PT Freeport Indonesia and PT Chiyoda International Indonesia Signed EPC Agreement Contract
15 July 2021
PT Freeport Indonesia and PT Chiyoda International Indonesia Signed EPC Agreement Contract, Marking Significant Progress of Manyar Smelter Development Project.
PT Freeport Indonesia and PT Chiyoda International Indonesia recently signed an Engineering, Procurement and Construction agreement to advance the development of PTFI’s Manyar Smelter. The contract includes construction of a smelter with 1.7-million-ton annual capacity as well as a precious metal refinery facility at Java Integrated Industrial and Ports Estate in Gresik, East Java.
“The contract signing highlights PTFI’s commitment to build a smelter as stipulated in the 2018 divestment agreement. Amid the COVID-19 pandemic, we continue to make necessary adjustments to advance the project without sacrificing the health and safety of workers and the community surrounding the project,” said Tony Wenas, PTFI President Director.
The agreement was signed by Tony Wenas and Naoto Tachibana, PT Chiyoda International Indonesia Director in a ceremony that was also joined virtually by representatives from Indonesian Ministry of Energy and Mineral Resources and MIND ID, the Indonesian mining industry holding company, as well as Kathleen Quirk, President and Chief Financial Officer Freeport-McMoRan, Masakazu Sakakida, Chairman, Chiyoda Corporation and Masaji Santo, President, Chiyoda Corporation.
Naoto Tachibana, PT Chiyoda International Indonesia Director emphasized their commitment to contribute to Indonesia through the Manyar smelter development. Tachibana said he hopes that Chiyoda’s experience as one of the leading companies in the world would help to achieve the downstream objective in the country. “The agreement shows Chiyoda’s strong commitment to contribute to Indonesia’s betterment. We will do our best to ensure the project is completed on time,” Tachibana said.
The agreement signing was postponed for a few months due to the pandemic. Nevertheless, EPC works at JIIPE continues, including procurement for long-lead items, and stripping and laydown of areas to prepare for equipment and construction materials. In addition, COVID-19 vaccination preparation for construction workers in the field is also underway. Vaccinations for EPC workers will be done gradually and will require approximately 40,000 doses of COVID-19 vaccines.
Ridwan Djamaluddin, Director General-Mineral and Coal of the Ministry of Energy and Mineral Resources is optimistic with the contract signing between the two parties. “The signing brings positive energy amid all challenges that the country’s facing now. The government, through the Ministry of Energy and Mineral Resources, encourages acceleration of this project and will continue to collaborate with PTFI to ensure an on-time completion of the project,” Djamaluddin said.
Back To List