Freeport Indonesia Welcomes Downstream Program

The Downstream Program is the government’s ambition to increase the value of its products. The program has been implemented on nickel mining products, and is expected to be followed by other mining commodities. This program was also welcomed by the Chairman of the Board & CEO of PT Freeport Indonesia (PTFI) McMoRan Richard C. Adkerson.

“We believe the existing resources (in Tembagapura) can exceed 2041. We must also identify these resources through exploration and analysis. We are also in talks with the government so that we can take this opportunity for stakeholders in this long-term project,” he explained in a scientific oration at Hasanuddin University, Makassar, South Sulawesi.

Reported by cnbcindonesia.com, It is known that PTFI’s mine located in Tembagapura has not yet been fully explored. PTFI noted that the current reserves could be mined until 2052. It is estimated that there are 3 billion tons of resources that have the potential to be developed. Thanks to these reserves, the potential revenue for the government could reach US$ 80 billion by 2041.

Previously, PTFI had planned to add an investment of US$ 18.6 billion for the next period. One of the investment focuses is for the construction of a second smelter in the Special Economic Zone, Gresik, East Java. When it is ready to operate, this smelter will process 1.7 million tons of copper concentrate, which will produce around 500 thousand tons of copper cathode.

“In the next 20 years we plan to distribute nearly US$ 20 billion, of which US$ 3 billion is for the construction of the smelter in Gresik,” said Adkerson.

In addition, the smelter will also produce 35-50 tons of gold, and 100 to 150 tons of silver per year. With the construction of the second smelter, it is hoped that cathode production can continue to be increased, and can be used by downstream industries. The construction of the second smelter was welcomed by PTFI President Director Tony Wenas. He said that PTFI is capable of processing copper ore into copper concentrate with an added value of 95%. With downstream programs, the added value of the copper cathode will be 100%.

“The most important thing is the continuation of the copper cathode. The electric car factory, then the electric car battery factory, and also renewable energy that requires a lot of copper can grow more in Indonesia. With that, Indonesia can skyrocket its economic growth,” Tony explained.