Take Note! Total Copper Export Reaches 2 Million Tons in 2021

28 January 2022

The Ministry of Energy and Mineral Resources (ESDM) noted that the number of copper exports in 2021 reached 2 million tons, with domestic consumption reaching 1.1 million tons. Special Staff of the Minister of Energy and Mineral Resources for the Acceleration of Mineral and Coal Ecosystem Management (Minerba), Irwandy Arif said that copper ore reserves in Indonesia reached 3.2 billion tons which is predicted to last until 2044.

As is known, currently the largest copper ore or copper concentrate ore miners in Indonesia are PT Freeport Indonesia (PTFI) and PT Amman Mineral Nusa Tenggara (AMNT). In this way, these two companies actively contribute to the export of copper ore. "Exports of 2 million tons of copper with consumption of 1.1 million tons, if the export ban will result in an accumulation of 900 thousand tons," Irwandy explained to CNBC Indonesia, on Friday, 28th January 2022. However, Irwandy said that the accumulation of 900 thousand tons of copper ore would be absorbed by the presence of the mineral refining and processing (smelter) facility owned by PT Freeport Indonesia and PT Amman Mineral Nusa Tenggara. "If this is in accordance with development, there will be no problem absorbing it," said Irwandy.

As is known, PT Freeport Indonesia is building a smelter in Gresik, East Java Province with a smelter capacity of 1.7 million tons of copper concentrate. Meanwhile, PT Amman Mineral Nusa Tenggara, which is part of the Medco Group, will build a smelter with a capacity of 900 thousand tons. The two smelters are planned to operate in 2023. As is known, the completion of the smelter projects of the two companies coincided with the ban on raw mineral exports in accordance with the mandate of Law Number 3 of 2020 concerning Mineral and Coal Mining (Minerba). If the realization of the construction of the Freeport Indonesia and Amman Mineral smelter projects is not achieved in 2023, then according to the provisions, the company's copper concentrate ore export activities will stop.

As is also known, Indonesian President Joko Widodo (Jokowi) has repeatedly emphasized his anger in the mining world, specifically related to the export of raw minerals. Jokowi said that Indonesia had been exporting raw goods for hundreds of years. For Jokowi, the export activities of raw minerals that have occurred so far have greatly benefited other countries. This is because the country can process raw materials and create jobs for many people. Meanwhile, Indonesia itself is still lulled by exports of raw minerals so that the added value obtained is very minimal. Therefore, to get its own profit, the government will firmly prohibit the export of raw minerals, both nickel, bauxite in 2022 and copper in 2023, and tin in 2024.

 

http://www.cnbcindonesia.com/news/20220128143022-4-311279/catat-jumlah-ekspor-tembaga-capai-2-juta-ton-di-2021

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