Freeport signs MoU with smelting companies

PT Freeport Indonesia (PTFI) signed on Tuesday a Memorandum of Understanding (MoU) with PT Indosmelt (Indosmelt) and PT Indovasi Mineral Indonesia (Indovasi) to support the companies? plans to establish a new copper concentrate smelter facility.

?The signing of this MoU represents a concrete step by PTFI to support the Government?s policy on the downstreaming of the mineral resources based industry,? PTFI President Director Rozik B. Soetjipto said in a statement.

?Support for the downstream program should, among other ways, be demonstrated by laying down concrete and realistic steps that outline the stages, including in depth analysis and preparations, that would result in a healthy and sustainable development of the industry. This would translate into equitable benefit for all the industry players,? added Rozik.

He said that PTFI has so far constructed the first and only Indonesian copper smelter facility in Gresik under PT Smelting, a joint venture between PTFI and Mitsubishi, and has supplied 40 percent of its copper concentrate (processed copper ore) to this domestic facility.

PTFI remains open to sell domestically copper concentrates if it is based on competitive pricing or based on the prevailing international market price.

PTFI will continue to help provide information and technical expertise that would match the requirements and viability of a new copper smelter and refinery to attract investors such as Indosmelt and Indovasi. The two companies are potential investors and are assessing the economic viability of establishing a new smelter.

PTFI also appealed to related stakeholders for their support to make the downstream program a success. It also said that it was willing to cooperate to any other serious third parties that are interested in building an economically viable smelter.

Editing by Johannes Simbolon