Freeport to fund new copper project<\/p>\n
SCOTTSDALE, Ariz (Reuter): Freeport McMoRan Copper and Gold
\nsaid it is close to concluding a finance package to fund a new
\n200,000 ton copper smelter and refinery in Gresik, East Java.<\/p>\n
Freeport's vice-president of finance, Robert Wohleber, said
\nthe company is in the detailed process of arranging and
\ncompleting finance for the new $650 million smelter. "I would say
\nwe would hope to have this completed mid-part of this year,"
\nWohleber said. He would not indicate the financial institutions
\ninvolved in the talks, but the final package would have some
\nJapanese financing.<\/p>\n
Freeport McMoRan has a majority stake in PT Freeport
\nIndonesia, the subsidiary which will have a 20 percent stake in
\nthe new Gresik smelter and refinery. Fluor Daniel Asia has a 10
\npercent stake, with Mitsubishi Materials 70 percent.<\/p>\n
"We project mid-1996 for construction to begin, and completion
\nwe are seeing in 1998, in the second half," Wohleber said.<\/p>\n
Gresik will be financed by a mixture of borrowings from the
\nlender group, and equity contributions from the three
\nshareholders.<\/p>\n
At the present time Freeport operates a large copper mine in
\nIndonesia but has no smelting and refining capacity there,
\nrecently expanded output at its RTM smelter in Spain.<\/p>\n
Robert Zwerneman, Freeport's director of market research and
\nanalysis, said here during the American Copper College meeting
\nthat global copper demand was expected to rise 3.5 percent this
\nyear with a supply surplus of 175,000 tons.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/freeport-to-fund-new-copper-project-1447893297",
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"sponsor": "Okusi Associates",
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