Copper Added Value Must Give Benefit to State

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 304.Pers/04/SJI/2020

Date: 15 October 2020

Copper Added Value Must Give Benefit to State

Director General of Mineral and Coal of Ministry of Energy and Mineral Resources (EMR) Ridwan Djamaluddin emphasized that the increase in copper added value through downstream processing must give significant benefit to Indonesia and Indonesians. This can be realized through a balance in the financial mindset of the government and corporations.

"We want this long process to add copper value bring positive effects to our country as much as possible, by increasing state revenue, opening job opportunities, and developing (energy) self-sufficiency," said Ridwan in a webinar titled 'The Future of Indonesia's Copper Downstream Processing' on Wednesday (14/10).

The development of copper smelters, according to Ridwan, is not an easy attempt for businesses because copper smelters need huge investment. "Every cent spent (by corporations) must be calculated; every cent not earned by the government must be calculated, too. It's the right of the Indonesian people. We're trying to find this balance," Ridwan emphasized.

Law Number 3 of 2020 on Mineral and Coal Mining has reinforced and confirmed that copper downstream processing is a must. "(It must be) Done both by the government who is imposed by the law and business players so that the policy will be implemented well," explained Ridwan.

Indonesia has two copper smelters, one of which is run by PT Smelting, a joint venture between PT Freeport Indonesia and Mitsubishi. This smelter was built in 1996 in Gresik, East Java Province. It has a production capacity of 1 million tonne of copper concentrate per year and produces 300 thousand tonnes of copper cathodes annually.

Freeport is currently building the second copper smelter in Java Integrated Industrial and Port Estate (JIIPE), which is also in Gresik. The plant has a production capacity of 2 million tonnes of copper concentrate per year. The total investment needed is estimated at USD 3 billion.

Based on the Geological Agency's identification, Indonesia is ranked in the top 7 countries with the largest copper reserves in the world, contributing about 3% of global copper reserves. The country has a total copper ore resources of 15,083 million tonnes and copper ore reserves 2,632 million tonnes, while the total copper metal resources 48.98 million tonnes and reserves 23.79 million tonnes.

"The provinces with the largest copper resources are West Nusa Tenggara, Central Kalimantan, East Java, Aceh, and Papua," said Head of Geological Agency, Eko Budi Lelono. (IY)

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