President director PT Amman Mineral Nusa Tenggara (AMNT), Rachmat Makkasau, targeting the construction of its smelter in West Sumbawa, West Nusa Tenggara to be completed in 2023 - Photo by the Company

JAKARTA (TheInsiderStories) – President director of PT Amman Mineral Nusa Tenggara (AMNT), Rachmat Makkasau, targeting the construction of its smelter in West Sumbawa, West Nusa Tenggara to be completed in 2023. However, the mining company lowering the production capacity from 1.3 million tones to 900,000 per year in 2021 due to the COVID-19 pandemic.

The change in the new smelter capacity targets, he said, will also have an impact on the supply capacity of copper concentrate produced from the Batu Hijau mine and the potential for the Elang block which is managed by the company. The miner open for a strategic partner to build a copper smelter.

Earlier, Indonesian government hope the smelter owned by the subsidiary of PT Medco Energi Internasional Tbk (IDX: MEDC), to be be completed by the end of 2022. The new smelter will have a capacity 1 million tones per year and has available rising to around 2 million tons per year in the future. Amman Mineral has changed the form of permit from contract of work to a special mining business license in 2019.

Based on the government regulation the miner must build smelter after get the new permit. It said, the concentrates for the smelter will supply from Batu Hijau mine as well as potential supply from the Elang mine–currently in the exploration stage–and other sources.

Amman Mineral itself is committed to completing the construction of the smelter within five years period. The exploration activities at the 2,000 hectares land owned by Batu Hijau and Elang block. While Rinti Block in the form of 500 hectares land and drilling site around 2,500 meters.

In addition, the overburden removal activity will be carried out entirely in phase 7, with a capacity planned of 206.16 million tones and ore mining 630,000 tones. In accordance Mineral Law Number 3 of 2020, the enforcement of exports of certain unrefined metal mineral products is given since 2020 until 2023.

Beside Batu Hijau mines, Amman Mineral has several other promising prospects in the copper and gold concession area also located in West Sumbawa. The company, formerly known as Newmont Nusa Tenggara, started production and operations in 2,000, and has produced around 3.6 million tones of copper and 8 million ounces of gold, with a mining life followed by long-term stockpile processing.

Earlier, the parent has announced is open to release Amman Mineral and PT Medco Power Indonesia shares in the stock market. AMNT its expecting to raises US$600 million from the initial public offering.

“Still looking for the timing. We explore various options, one through IPO. Its also open through backdoor listings scheme or remain private,” MedcoEnergi‘ owner, Arifin Panigoro, told TheInsiderStories after meet President Joko Widodo at State Palace in Jakarta, in 2020.

However, he did not ensure, which companies would use the backdoor listing scheme. The corporate actions, he continued, are likely to take place in this year. Director at the energy company, Anthony R. Mathias, added the company had appointed JP Morgan to run the program.

Currently, the Panigoro’ firm officially controlled 50 percent of Amman Mineral Investama shares and indirectly, controller of 82.2 percent of Amman Mineral shares, the operator of Batu Hijau copper and gold mine in the Sumbawa Islands.

Written by Editorial Staff, Email: theinsiderstories@gmail.com