Gold Smelter Commodity Value Development Progress
Freeport Indonesia’s gold smelter is now being discussed in Indonesia because the gold processing facility is being built in the Gresik area. The progress is more than fifty percent and is by the initial development planning estimates.
Building the smelter is a means of increasing the added value of gold commodities as a mineral resource. The smelter can process gold until the quality reaches international standards to be used for the country’s economic progress.
Then, how is the smelter development process in Indonesia? To be more transparent about this topic, it’s better not to miss the following information!
Freeport Gresik Gold Smelter Inovation
To maximize the potential of gold in the country, the government built a smelter as a metal refining facility tocould produce gold and other types of precious metals.
The development process began with laying the first stone in the Gresik Special Economic Zone, East Java. The hope is that the smelter will be able to produce and realize up to 35 tons of gold per year. This figure is equivalent to and close to the smelter investment value, which reaches tens of tricorder to show the government’s commitment to optimizing Indonesia’s potential mineral resources; the construction of the gold smelter also involves 40,000 workers. To be precise, the focus on labor utilization is prioritized for workers from East Java.
Gold Smelter Development Column Directed by the Minister of BUMN
Erick Thohir, Minister of BUMN, explained that this smelter innovation had a positive impact on the growth of Freeport Indonesia. The company’s revenue rose significantly as Freeport’s capacity to produce gold and other metal products increased.
Not haphazardly, Freeport’s revenue increase reached 100% from the previous year. This meant that Freeport also experienced an increase in net profits. According to Erick Thohir, factors such as increasing production capacity and increasing copper prices are the causes of Freeport Indonesia’s increasing revenue and profits.
The process of acquiring a 51% stake from the government in Freeport Indonesia also helped sustain innovation and performance in Freeport’s operations. Then, President Joko Widodo (Jokowi) cast his vote by stating that the gold smelter being built was among the largest in the world.
Downstream Gold Smelters in Indonesian
Copper Apply a designed line design that can process up to 1.7 million tons per year of copper concentrate. This capacity exceeds the capacity of two other copper smelters in Sweden and China, which have a capacity of 1.6 million tons.
Furthermore, Jokowi said that the procurement of smelters in Indonesia aims to encourage downstream industries that focus on the copper sector. This is because Indonesia has large copper reserves and is one of the seven countries with the largest ones.
This great potential should be maximized to support people’s prosperity. That is why the smelter’s primary goal is to create the highest possible added value for the Indonesian economy.
Freeport produces 50 tons of gold per year.
Freeport Indonesia’s gold production capacity will increase with the presence of a smelter or factory with facilities for copper concentrate refining activities. Production figures will reach up to 50 tons of gold per year.
This may happen because the construction of a smelter for copper also coincides with the construction of a metal refinery so that it can process gold as a source of other valuable raw minerals.
The gold production results in bars will later be distributed and purchased by PT Aneka Tambang Tbk (ANTM). The gold has also been processed so that its production can be absorbed into the plan to establish a Gold Bank or Bullion Bank in Indonesia.
Apart from 50 tons of gold per year, the main products of the gold smelter and precious metal refinery being built also include 600 thousand tons of copper cathode per year, as well as 150 tons to 200 tons of silver bullion per year, according to the explanation from Tony Wenas, President Director of PT Freeport Indonesia.
Progress of the Freeport Indonesia Smelter Project
The progress of the smelter construction was 54.5% faster than the target set by the government of 52.9%. The progress of the smelter construction in February 2023 has also reached 56.6% of the planned target.
The physical progress of Freeport Indonesia’s refining factory has progressed more than at present. Groundbreaking or laying the first stone, involving President Joko Widodo (Jokowi), will occur in October 2021.
Smelter Construction Completion Plan
Completion of smelter construction is scheduled for December 2023, followed by the operational phase starting at the end of May 2024 and reaching the entire operation at the end of December 2024. When fully operational, the smelter requires 1,500 workers, and around 40,000 workers will be involved cumul during construction.
Meanwhile, Tony Wenas highlighted the significant multiplier effect of this smelter project, reaching 6-7 times the domestic economy. The smelter will produce gold, copper, and other valuable metals used in various industries, especially in making batteries for electric vehicles.
Gold Smelter in Downstreaming Mining Commodities
Apart from impacting the Battery Electric Vehicle (BEV) industry, gold smelters also support the production of basic materials such as cables. Dilo Seno Widagdo, Director of Business Development at MIND ID, strengthened its efforts to accelerate the gold smelter project. This project shows Indonesia’s commitment to downstream mining commodities.
Gold smelters also support copper production, such as cables, besides being used in the Battery Electric Vehicle (BEV) industry. Dilo Seno Widagdo, Director of Business Development at MIND ID, highlighted the importance of Indonesia’s role in downstream mining commodities in efforts to accelerate the gold smelter project.
The gold smelter is clear evidence of Indonesia’s commitment to improving its economy and as a provider of supplies of mining goods that are sought globally. With the natural wealth of mining, Indonesia is now moving towards independence in this industry.
Potential for Independence of Gold Smelters in the National Economy
This independence is demonstrated through a capable smelter processing semi-finished and finished products. So, commodities owned by Indonesia also get added value to maximize its economic potential.
Closing his statement, the Director of Business Development at MIND ID also added his hope that Indonesia’s natural wealth can be utilized as fully as possible to support the prosperity of all Indonesian people.
This is the process of developing a gold smelter in Indonesia, capable of producing up to 50 tons per year. In its implementation, smelters, of course, need to be balanced with implementing sustainable principles.
Therefore, cooperating with companies like Sucofindo, which provides comprehensive services, is the solution. We will help document verification and smelter construction for owners of refining facilities for mineral export requirements. Please contact Sucofindo to connect directly with us and get complete information about our services.
