Amman to build copper smelter in Sumbawa

Petromindo|Thomas

Gold and copper mining company PT Amman Mineral Nusa Tenggara (AMNT) plans to build a copper smelter in Sumbawa, West Nusa Tenggara Province, with a capacity to process 1 million tons of copper concentrates per year.

This was said by Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources Bambang Gatot Ariyono on Thursday. He said that the proposed smelter project forms part of conditions set by the government for the company to be able to resume export of copper concentrates.

AMNT, formerly known as PT Newmont Nusa Tenggara, which operates the giant Batu Hijau mine in Sumbawa, has recently obtained export recommendation letter from the ministry with copper concentrates export quota of 675,000 wet metric tons for a one-year period ending February 17, 2018. The export recommendation letter is necessary for the company to be able to obtain the export permit from the Ministry of Trade.

Director General of International Trade at the Ministry of Trade Oke Nurman said the ministry has issued export permit for AMNT for a period of February 21, 2017 until February 17, 2018 with the same export quota as recommended by the Ministry of Energy and Mineral Resources.

Export of mineral concentrates including copper concentrates produced by firms such as AMNT has been banned since January 12 as stipulated by a 2014 government regulation. But the government last month issued new regulations allowing miners to continue export of mineral concentrates for another year on certain conditions including converting their mining permit status from mining contract of work (COW) to special mining business license (or IUPK), and commitment to develop domestic smelters.

Minister of Energy and Mineral Resources Ignasius Jonan has said that the ministry will audit the smelter project of the mining firms every six months. Those failing to show significant progress in their smelter projects risk their export permit be revoked. (*)