JAKARTA (TheInsiderStories) - PT Freeport Indonesia began production of copper concentrate from today (Mar 21). This was in line with the operation of PT Smelting in Gresik, East Java, which refines concentrate belonging to Freeport Indonesia.
Freeport Indonesia spokesman Riza Pratama said, concentrate shipment to Gresik has been ongoing since last week after workers at PT Smelting Gresik ended their strike. He said crushing copper ore has been started since March 17. Freeport produces wet concentrates from its processing mill in Tembagapura.
“Concentrates will be sent from DWP (the drying concentrate) in Amamapare through the pipe. So, new concentrate production will start from tomorrow (today),” Riza said in Jakarta, Monday (20/3). Riza said Freeport will produce only 40% of copper concentrate. The production rate was followed by purifying capability of one million tonnes of copper concentrate per year at PT Smelting Gresik.
Riza said production of Freeport has not been able to return to normal level because 60 percent of production is destined for exports. Meanwhile, the export will resume pending on the outcome of negotiations with the government related to the change of status of the Contract of Work (COW) into Special Mining Business License.
The Energy and Mineral Resources Ministry has received report that by March 15, Freeport has laid off 291 workers and 2,066 employees working in mining contracting firms.
Director General of Mineral and Coal, Ministry of Energy Bambang Gatot said that the company had not received a report related to the cessation of production of concentrate of Freeport. But he admitted Freeport was only able to operate 40 percent because Freeport has yet to accept the recommendation of export licenses issued by the Ministry of Energy concentrates on Feb. 17. (HS)