World's Biggest Single Line Smelter: Freeport's Next Revenue Generator

Summary

President Joko Widodo initiated the groundbreaking of Freeport Indonesia's smelter project in the Gresik Special Economic Zone (SEZ), East Java. Coordinating Minister for Economic Affairs Airlangga Hartarto said the facility is the largest single line smelter in the world, with a capacity of 1.7 million tons of concentrate per year. "It produces 600,000 tons of copper. Currently, copper is sold at US$9,400 per ton. Freeport invested Rp 42 trillion or US$3.5 billion, while revenue from copper reaches US$5.4 billion," Airlangga said

Furthermore, Freeport will encourage additional downstream processing of precious metals recovery by investing US$200 million. "It can produce 35 tons to 54 tons of gold. The pre-factory has been prepared. Gold price is currently US$1,700 per troy ounce. If the production reaches 35 tons, the value will be US$1.8 billion. With 50 tons production, it will reach US$2.7 billion," Airlangga said.

During his speech, President Joko Widodo stated that the construction of domestic smelters would strengthen the downstream industry. Therefore, the government will fully support the investment climate to run well. "I hope that PT Freeport Indonesia in the Gresik Special Economic Zone will attract other industries, especially copper derivative industry, to invest," he said.

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