West Sumbawa, June 22nd, 2023 – President Joko Widodo visited the PT Amman Mineral Industri (AMMAN) copper smelter area on Tuesday, June 20th, to observe the progress of a national strategic project, which has reached 51.63%.
On this occasion, the President received a detailed explanation regarding AMMAN’s mining operations at the Batu Hijau open pit mine and the copper concentrate processing line, which will flow down to the AMMAN smelter currently under construction. In addition, President Joko Widodo and AMMAN’s President Commissioner, Hilmi Panigoro, and President Director, Rachmat Makkasau, discussed the potential smelting capacity and future economic impact.
President Joko Widodo stated that he wants to ensure that the project is progressing according to plan and will be completed by the middle of next year. “I just want to make sure that the progress is according to plan and will be completed by the middle of next year,” President Joko Widodo told the media crew. President Joko Widodo has repeatedly emphasized the importance of downstream industries to the national economy.
The President’s statement is based on the result of the most recent independent verification, which has reached 51.63 percent. The President stated, “It will be finished in the middle of 2024.”
In line with President Joko Widodo, President Director of AMMAN, Rachmat Makkasau explained that the smelter, which has an input capacity of 900,000 tons of copper concentrate annually, will be completed according to the government’s new target, which is May 2024.
“We have explained to President Joko Widodo that AMMAN is currently pursuing the target of completing smelting construction according to the government regulations, which is by the end of May 2024. We also noted that during the COVID-19 pandemic, AMMAN encountered a number of external challenges, including a slowdown in the fabrication of smelting equipment abroad. We hope for full support from President Joko Widodo, so that the smelting construction can be completed according to schedule through the synergistic collaboration with all relevant ministries and government agencies,” added Rachmat.
Rachmat also mentioned that this 51.63 percent development achievement is proof of AMMAN’s commitment to supporting the government’s mining downstream industry agenda as stipulated in the Minerba Law. From the construction side, the pile installation for AMMAN’s main smelter facilities has been thoroughly completed. Fabrication of various heavy equipment and basic building structures has also been completed at the end of February 2023, the installation has begun in two months after that. Procurement processes have also reached 60 percent.
Out of a total investment of USD 982.99 million, the project’s theoretical uptake costs have surpassed USD 507.53 million. This calculation is in accordance with the actual budget for smelting construction, which covers both the physical structure and the purchase of operational machinery and equipment.
According to President Joko Widodo, the derivative products from copper cathode should also be industrialized. The President also mentioned that once the smelter development of other commodities (nickel, bauxite, and tin) is completed, the smelters will add value to the domestic economy. “Giving additional value in the form of export value, also adding jobs needed by the community,” said the President.
For the record, the contribution of the mining sector, in which AMMAN is the most significant contributor, to the Gross Regional Domestic Product (GRDP) of West Sumbawa Regency (KSB) reaches 82 percent1, and the GRDP of West Nusa Tenggara Province (NTB) reaches
17.32 percent in 2021. More than 17,000 employees work at the Batu Hijau site for mining operations and other development projects. The absorption of AMMAN’s workforce and business partners from West Sumbawa & West Nusa Tenggara Regency residents also reaches almost 75 percent.
AMMAN always carries out operations with sustainable principles. One instance is the current operation of the most significant ground-mounted Solar Photovoltaic (PV) in Indonesia for mining operations, with a peak capacity of 26.8 Megawatts since June 2022. AMMAN can reduce CO2 emissions by up to 40,000 tons/year with this Solar PV. Increased productivity and efficiency of haul trucks can also reduce greenhouse gas emissions by up to 30 percent.
“We will continue to innovate to be more productive and efficient. The copper production from the Batu Hijau mine will play a crucial role in supporting clean energy technologies, particularly electric vehicle battery components. Additionally, the company’s growth will have a positive socio-economic impact on the surrounding regions, which is also one of our main objectives,” concluded Rachmat.
Accompanying the President during this working visit were Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, Cabinet Secretary Pramono Anung, Minister of Energy and Mineral Resources Arifin Tasrif, Minister of State-Owned Enterprises Erick Thohir, Minister of Investment/Head of the Investment Coordinating Board Bahlil Lahadalia, Governor of West Nusa Tenggara Zulkieflimansyah and Regent of West Sumbawa Regency W. Musyafirin.
