Jakarta, CNBC Indonesia – PT Freeport Indonesia President Director Tony Wenas emphasized the importance of developing domestic downstream industries. This is done so that products derived from copper cathodes can be used in the best way by domestic industry.
According to him, although PTFI copper cathode production has increased, unfortunately the domestic industry is not yet ready to absorb all the products from the company’s copper smelter.
“So it is hoped that businesses, businesses will emerge even further downstream,” he said at the CNBC Indonesia Mining Zone event, which was announced on Thursday (10/10/2024).
He then gave the example that at least about 200 thousand tons of copper cathode produced by PT Smelting is currently consumed by domestic industry. At the same time, the remaining 130 thousand tons were exported.
According to Tony, the same conditions are likely to exist for copper cathode production from the company’s second smelter in Manyar JIIPE, Gresik, East Java, which is scheduled to produce 600 thousand tons of copper cathode. – out every year.
“So, if the conditions are the way they are now, if we take out 600 thousand, it’s very likely that they will all be exported,” said Tony.
Therefore, he hopes that the domestic derivatives business can grow quickly so that it can take in the cathode copper production made by the company. As a reminder, some of the copper cathodes produced by PT Smelting are still being exported.
“The truth is that what has been done at PT Smelting is yet to be extracted, it has not been absorbed, only about 50-60 percent has been absorbed. So if we look at the copper cathode, copper is used for many things. For cables, for building materials, for electric vehicles batteries, and so on,” he said.
As is known, on Monday (23/09/2024) the first production of copper cathode was established from the second PTFI smelter in JIIPE district, Gresik, East Java, which was also witnessed by President Joko Widodo (Jokowi). The smelter at JIIPE Gresik is expected to be a copper smelter single line the largest in the world, with a copper concentrate processing capacity of 1.7 million tons per year.
Together with the first smelter managed by PT Smelting, these two facilities will develop 3 million tons of copper concentrate per year, and produce 1 million tons of copper cathode, 50 tons of gold and 200 tons of silver per year.
The cumulative investment value of this project, which occupies 104 hectares of land, reaches US $ 3.7 billion or the equivalent of Rp.
About 100 thousand copper cathodes from the PTFI smelter are targeted to be absorbed by PT Hailiang Group, a company copper foil which will also build their factory in JIIPE area, Gresik.
Meanwhile for gold, about 20 tons of gold from this smelter will be absorbed by PT Aneka Tambang Tbk (ANTM).
(wia)
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