Smelter project continues

Smelter project continues

TOKYO (Reuters): Japan's Mitsubishi Materials Corp. said
yesterday it did not expect any delay in the launch of its copper
smelter and refinery in Indonesia, despite a financial crisis
sweeping the Southeast Asian country.

A Mitsubishi Materials spokesman said construction of the
200,000 ton-per-year smelter in Gresik in Indonesia's East Java
was scheduled to be completed in August, with operations to begin
in December.

Indonesia's financial crisis has caused a steep fall in the
value of its currency, raising fears of a debt moratorium and
prompting challenges to the country's leadership.

However, the spokesman said Mitsubishi Materials' copper
project was not likely to be affected.

"In principle, the currency woes have no (negative) impact on
that project," he said.

He said the company was paying dollars for important smelter
and refinery machinery it was buying from abroad, while the
cheaper local currency meant lower labor costs for the smelter.

Mitsubishi Materials has a 75 percent stake in the $600
million project to build the copper smelter, which is Indonesia's
first. Freeport-McMoran Copper & Gold Inc of the United States
holds the remaining 25 percent.