Freeport to lead building<\/p>\n
of Gresik smelter plant<\/p>\n
JAKARTA (JP): PT Freeport Indonesia and Rio Tinto Minera of
\nSpain, both subsidiaries of the American mining company Freeport-
\nMcMoRan Copper & Gold Inc (FCX), will replace Metallgesselschaft
\nAG (MG) of Germany as the major shareholders in the copper
\nsmelter in Gresik, East Java.<\/p>\n
The chief commissioner of Freeport Indonesia (FI), James R.
\nMoffet, told newsmen here yesterday that the replacement of
\nMetallgesselschaft AG was due to a decline in their financial
\ncondition.<\/p>\n
MG is currently the 14th largest European company.<\/p>\n
Previously, MG had led a consortium to build Gresik copper
\nsmelter plant, which would be 55 percent owned by MG, 20 percent
\nby Freeport Indonesia, 20 percent by Nipon Mining and five
\npercent by private Indonesian industrial companies.<\/p>\n
Moffet declined to elaborate the new composition of the
\nsmelter project's shareholders as the matter of the company's new
\npartner remains under discussion.<\/p>\n
However, he said that Nipon Mining and Metal had indicated
\ntheir interest to go forward even without the presence of MG.<\/p>\n
The smelter plant will be built on a 200-hectare plot near the
\nindustrial complex of PT Petro Kimia Gresik (PKG).<\/p>\n
According to Moffet, by-products of the first Indonesian
\nsmelter plant, such as sulfuric acid, will bring advantages both
\nfor Indonesia and FI itself.<\/p>\n
He said that when the construction of the smelter plant was
\ncomplete, Indonesia would no longer need to import sulfuric acid
\nto fulfill PKG's demand for producing phosphate fertilizer as the
\nplant would provide enough sulfuric acid for this purpose.<\/p>\n
Production<\/p>\n
Hoediatmo Hoed, the president of Freeport Indonesia, said the
\nsmelting plant is expected to produce around 150,000 to 200,000
\nmetric tons of copper a year, of which approximately 60,000 will
\nbe sold on domestic market, while the remainder will be exported.<\/p>\n
The plant is expected to employ 700 people,<\/p>\n
Hoediatmo said that FI will provide 50 percent annually of the
\nore required by the Gresik smelter.<\/p>\n
According to FI, FCX has scheduled an increase of FI's annual
\ncopper ore production from 658 million pounds in 1993 to 1.1
\nbillion pounds in 1996 and 787,000 ounces of gold in 1993 to 1.5
\nmillion ounces in 1996.<\/p>\n
The production increase is also aimed at meeting 50 percent of
\nthe demand of Rio Tinto Minera (RTM), FCX's other copper smelting
\nplant in Huelva, Spain, and the planned Gresik smelting plant.<\/p>\n
At the press conference, Moffet declined to say when the
\nconstruction of the plant would be completed because the company
\nis still reviewing the engineering study which has been completed
\nby Lurgi AG, MG's wholly owned subsidiary. Construction has been
\ndelayed since 1992.<\/p>\n
However, he pledged the consortium will move quickly because
\nFI needs the smelter to process its ore.<\/p>\n
FI said the smelter could be operational by 1998.<\/p>\n
Richard H. Block, FCX's senior vice president, and Javier
\nTargheta, RTM's managing director, will direct the development of
\nthe Gresik smelting plant. (03)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/freeport-to-lead-building-1447899208",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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