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Acid Plant Database   July 21, 2021

Owner PT Freeport Indonesia

Location Indonesia
Background Freeport McMoRan Copper
Website www.ptfi.co.id
Plant Manyar Smelter
Coordinates* 7° 4' 36" S, 112° 37' 37" E
Type of Plant Metallurgical
Gas Source Copper Flash Furnace
Plant Capacity -
Emissions -
Status Engineering
Year Built 2024
Technology Outotec
Contractor Chiyoda
Remarks -
Pictures -
General -
References -

July 21, 2021 - Metso Outotec has signed a major engineering and technology contract as well as licence agreements for the delivery of what it says is a landmark copper smelter complex to be built in Gresik, East Java, in Indonesia.  The project owner is PT Freeport Indonesia, with PT Chiyoda International Indonesia being the engineering, procurement and construction contractor. Four-fifths of the approximately €360 million ($424 million) contract has been booked in the company’s Metals’ September quarter order intake and the rest in Minerals’ September quarter order intake, it said.  Metso Outotec’s scope of delivery is based on the licensed Metso Outotec Flash Smelting, Flash Converting and Lurec® technology. It includes the design and supply of key process equipment and process control systems for the main areas of the smelter complex, the copper electrolytic refinery, the gas cleaning and sulphuric acid plant, the slag concentrator and the effluent treatment plant.  Metso Outotec has previously provided certain front-end engineering design and other advance engineering services for this 1.7 Mt/y copper concentrate smelter complex, which is expected to be commissioned in 2024. According to PT Freeport, the Manyar smelter will be the largest copper processing site in the world upon start up.  Pekka Vauramo, President & CEO, Metso Outotec, said: “Our joint efforts with Freeport Indonesia and Chiyoda will set a new standard for the copper smelter industry in fulfilling the strictest international environmental standards and efficiency requirements. We are very happy to work together to implement this game changing copper smelter.”  Jari Ålgars, President, Metals business area at Metso Outotec, added: “We have worked with Freeport Indonesia and Chiyoda for several years to ensure and select the best available process design and technologies for the Manyar project.”  Metso Outotec has delivered 51 Copper Flash Smelters around the world, with the company’s Copper Flash Smelting the most widely applied technology for copper smelting in the world, it said. The solution is also one of its Planet Positive solutions. Using this technology, Metso Outotec’s customers avoided more than 1.6 Mt of CO2 emissions in 2020, the company said. 

July 15, 2021 - American mining giant Freeport McMoRan will not proceed with plans to build a new copper smelter with China’s Tsingshan Holding Group, its local Indonesian unit, PT Freeport Indonesia’s spokesman told Reuters on Thursday.  Indonesian authorities have for months said that a deal would be made between Freeport Indonesia and the Chinese steel and nickel company to build a new copper smelter worth $2.8 billion.  “(We) could not reach an agreement,” Freeport Indonesia’s spokesman Riza Pratama said.  Instead, Freeport Indonesia will go ahead with plans to build a new smelter near its existing copper refining operations in Gresik, East Java.  Freeport Indonesia separately announced on Thursday that it had signed an engineering, procurement and construction (EPC) contract with Japanese engineering company Chiyoda to build the new Gresik smelter, which will have a capacity of 1.7 million tonnes of copper concentrate a year.  The two companies will also build a precious metal refinery nearby.  “This contract signing affirms Freeport Indonesia’s commitment to build a smelter in accordance with divestment agreement in 2018,” PT Freeport Indonesia president director Tony Wenas said in the statement, without disclosing how much the deal was worth. 
Tsingshan Holding Group did not immediately respond to requests for comments. The new copper smelter that it wanted to build with Freeport in Weda Bay would have been Tsingshan’s first copper project.  It is building nickel and aluminum smelters in Indonesia.


