The World's Largest Single Line Smelter in the JIIPE Special Economic Zone, Gresik Officially Operational To Produce Copper and Gold

Jakarta, 28th June 2024 – In the JIIPE Special Economic Zone Gresik, managed by the Industrial Estate Subsidiary of PT AKR Corporindo Tbk (IDX stock code: AKRA.IJ), the Inauguration of Copper Smelter Initial Phase of Operations was held. This event was attended by the Coordinating Minister for Economic Affairs, Dr. (HC) Ir. Airlangga Hartarto, MBA, MMT, Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia, S.E. and Provincional Representatives of East Java Province and Gresik as well as the Management of PT Freeport Indonesia and PT MIND ID.

Starting the event, Mr Tony Wenas, President Director of PT Freeport Indonesia expressed his gratitude for the inauguration of the smelter operation which is the largest single line copper smelter in the world, located in Indonesia, especially in Gresik. Mr. Tony said that this smelter has a production input capacity of up to 1.7 million tons of copper concentrate per year. The output from this smelter produces will be around 600-700 thousand tons of copper cathode per year starting in August 2024 and will processes anode sludge to produce 50-60 tons of gold per year, and 220 tons of silver per year and other metals starting in December 2024.

This smelter operated by PT Freeport was built in 2021 in an area of ​​103 hectares in the Java Integrated Industrial & Port Estate (JIIPE) Special Economic Zone (KEK) located in Gresik, East Java. According to Mr. Tony Wenas, this smelter project has a total investment value of USD 3.7 billion and during the construction period involved 40 thousand workers. .

Coordinating Minister for the Economy Mr. Airlangga Hartarto in his speech also emphasized the ecosystem that is being formed where he believes that efficient industry should be in one location. "With the presence of Freeport here; copper, silver and gold-based industries will definitely be encouraged in this region and this project is a National Strategic Project and Special Economic Zones"

On March 14 2022, PT Berkah Kawasan Manyar Sejahtera (BKMS), the subsidiary of PT AKR Corporindo Tbk which manages the JIIPE SEZ Industrial Area and PT PLN Persero (PLN) signed an Electric Power Purchase Agreement (PPA) for 170 MVA where PLN will distribute and sell electricity to BKMS, on an ongoing basis through the PLN Main Substation 150 kV (one hundred and fifty kiloVolts) High Voltage Supply with a total power of 170 MVA (one hundred and seventy Mega Volt Ampere). On the same occasion, PT BKMS also signed a back to back agreement with PT Freeport Indonesia where PT BKMS will distribute and resell connected power to PTFI according to its needs. This will generate recurring income for JIIPE SEZ Gresik 

President Director of AKR Corporindo Tbk, Mr. Haryanto Adikoesoemo, who was also present at the inauguration, said, "The operation of the Single Line Copper Smelter from PT Freeport Indonesia brings optimism to the JIIPE Gresik SEZ in building a downstream ecosystem to encourage the growth of value-added industries for Indonesia, and is a positive signal for prospective tenants who want to invest in KEK JIIPE. Apart from that, with the availability of industrial utilities operated by PT BKMS, as well as deep sea port services operated by PT BMS, tenants in SEZ JIIPE will be supported by world class utility services which will then become a potential source of recurring income for the company. We hope that, with the operation of the PT Freeport Indonesia Smelter, domestic and foreign investors will be increasingly interested in investing in JIIPE. "So that JIIPE can continue to attract Foreign and Domestic Direct Investment (FDI & DDI), while simultaneously encouraging the East Java regional economy and assisting the Indonesian Government's program in increasing the competitiveness of domestic industry."

Corporate Secretary

PT AKR Corporindo Tbk