According to the reports, Indonesian Ministry of Energy & Mineral Resources (ESDM) and Ditjen Minerba have announce that there will be four smelteries putting into use before 2021. Thus, at the end of this year, there will be 23 smelteries in operation totally.
The statistics from Ditjen Minerba shows: by the 17th January of 2021, the operating smelteries in Indonesia are 19, and five more will be put into use in the year of 2022. Rest smelteries will be under construction in 2023. It is estimated that 53 smelteries will be constructed before 2024, which is no later than the year of 2023 regulated by Minerba.
Vice minister of Indonesia Marine Division Ridwan Djamaluddin said, “Due to Covid-19, the construction timeline of some smelteries has changed than planned. But that doesn’t mean the legislative task has been neglected.”
And he said that all the smelteries shall be constructed and put into use before the end of 2023.
The director of Mining Development Department said that 23 smelteries including bauxite factories, nickel factories and copper plants now have submitted the working plan to revise. And almost all the smelteries are influenced by Covid-19.
Four smelteries in operation mainly use nickels. And these smelteries respectively locate in PT Antam Tbk, Cikande-Serang, Cilegon-Banten and Kapuas Prima Coal. Among them, one smelteries now is working on the lead production.
Regarding on the Freeport Smeltery Project, Indonesia government does not deny that the planned goal is postponed due to Covid-19.
Ridwan further said, “Our goal is not about punishment or failure. It is about the fully construction. Since we have made the timeline, and we have pushed the project, we will definitely face it.”
“On the Freeport smeltery project, we can choose to cooperate with other companies to solve it. Because we have deal for it. It is known that the cooperated company will be China Tsing Shan Steel.”
Now, Freeport has provided Indonesia government with the construction plan in Weda, cause its construction plan in Gresik was held up due to Covid-19.
Last year, chairman Tony Wenas of PTFI admitted that the project cooperating with Tsing Shan Steel was worthy of $1.8 billion.
According to the report from Freeport, by the end of July of 2020, the copper smeltery in Gresik just finished 5.86%, which is supposed to be 10.5% according to the plan. And it cost about $0.16 billion. Meanwhile, the PMR smeltery just finished 9.79% at the same period, which is supposed to be 14.29%. And this project already cost about $19.8 million.