February 12, 2015 - Papua Governor Lukas Enembe and a team from the Energy and Mineral Resources Ministry and other relevant ministries will conduct a survey of potential locations for the construction of miner PT Freeport Indonesia’s smelter in Papua.  “A team from the Energy and Mineral Resources Ministry and other relevant ministries will conduct a field survey on Friday to look for a suitable location for the smelter’s construction, but the most important [thing] is that the smelter has to be built in Papua,” Antara news agency quoted Lukas saying Thursday in Biak, West Papua.  The Governor stressed it was in Papua's interest to have the smelter constructed in the province, as it would generate more job opportunities and would boost the economy in the province, including tax revenue for the government.  He added that the provincial government had identified two locations for the smelter; one in Biak Numfor regency, Papua and one in Bintuni regency,West Papua.  After suspending its cooperation with state-owned PT Aneka Tambang and Newmont Nusa Tenggara (NNT), Freeport decided to establish the smelter in Pasuruan, East Java. The smelter’s establishment is obligatory, as the government no longer allows miners to export mineral concentrates overseas in an effort to create added-value for the country.  With political pressure from the Papuan provincial government and citizens, the House of Representatives recently lobbied the government to demand Freeport abandon the plan in East Java and recommit to establishing the smelter in Papua.

February 2, 2015 - The government has not decided on the future of PT Freeport Indonesia’s operations, although it understands investors need certainty.  In July last year, the government and Freeport signed a memorandum of understanding (MoU) in which both sides agreed to complete the draft of an amendment to the miner’s contract of work (CoW) within six months, or January 2015.  However, they failed to meet the January deadline and eventually agreed to extend it another six months.  Despite the deadline extension, whether Freeport will continue operations in the country remains unclear.  Freeport Indonesia, a subsidiary of US-based Freeport McMoran Inc., will see its contract expire in 2021 — around six years from now. The company has been trying to secure a contract extension so that it can ensure the payback period for its massive investment in the development of underground mining and a mandatory copper smelter in Indonesia.

April 7, 2014
- Freeport McMoRan Copper’s joint venture partner Aneka Tambang (Antam), a diversified Indonesian miner, has said that the copper smelter which the two companies are building may not be ready by 2017. This is when the ban on Indonesian copper concentrate exports will come into effect and force Freeport McMoran to slash copper output drastically. This will cost the company billions of dollars in revenues.  Freeport and Antam are right now conducting a feasibility study for the development of the copper smelter. Even if this study yields a favorable result, an Antam official says that construction cannot begin before 2015. It would take three years to build the smelter according to another official. There are two more smelters being constructed by PT Indosmelt and PT Nusantara Smelting which will take five years to build.  The coal and minerals director general of Indonesia stated that if the smelters are not ready by 2017, concentrate exports will be withheld as the ban would come into effect at the designated time.  A mining law enacted in 2009 prohibited export of unprocessed minerals from Indonesia after January 12, 2014. The purpose was to increase the value of commodity exports and encourage development of the local processing industry. On the designated date, this ban came into effect but the government used its discretionary powers to provide selective relaxation for some minerals and metals. The copper content in the ore exported has to be greater than 15%. Both Freeport and Newmont export copper concentrates with a higher percentage of the metal than the designated minimum and account for nearly 97% of Indonesia’s total copper exports.  The problem mining companies like Freeport faced with the original ban is that there is a shortage of smelters in Indonesia even if they were ready to process all of their ore before exporting it. In addition, Freeport said that it ships its minerals under long-term contracts to international smelters and wishes to honor these contracts. It said that it entered into these contracts in the first place because its initial agreement with the Indonesian government allowed it to export concentrates without placing any restrictions. However, Freeport already processes about 40% of its ore mined in Indonesia at a smelter in East Java which is the only copper smelter in the country. This is why Freeport is working with Indonesian partners to construct new smelters.  Newmont Mining, another major copper producer, currently smelts less than a quarter of its ore in Indonesia it produces at the Batu Hijau mine.

MTPD - Metric Tonne per Day           STPD - Short Ton per Day
MTPA - Metric Tonne per Annum      STPA - Short Ton per Annum
SA - Single Absorption
DA - Double Absorption

* Coordinates can be used to locate plant on Google Earth