Antam Invests IDR 1.1 Trillion in Gold Factory Near Freeport Smelter in Gresik
Wed 16 Apr 2025, 19:12 PM
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PT Aneka Tambang Tbk (ANTM) or Antam has entered the pre-construction phase for the construction of a gold printing plant in the Java Integrated Industrial and Ports Estate (JIIPE) area, Gresik, East Java.
Antam Corporate Secretary Syarif Faisal Alkadrie said the factory would begin construction in the fourth quarter of 2025.
During an analyst meeting some time ago, Antam management estimated that this project would cost an investment of around IDR 1.1 trillion, with a production capacity of 5 million pieces of precious metal bars and coins as well as industrial gold.
"Currently still in the pre-construction phase, after operating it will synergize with the Freeport smelter", said Faisal when contacted, Wednesday (16/4/2025).
On Thursday, November 7, 2024, Antam and PT Freeport Indonesia (PTFI) signed a gold metal sale and purchase agreement.
From the agreement, Antam will later absorb 30 tons of gold produced through the precious metal refinery (PMR) facility, including in the refining plant or copper cathode smelter owned by Freeport in Manyar, Gresik, East Java.
The contract at this stage lasts for 5 years with a value of around USD 12.5 billion or equivalent to IDR 200 trillion.
Faisal added that his company is temporarily processing gold from Freeport at existing facilities, while waiting for the construction of a new factory in Gresik.
"We ensure that funding will not burden the company's financial performance, by considering aspects of sustainability, a healthy debt ratio, and compliance with regulations," he said.
This new factory is a development of Antam's gold and silver manufacturing facilities to increase the production of Precious Metal gold printing.
Antam currently operates a precious metal refining plant in Pulogadung Jakarta, which is the only gold refining plant in Indonesia that has London Bullion Market Association (LBMA) accreditation.
Previously, PTFI President Director Tony Wenas said the contract at this stage would last for 5 years with a value of around USD 12.5 billion or equivalent to IDR 200 trillion assuming the current exchange rate.
"[As many as] 30 tons [of Freeport gold] were absorbed by Antam, if Antam needs more, we are also ready for more than 30 tons, and the contract for this stage is for five years. If calculated from the amount, the value is around USD 12.5 billion, depending on the gold price, or IDR 200 trillion," said Tony, November last year.
Tony said that Freeport Indonesia's PMR facility is basically complete and ready to produce gold bars in the second week of December 2024 with a total of 50-60 tons of gold and 200 tons of silver per year.
"There is also the platinum metal group, namely platinum 30 kg per year and there is palladium 375 kg per year, besides of course there are other minerals such as celenium", he said.
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