Indonesia's mining industry is currently stepping into a new phase with the operation of PT Freeport Indonesia's smelter in the Java Integrated Industrial and Port Estate (JIIPE) Special Economic Zone, Gresik, East Java, this month.

The Freeport Indonesia smelter is set to receive its first shipment of copper concentrate from Mimika Regency, Central Papua. The copper concentrate was transported using the Mother Vessel (MV) Unitama Lily from the port of Amamapare, Mimika Regency, Central Papua, to the PT Freeport Indonesia smelter port in JIIPE, Gresik, East Java, on Friday (June 22, 2024).

The ship carried 22,000 tons of copper concentrate, 10,000 tons of which were refined at PTFI's first smelter, PT Smelting, and the remaining 12,000 tons will serve as the main supply for PTFI's new smelter operating this month. The concentrate is then transferred and placed in the Concentrate Barn before further processing in the Flash Smelting Furnace (FSF).

In general, the concentrate must go through three different processes before it turns into copper cathode sheets, namely the concentrate material handling process, the smelting process in the furnace, and the refining process in the electrorefinery.

As is known, the Freeport copper concentrate smelter will be inaugurated next week. “We will try to inaugurate it next week. Everything is already running, from the load, conveyor, desalination warehouse, and oxy plant. In the next few days, we'll keep up furnishings and prepare for the operation,” said President Director of PTFI Tony Wenas on Saturday (Jun. 22).

Tony emphasized that the construction of the copper concentrate smelter is on track with the timeline designed by the company and was approved by the government.

As is known, this copper plant is PTFI's second smelter project. This smelter has been built since October 2021 with a copper concentrate smelting capacity of 1.7 million tons per year and a total output of 600,000 copper cathodes per year.

This smelter is said to be the largest single-line smelter in the world. For information, the construction of the smelter is a mandate of PTFI's Special Mining Business License (IUPK).

The smelter itself is equipped with Precious Metal Refining Unit, Oxygen Unit, Sulfuric Acid Unit, Desalination Unit, as well as Effluent and Waste Water Treatment Plant Unit to support maximum utilization of raw materials, by-products, and waste to achieve high-efficiency smelting and refining process.

Currently, 60% of PTFI's concentrate is exported, and the remaining 40% is refined domestically through PT Smelting in Gresik, East Java, into copper cathode. However, its anode sludge, which contains gold and silver, is still being exported to partner countries.

Along with the operation of PTFI's second smelter, the refining of anode sludge will be fully conducted domestically. PTFI has even invested around US$3.1 billion or equivalent to Rp48 trillion by the end of December 2023. This is PTFI's second smelter. The first smelter was built in 1996 and managed by PT Smelting.

Largest Single Line Smelter

This world's largest single-line design copper smelter will later be capable of refining 1.7 million tons of copper concentrate and producing up to 600,000 tons of copper cathode per year.

The smelter's main products are copper cathode, pure gold and silver bars, and platinum group metal (PGM). While the by-products include sulfuric acid, gypsum, and lead. Tony revealed that he has been actively promoting additional copper production from the Gresik smelter to Freeport Indonesia's customers.

In order to further develop the area, Tony invited Freeport Indonesia's customers to build factories in Gresik. According to him, a factory that would directly absorb the production of the smelter in Gresik once it is operational has already been arranged. The factory is also located in Gresik and is funded by investment from China.

“There will be a Chinese company that produces copper sheets and requires 100,000 tons of copper cathodes per year,” he said.

What is clear is that the completion of the smelter project serves as evidence of the acceleration of the downstream mining product program. It is simultaneously shown as the SOE's commitment with the giant investors of the United States and Japan consortium to continue expanding mineral mining derivative products in the country.

When inaugurating the expansion of PT Smelting in the Java Integrated Industrial and Port Estate (JIIPE) Gresik area, President Joko (Jokowi) Widodo stated that PTFI's expansion would not only increase the production capacity of copper anodes and cathodes but also added value in Indonesia.

"The capacity for the production of copper anodes and cathodes has increased from 1 million tons per year to 1.3 million tons per year. This shows the commitment of PT Freeport Indonesia in collaboration with Mitsubishi to downstream, to build downstream with expansion, so that the added value is in Indonesia,” said the President, on Thursday (December 14, 2023).

Translator: Aisah Amanda