PTFI conducts feasibility study for smelters
Thursday, October 24 2013 - 01:29 AM WIB
Gold and copper mining giant PT Freeport Indonesia (PTFI) has conducted feasibility study in three locations in East Java and Papua to build smelters.
?There are three locations that we are studying, two in Gresik of East Java, and another in Papua,? PTFI President Director Rozik Soetjipto said after the signing of a deal on pay hike with the firm?s worker union on Tuesday.
He expected the feasibility study to be completed at the end of this year, or in January of next year.
Should the study prove that the smelter construction is feasible, Rozik said that the firm may build the processing facility by its self or cooperate with other companies interested in constructing the smelter.
Previously PTFI has signed a Memorandum of Understanding (MoU) with PT Indosmelt and PT Indovasi Mineral Indonesia on copper concentrate supply as the latter firms plan to build domestic smelters.
Some miners and investors are planning to build domestic smelters as the government, as mandated by the 2009 mining law, said it would ban the export of mineral ores starting next year, requiring miners to build domestic smelters to process and refine the ores first before export in a bid to generate greater value added for the economy.
However, that given that most of planned smelters would not be ready by 2014, the government has indicated it may allow certain miners, which have shown strong commitment to build domestic smelters, to continue mineral ores export next year until the smelters are completed.
Editing by Reiner Simanjuntak