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Jakarta Post

Freeport smelter to be built on 100 hectares of land in Gresik

  • Stefani Ribka

    The Jakarta Post

Jakarta   /   Wed, April 5, 2017   /   07:07 pm
Freeport smelter to be built on 100 hectares of land in Gresik Investment Coordinating Board (BKPM) deputy for investment monitoring and implementation Azhar Lubis (second left) talks to Java Integrated Industrial and Port Estate (JIIPE) and prominent tycoon Sugiarto Adikoesoemo (second right) at JIIPE marketing office in Gresik, East Java, on Apr. 4. (JP/Stefani Ribka)

While copper and gold mining giant PT Freeport Indonesia and the government are conducting negotiations over the conversion of the company's contract, Freeport has earmarked 100 hectares of land on which to construct a smelter in Gresik, East Java.

The land is located in the Java Integrated Industrial and Port Estate (JIIPE) in Gresik.

 “We need to wait for Freeport’s decision because it just converted its business permit to an IUPK [special mining license]. We are in constant communication because the MoU was signed in 2015,” JIIPE head of marketing and tenant relations Sianny Indrawati told reporters on Tuesday.

 JIIPE covers 1,761 hectares of industrial park developed in 2013. Its first block is rented by five tenants. Two more blocks are expected to be fully occupied by 2019.

The industrial park is integrated with a 499-hectare seaport and a 800-hectare housing estate. Of the planned 3,060 ha of land, 60 percent has been procured by JIIPE. The remaining 40 percent is in process of being acquired.

Freeport on Tuesday obtained a special mining permit (IUPK), which is effective for eight months as from Feb. 10. The company will be allowed to export 1.11 million wet metric tons  of copper concentrate per year. It will be evaluated after the first six months, taking into account the progress of construction of the smelter. (bbn)