Jakarta, 5 September 2024 - PT Amman Mineral Internasional Tbk (“AMMAN”) has secured a spot among the 100 largest companies in Indonesia, ranking 39th on the ‘Fortune Indonesia 100’ list. This ranking evaluates company performance based on revenue, net profit, assets, equity, market capitalization, and employee numbers according to the audited financial statements for the fiscal year 2023. Since its debut on the stock market, AMMAN has also been recognized as one of the ‘Best Arrivals.’
AMMAN’s inclusion in this prestigious list highlights the Company’s financial excellence and reflects the success of its operational efficiency strategies. In 2016, AMMAN acquired Batu Hijau, one of Indonesia’s largest copper-and-gold-mining sites located on the Indonesian island of Sumbawa. Since then, a primary focus of management has been to realize the mine’s full potential through a series of strategic initiatives to minimize production costs while maximizing product quality, employee safety and well-being, and environmental sustainability.
When AMMAN acquired Batu Hijau from Newmont Nusa Tenggara, the mine was nearing the end of Phase 6. Based on the operational guidelines then in use, the mine was expected to operate only until 2027. However, AMMAN soon identified significant potential in several acquired assets, leading to a decision to reassess the then-current mining plans.
With a focus on optimization and efficiency, AMMAN has extended the operational life of the Batu Hijau mine and developed the adjacent Elang deposit, which is expected to operate until around 2047. These projections have both solidified AMMAN’s position as an industry leader and ensured the long-term viability of the Company’s business and operations.
AMMAN’s operational efficiency stems from transformative improvements in four key areas: workplace optimization, operational efficiency, supply chain management, and capital projects.
One of the bold initiatives made in the early stages of its operations was to shut down 40 percent of its mining capacity for three months in 2017. This shutdown allowed the Company to reorganize its activities and planning to ensure that its excavators and haulers worked more productively and efficiently. This decision resulted in increased production blasting volumes quickly with ideal fragmentation according to material characteristics. In addition, there was a reduction in hauling downtime through the implementation of ‘hot seat,’ which made hauling rotation more effective. Re-planning of the excavator work stage was also carried out to support double-side loading, significantly increasing excavation productivity and overall operational effectiveness.
At the Batu Hijau mine, AMMAN operates 138 CAT793C trucks, each with a capacity of 240 tons, to achieve production targets with high effective working hours. However, AMMAN realizes that the maintenance costs of significant equipment, such as CAT793C trucks, constitute a large portion of the operational costs.
In 2018, AMMAN took a strategic step by taking over the assembly facilities, namely the Machine Rebuild Center (MRC) and Component Rebuild Center (CRC) from a third party. These facilities were then converted optimally and efficiently to dismantle and reassemble each truck’s components in just 23 days in Batu Hijau. This step significantly reduced assembly costs by around 35% compared to before, when the assembly was carried out in East Kalimantan with 9-12 months of completion.
As the mining industry in Indonesia continues to evolve, AMMAN is committed to remaining at the forefront of innovation and sustainability. With a strong focus on operational efficiency, AMMAN is capable of addressing current challenges and prepared to face future obstacles.
AMMAN continues to invest in new technologies and innovations to ensure sustainable and responsible mining operations. This aligns with the Company’s vision to create a legacy of best through contributions to the national economy, job creation, and the development of local communities.
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