Freeport to join hands with China's Castle Peak to build a copper smelter in Indonesia

SMM2: according to foreign media reports, the US copper giant Freeport-McMoRan is about to finalize a $2.8 billion deal with China's Aoyama to build a copper smelter in Veda Bay, Indonesia.

Indonesian Minister of Maritime Coordination and Investment Luhut Pandjaitan said: "the smelter will produce copper tubes and wires, which could be worth more than US $10 billion. The copper smelter will be equipped with the capacity to produce copper products that can be used as lithium battery components. It is also expected to support the country's goal of establishing a (EV) supply chain for electric vehicles. "

Indonesia, which is rich in nickel, an important component of electric car batteries, is seeking investment from battery and car companies.

"the nickel plant is already in operation, and if this goes according to plan, we will be able to produce lithium batteries by 2023," Luhut added.

A spokesman for Freeport Indonesia said the company is still committed to building another smelter.

Luhut said last year that the Indonesian government had asked Freeport to build a copper smelter in Veda Bay in North Maluku province.