AMNT allowed to use forest area for exploration activity

Petromindo

Gold and copper mining firm PT Amman Mineral Nusa Tenggara (AMNT), which operates the Batu Hijau mine in West Nusa Tenggara Province, has been permitted to use forest areas near its current concession for exploration activity as the company searches for new reserves, Bisnis Indonesia reported on Wednesday.

The paper quoted Arifin Panigoro, founding owner of Medco Group, a key shareholder at AMNT, as saying the company has obtained the forest area borrow and use permit to carry out exploration activity at the Elang block, which is still part of the company?s concession.

He acknowledged that after AMNT converted its mining permit status from mining contract of work to IUPK special mining business license, which is part of new conditions required by the government to allow miners to continue export of mineral concentrates, the company?s concession size has dropped from 66,442 hectares to 25,000 ha.

But Arifin said that aside from Batu Hijau mine, the Elang block and Nangka block are still part of AMNT?s current concession.

He said that production activity at the Batu Hijua mine is nearing the end of the sixth phase, and would soon enter the seventh production phase, which will require higher cost. He said that the company is looking for new reserves through exploration at Elang and Nangka blocks.

PT AMNT, formerly known as PT Newmont Nusa Tenggara, obtained last month a permit from the government to export 675,000 tons of copper concentrates until February 2018.

The company is currently in the process of developing a copper smelter, with capacity of 2 million tons per year of concentrates, at the Benete Port near its concession in Sumbawa, West Nusa Tenggara Province. (*)