Freeport seeks principal permit for smelter project

Gold and copper giant PT Freeport Indonesia has applied for a key principal permit with the East Java provincial investment coordinating board (BKMD) for its planned copper smelter in the province?s Gresik Regency, Koran Tempo reported on Thursday.

The paper quoted Lili S. Wartadipradja, head of the East Java BKMD, as saying that the principal permit, which will allow the company to start construction process, is expected to be issued within the next two weeks.

Lili said PT Freeport will develop the smelter at a 100-ha area within the Java Integrated Industrial and Port Estate (JIIPE) in Gresik, with total investment of about Rp 30 trillion.

Lili said that construction is expected to start at the end of this year or early next year.

The 1,800-ha JIIPE is developed by PT Berlian Jasa Terminal Indonesia, a subsidiary of state-owned port management company PT Pelindo III, and PT Usaha Era Pratama Nusantara, a subsidiary of IDX-listed logistic firm PT AKR Corporindo Tbk.

PT Freeport needs to develop the smelter to process copper concentrates as the government plans to start banning the export of mineral concentrates starting next year. (*)