AMNT sets lower 2017 copper, gold output target
Monday, April 3 2017 - 01:34 PM WIB
IDX-listed energy company PT Medco Energi Internasional Tbk, which last year acquired an indirect 40.89 percent interest in AMNT, said in a statement Monday that the mining firm?s copper production last year stood at 477 million lbs, while gold production reached 798,000 oz. The company did not provide comparative figure for 2015.
Medco said that AMNT?s production in 2017 will be 300-310 million lbs of copper, and 400-420 thousand oz of gold. It did not provide reasons for the lower production target.
It added that AMNT, formerly known as PT Newmont Nusa Tenggara, this year will complete its smelter feasibility study and sanction a new mine plan.
The government has required AMNT to convert its mining permit status into special mining business license (or IUPK) from mining contract of work (COW) and commitment to build domestic copper smelter as part of conditions for the company to be able to resume export of mineral concentrates. The government will review the smelter project every six months, under which if the company fails to show significant progress its export permit will be revoked. AMNT in February obtained a one year permit to export copper concentrates with an export quota of 675,000 tons following agreement to convert its COW into IUPK.
As has been previously reported, AMNT plans to invest a total of US$9 billion to finance the development of copper smelter and mines.
Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources Bambang Gatot Ariyono said last month the company has submitted to the ministry its long-term investment plan, which will be realized starting this year.
He said that the smelter project will cost about $1 billion, while the remaining $8 billion will be used to finance mine development and facility to process ores into concentrates.
He said that AMNT, formerly known as PT Newmont Nusa Tenggara, plans to develop a copper smelter in Sumbawa with a capacity of 1 million ? 1.5 million tons of copper concentrates per year, enough to refine the entire copper concentrates output of the company.
He added that the smelter project is targeted to be completed within five years, or in 2022, in line with the deadline set by the government for a complete ban of export of mineral concentrates.
Bambang also said that in terms of mine development, AMNT will allocate part of its investment plan for the phase seven development of the giant Batu Hijau mine in Sumbawa. The company also plans to continue exploration activities at the Elang block and other blocks.
Editing by Reiner Simanjuntak