Jakarta (TheInsiderStories) – Indonesian government ensured that after 41 smelters operating, the country will stop raw mineral exports in 2022. So far, most of the miners still export the raw products to finance their operations.
The director general at the Energy and Mineral Resources ministry, Bambang Gatot Ariyono said on Monday (07/08), even the implementation late based on the law Number 4 Year 2009 about Mineral and Coal, he assured that the government will comply with the rules soon.
Based on the regulation, five years after the rules were issued, all the miners must run the rule five years after published. He said that the mining industry is not ready to implement it because the smelter facilities are inadequate.
“The prohibition policy will only be implemented until 2022,” he said.
Therefore, Ariyono believe starting 2022, Indonesia will not export raw minerals anymore and the downstream projects can be carried out optimally. He added, that in 2022 Indonesia is expected to produce semi-finished products from copper, nickel, alumina, iron, tin, gold, silver to complement the entire supply chain of domestic industrial trees.
Based on the ministry data, there are 41 units of smelters operating in 2022 ,consisting of 22 nickel smelters. In details, six bauxites processing, four iron smelters, four lead and zinc plants, copper and anodic mud, each of two factories and one smelter smelter.
It is known that currently there are 20 smelters operating in Indonesia consisting of copper, nickel, bauxite, iron and manganese smelters. PT Smelting is the only processing plant and smelter. The facility is working on copper concentrate from PT Freeport Indonesia (PTFI) mine in Papua.
Senior Manager of Smelting, Bouman Situmorang said, the copper concentrate smelter will produces copper cathodes, copper slags and copper mud. He added, “This yea 57 percent of products exported, while the rest is absorbed by domestic industries, such as wire and cable,” he said.
Of the several types of products produced, cathode mud is the raw material for gold and silver. Smelting was forced to sell all anodic mud abroad including Japan and Korea.
“So far, no one of domestic industry has been able to process it into gold and silver,” he ended.
Written by Willy Matrona, Email: email@example.com