PT Amman Mineral Internasional, an Indonesian copper miner, announced on Wednesday that in addition to its 2024 production target of 833,000 metric tons of copper concentrate (a 54% increase year-over-year), it also plans to request a delay in the copper export ban.
According to Reuters, Amman’s CEO stated on Wednesday that the company is negotiating with the Indonesian government to allow it to continue exporting copper concentrate after May 31, while expecting a surge in production this year.
Indonesia will ban the export of copper concentrate from June, a policy aimed at forcing miners to invest in smelting facilities within the country. The Indonesian government wants miners to sell higher-value products to increase export revenues.
Before Amman’s appeal to relax the export ban, Freeport Indonesia, a copper miner, made a similar request. “We are optimistic about the government easing export restrictions, as limiting our exports benefits no one since the government also relies on Freeport and our taxes,” said Amman CEO Alexander Ramlie at a conference attended by media and investors. Freeport Indonesia, controlled by mining giant Freeport McMoran, argued that its smelter could not process all the output by May and warned that it might have to reduce production if the Indonesian government refused to grant leniency.
Naveen Chandralal, the smelter manager at Amman, said that the construction of the smelter would be 90% complete by May, finish later in the second quarter, and reach full production in the first quarter of 2025. However, Ramlie mentioned that the company is expanding its storage facilities to continue mining in case the export ban remains in place.
Amman executives stated that due to the uncertainty of Indonesia’s export policy, they could not provide sales targets. The company’s production and sales performance in 2023 were affected by high rainfall at the beginning of the year, resulting in a 32% decrease in both metrics. Last year, the company produced 541,893 metric tons of copper concentrate and sold 548,313 metric tons.
The Indonesian copper export ban was initially set to take effect in June 2023, but the Indonesian government allowed Freeport and Amman more time to comply with the ban to help them finance the construction of smelters.
[Source – 上海有色网] 印尼铜矿商Amman要求推迟铜精矿出口禁令 https://news.smm.cn/news/102685133
