Freeport ceo says Indonesia smelter uneconomic for government

Freeport-McMoRan has warned Indonesia that the construction of a new copper smelter in the country would be extremely uneconomical for the government, but the company will go ahead with the project as required, the ceo of the US copper producer said.

Speaking during the Cowen and Co energy & natural resources conference in New York this week, company ceo Richard Adkerson told delegates that discussions are ongoing over the construction of a smelter, part of a series of negotiations it is undergoing in relation to its operations in Indonesia. “We continue to do our best efforts to make sure that the government of Indonesia understands that building a copper smelter in Indonesia is a huge uneconomic, hugely uneconomic, because of the excess of smelters globally in the copper industry,” Adkerson said. PT Freeport-Indonesia (PT-FI), the company’s 90.64%-owned and consolidated subsidiary, operates the Grasberg mine in Papua. Adkerson noted that China, the world’s largest copper consumer, has built a “huge network of smelters” over the past few years, with the result that Freeport has just completed its negotiations...

Published

Andrea Hotter

December 07, 2016

18:02 GMT

New York