Newmont signs MOU with three smelting companies

PT Newmont Nusa Tenggara has signed memorandum of understanding (MOU) with three smelting companies on the copper mining company?s commitment to provide the supply of copper concentrate for the smelters, Kontan daily reported on Tuesday.

Newmont?s spokesman Rubi Purnomo said on Monday that the copper mining company had in principal agreed to process part of its copper concentrates at the three smelting companies which included PT Indosmelt, PT Indovasi Mineral Indonesia and PT Nusantara Smelting.

Indosmelt plans to build a copper smelter in Maros, South Sulawesi with capacity of 120,000 tons a year, while Nusantara Smelting would build a copper smelting plant in Bontang, East Kalimantan with capacity of 200,000 tons a year. Indonesia Mineral will build a copper smelter in Cirebon, West Java with capacity of 200,000 tons a year.

The three smelting companies are currently conducting feasibility studies on the construction of their smelters. They will spend between US$1 billion and $1.5 billion each for the construction of the smelters.

Indosmelt?s president director, Natsir Mansyur earlier said that his company would need about 500,000 tons of copper concentrates a year to support its activities. Newmont is expected to provide 150,000 tons with the remaining 350,000 tons from Freeport Indonesia. (*)