Amman set to resume export of copper concentrates

Gold and copper mining firm PT Amman Mineral Nusa Tenggara (AMNT) is set to soon resume export of copper concentrates as the Ministry of Trade is expected to issue the required export permit for the company this week.

Minister of Trade Enggartiasto Lukita was quoted by Kontan as saying Wednesday that the ministry has received application for export permit from AMNT and is currently in the process of reviewing the request. ?The export permit for Amman is still being processed, it will be issued within one or two days,? he said.

The Ministry of Energy and Mineral Resources (MEMR) has recently issued an export recommendation letter for AMNT, which is required for the company to be able to get the export permit from the Ministry of Trade. The MEMR gives AMNT an export quota of 675,000 tons of copper concentrates under an export recommendation letter valid from February 17, 2017 until February 16, 2018. AMNT, formerly known as PT Newmont Nusa Tenggara, operates the giant Batu Hijau mine in West Nusa Tenggara Province.

Export of mineral concentrates has been banned since January 12 of this year as ruled by a 2014 government regulation. But the current administration last month issued a new Government Regulation No 1/2017 and the implementing ministerial regulations allowing mining firms to continue export of mineral concentrates including copper concentrates under certain conditions including converting their mining permit status from mining contract of work (COW) to special mining business license (IUPK) and obligation to build domestic smelters within five years.

Director General of Mineral and Coal Bambang Gatot Ariyono said on Tuesday that the ministry will review the progress of smelter project promised by AMNT after six months, and if the project fails to reach the required progress, the export permit will be revoked.

Meanwhile, Minister of Energy and Mineral Resources Ignasius Jonan said on Tuesday that AMNT has agreed to follow the new mining rules introduced by the government last month. ?Amman is also thankful because the government has approved the conversion of the company?s (mining permit status from) COW to IUPK,? Ignasius said.

In contrast, another gold and copper giant PT Freeport Indonesia, a subsidiary of US-based Freeport McMoRan Inc, is still locked in an ugly dispute with the government over the new requirements set in the mining regulations.

While the MEMR has also issued export recommendation letter for PTFI, with export quota of 1.1 million tons, Enggartiasto said that the Ministry of Trade has yet to receive application for export permit from the company. (*)