TEMPO.CO, Jakarta – Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia disclosed that the investment value of PT Freeport Indonesia’s (PTFI) gold smelter in Gresik has reached Rp10 trillion. The facility serves as a refining plant for precious metals, utilizing the world’s largest Precious Metal Refinery (PMR).
“The investment for this gold smelter is US$630 million or equivalent to Rp 10 trillion,” said Bahlil at PT Freeport Indonesia, Special Economic Zone of Gresik, East Java, on Monday, January 17, 2025. Bahlil stated that, in layman’s terms, a smelter is a plant.
He emphasized that the inauguration of this smelter means that Indonesia now has the largest gold bar manufacturing plant on a global scale. He also showcased the capability of the PTFI Gresik smelter, which can process 3 million anode sludge concentrates per year.
“And we need to report to the President that the gold production from the 3 million concentrates brought from Freeport, the approximately 3 million concentrates produce around 50-60 tons of gold,” said Bahlil.
On that occasion, he also mentioned the gold production by PT Amman International Tbk, which has been operating since 2000 in Sumbawa, East Nusa Tenggara.
Bahlil assessed that PT Amman is capable of processing 900 thousand concentrates, which can produce around 18-20 tons of gold every year.
“So overall, hopefully every year, the two plants from Gresik and PT Amman can produce 60-70 tons of gold per year in the Indonesia,” he added it up.
Meanwhile, the President Director of PT Freeport Indonesia, Tony Wenas, mentioned that the precious metal refinery plant had started production. Tony estimated that his company can only produce 32 tons of gold this year.
“Maybe next year we can only produce 50 tons, why? Because this is still in the initial ramp-up stage, and our new smelter is not yet operational and is still undergoing repairs,” he explained.
According to Tony, Freeport is currently carrying out extensive repairs on the smelter, so it is expected to start production again in June. Tony stated that the gold plant in Gresik is the world’s largest gold smelter from upstream to downstream.
Through precious metal refinery or PMR, Tony explained that gold refining uses a hydro metallurgy technology claimed to be the largest in the world.
“And we should be proud that it is located in Indonesia,” he said.
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