In a significant move for the mining industry, Freeport Indonesia inaugurated its new $3.7 billion copper smelter in Gresik, East Java on Thursday. This state-of-the-art facility boasts an impressive total input capacity of 1.7 million metric tons of copper concentrate.
Massive Output Capacity
The newly launched smelter is expected to deliver an annual output of approximately 650,000 tons of copper cathode and between 50 to 60 tons of gold. According to Tony Wenas, CEO of Freeport Indonesia, the facility will commence the production of copper cathode by August. Freeport Indonesia, although majority-owned by the Indonesian government, operates under the expertise of US mining giant Freeport McMoran.
Government Urges Further Development
Investment Minister Bahlil Lahadalia, present at the launch event, encouraged Freeport to extend its investment by constructing an additional copper smelter in Papua, near its Grasberg copper mine. The Grasberg mine is one of the world’s largest gold and copper mines and has been pivotal in Indonesia’s mining sector.
Boosting the Electric Vehicle Ecosystem
Tony Wenas emphasized that the government’s request for further investment aligns with Indonesia’s broader ambitions to foster an ecosystem conducive to the production of electric vehicles. This strategic move is expected to support the growing demand for essential materials required for electric vehicle batteries, such as copper.
The new smelter in Gresik marks a milestone in Indonesia’s industrial capabilities, showcasing the nation’s commitment to expanding its mining infrastructure and enhancing its production capacities in line with global technological advancements.
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