Indonesia will become the world's fourth largest producer of cathode copper in 2025, following the full operation of PT Freeport Indonesia (PTFI)'s new smelter in Gresik since July 2024. The Minister of Investment/Head of the Investment Coordinating Board (BKPM) stated that the copper plant will produce 60 tons of pure gold and 400,000 tons of cathode copper. In addition, the smelter's investment value is USD 3 billion, equivalent to IDR 49.2 trillion, and will commence operations on July 1, 2024. From July 1, the Freeport plant will process copper concentrate from Gresik Timika. Within a year, the plant will produce 60 tons of pure gold, 400,000 tons of cathode copper, and various other derivative products. On the other hand, PTFI is also required to build a smelter in Timika, Papua, near the Tembaga pura Freeport mining area. The requirement to build a smelter aligns with the government's plan to increase PTFI's shareholding from the current 51% to 61% by 2041.
The government is considering acquiring an additional 10% stake once regulations are issued. Currently, the government holds a 51% stake, and they want Indonesia to regain majority ownership. Negotiations have been completed, and Freeport has agreed to sell an additional 10% stake. The PTFI smelter is a copper concentrate refinery located in the JIIPE Special Economic Zone (KEK) in Manyar, Gresik, East Java. Construction began in October 2021 and has been completed on schedule as required by the government. PTFI's second smelter is the world's largest single-line copper smelter, with a refining capacity of 1.7 million tons of copper concentrate once fully operational. The smelter is equipped with refining units, precious metal purification units, oxygen production units, sulfuric acid units, seawater desalination units, and wastewater treatment units to support maximum utilization of raw materials, by-products, and waste, ensuring efficient smelting and refining processes.
Indonesia will become the world's fourth largest producer of cathode copper in 2025, following the full operation of PT Freeport Indonesia (PTFI)'s new smelter in Gresik since July 2024. The Minister of Investment/Head of the Investment Coordinating Board (BKPM) stated that the copper plant will produce 60 tons of pure gold and 400,000 tons of cathode copper. In addition, the smelter's investment value is USD 3 billion, equivalent to IDR 49.2 trillion, and will commence operations on July 1, 2024. From July 1, the Freeport plant will process copper concentrate from Gresik Timika. Within a year, the plant will produce 60 tons of pure gold, 400,000 tons of cathode copper, and various other derivative products. On the other hand, PTFI is also required to build a smelter in Timika, Papua, near the Tembaga pura Freeport mining area. The requirement to build a smelter aligns with the government's plan to increase PTFI's shareholding from the current 51% to 61% by 2041.
The government is considering acquiring an additional 10% stake once regulations are issued. Currently, the government holds a 51% stake, and they want Indonesia to regain majority ownership. Negotiations have been completed, and Freeport has agreed to sell an additional 10% stake. The PTFI smelter is a copper concentrate refinery located in the JIIPE Special Economic Zone (KEK) in Manyar, Gresik, East Java. Construction began in October 2021 and has been completed on schedule as required by the government. PTFI's second smelter is the world's largest single-line copper smelter, with a refining capacity of 1.7 million tons of copper concentrate once fully operational. The smelter is equipped with refining units, precious metal purification units, oxygen production units, sulfuric acid units, seawater desalination units, and wastewater treatment units to support maximum utilization of raw materials, by-products, and waste, ensuring efficient smelting and refining processes.
