PT Freeport Indonesia (PTFI) and PT Chiyoda International Indonesia signed an EPC contract worth US$2.7 billion or around Rp39.22 trillion (assuming an exchange rate of Rp14,528 per US dollar) to build a copper smelter and metal processing in the Java Integrated and Ports Estate area (JIPE).

The smelter will contribute significantly to the recurring income of PT AKR Corporindo Tbk (AKRA) as the majority shareholder of JIIPE.

JIPE will generate the rental income from 103 hectares of land for the smelter and another 40-50 hectares for the laydown area.

"Further recurring income will be generated by providing port facilities, electricity, gas, water and wastewater treatment," AKRA wrote in a written statement on Friday (16/7).

The EPC contract covers a smelter with a capacity of 1.7 million tonnes of concentrate per year and other metals. Thus, this smelter will be one of the largest smelting capacities in the world.

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