SMELTER DEVELOPMENT Gresik or Papua Decision May Still Benefit Freeport


(MENAFNEditorial)

JAKARTA February 4 2015 – Any decision on location for PT Freeport Indonesia’s smelter development in Papua or Gresik of East Java would still benefit the US-based company.

If it will be built in Gresik the smelter should have been operated in 2017. On the other side if Freeport is urged to build the smelter in Papua the smelter’s operation may be delayed after 2017 or until 2020.

Ministry of Energy and Mineral Resources (ESDM) in this case urges Freeport to build the smelter in Papua. However a compromise between the government and Freeport needs to be made since the infrastructures in Papua are not available yet. This means it takes more time to prepare the infrastructures first in Papua.

Minister of ESDM Sudirman Said said the government had been urging Freeport to build smelter near the location of mine operation in Papua.

“We have not clarified anything on the location other than the fact that the company has made one progress for smelter development in one location” said the Minister in a working meeting with the Commission VII of the House Tuesday (2/3/2015).

According to him the government has two options. First the government could still force Freeport to build the smelter in Papua yet it would be delayed after 2017. Second the smelter could be still built in Gresik yet it should be completed in 2017. “If still wants to be built before 2017 there is now way that it would be built in Papua.” READ MORE...

 


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