JAKARTA (Reuters) – Freeport-McMoRan Inc may perhaps only have to finance 7.5% of the $2.8 billion greenback copper smelter it is developing with China’s Tsingshan Keeping group in Indonesia’s Weda Bay, a senior federal government formal claimed on Friday.

Indonesia introduced on Wednesday that Tsingshan and Freeport ended up close to achieving the $2.8 billion offer. The smelter could deliver copper pipes and wires with an output benefit of $10 billion, a senior minister mentioned without the need of specifying a timeline.

“The concentrate on is to conclude (negotiations) by the stop of March,” Indonesia’s deputy head for financial commitment and mining coordination, Septian Hario Seto, told reporters on Friday.

“Most of the funding will be borne by Tsingshan … as a as of now, Freeport may well only require to give funding for 7.5% of the full undertaking cost,” he claimed, including that the smelter would have a copper concentrate input ability of 2.4 million tonnes.

Tsingshan could not be promptly achieved for comment, while a spokesman for Freeport’s Indonesian unit said the make any difference was “still less than discussion”.

In June previous 12 months, Indonesia’s minister of maritime affairs and investment claimed the authorities had requested that Freeport construct a copper smelter in Weda Bay situated in North Maluku in jap Indonesia, as it seeks to make an built-in smelting hub there.

Reporting by Bernadette Christina Munthe Producing by Fathin Ungku Editing by Martin Petty