JAKARTA (TheInsiderStories) - The energy and mineral resources (EMR) ministry allowed the miner to export the raw material during the COVID-19 pandemic although the smelter construction was not meet the regulation. This is stated in the Minister of EMR Decree Number 46 of 2021 signed on March 12 on the mining permit.
The decree stated that the mining permit and special mining holders that not meet the percentage of physical progress of the refining facilities can export the raw products. The new regulation made based on the President Decree Number 12 of 2020 concerning the Determination of the Non-Natural Disaster of the Corona Virus Disease 2019 as a National Disaster.
Some companies will get benefits from the new rule are PT Freeport Indonesia, PT Aneka Tambang Tbk (IDX: ANTM), PT Vale Indonesia Tbk (IDX: INCO), and PT Amman Mineral Nusa Tenggar. As of January 2021, the realization of the copper smelter construction by the unit of PT Indonesia Asahan Aluminium and US-based Freeport McMoran Inc., is still at 5.86 percent of the target from the regulation should reached 10.5 percent.
Indonesia expects to have 52 smelters operating by 2022 with a total combined investment estimated at US$20.39 billion. The number has revised down from the initial targets of 68 smelters due to the COVID-19 outbreak.
EMR minister, Arifin Tasrif, has said, of the 52 smelters, 17 have been built in 2019. Until 2022 there are still 35 smelters consisting of 31 smelters plus two smelters owned by Freeport Indonesia and two smelters owned by PT Amman Mineral Industri. The projects was dominated by nickel-based products with total 29 smelters with total capacity 69 million tones. Ot the total, 11 smelters has operated with an annual capacity 27 million tones per year.
Then, 31 smelter project being built and 16 projects had not yet reached the financial close stage. The government also revised down its projection for bauxite smelters from 11 to nine. The government expect five smelters will operate in 2020, consist of three smelters based on nickel and others use lead and manganese.
According to the director at energy and mineral resources ministry, Yunus Saefulhak, nickel smelter owned by PT Aneka Tambang Tbk (IDX: ANTM) in East Halmahera, North Maluku has an input capacity of 1.21 million tones and a production capacity of 64,650 tones of ferronickel per annum. Other nickel smelter project managed by PT Arthabumi Sentra Industri in Morowali, Central Sulawesi. The production capacity is 72,960 tones of Nickel Pig Iron per annum.
Then, PT Kapuas Prima Coal builds a lead smelter in Kotawaringin Barat, Central Kalimantan with input capacity 36,000 tons and the production capacity 22.92 thousand tons bp bullion per year. And, PT Putra Indonesia Jaya’ manganese smelter project in Kupang, East Nusa Tenggara will have input capacity is 103.160 tones and the production capacity is 40.370 tones of ferromanganese per year.
While, PT Elit Kharisma Utama smelter in Cikande, Banten with an input capacity of 1.2 million tons and a total production capacity of two lines of 97.45 thousand tons of Nickel Pig Iron tones per year.
Written by Editorial Staff, Email: theinsiderstories@gmail.com
