Friday, 27 November 2020 | 23:58 WIB

Freeport Indonesia Seek Loan for Smelter Development

Freeport Indonesia Seek Loan for Smelter Development (moeslimchoice)

JAKARTA, NETRALNEWS.COM -- PT Freeport Indonesia said it was in talks to obtain a loan to finance the construction of a smelter or purification facility in Gresik, East Java.

PT Freeport Indonesia's President Director Tony Wenas said at the Ministry of Energy and Mineral Resources, Jakarta, Wednesday (06/12/2019), saying the mining company needed US $ 3 billion for the construction of smelters.

"It's still in the process of discussion, but many are interested. Maybe 15 banks are interested, foreign and national banks," Tony explained.

Although not explicitly explaining the portion of the loan to be sought, Tony hopes that the loan will be liquid this year. The company targets the construction of copper concentrate smelters to begin in early 2020.

"We are talking with the bank, we are talking about the form (loan), the amount, the details are still under discussion," Tony said.

Tony explained, currently the progress of land preparation for the construction of smelters continues. At present, his party is installing prefabricated vertical drain to compact the soil on the land to be used.

"So it is not reclamation, but it is compacted. The construction is big so it must be ensured that the land is really solid," he said.

The location of the smelter is located in the Gresik, East Java, Java Integrated Industrial and Port Estate (JIIPE).

The construction of the smelter is one of the things that the government has pushed for the divestment agreement in 2018. Freeport has five years to build a smelter since the Production Operation IUPK was issued which is before 2023.