The Chinese company Felix Gold is planning to build a copper smelter in Timika in Indonesia's Papua province.
The Jakarta Post says the Papua governor Lukas Enembe signed a cooperation agreement with Felix Gold's chief executive, Bao Dong Bin, in China on Thursday.
Before the signing, the Papuan officials inspected the Chinese firm's smelter in Anhui province.
That plant processes about 1,000 tons of concentrate every day.
The Papua administration and Mimika regency administrations have so far prepared a 1,000-hectare plot of land in Timika for an industrial zone that will include the smelter.