ANTAM, Freeport sign MoU for copper smelter FS
Tuesday, February 11 2014 - 01:24 AM WIB
IDX-listed mining company PT ANTAM Tbk signed an MoU Monday with gold and copper giant PT Freeport Indonesia to carry out a feasibility study (FS) for the construction of a planned US$2.2 billion copper smelter in Indonesia.
?The signing of the MoU with PT Freeport Indonesia reflects both companies? commitment to support the intention of Law Number 4 Year 2009 to increase and optimize the value of minerals through domestic mineral processing and refining,? said ANTAM?s President Director Tato Miraza in a statement obtained Tuesday.
The purpose of the MoU is to explore the technical, economical, and commercial feasibility of the development, construction, and operation of a copper smelter project.
Meanwhile, Rozik B. Soetjipto, President Director of PT Freeport, a unit of US-based Freeport McMoRan Copper and Gold Inc, which operates a giant gold and copper mine in Papua, said that the feasibility study was expected to be completed within three months.
He told Petromindo.com that based on the pre-feasibility study which has been completed, the two firms plan to develop a copper smelter with a capacity to produce 300,000 tons of copper cathode per year.
There are four location alternatives for the planned smelter including three in East Java and one in Papua, said Tri Hartono, Corporate Secretary of Antam. He added that the total investment for the project is estimated at US$2.2 billion.
Editing by Reiner Simanjuntak