JIIPE industrial area, Gresik, East Java.
Tony said, until the end of November 2022, the progress of smelter construction had reached 47.4%. And by the end of this year, according to him, the development progress can reach 50%.
"This progress is now 47.4% by the end of November, it is expected that by the end of this year in 10 days it can reach 50%," he said in CNBC Indonesia's Mining Zone program, quoted on Friday (23/12/2022).
He also said that by the end of 2023 the physical construction progress of this smelter has been completed, then it will be continued with a trial or commissioning test. And in May 2024 this copper smelter can be operated commercially.
"At the end of 2023, the physical construction mechanical completion has been completed, we just need to commission until May 2024, we have started production," he said.
As is known, the beginning of the construction of the new Freeport smelter was carried out in October 2021 which was also witnessed by the President of the Republic of Indonesia Joko Widodo (Jokowi).
The smelter with an investment value of US$ 3 billion or around Rp. 45 trillion is said to be the largest single-line smelter in the world. The new smelter will process 1.7 million tons of copper concentrate per year into a product of 600 thousand tons of copper cathodes per year.
Currently, PTFI also has one smelter that has been operating - also located in Gresik. The company cooperated with Mitsubishi to form PT Smelting. The PT Smelting smelter, which has been built since 1996, produces 300 thousand tons of copper cathodes from the processed products of around 1 million tons of copper concentrate per year.
PTFI's share ownership in PT Smelting is currently only 40%. Nevertheless, the company plans to increase its shareholding to 66%.
The addition of shares is because PT Smelting is now also in the process of expanding or increasing capacity.
Based on the company's report, PTFI has spoken to PT Smelting's majority shareholder, Mitsubishi Materials Corporation (MMC), for the expansion project. The increase in capacity at the existing smelter is planned to increase by 30% or around 300 thousand tons of concentrate per year.
Thus, PT Smelting's copper concentrate processing capacity will increase to 1.3 million tons from the current 1 million tons per year.
Image source: Tangkapan Layar Youtube Sekretariat Presiden
Image source: www.cnbcindonesia.com
