PT Freeport Indonesia (PTFI) announced that it has signed a US$3 billion contract to develop a copper smelter in Gresik, East Java, ending a year-long uncertainty over the miner’s downstreaming plans.

The Manyar smelter will produce copper cathodes -- one of the key materials used in batteries and electrical wiring -- from concentrate supplied by Freeport Indonesia’s Grasberg Mine in Papua, one of the largest copper and gold mines in the world. The smelter will have a processing capacity of 1.5 Mt/a (1.7 million stpy) of copper concentrate.

Metso Outotec has signed on for the delivery of the landmark copper smelter complex.

Metso Outotec’s scope of delivery is based on the 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 sulfuric acid plant, the slag concentrator, and the effluent treatment plant.

Metso Outotec has previously provided certain front-end engineering design (FEED) and other advance engineering services for this 1.5 Mt/a (1.7 million stpy) copper concentrate smelter complex. This smelter complex is expected to be commissioned in 2024.

“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,” said Pekka Vauramo, president & chief executive officer, Metso Outotec.

“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,” said Jari Ålgars, president, Metals business area at Metso Outotec.

Metso Outotec has delivered 51 Copper Flash Smelters around the world.