Under the MOU, the US company, which has large copper mines in Papua, will support plans by PT Indosmelt (Indosmelt) and PT Indovasi Mineral Indonesia to build a copper smelter.
President Director of PTFI Rozik B. Soetjipto said the signing of the MOU is a reflection of the company`s support for the government policy of developing downstream industry in the mining sector.
Rozik said PTFI already built the country`s first and only copper smelter in Gresik under PT Smelting, which is a joint venture between PTFI and Mitsubishi.
PTFI supplies 40 percent of its copper ore production to PT Smelting to be processed into copper concentrate.
"In principle, PTFI agrees to supply copper concentrate at a competitive price or at a prevailing price in international market," he said.
He said PTFI will continue to provide support in information, and technical capability for smelter project such as planned by Indosmelt and Indovasi.
"The two companies are potential investors that see the feasibility of investment in smelter project," he said.
He said PTFI also needs support from the government in carrying out development of downstream industry in the mining sector.
PTFI offers cooperation in developing copper smelter if the project is feasible, he said.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2013
