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Inalum target US$1.8 revenue from Freeport in 2022
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Inalum president director Budi Gunadi Sadikin (JP/Damar Harsanto)
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tate-owned mining holding company Indonesia Asahan Aluminium (Inalum) president director Budi Gunadi Sadikin has said the revenue that the state will receive from gold and copper miner PT Freeport Indonesia (PTFI) will increase to US$1.8 billion in 2022, from $180 million in 2018.
In 2019 and 2020, there will be no revenue from the company because the mine will not operate, Budi said in Jakarta on Tuesday, adding that in 2021 and in 2022 mining revenue was expected to reach some US$470 million annually.
He added that there would be additional revenue from metal strip production worth $900 million in 2022. “With the additional revenue of $900 million from metal strips, the total revenue will be [approximately] $1.8 billion [in 2022],” he said as quoted by kompas.com.
The Indonesian government became the majority owner of PT Freeport Indonesia (PTFI) after increasing its share ownership from 9.36 percent to 51.23 percent through a US$3.85 billion deal, last month.
Previously, a government official said PTFI would lower its copper concentrate production target of 1.2 million tons – 900,000 tons fewer than last year's output of 2.1 million tons – to accommodate its transition from an open pit to underground mining operation, an energy official has said.
PTFI’s mine in Mimika, Papua has potential gold and copper reserves worth $170 billion, while the annual earnings before interest, taxes, depreciation and amortization (EBITDA) of the company were set at $4 billion with a net profit of $2 billion in 2022.
“We hope we will be able to maintain the production and the quality of the underground mine,” Budi added. (bbn)
