Medco hopes construction of copper smelter to start end 2017

By Thomas Sembiring

Petromindo|Khalsa

IDX-listed integrated energy company PT Medco Energi Internasional Tbk, co-owner of gold and copper firm PT Amman Mineral Nusa Tenggara (AMNT), formerly known as PT Newmont Nusa Tenggara (NNT), hopes that construction of a planned domestic copper smelter project can start at the end of next year.

Medco President Director Hilmi Panigoro said that feasibility study for the smelter project is underway. He said that the company can either proceed with an earlier to team up with PT Freeport Indonesia in the smelter project, or to go own its own. PT Freeport is planning to build a copper smelter in Gresik, East Java.

?My hope is that construction can start by end of 2017,? Hilmi told Petromindo.com on Thursday, adding that the investment requirement for the copper cathode smelter project is estimated at between US$800 million and $1.2 billion. He did not provide further details.

Medco has recently completed the acquisition of 50 percent interest in PT Amman Mineral Internasional immediately after the latter acquired more than 82 percent stake in NNT, whose name was then changed into AMNT.

Government Regulation No 1/2014 stipulates that export of mineral concentrates will no longer allowed after January 12, 2017. The government is currently seeking to revise the regulation so as to allow miners to continue exporting mineral concentrates including copper concentrates for next year three-five years pending completing of the required domestic smelters.

Editing by Reiner Simanjuntak