President Joko Widodo paid a working visit to the copper smelter area owned by PT Amman Mineral Industri (AMMAN) on Tuesday (20/6), in order to witness firsthand the development of a national strategic project which has progressed up to 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 downstream to the AMMAN smelter currently under construction.
In addition, the potential capacity of the smelter and its future economic impact became the topic of discussion between President Joko Widodo and AMMAN's President Commissioner, Hilmi Panigoro and AMMAN's President Director, Rachmat Makkasau.
"I just want to ensure that the progress is according to plan and will be completed by the middle of next year," said President Jokowi.
President Joko Widodo has repeatedly emphasized the importance of downstream industries in order to realize downstream mining industries that bring benefits to the national economy. The President's statement is based on the results of the latest verification of the progress of the AMMAN smelter construction carried out by an independent verifier which has reached 51.63%.
"God willing, in the middle of 2024 it will be completed," said the President.
President Director of AMMAN, Rachmat Makkasau explained that the smelter, which has a capacity of 900 thousand tons of copper concentrate per year, is trying to complete it according to the government's new target, namely May 2024. "
We have explained to Mr President, that currently AMMAN is pursuing a completion target. the construction of the smelter is within the limits of statutory regulations, namely the end of May 2024. However, we also explain that during the pandemic, AMMAN faced various external obstacles, especially the delay in the rate of fabrication of smelter instruments abroad. We hope for full support from Mr. President, so that the construction of the smelter can be according to schedule, through synergistic collaboration with all relevant government agencies or agencies," said Rachmat
Rachmat said that the 51.63% development achievement was proof of AMMAN's commitment to supporting the government's mining industry downstream agenda as stipulated in the Minerba Act (UU). From the construction side, the installation of piles for the main AMMAN smelter building has been completely completed. Fabrication of various heavy equipment and basic building structures was also completed at the end of February 2023, and the installation began two months later. Procurement of goods has also reached 60%.
The theoretical uptake of costs for the project has exceeded US$507.53 million, out of a total investment of US$982.99 million. This calculation is in accordance with the realization of budget absorption for smelter construction, which includes physical construction and also the purchase of equipment and machinery for operations.
President Joko Widodo hopes that the derivative of the copper cathode produced will also be industrialized. He reminded that when the construction of various smelters has been completed and is ready to produce, both from nickel, copper, bauxite and tin, it is expected to provide added value to the domestic economy.
"Giving added value in the form of export value, also adding jobs needed by the community," said President Jokowi.
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
For the record, the contribution of the mining sector, in which AMMAN is the largest contributor, to the Gross Regional Domestic Product (GRDP) of West Sumbawa Regency (KSB) reaches 82%, and the GRDP of West Nusa Tenggara Province (NTB) reaches 17.3%. Currently more than 17,000 employees work at the Batu Hijau site for mining operations and various other development projects. The absorption of AMMAN's workforce and business partners who come from local residents of West Sumbawa & West Nusa Tenggara Regencies also reaches almost 75%.
AMMAN always carries out operations with sustainable principles. One of them is the current operation of the largest ground mounted PLTS in Indonesia for mining operations, with a peak capacity of 26.8 Megawatts since June 2022. With this PLTS, the Company can contribute to reducing CO2 emissions by up to 40,000 tons/year. Increased productivity and efficiency of haul trucks can also reduce greenhouse gas emissions by up to 30%.
“We will continue to innovate to be more productive and efficient. Copper production from the Batu Hijau mine will become a very important commodity for supporting clean energy technologies, such as components for electric vehicle batteries. Apart from that, the positive socio-economic impact of the growth of the company and the region is also our achievement target," Rachmat said.
Image source: Istimewa
