What is a Smelter?

Definition of Smelter

The term "smelter" originates from the word "smelting", which means melting. A smelter is a facility where smelting is processed. It is an important part of the production process in the metal mining industry. A smelter is a processing facility that enhances the metal content of minerals such as tin, nickel, gold, silver, and copper until it meets the standards required for use as raw materials in final products.

The main function of a smelter is to perform the melting process to produce pure metals that can be used across various industries. A smelter plays a crucial role in removing contaminants from metal ores and ensuring that the final product meets specific quality standards. Smelters are not only operational necessities for mining companies but also key to optimizing production and productivity.

Examples of Smelters in Indonesia

Referring to Indonesian Law Number 4 of 2009 (Undang-UndangNomor 4 Tahun 2009) concerning mineral and coal mining, mining companies in Indonesia are required to have smelting facilities (smelter), whether small or large scale. This requirement, imposed by the government, aims to add value to minerals, attract both domestic and foreign investors, and create new job opportunities.

1. PT. Freeport Indonesia (PTFI)

   Freeport Indonesia is a mineral mining company. PTFI mines and processes ore concentrates containing copper, gold, and silver. PTFI uses underground mining techniques. The ore is then transported to a processing plant where it is crushed into very fine powder.

   Since December 2018, PTFI has been granted a special mining business license (IUPK) by the Indonesian government. In line with this IUPK, PTFI has established a new smelter named the Manyar Smelter (JIIPE) located in Gresik. This is PTFI's second smelter, following the establishment of the first copper smelting facility in Indonesia, PT. Smelting Gresik.

2. PT. Smelting Gresik

   Smelting Gresik is PTFI's first smelter, established in 1996 in collaboration with Mitsubishi Materials Corporation (MMC) to build a copper smelting and refining plant in Indonesia.

   PT. Smelting is the first copper smelter in Indonesia, located in Gresik, East Java. Annually, PT. Smelting is capable of refining and processing 1 million tons of copper concentrate into 300,000 tons of copper cathodes to meet production needs both domestically and internationally.

Aldzama also assists in the operations and construction of the above smelters. Services provided include material supply, manpower, and shutdown-related services such as demolition and installation. With certified labor and advanced machinery, Aldzama ensures smooth, efficient, and safe demolition and installation services tailored to the specific needs of each smelter.