Jakarta. State-run gold miner Antam is planning to construct a precious gold smelter at the Java Integrated Industrial and Ports Estate or JIIPE in Gresik, East Java. 

Late last month, Antam already inked a land purchase deal with JIIPE. According to Antam’s business development director I Dewa Wirantaya, the publicly listed company has picked JIIPE after taking into account its strategic location and its close proximity to the raw materials needed by the smelting facility. 

“JIIPE’s status as a national vital object also grants us incredible security to support our operations, including the processing and distribution,” Dewa was quoted as saying in a press statement on Tuesday. 

Mining giant Freeport Indonesia’s operations in JIIPE also provides boon for Antam as it can grant direct access to pure gold with 99.99 percent content. This way, Antam can help Indonesia save its foreign exchange by cutting down on import and using locally sourced materials. Antam will also buy 30 tons of Freeport’s 99.99 percent pure gold each year, which the former will refine in its facility. The partnership with Freeport also aims to improve the efficiency of the raw material supply chain, according to Dewa. 

"JIIPE provides robust infrastructure, easy transportation access, and reliable utilities. This allows us to support the downstream industry development, grow the national economy, and spur sustainable industrial growth," Dewa said.