Ground breaking at copper smelting plant<\/p>\n
JAKARTA (JP): Minister of Industry and Trade Tunky Ariwibowo
\nbroke the ground in Gresik, East Java, yesterday for the
\nconstruction of Indonesia's first copper smelter and refinery.<\/p>\n
The construction of the plants, owned by a joint venture
\ncompany belonging to Mitsubishi Materials Corporation of Japan
\nand PT Freeport Indonesia, will be completed in August 1998 and
\nstart commercial production in December of the same year.<\/p>\n
The joint venture, PT Smelting Company, said that Chiyoda
\nCorporation of Japan has been assigned to construct the plants,
\nwhich will cost US$600 million.<\/p>\n
Smelting Company, set up with an investment of $700 million,
\nis 75 percent owned by Mitsubishi Materials Corp. and 25 percent
\nby Freeport Indonesia, a company majority owned by McMoRan Copper
\nand Gold Incorporated of the United States.<\/p>\n
Smelting Company said that Mitsubishi Corporation, the
\nprincipal company of Mitsubishi Corporation, will be allowed to
\ntake a 9.5 percent stake and Nippon Mining & Metals Company Ltd.,
\nalso of Japan, another 5 percent stake from Mitsubishi Materials
\nCorp.<\/p>\n
The joint venture company will have the capacity to annually
\nproduce 200,000 tons of copper cathode as its main product, which
\nwill be mainly to fulfill Indonesia's domestic demand.<\/p>\n
It will also produce four by-products -- 592,000 tons of
\nsulfuric acid, 480 tons of anode slime, 380,000 tons of slag and
\n31,000 tons of gypsum per year.<\/p>\n
For its raw materials, the plants will need 656,000 tons of
\ncopper concentrate, 98,000 tons of silica sand, 52,000 tons of
\nlimestone and 23,000 tons of coal per year. All the copper
\nconcentrate will be sourced from Freeport Indonesia's copper mine
\nin Irian Jaya.<\/p>\n
The plants will also need 9,300,000 cubic meters of natural
\ngas per year for fuel.<\/p>\n
Minister of Investment Sanyoto Sastrowardoyo said on Wednesday
\nthat the operation of the copper smelter will help Indonesia save
\n$270 million for copper cathode imports.<\/p>\n
\"The joint venture will also help Indonesia earn about $320
\nmillion per annum because it will export 67 percent of its
\noutput,\" he said. (13)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ground-breaking-at-copper-smelting-plant-1447893297",
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"sponsor": "Okusi Associates",
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