PT Smelting set to increase of copper output this year

PT Smelting, a copper smelting company based in Gresik, East Java, will increase copper production to about 285,000 tons this year from 277,000 tons last year to meet surging demand both at home and overseas.

The company?s assistant manager for technical service, Bouman Tiroi Situmorang, said in Jakarta on Tuesday that this year?s projected production of 285,000 tons almost reached the company?s full production capacity of 300,000 tons a year.

?Our production has reached a maximal level and could no longer be increased,? he said.

Meanwhile, executive vice president & director PT Smelting, Prihadi Santoso, said that the realized production was quite low last year because there was a shutdown to allow maintenance works during the year. He said this year there would be no overhaul because the company carried out its maintenance once in two years. The regular maintenance will be carried in May, next year.

He said that the lack of gas supply still hampered the company?s operation. At present, the company needed gas supply of between 10 and 11 million standard cubic feet per day (mmscfd). But PGN is only able to provide between 7.2 and 8.7 mmcfd.

The company currently is in negotiation with PGN to stabilize gas supply, he said.

PT Smelting receives 85 percent of copper concentrate needs from Freeport and 15 percent from Newmont. The company sells about 40 percent of production to the domestic market and the other 60 percent to Malaysia, Thailand and Taiwan, he added (giok)