Jakarta, CNBC Indonesia – PT Freeport Indonesia is said to be producing 1 tonne of gold per week from a processing and refining plant (smelter) currently being built in the JIIPE Special Economic Zone (KEK), Gresik, East Java.
This was stated by the Coordinating Minister for Economic Affairs Airlangga Hartarto in the BRI Microfinance Outlook 2022 Webinar entitled “Boosting Economic Growth Through Ultra Micro Empowerment” which took place in a hybrid manner, Thursday (10/2/2022).
He said that for the initial stage, thanks to an investment of US$ 200 million, PTFI could produce 35 tons of gold per year.
By producing large amounts of gold domestically, according to him, this can make Indonesia immediately establish bullion bank or a bank that can accept gold transactions, other than ordinary currency.
He said the bullion bank is targeted to be formed next year.
“So if this is caught with bullion bank This does not need to be sent to Singapore, because most of it is now sent to Singapore, from Singapore it goes back to Indonesia. So that almost the entire jewelry industry is costits just tolling fee because of course it has to do with fiscal incentives with VAT,” explained Airlangga.
As is known, the Freeport copper smelter in the JIIPE SEZ, Gresik, East Java has been inaugurated for the initial construction process, alias groundbreaking directly carried out by President Joko Widodo (Jokowi) on October 12, 2021 ago.
The Rp 42 trillion smelter project will process 1.7 million tons of copper concentrate per year and produce 600 thousand tons of copper cathode and 35 tons of gold per year.
SOE Minister Erick Thohir previously said that by producing 35 tons of gold per year, the resulting transaction value could reach Rp 30 trillion per year.
“So it can produce an average of 35 tons of gold per year with a transaction value of IDR 30 trillion,” said Erick at the time groundbreaking smelter, last October 12, 2021.
Furthermore, Erick said, during the construction period it is estimated that up to 40 thousand workers will be employed. According to him, the Governor of East Java requested that the majority of the workforce absorbed come from East Java, so that there is certainty of job openings.
“Here, Mr. Tony (President Director of PT Freeport Indonesia) conveyed that the plan will absorb 40 thousand workers during construction,” he explained.
PTFI cooperates with PT Chiyoda International Indonesia to do the work Engineering, Procurement, dan Construction (EPC) in the construction phase. The smelter construction is targeted for completion in 2023-2024.
From the mining side, PT Freeport Indonesia targets to produce 1.5 million ounces of gold and 1.5 billion pounds of copper by 2022, up from 1.3 million ounces of gold and 1.3 billion pounds of copper in 2021.
PT Freeport Indonesia President Director Tony Wenas had said that there are two mining methods that Freeport uses at the Grasberg mine, namely open pit mining (open pit) and also underground mines (underground).
At this time, he said that the open-pit mining has been completed. This means that there will be no more mining activities from open pits, so production will be entirely from underground mines.
“This underground mine has been developing since 2004. And starting in 2015, it has been mined and is now around 90% of normal capacity and next year it will be at 100% full capacity,” he told CNBC Indonesia on September 22, 2021.
(wia)
–
