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Freeport opens copper smelter in Gresik

The plant is estimated to operate at 50% of its full capacity, with an incoming throughput of 1.7 million tons of copper concentrate.

Joshua Falcón.

Published: June 27, 2024

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Freeport Metallurgical Indonesia has started operations at its new copper smelter located in Gresik, East Java. The facility has an estimated value of US$3.7 billion and promises to meet the region’s growing demand for copper.

The Freeport copper smelter

Freeport Indonesia CEO Tony Wenas said the smelter is designed to produce approximately 650,000 tons of copper cathode and 560 tons of gold. As of August 2024, the plant is expected to operate at 50% of its full capacity, with an incoming throughput of 1.7 million tons of copper concentrate. The smelter is expected to reach full operating capacity by the end of the year.

This project is in line with Indonesia’s policy, which bans the export of raw minerals from June 2023. However, Freeport Indonesia and Amman Mineral Internasional have received an extension until May 31, 2024 to complete the construction of their smelters. Wenas also stressed the importance of importance of copper for the future and the participation of companies in this advance.

In April 2023, Indonesia’s Minister of Investment indicated that Freeport Indonesia should sell an additional 10% stake to the government. This announcement coincides with the start of talks between the company and the government on the extension of operating permits in the country.