Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said PT Freeport Indonesia's (PTFI) smelter in JIIPE area, Gresik, East Java is ready to operate in June 2024.

"The progress of the smelter construction is according to plan. I appreciate Freeport's seriousness in support the downstream mining policy. I am optimistic that the PTFI smelter can operate in June 2024,"Arifin said in a statement on March 1, 2024.

Arifin said the construction of PTFI's copper refining plant is part of the acceleration of downstream mining program launched by the government as an important step towards realizing Indonesia as a developed country.

On the same occasion, Vice President Director of PT Freeport Indonesia Jenpino Ngabdi said that the construction of the smelter is running smoothly and on track.

"The progress of the smelter construction is in accordance with the plan and is expected to complete in June 2024. It will start production in August 2024 and then ramp up to full capacity by the end of December 2024," Ngabdi said.

The construction of the smelter is mandated by PTFI's Special Mining Business Licence (IUPK). The smelter is located in the JIIPE Special Economic Zone, Manyar Sub-district, Gresik regency. PTFI has invested up to USD 3.1 billion or equivalent to IDR 48 trillion as of the end of December 2023.

This is PTFI's second smelter. The first smelter was built in 1996 and is managed by PT Smelting.

The copper smelter with the largest Single Line Design in the world will be able to refine copper concentrate with a production capacity of 1.7 million tons and produce copper cathode up to 600,000 tons per year. The smelter's main products are copper cathode, pure gold and silver bars, as well as PGMs (Platinum Group Metal), with by-products include sulphuric acid, gypsum and lead.

"After the smelter is fully operational by the end of 2024, all PTFI mining products will be refined domestically. At the end of the day, this will increase added value and make significant contribution to state revenues," Jenpino concluded.