PT Freeport Indonesia (PTFI) grope pocket over US$1 billio to dig underground mine in Grasberg, Papua - Photo by Inalum

JAKARTA (TheInsiderStories) – A local miner, PT Freeport Indonesia (PTFI) grope pocket over US$1 billio to dig underground mine in Grasberg, Papua. To increase the capacity of the mine, unit of American-based Freeport Mcmoran Gold & Copper Inc. (NYSE: FCX) will invest up to $15 billion.

“For the underground mine is approximately more than $1 billion, this year alone. In the next 22-23 years will invest around $15 billion,” said President Director of PTFI Tony Wenas as quoted by local media at the Grasberg Mine in Papua, Sunday (07/28).

He continued, the company aims to develop an underground mine, which will reach a length of 1,000 kilometers until 2041. The Grasberg open pit operation will be stopped by the end of 2019. The total cost to close the mine worth of $350 million and will be implemented in 2041, he adds.

At the same time, Holding Mining Industry (HMI), consisting of PT Indonesia Asahan Alumunium (INALUM), PT Antam Tbk (IDX: ANTM), PT Bukit Asam Tbk (IDX: PTBA), PT Timah Tbk (IDX: TINS), and PTFI signed a cooperation agreement on the foreign exchange also export and import support with PT Bank Mandiri Tbk (IDX: BMRI), PT Bank Negara Indonesia Tbk (IDX: BBNI) and PT Bank Rakyat Indonesia Tbk (IDX: BBRI).

According to INALUM’ CEO Budi Gunadi Sadikin, “This partnership its expecting helping us to stabilize the exchange rate.”

The holding, outside PTFI, have a largest export value with worth $2.5 billion. The three state-owned banks have agreed to help HMI in providing support in the form of trade and banking facilities or services and adequate trade financing with competitive rates.

The holding mining officially formed on Nov. 27, 2017 at which INALUM become the parent company. INALUM holds a 65 percent stake in Aneka Tambang, 65.02 percent stake in Bukit Asam, 65 percent stake in Timah, and 51.2 percent of PTFI.

End of last year, HMI posted a consolidated revenues of Rp65.2 trillion (US$4.66 billion), or up 38 percent from last year. While EBITDA worth of Rp18.5 trillion, rose 50 percent from 2017 whille the net profit Rp10.5 trillion or jumped 54 percent from prior year.

US$1: Rp14,000

by Linda Silaen, Email: linda.silaen@theinsiderstories.com