This is the Reason for the

Decreasing Percentage of
Freeport Smelter
The calculation of the progress of the PT Freeport Indonesia (PTFI) smelter construction
has declined due to technological changes and project value.

Lucky Leonard | May 7, 2019 09:08 WIB

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Bisnis.com , JAKARTA - The calculation of the progress of PT Freeport
Indonesia (PTFI) smelter development has decreased due to technological
changes and project value.

As of February 2019, the construction of the PTFI smelter was 3.86%. In fact,
last year the record was more than 4%.

Director of ESDM Ministry of Mineral Business Development Yunus

Saefulhak said the decline in progress was due to changes in technology used
from before Mitsubishi became Outotec. The investment is in the range of US
$ 2.8 billion for a capacity of 2 million tons of concentrate per year.

"Because the investment is bigger, the divider is bigger too, so that from
yesterday, 4% more we converted it to go down," he said on Monday
(05/5/2019).

According to Yunus, this change is PTFI's business affairs. Clearly, both

Mitsubishi and Outotec already have proven technology.

Previously, Freeport-McMoRan Inc. as one of PTFI's shareholders, the

investment of PTFI's smelter this year is estimated to be under US $ 100
million and will rise to around US $ 500 million by 2020.

Freeport-McMoRan CEO Richard C. Adkerson said that his party had

committed to accelerate the construction of smelters, especially after a further
agreement with the Indonesian Government in December 2018.

Regarding the construction of a joint smelter with PT Amman Mineral Nusa

Tenggara (PTAMNT), Adkerson said that this was no longer a
priority. Because, PTAMNT is also building a smelter on Sumbawa.

"We remain focused on Gresik and continue to communicate with them

[PTAMNT] whether they will join us there," he said.