Chairman of the Indonesian Mining Institute, Irwandy Arif, revealed that at least 55 nickel smelters will be operating in Indonesia.These 55 smelters consist of 49 Rotary Kiln-Electric Furnace (RKEF) smelters that will produce nickel pig iron (NPI) and 6 High-Pressure Acid Leaching (HPAL) smelters."Currently, around 36 smelters are still under construction" he said during a Mining Zone interview, quoted on Monday, January 6.With the 36 new smelters being built, Irwandy projects that domestic nickel demand will increase by 185 million tons. The nickel demand from smelters already in operation reaches 300 million tons per year."So, what about the demand that will arise soon? The demand from the 36 new smelters will be around 185 million tons. So, if we add 300 million and 185 million, it’s almost 500 million" Irwandy added.He further mentioned that Indonesia’s current nickel reserves, both saprolite and limonite, are only about 5 billion tons. Therefore, Irwandy urges the government to increase the country’s nickel reserves."Our reserves are only 5 billion tons. So, we need to increase the reserves first" he said briefly.Furthermore, Irwandy said that in order to achieve a balance between supply and demand, both in Indonesia and globally, a strong commitment from the government is needed to implement good mining practices in the industry.Not only that, he continued, the government also needs to regulate the production of steel and batteries, which are still wide open for development."But there is still one more thing that the government needs to focus on: the third nickel downstream pathway, which is how to create pure nickel metal. This is the most expensive of all, and it is used for the fast-growing aviation industry, which we have not yet developed" Irwandy concluded.

Minister of Energy and Mineral Resources, Bahlil Lahadalia, says the decision on PT Freeport Indonesia’s (PTFI) copper concentrate export permit extension will be discussed in a meeting with Coordinating Ministry for the Economy, Ministry of Finance and Ministry of Industry along with President Prabowo Subianto by mid of this year.“We will have a meeting with the President. So, maybe it will be discussed from now until June what kind of treatment for PTFI will be,” Bahlil told a press conference on Monday, January 6, 2025.He cited that until now there has been no official government decision regarding the granting of export relaxation for PTFI. Meanwhile, the operation of PTFI’s copper smelter in the Java Integrated Industrial and Port Estate (JIIPE), Gresik, East Java, is being accelerated, with the target ramp-up advancing from August to May or June 2025.This copper smelter functions to process copper concentrate mined by PTFI in Papua. As long as the smelter is not fully operational, PTFI relies on exporting copper concentrate abroad to maintain the sustainability of its operations.The decision regarding the relaxation of concentrate exports will take into account national strategic interests, including optimizing the added value of Indonesia’s mineral resources. The government is trying to ensure that the policies taken not only support the sustainability of PTFI’s operations, but also support the domestic economy and the development of downstream industries.“The government will continue to coordinate to determine the best measures, including accelerating PTFI’s smelter operations so that it can immediately provide optimal contributions to the national economy,” Bahlil said.On the other hand, PT Freeport Indonesia (PTFI) has submitted a request for copper concentrate export relaxation after the export permit expired on December 31, 2024. This request was submitted following a fire incident at a smelter facility located in the Gresik Special Economic Zone (KEK), East Java, which caused the cessation of copper cathode production operations.President Director of PTFI, Tony Wenas, revealed that all smelter operations were still stopped for the repair process. “It’s still fully stopped. If it’s being repaired, it’s impossible to produce,” Tony said at the Coordinating Ministry for Economic Affairs Office on Friday, January 3, 2025.Meanwhile, a senior official at the Coordinating Ministry for the Economy, Elen Setiadi, said that based on PTFI’s report, the smelter could only gradually return to production in July 2025.“Ramp-up is targeted to start in July, but its capacity is only 40 percent of total production,” he said.Tony Wenas ensured that PTFI had conducted a thorough investigation to determine the cause of the fire and identify the damage. The incident occurred at the gas cleaning plant facility, which functions to clean CO2 gas from the concentrate combustion process.“We ensure that all employees are safe and no one was injured. There is no negative impact on public health or the surrounding environment,” Tony said.The gas cleaning plant facility that caught fire plays an important role in converting CO2 gas into sulfuric acid, which is used for the fertilizer industry, nickel HPAL factories, and various other needs. Impact of fire incidentThe temporary closure of the smelter caused PTFI to be unable to meet its production and export targets. This prompted the company to apply for export relaxation in order to maintain operations and meet production obligations while waiting for the smelter ramp-up.PTFI is committed to completing smelter repairs in a timely manner and anticipating that similar incidents do not recur. The government is still evaluating the export relaxation application and will consider its economic impact, especially on PTFI’s contribution to state revenue.

