Monday, 28 May 2001

PT Freeport Indonesia An Ambitious Mining Company

Kompas/kornelis kewa ama

ENTERING the 21st century, the future of PT Freeport Indonesia (PTFI) is quite promising. This can be seen from total production that increases from time to time fro the exploration sites that accumulate continuously.

The processing factory of Freeport in Spain has been completed and one in Gresik (East Java) will start soon. Also the reserved minerals at Grasberg and along the mountain ranges in the eastern part and western part of Irian Jaya is really promising and will bring about considerable products.

With its capacity of producing 5% of the world's mining operations, Freeport is one of the main players in copper mine. George Amealey, a mining expert in his book about Grasberg predicts in 15-20 years time to come, Freeport will reach the level near to Coldeco, the biggest mining company from Chille.

Freeport McMoran Copper & Gold with its subsidiary PTFI has chosed Irja (West Papua) as the main base of operations. This is based on the promising and abundant deposits around Grasberg and most of the time this has been proven true.

The fact is that the prediction of exploitation is within 40-50 years, according to the Contract of Work (CoW). The deposits in Grasberg consist of 1,081 million tons of deposits, that contain copper 0.99%, gold 1.20 gram per ton, and silver 2.32 gram per ton, containing 1.09 percent of copper, silver 0.79 gram per ton, and silver 2.77 gram per ton.

The reserved deposits at Wild Cat (Cadangan Kucing Liar) is 320 million tons, with 1.41% copper, 1.41 gram per ton gold, and silve 5.30 gram per ton. Whereas reserved deposits in Deep Ore Zone (DOZ) is 185 million ton biji with 1.19% copper, 0.83 gram per ton of gold, and silver 5.83 gram per ton.

Reserves in Ertsberg Stockwork Zone is 101 million tons with 0.55 deposits of copper, 0.80 gram per ton of gold and 1.75 gran per ton of silver. Reserved deposits at Big Gossan has 37 million tons, with 2.69% of copper, gold 1.02 gram per ton, and silver 16.42 gram per ton.

Reserves in Dom area is 31 million tons, with 1.67% copper, 0.42 gram gold per ton, and silver 9.63 gram per ton. Reserves at Intermediate Ore Zone (IOZ) is 16 million tons, consist of 1.09% pert ton for copper, gold 0.42 gram per ton, and silver 7.79 gram per ton.

Deposits in Ertsberg is 33 million tons with an average of 2.5% of copper per ton. This deposit hase been completely exploited and now Freeport is moving to Grasberg.

This company stationed in New Orleans has located 75 sites in West Papua that potentially contain minerals. If compared to experiences in world minings, one one site is already enough to guarantee explorations in a large scale and profitable.

Even in the coming 15 years, in front of Block A area in the CoW, the area of exploitation covers 10 X 10 km still guarantee operations and exploitations for the coming 30-50 years. In the coming 20 years, the mining company will have equipment underground tools for sub level caving and long hole open stoping. Freeport is more than prepared to provide these all. All basic infrastructure has been established and these new tools are not so expensive.

Jim Bob Moffet is the Chief Officer Freeport McMoran and he is one of the persons with his dedication and wisdom saw the potential deposits in West Papua. His knowledge in geology has helped Freeport to invest in Indonesia. After knowing the potential reserves, he immediately initiated negotiations with Indonesia to extend the CoW and also asked for widening the areas of exploitation and explotation activities.