Commission VII Appreciates AMMAN Smelter Progress

The Commission VII of the House of Representatives of the Republic of Indonesia (Commission VII DPR RI) visited a copper smelter site owned by PT Amman Mineral Industri (AMIN), one of AMMAN subsidiaries. The working visit on Thursday (6/4) confirmed the state of smelter construction following an independent verification of progress for August 2022 to January 2023, which reported that the project was 51.63% completed.

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AMIN President Director Rachmat Makkasau, who hosted the working visit, listed the latest developments in the smelter construction as of early April 2023. "As seen on the ground today, the installation of piles for the main building has been fully completed. Work has begun on the reinforced concrete for the construction of the main building, which will commence at the end of April 2023. Heavy equipment and basic building components arrived on site at the end of February 2023 and are scheduled for installation in May 2023. We have procured 60 percent of the material we will need. This progress illustrates the company's commitment to building and operating a copper smelter," Rachmat explained.

Head of the Commission VII DPR RI Working Visit Team, Eddy Soeparno, appreciated the progress of the smelter construction. "As a legislative body, Commission VII DPR RI performs a supervisory function. Therefore, by directly observing the progress of the AMIN smelter, we can obtain real data for discussions with the government regarding the completion time of the smelter construction also how this affects the implementation of the ban on mineral-concentrate exports as mandated in the 2020 Minerals and Coal Law No. 3 (Undang-Undang Minerba No.3/2020 or Minerba Law). On the other hand, we understand that the COVID-19 pandemic posed a significant challenge for this project. The decision is in the hands of the government, but we can provide recommendations, specifically regarding the COVID-19 pandemic. We've been pretty impressed with the progress to date. We hope that in the next few months, when the equipment and machines arrive, the progress will be even more significant," said Eddy.

The Minerba Law states that all mining companies must construct a smelter in Indonesia. The government targeted June 2023 to complete the smelter projects, and the cessation of mineral exports will be effective when the smelter begins operation.

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Mineral exports are the primary source of revenue in some regions. AMMAN is the most significant contributor from the mining sector to the regional Gross Regional Domestic Product (GRDP), accounting for 82 percent of the revenue of the Regency of West Sumbawa (KSB) and 17.3 percent for the Province of West Nusa Tenggara (NTB). The Batu Hijau mine employs more than 11,500 workers for mining operations and other development projects. Almost 75 percent of the workforce of AMMAN and business partners are drawn from local communities.?

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"We hope for support from the government regarding the copper concentrate export policy. Due to the force majeure situation, including the COVID-19 pandemic and the energy crisis in Europe, we must have adjusted our construction schedule. Commissioning?of the smelter is targeted for July 2024; meanwhile, smelter operations with a capacity of 60 percent are targeted for December 2024," concluded Rachmat.