Groundbreaking for Freeport smelter delayed

Groundbreaking for the US$2.3 billion copper cathode smelter of gold and copper giant PT Freeport Indonesia in Gresik, East Java, can?t be held in July of this year as planned by the company.

Director General of Mineral and Coal Bambang Gatot Ariyono said on Friday that the company has yet to be able to fully secure the 80-ha land requirement, leased from PT Petrokimia Gresik. ?It?s clear that the groundbreaking can?t be held in July,? he said.

Meanwhile, Riza Pratama, PT Freeport?s spokesman, was quoted by Kontan as confirming that the company was still waiting for the completion land preparation for the smelter project. ?We?re still waiting for the land,? he told the paper.

PT Freeport, a local subsidiary of US-based Freeport McMoRan Copper & Gold Inc, must make significant progress in the construction of the smelter by early next year, or the company will not be able to continue export.

The Ministry of Energy and Mineral Resources has turned down a request from PT Freeport to be able to withdraw the so-called smelter guarantee funds worth $20 million deposited by the firm last year into the ministry?s escrow account because of lack of progress in the smelter project. (*)