Smelting exports 60% of its copper cathode output
Friday, February 22 2019 - 08:02 AM WIB
PT Smelting, which operates the country’s only copper smelter, will process 1.1 million tons of copper concentrates this year to produce 292,000 tons of copper cathode, of which 60 percent will be exported.
News portal kontan.co.id quoted Manager of General Affairs at Smelting, Sapto Hadi as saying that Wednesday that the company’s export markets are in Asia including Thailand and Malaysia.
He said that the remaining 40 percent of the output are sold in the domestic market to local cable makers such as PT Tembaga Mulia Semanan and PT Karya Sumiden Indonesia. Going forward, the company is also eyeing a new customer YKK Zipper.
He added that domestic sales will increase in the future as domestic downstream industries further developed.
Smelting’s copper cathode product has purity of 99.99 percent. The company secures about 90 percent of its copper concentrates raw material from gold and copper giant PT Freeport Indonesia (PFTI), and the remaining 10 percent from gold and copper firm PT Amman Mineral Nusa Tenggara (AMNT).
Sapto said that although PTFI’s output will decline this year as the company starts shifting from open pit mining operations to underground mining in Papua Province, it would not affect Smelting’s copper cathode production as PTFI said it is committed to maintain supply of copper concentrates for Smelting.
Smelting started operation its copper smelter in Gresik, East Java in 1998. Total installed capacity currently stands at 300,000 tons of copper cathode per year.
Aside from copper cathode, the company also produces sulfuric acid with production target of 1.04 million tons this year, of which entirely will be sold to the domestic market.
Smelting also produces copper slags, with production target of 805,000 tons this year, to be sold to domestic cement makers or ship yards.
PT Smelting is 60.5 percent owned by Mitsubishi Materi¬al Corporation, 9.5 percent by Mitsubishi Corporation Rtm Japan Ltd, JX Nippon, and Metal Corporation Ltd 5 percent. (*)