Team to complete verification of AMNT?s smelter in October

An independent team assigned by the government to evaluate domestic smelter projects promised by miners is expected to complete verification of copper smelter planned by PT Amman Mineral Nusa Tenggara (AMNT) in October of this year.

Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources Bambang Gatot Ariyono was quoted as saying by Bisnis Indonesia Tuesday that the results of the verification team will determine AMNT?s future copper concentrates export.

He said that when the company obtained in February recommendation letter from the ministry to export copper concentrates, the planned smelter project was still considered to have zero percent progress as it was still in the stage of feasibility study. ?We want to see what progress has been made after six months,? he said.

The ministry introduced a new regulation in January of this year, requiring miners to among others develop domestic smelters in order to be able to get recommendation letter from the ministry to export mineral concentrates. The recommendation letter is needed to obtain export permit from the Ministry of Trade. Miners are required to pay export duty of 7.5 percent if their smelter projects are still at zero percent progress. The duty will decline in line with the progress of the smelter projects. The government through an independent team evaluates the smelter projects every six months. Miners failing to make significant progress in their smelter projects may also risk their export permit revoked.

AMNT obtained on February 17 of this year recommendation letter to export 675,000 wet metric tons of copper concentrates through until February 16, 2018.

AMNT is planning to develop a copper smelter near its Batu Hijau mine in West Nusa Tenggara Province. (*)