Corporate Secretary of MIND ID, Heri Yusuf, stated that the company will boost its performance this year by investing in strategic projects.The company has allocated an investment of IDR 20.6 trillion for five strategic projects that will drive economic growth both regionally and nationally."2025 is a year full of optimism. We are confident that we can accelerate the downstreaming of Indonesia's mining industry and make a significant contribution to sustainable economic growth towards Indonesia’s Golden Year in 2045," said Heri in an official statement received by Kumparan on Sunday (5/1).Heri explained that these projects include, first, the MIND ID Group’s completion of the Smelter Grade Alumina Refinery (SGAR) construction in Mempawah, West Kalimantan. This smelter is targeted to ramp up production in the first quarter of 2025 and will produce one million tons of alumina per year.Second, MIND ID, through PT Inalum, is planning the construction of a new aluminum smelter in Kuala Tanjung. With an annual production capacity of 600,000 tons of aluminum, this project is expected to strengthen the national aluminum supply chain.Next, the MIND ID Group will continue the development of the nickel project in East Halmahera, which is one of its priorities. This project includes the construction of a Rotary Kiln-Electric Furnace (RKEF) smelter for nickel production, as well as a High-Pressure Acid Leach (HPAL) facility for electric vehicle battery raw materials.The production capacity of the RKEF will be increased to 88,000 tons of nickel, while the HPAL is targeted to reach 55,000 tons of Mixed Hydroxide Precipitate (MHP).Fourth, the MIND ID Group will continue the construction of a copper smelter and Precious Metal Refinery (PMR) in Gresik, East Java. This project is planned to begin operations and ramp up production by the end of the third quarter of 2025.Fifth, the coal infrastructure development project in Tanjung Enim, South Sumatra. MIND ID, through PT Bukit Asam, is forming a strategic partnership with PT Kereta Api Indonesia (KAI) and utilizing river routes to enhance the efficiency of coal transportation from the mining site, with a capacity of 20 million tons per year."We are confident that the downstreaming efforts carried out by MIND ID will have a positive impact on the downstream industrial sector, create new job opportunities, and enhance the nation's economic sovereignty," said Heri.

The prospects for the copper and gold mining industry in Indonesia are predicted to remain bright, providing a significant impact on both the national economy and the surrounding mining areas. Two major mining companies, PT Amman Mineral Internasional Tbk (AMMAN) and PT Freeport Indonesia (PTFI), are key players, making substantial contributions to copper and gold production in the country.As of the third quarter of 2024, AMMAN has produced 335 million pounds of copper and 707,930 ounces of gold. Meanwhile, Freeport Indonesia has reported production of 1.37 billion pounds of copper and 1.43 million ounces of gold.Mining and Energy Analyst, Ferdy Hasiman, stated that both companies have the capital, technology, and skilled human resources to sustain the industry. "These two major producers are highly competent in their field. The future of the copper and gold industry looks very promising, especially since both have established copper concentrate processing plants that provide an extraordinary multiplier effect for the national economy," Ferdy said on Monday (30/12/2024).Furthermore, Ferdy explained that copper plays a key role in the development of the electric vehicle ecosystem, including as a primary material for batteries, contributing up to 10.8% of their components. "By-products of copper also power industries such as fertilizers, cables, and others. This is a strong reason why the future of the copper and gold industry remains very bright," he explained.AMMAN, which is currently developing the Elang mine in West Sumbawa, West Nusa Tenggara (NTB), shows great potential. This site is expected to become one of the largest porphyry copper and gold mines in the world, with a projected increase in reserves of 43% for copper and 48% for gold based on the feasibility study. Production from the Elang mine is expected to begin after the completion of Phase 8 mining at Batu Hijau in 2030.Meanwhile, Freeport Indonesia still holds large reserves at the Kucing Liar underground mine, with a total of 29 billion pounds of copper and 24 million ounces of gold expected until 2041.Ferdy added that the global geopolitical conditions must still be anticipated, as they could affect demand and supply in the industry. "However, overall, the prospects for the copper and gold industry, both nationally and internationally, remain very promising" he said.

