AKR plans power plant project to support Freeport's smelter

By Godang Sitompul

 

IDX-listed logistics and fuel distribution company PT Aneka Kimia Raya Tbk plans to develop a 600 MW coal-fired power plant in Gresik, East Java Province, in cooperation with state-owned port operator PT Pelindo III and gold and copper giant PT Freeport Indonesia (PTFI).

 

A source told Petromindo.com on Tuesday that the power plant will supply electricity for a copper smelter to be developed by PTFI in Gresik.

 

The three companies are expected to formally realize the cooperation agreement for the planned power project this year, the source added. The three companies could not be immediately reached for comments.

 

PTFI has been required by the government to develop domestic copper smelter as part of conditions for the company to be allowed to continue export of copper concentrates.

 

Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources Bambang Gatot Ariyono has urged PTFI, which is 51 percent owned by state-owned PT Inalum and the remainder held by US-based Freeport McMoRan Inc, to quickly start realizing the project, which must be completed by 2023.

 

While Bambang acknowledged that PTFI initially planned to develop the copper smelter at AKR?s Java Integrated Industrial and Port Estate in Gresik, there?s no firm decision yet made by the company regarding the location of the US$3 billion smelter project, which will have input capacity of 2 million tons of copper concentrates per year. PTFI has said that it is still in the process of selecting prospective partner for the project.

 

Editing by Reiner Simanjuntak