Gresik. Mining giant Freeport Indonesia is set to commence the operation of its copper smelting plant in Gresik, East Java, in June, according to Energy and Mineral Resources Minister Arifin Tasrif on Thursday.

The new smelting plant is located at the Java Integrated Industrial and Ports Estate (JIIPE) and has been constructed with an investment of $3.1 billion as of December 2023.

"The construction progress is proceeding according to plan, and I appreciate Freeport’s commitment to supporting the downstream industry of the mining sector. I’m confident that the Freeport smelter will become operational in June," Arifin said during a visit to the facility.

The Joko Widodo government is advocating for the local processing of minerals and other mining products to add higher value. It has imposed a ban on the export of raw nickel ores while encouraging miners operating in the country to establish their own smelters.

Freeport Indonesia Vice President Director Jenpino Ngabdi confirmed that the smelter would begin operations in June, delivering output in August, and reaching its full capacity in December.

The smelter has been designed with an annual capacity of 1.7 million tons.