Freeport Indonesia (PTFI) has delivered its first shipment of gold bars to state-owned gold supplier Aneka Tambang (Antam), marking a significant achievement in the country’s mining sector. The initial delivery, which occurred on Wednesday, weighed 125 kilograms and is valued at approximately Rp 207 billion ($12.7 million).
This shipment not only underscores Freeport’s role as Indonesia’s first fully integrated mining company but also highlights the company’s capability to refine raw materials into high-purity gold bars. Freeport has now successfully completed the transition from upstream mining operations to downstream processing, solidifying its standing in Indonesia’s mining landscape.
The gold bars, with a purity of 99.99 percent, were produced at Freeport’s Precious Metal Refinery Smelter in Gresik. They were then transported to Antam’s headquarters in Pulogadung, East Jakarta. This shipment is part of a larger agreement, a five-year sale and purchase deal signed on November 7, 2024, between Freeport and Antam. Under the agreement, Freeport will deliver 30 tons of gold, valued at an estimated $12.5 billion (Rp 200 trillion).
“PTFI’s inaugural delivery of gold bars to Antam marks a new milestone in Indonesia’s push for gold industrialization,” said Freeport Indonesia CEO Tony Wenas. “It aligns with the government’s vision to maximize the added value of natural resources and realize the Golden Indonesia Vision 2045.”
Despite facing temporary setbacks due to a fire incident, Freeport’s new smelter has successfully resumed operations. The company has already processed around 12.56 tons of anode slime at its subsidiary PT Smelting, resulting in the production of 189 kilograms of gold bars. Of this total, 125 kilograms meet the 99.99 percent purity standard, with the remaining 64 kilograms set for recasting to meet purity requirements.
Antam President Director Nico Kanter emphasized the strategic importance of the partnership, highlighting how it enhances Indonesia’s global competitiveness and contributes to the country’s self-reliance in the mining sector.
“This collaboration is a crucial step toward developing Indonesia’s mineral industries and reducing the nation’s dependence on gold imports,” Nico stated.
Freeport’s move into gold bar production follows its success in developing an integrated copper processing industry. Tony Wenas shared that the next objective is to establish an integrated silver processing industry.
With a smelter that has an annual capacity of 50 tons of gold and 200 tons of silver, Freeport is further advancing Indonesia’s mineral refining capabilities, fostering growth in the domestic mining industry.
Minister of State-Owned Enterprises Erick Thohir previously noted that increased domestic gold transactions could significantly help preserve Indonesia’s foreign exchange reserves. “With Freeport capable of producing 50 tons of gold annually, Antam’s purchase of 30 tons could help save Rp 200 trillion in foreign exchange reserves. We must continue pushing for mining industrialization to strengthen our national economy,” Erick said in November.
This milestone in gold production demonstrates Indonesia’s growing capabilities in mineral processing and reflects the country’s broader push to enhance the value-added industries of its natural resources.
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