Tsingshan may fund most of $2.8B Indonesian copper JV with Freeport – Reuters

Tsingshan Holding Group Co. Ltd. may finance the majority of its $2.8 billion copper smelter project with Freeport-McMoRan Inc. in eastern Indonesia's Weda Bay, Reuters reported Feb. 5, citing Septian Hario Seto, the country's deputy head for investment and mining coordination.

"Most of the financing will be borne by Tsingshan ... as of now, Freeport may only need to provide funding for 7.5% of the total project cost," the official was quoted as saying.

Reuters recently quoted an Indonesian minister as saying that Tsingshan and Freeport were close to sealing a deal for the smelter. Negotiations may be concluded by the end of March, according to Septian.

The smelter is expected to have copper concentrate input capacity of 2.4 million tonnes and produce at least $10 billion worth of copper pipes and wires, the newswire added. It will also reportedly produce other copper products that can be used as materials for lithium batteries.

Meanwhile, electric car maker Tesla Inc. has submitted a proposal to Indonesia over a possible investment in the country, Septian said, according to a Feb. 4 Reuters report. The official did not reveal details of the proposal but said talks have been focused on batteries and energy storage solutions.

"If they only want to buy raw materials, we are not interested. This [proposal] is beyond just taking the raw material," Septian was quoted as saying.

At the end of 2019, Indonesia banned exports of nickel in a bid to develop a domestic electric vehicle supply chain.