AMNT in talks with Freeport over smelter project
Tuesday, May 30 2017 - 02:07 AM WIB
Petromindo
Gold and copper giants PT Amman Mineral Nusa Tenggara (AMNT) and PT Freeport Indonesia are currently engaged in talks over possibility of joint domestic copper smelter project, Bisnis Indonesia reported on Tuesday.
This was revealed by Arifin Panigoro, founding shareholder of IDX-listed energy company PT Medco Energi Internasional Tbk, which co-owns AMNT.
Arifin told the paper that if the plan is realized, AMNT will expand the capacity of its planned smelter project in Sumbawa Barat, West Nusa Tenggara Province, where the company operates the giant Batu Hijau mine, to 2 million tons per annum (mtpa) from the initial plan of 1 mtpa. AMNT initially plans to start construction of the smelter project in 2018.
The paper said that AMNT has allocated around 80 hectares of land near its Batuhijau mine for the planned smelter project, and land creating activities have started.
While the planned joined investment between AMNT and PT Freeport has yet to be officially reported to the government, Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources, Bambang Gatot Ariyono said that existing regulation allows such joint use of the smelter project.
But he warned that the capacity of the joint smelter project must be line with the production capacity of copper concentrates of PT Freeport and AMNT, respectively at 2 mtpa and 1 mtpa.
Bambang said that PT Freeport is also planning to develop a copper smelter in Gresik, East Java, with capacity of 1 mtpa.
The government has introduced regulation requiring mining firms to put in place plan to build domestic smelter as part of conditions for them to be given export permit. The government through independent auditors will verify the planned smelter projects every six months. Those failing to make significant progress will risk their export permit revoked. The government has allowed miners to continue export of mineral concentrates for another five years, by which time the required domestic smelters have been completed. (*)