"The project is located at the Java Integrated Industrial and Port Estate (JIIPE) in Gresik. The industry area is owned by Pelindo and AKR," the PTFI boss said here on Wednesday.
The project is estimated to cost around US$2.8 billion. The smelter is expected to be fully operational by 2023.
After two years of negotiation involving the Indonesian Government, state-owned mining holding company PT Inalum, Freeport McMoRan Inc. and Rio Tinto, PT Inalum officially held majority ownership of PTFI in December 2018. Buying some of Freeport McMoRan Inc. shares and Rio Tinto participating interest with the closure of a US$3.85 billion deal, the state-owned mining holding company increased its ownership from 9.36 percent to 51.23 percent.
PTFI owns and operates the Grasberg copper and gold mine in Indonesia's province of Papua. It is one of the largest copper and gold mines in the world.
Indonesia’s trade balance recorded a USD2.50 billion deficit in April 2019. The main contributors were non-oil and gas as well as oil and gas trade deficits.
The non-oil and gas trade deficit stood at USD1.01 billion in April 2019 after recording a USD1.05 billion surplus the month earlier. The reversal stemmed from a decline of non-oil and gas exports from USD12.98 billion in March 2019 to USD11.86 billion in the reporting period, held back by jewellery/gems, animal/vegetable fats and oils, as well as mineral fuels.
The oil and gas trade deficit was recorded at USD1.49 billion in April 2019, increasing from USD0.38 billion the month earlier. The wider deficit was explained by a growth surge of oil and gas imports from USD1.52 billion in March 2019 to USD2.24 billion in April 2019.
Cumulatively from January-April 2019, therefore, Indonesia’s trade balance experienced a USD2.56 billion deficit.