Freeport to build a 1,000 km underground tunnel

PT Freeport Indonesia will close down its open-pit mining and shift the method to underground mining in 2016. If the project is realized, Freeport will have the world's longest tunnel with 1,000 kilometers length, Kompas.com reported Friday.

"There will be 405 circling tunnels with 1,000 kilometer length accumulatively. It will be the biggest underground mine in the world," said PT Freeport President Director Rozik B Soeripto.

Rozik said the operational preparation for the underground mine needs 10 years timeframe from 2012 to 2021. The new mining method in the mine, located in Grasberg and sustaining the company's business, requires a US$ 9.8 billion of investment.

Freeport has built a 400 kilometers long of tunnel that cost the company about $1 billion. The construction will go on eventough there is no agreement yet related to Contract of Work renegotiation with government.

The greatest underground mine is expected to produce 200,000 tons of materials a day. As of the end of 2010, Freeport produced 235,000 tons of gold ore a day with gold projection 1.7 million ounces.

Rozik said that Freeport keeps on its operation while the underground mine construction is on progress and dwindling surface mineral reserves. Freeport has mineral ore reserves for the next 43 years to come. (*)