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Freeport signs new smelter deal, drops plan with Tsingshan 

Gold and copper miner giant PT Freeport Indonesia has signed a contract valued at US$3 billion to work on the Manyar copper smelter plant project in Gresik, East Java.

Divya Karyza (The Jakarta Post)
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Jakarta
Tue, July 20, 2021

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Freeport signs new smelter deal, drops plan with Tsingshan The site of PT Freeport Indonesia's new US$3 billion smelter project in the JIIPE industrial area in Gresik, East Java is pictured on Sept 3, 2020 in this handout photo. (Courtesy of PT AKR Corporindo/-)

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old and copper mining giant PT Freeport Indonesia (PTFI) has signed a US$3 billion contract to develop a copper smelter in Gresik, East Java, ending a year-long uncertainty over the miner’s downstreaming plans.

Freeport Indonesia wrote in a statement on July 15 that it had signed an engineering, procurement and construction (EPC) contract with Japan-controlled PT Chiyoda International Indonesia (PTCII) to develop the smelter in the Java Integrated Industrial and Port Estate (JIIPE) in Gresik, East Java.

The Manyar smelter will produce copper cathodes -- one of the key materials used in batteries and electrical wiring -- from concentrate supplied by Freeport Indonesia’s Grasberg mine in Papua, one of the largest copper and gold mines in the world. The smelter will have a processing capacity of 1.7 million tons of copper concentrate per year.

“This contract signing shows PTFI’s commitment to develop a smelter in accordance with the 2018 divestment agreement,” said PTFI president director Tony Wenas in the statement.

Read also: Freeport agrees to 51% divestment, other terms: CEO

PTFI is expected to develop a metal smelter as one of many conditions for extending its mining permit for the Grasberg mine. The miner also had to divest shares to the government through state-owned mining holding MIND ID.

The signing of the contract between PTFI and PTCII marks the end of plans between Freeport and China’s Tsingshan Holding Group to build the smelter in Weda Bay, North Maluku, that came to light late last year.

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