Artificial intelligence (AI) technology plays a key role in driving the success of Indonesia’s mineral downstreaming policies. Through the integration of AI and big data, Indonesia has developed an innovative geospatial system that optimizes natural resource management while strengthening its position in the global supply chain.Research conducted by Binus University, titled "Analysis of Big Data in Downstreaming Policies: Indonesia's Strategy and Diplomacy in the Face of Global Dynamics," highlights the benefits of AI in supporting economic diplomacy and downstreaming strategies.One of the Binus University research team members, Dr. Alexander A.S. Gunawan, explained that the use of modern technologies like the Peta Hilirisasi platform (petahilirisasi.id) offers deep insights into strategic commodities such as nickel, bauxite, cobalt, and quartz sand.“AI integration allows us to better understand the distribution patterns and socio-economic impacts of mining activities in more detail. This technology not only supports sustainability but also enhances the efficiency of resource management processes,” said Alexander.The Peta Hilirisasi platform, an AI-based geodashboard, assists the government and industry players in identifying mineral potential, mapping resource distribution, and predicting market trends. With data processed over two decades, covering production records, trade (exports-imports), and geospatial information since the early 2000s, the platform provides evidence-based insights that expedite decision-making in downstreaming.In addition to displaying interactive maps and charts, Peta Hilirisasi also features machine-learning-based market trend modeling that can project the potential added value of a commodity in the global market.Indonesia's downstream diplomacy also greatly benefits from AI integration, especially through the in-depth analysis provided by Peta Hilirisasi. This technology helps the government strengthen its arguments in international negotiations, as geospatial data makes it easier for Indonesia to demonstrate its commitment to domestic processing and sustainability—especially amidst challenges such as the European Union’s WTO lawsuit over the nickel export ban.For instance, when presenting the potential reserves of nickel and bauxite at international forums, Indonesia can provide verified distribution maps and supply forecasts. This approach strengthens the government’s negotiation position when setting export-import policies."According to the Binus study, this data-driven diplomatic approach has attracted the attention of other countries, including the Philippines and South Africa, which are now adopting similar steps. Indonesia is setting an example of how technology can bolster economic strategies and national policies in the face of global competition," said Alexander, who is also the Head of the Data Science Program at Binus University.Alexander also noted that the benefits of AI in business decision-making have been widely discussed in international journals. One such example is the research "Artificial Intelligence for the Real World" by Davenport and Ronanki, which emphasizes that AI provides faster and more accurate insights, enabling organizations to leverage data effectively and improve operational efficiency.Another relevant publication is McKinsey's "The State of AI in Early 2024," which projects that over 65% of organizations across various sectors will begin adopting AI to support strategic decision-making. While this is a global trend, several studies have highlighted similar patterns in Indonesia, particularly in the financial and manufacturing sectors. However, despite the widespread discussion about AI’s role in decision-making, research specifically focusing on the downstreaming of raw materials, diplomacy, and the related legal framework remains limited.Despite its clear advantages, AI-based downstreaming also faces challenges. The processing of minerals like nickel requires environmentally friendly technologies to minimize harmful waste. Increased mining exploitation needs to be balanced with strict regulations and sustainable technologies.“By combining AI with strong regulations, we can mitigate environmental risks while ensuring that mineral downstreaming supports inclusive national economic development,” added Alexander.Through a multidisciplinary approach that integrates technology, law, and international business, Indonesia has created a downstreaming policy that adapts to global dynamics. The Binus study states that this success opens up opportunities for Indonesia not only to become a global manufacturing hub but also a leader in technology-driven resource management."With AI as a key driver, Indonesia’s mineral downstreaming now has a stronger foundation to face global challenges, attract foreign investment, and create new jobs. However, the sustainability of this policy still depends on the synergy between technology, stakeholder collaboration, and adherence to environmental regulations," concluded Alexander.

