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Build Gresik Smelter, Freeport No Longer Cooperates with Mitsubishi


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Photo: The atmosphere of Freeport Grasberg mining. (Doc. PT Freeport Indonesia)

Jakarta, CNBC Indonesia- The slow progress of the construction of PT


Freeport Indonesia smelter in Gresik, one of them is due to operator
changes. Freeport has decided to no longer use Mitsubishi as an operator in their
processing plant.

Previously, Freeport and Mitsubishi had owned PT Smelting Gresik which


processed copper and gold from the Freeport Papua mine since 1998.
Photo: Freeport Grasberg Mine, Timika (CNBC Indonesia / Daniel Revelation)

EDITOR'S CHOICE
Freeport Gold Production Declines,
Papua Economy Immediately
Negative However, ESDM Ministry's Director of
Mineral Development and Entrepreneurs
Yunus Saefulhak said that for this new smelter Freeport no longer cooperates
with Mitsubishi. "There is a change in the method that used Mitsubishi to change
to Auto
tech, "Yunus said when met at the Ministry of Energy and Mineral Resources
(ESDM), Monday (05/06/2019).

Yunus explained that initially the development of the smelter had reached 4.67%
ago because it changed to the Auto Tech system to 3.86%. This has actually
reached the 6-month target set by the government.
The 3.86% progress includes initial preparation, feasibility study, environmental
study, land rent for five years. "In addition, it also deals with land preparation,
geotechnical details, and investigations. So there is more to the study, the outline
of land maturation."

The issue of the transfer was reported by Freeport in February, the reason being
that there were disagreements in the contract and business in business to business
between the two parties. But, in terms of technology, both Mitsubishi and Auto
Tech have been tested.

"Mitsubisi wants the term to be a full contract, while Freeport doesn't want it.
The cost is bigger and inefficient, Auto Tech is cheaper in terms of power,"
Yunus explained.

The progress of the construction of PT Freeport Indonesia's refining and


processing facilities (smelter) until February 2019 was recorded at only
3.86% of the plan (S curve) submitted to the Indonesian government.

The construction of this smelter is expected to be completed in the next 2022.

"The progress in the construction of the PTFI smelter until February reached
3.86%, almost 100% of the plans submitted to the government. It is expected that
by the end of 2022 the construction of the smelter will have been completed, the
smoke has been released," said Freeport Indonesia Managing Director Tony
Wenas. quoted through the official statement from the Ministry of Energy and
Mineral Resources, Monday (05/5/2019). (gus / gus)

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