U.S. mining giant Freeport-McMoRan has already begun building what will be one of the world’s largest copper smelters near its existing refining operations in Indonesia. In addition, it will have a capacity of 1.7 million tons of copper concentrate.
Specifically, PTFI’s ambitious Smelter Manyar Engineering, Procurement and Construction (EPC) project has seen the light of day thanks to the contract ratified last summer between the subsidiary PT Freeport Indonesia (PTFI) and PT Chiyoda International Indonesia. This agreement includes the construction of a smelter project with a capacity of 1.7 million tonnes of concentrate per annum as well as Precious Metal Refinery (PMR) facilities in the Java Integrated Industrial and Ports Estate (JIIPE), Gresik, East Java.
As confirmed by the multinational itself, the signing of this contract consolidates PTFI’s commitment to build a smelter, in accordance with the 2018 divestment agreement. Amidst the various challenges of the COVID-19 pandemic experienced by Indonesia and all parties involved, PTFI continues to make adjustments to continue working while continuing to prioritize the health and safety of all workers and communities around the work area.
Previously, the signing of the EPC cooperation contract was delayed for several months due to the pandemic. However, EPC work at JIIPE continues, including procurement of long lead items and preparation of staging areas for construction equipment and materials, they add.
The mega smelter is being built with a single line design, the largest in the world so far. The project will cost $3 billion in Gresik, East Java and is expected to begin operations in late 2023 or early 2024.