In 2025, Indonesia will further solidify its position as a key player in the global mineral processing industry, thanks to the world’s largest copper smelter with a single-line facility.Quoted from TIMENEWS.CO.ID via YouTube joziya on Thursday, January 2, 2025, the smelter plant located in Gresik, East Java, has now become one of the nation’s proud achievements. This smelter is not just an industrial facility, but also a symbol of Indonesia’s self-reliance in processing domestic mineral resources.This ambitious project began in October 2021 and has now reached a significant milestone with the commencement of the first copper cathode production on September 23, 2024.The presence of this smelter was inaugurated by the 7th President of the Republic of Indonesia, Joko Widodo, marking Indonesia's commitment to strengthening the downstream industrial sector of its mineral resources.This smelter is capable of refining up to 1.7 million tons of copper concentrate into 600,000 tons of copper cathodes annually, making it one of the largest and most efficient in the world.The choice of Gresik as the location for the smelter was not a random decision. Gresik, located in East Java, is a hub for large industries and has the infrastructure to support smooth operations.In addition, Gresik is home to major companies such as Petrokimia Gresik and Semen Indonesia, which require by-products from the copper smelting process as raw materials for their industries.The copper by-products generated by this smelter are used in the production of mobile phones, electronic devices, and automotive products.Thus, the presence of this smelter plays a role not only in enhancing Indonesia's competitiveness in the global market but also in supporting the needs of domestic industries.This smelter is capable of refining up to 1.7 million tons of copper concentrate into 600,000 tons of copper cathodes annually, making it one of the largest and most efficient in the world.The decision to locate the smelter in Gresik was a strategic one. Situated in East Java, Gresik is a hub for major industries and boasts the infrastructure necessary to ensure smooth operations.With advanced technology, this copper smelter is capable of producing high-quality copper cathodes needed by global industries, including for the production of cables, batteries, and electronics.The presence of this giant copper smelter brings many benefits to Indonesia's economy.In addition to increasing the added value of mineral resources, this smelter also accelerates domestic industrialization, reduces dependence on raw material exports, and creates new job opportunities.The increasingly efficient copper refining process will open new opportunities across various industrial sectors, ranging from telecommunications to heavy equipment manufacturing.However, like other heavy industries, the operation of the copper smelter also faces several challenges. The melting process, which involves extremely high temperatures, requires a high level of caution.Smelter workers must undergo specialized training and always wear personal protective equipment that meets the required standards.In addition, the company must regularly conduct inspections and maintenance on heavy equipment and other supporting facilities to ensure smooth and safe operations.The presence of the copper smelter in Gresik demonstrates that Indonesia is beginning to take serious steps in utilizing its natural resource potential.Instead of exporting raw materials, Indonesia is now striving to process them into high-value products that can enhance competitiveness and create new economic opportunities.This smelter also serves as an example for other mineral processing industries, such as nickel, tin, and gold, which can be processed in a similar way.

PT Wahana Sukses Sejati, an entity under the same control as PT RMK Energy Tbk. (RMKE) and sharing the same management, has announced the acquisition of the coal mining company PT Asia Multi Investama.In an announcement dated December 31, 2024, Wahana Sukses Sejati will acquire all shares owned by PT Titan Infra Energy and some shares held by PT Titan Bumi Raflesia in PT Asia Multi Investama, a coal company with mining operations located in Tebo, South Sumatra."PT Wahana Sukses Sejati intends to take over (a) the majority of shares in the company owned by PT Titan Bumi Raflesia, and (b) all shares in the company owned by PT Titan Infra Energy," stated the company.Meanwhile, tambang.id reports that PT Asia Multi Investama has a concession area of 4,653 hectares, with a license valid until April 30, 2028.According to information from Titan Infra's website, the selling company, which operates part of the coal mines in Tebo, was established in 2005 by Handoko A. Tanuadji.In addition to owning coal mines through PT Bara Anugrah Sejahtera (BAS) and PT Banjarsari Pribumi (BP), the company also runs a coal power generation business and operates a logistics arm using trucks and vessels to support its main business.

