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.