Faisal Maliki Baskoro, Gresik – The Indonesian government inaugurated Freeport Indonesia's (PTFI) $3.7 billion (Rp 60 trillion) copper smelter, Smelter Manyar, at the Java Integrated Industrial and Ports Estate (JIIPE) in Gresik, East Java, on Thursday.
"This is the largest single-line copper smelter globally, located here in Gresik, Indonesia," said Tony Wenas, President Director of Freeport Indonesia, during his opening remarks on the company's YouTube channel.
He explained that the smelter has an input capacity of 1.7 million tons of copper concentrate and a production output of approximately 650,000 tons of copper cathode annually.
Furthermore, Tony mentioned that by December, the smelter will be able to refine anode sludge to produce gold, silver, and other metals.
"The estimated output is about 50-60 tons of gold and around 220 tons of silver annually," Tony said.
Tony projected that by mid-August 2024, Smelter Manyar will be able to produce its first copper cathode.
"Hopefully, by mid-August, production can commence, possibly in conjunction with the celebration of Indonesia's Independence Day on August 17," Tony said.
Chief Economic Affairs Minister Airlangga Hartarto expressed his gratitude, noting that the smelter was built within 30 months since the groundbreaking by President Joko Widodo.
He highlighted that the operation of Smelter Manyar is timely, coinciding with the rising trend of renewable energy.
"This trend requires critical minerals. We have nickel, cobalt, and copper. Copper is crucial for future technology; all batteries and cables need copper," he added.
Investment Minister and Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia highlighted the challenges in constructing the smelter.
"The dynamics were incredibly challenging. There was a consideration to relocate it to North Maluku. Locals in Papua also questioned why it was built in East Java. Construction was decided in 2021 but was paused due to Covid-19."
Freeport Indonesia stated that the choice to construct the smelter in Gresik, East Java, was due to two large companies capable of absorbing the smelter's waste on a large scale, namely Semen Indonesia and Petrokimia Gresik.