Mining in Indonesia continues to thrive, and in 2025, the largest gold mining project in the country will be built in Pahuwato, Gorontalo.The Pani gold mine, with mineral resources of 6.9 million ounces, is under the management of PT Merdeka Copper Gold Tbk (MDKA).Supporting infrastructure such as fuel storage facilities, ports, and electrical substations is also currently under construction.In 2025, PLN (State Electricity Company) will provide the main electricity supply, and the metallurgical laboratory will also begin operations in early 2025.The Chief of External Affairs of PT Merdeka Copper Gold Tbk and President Director of the Pani Gold Project, Boyke Abidin, explained that the construction of the Pani Gold Mine project will continue until the end of 2025.Once the project is completed, the first gold pour at the Gorontalo mine is planned to begin in early 2026.This mega project is expected to employ around 2,000 workers, the majority of whom will be local residents from Pani.The Gorontalo Provincial Government also welcomes the ongoing investments made by PT Pani Gold Project.Many programs have already been implemented, and the hope is that this company will truly bring prosperity and progress to Gorontalo Province.With such vast mineral resources, it is predicted that the Pani Gold Mine’s production could reach up to 300,000 ounces per year.In fact, the peak production is predicted to reach up to 500,000 ounces per year.Boyke further revealed that in January 2025, the company will begin recruitment and training processes.This is being done to ensure that the people of Pahuwato, Gorontalo are ready to work in the mining sector.In fact, many locals have already been involved in mining activities, but some have participated in illegal, unlicensed mining projects, meaning the workers are not familiar with the application of good mining practices.One of the key areas that has not been properly implemented, especially, is safety.Boyke mentioned that every month, there is always a fatal incident occurring at the illegal mines in Gorontalo.In fact, there have even been cases that resulted in fatalities. Therefore, starting in January 2025, all prospective workers participating in the recruitment process will receive training.After being recruited, workers will undergo training to develop the necessary skills for working in the gold mine.This approach will help them become more professional and reduce workplace accidents in the field.

PT Bumi Resources Minerals Tbk (BRMS) is targeting gold production to exceed 55,000 ounces of gold in 2024.Director & Chief Investor Relations Officer of Bumi Resources Minerals, Herwin W. Hidayat, stated that this optimistic target was set after the company achieved double the gold production in the first nine months of 2024 compared to the entire production in 2023. "For the first nine months of 2024 (January-September 2024), we have already recorded gold production of around 45,000 ounces. This is double the gold production for all of 2023, which was around 23,000 ounces," Herwin told Kontan on Friday (December 27, 2024)."We hope that for the full year 2024, or the January-December 2024 period, our gold production will exceed 55,000 ounces," he added.Herwin further explained that there are two key factors driving the improved performance of Bumi Resources Minerals in 2024.First, in terms of production, the increase is due to the full operation of BRMS's second gold plant, which is run by its subsidiary PT Citra Palu Minerals (CPM), which has been operating at full capacity since April 2024. "The higher gold production in 2024 is due to the fact that our second gold plant in Palu is now operating at full capacity" he said.Second, in terms of pricing, Herwin noted that the average selling price (ASP) of the company's gold has increased compared to the ASP in 2023. "The average selling price of gold in 2023 was around USD 1,930 per ounce. We are confident that the average selling price for the full year 2024 will be above USD 2,300 per ounce" he explained.According to Herwin, these two factors make the company optimistic about achieving higher revenue and net profit compared to 2023.Looking ahead to 2025, BRMS is still targeting improved performance due to slightly higher gold grades.

The Ministry of Energy and Mineral Resources (ESDM) has reported that as of Monday (December 30, 2024), national coal production has reached 812.04 million tons.According to data from the Ministry of ESDM's Minerba One Data Indonesia (MODI), of the total coal production, domestic consumption has absorbed 365.70 million tons. Meanwhile, the export realization is 417.57 million tons, against the target of 490 million tons for coal exports this year."Production Realization: 812.04 Million Tons. Production Percentage: 114.37% (of the 2024 production target of 710 million tons)," the MODI data from the Ministry of ESDM stated, as quoted on Monday (December 30, 2024).As is known, the Ministry of Energy and Mineral Resources (ESDM) has approved the coal production plan for 2024 through the Work Plan and Budget (RKAB) of up to 955 million tons."The final figure (for the approval of the coal RKAB) is 955 million tons. Right now, the production realization according to MODI is 675 million tons as of October," explained Surya Herjuna, Director of Coal Business Development at the Directorate General of Mineral and Coal, Ministry of ESDM, when met at the Directorate General of Mineral and Coal Office, Jakarta, Wednesday (October 30, 2024).Surya added that for 2025, the target will still be set around 900 million tons. This is because the government needs to maintain the domestic coal reserves."For the 2025 RKAB, it will still be around 900 million tons, the same as before. It has been stable at that 900 million tons level for three years. However, coal production requires efforts from us to prevent it from reaching its peak. So, we aim to maintain stability at that level" he explained.