West Nusa Tenggara, Wartatambang.com — President Joko Widodo (Jokowi) has highlighted the potential economic benefits of PT Amman Mineral Nusa Tenggara's (AMNT) copper smelter and precious metal refining facility in West Sumbawa, West Nusa Tenggara. This facility is expected to significantly contribute to both regional and national economic growth.

Speaking at the inauguration ceremony, Jokowi expressed optimism that the project would increase the regional gross domestic product (GDP) of West Nusa Tenggara, with direct benefits extending to West Sumbawa and, ultimately, the broader Indonesian population.

Indonesia’s Position in Global Copper Production

Jokowi underscored that the establishment of smelters to process copper concentrate into pure metal is vital for Indonesia, a country with some of the world’s largest copper reserves. By processing raw materials domestically, the country can maximize the value of its resources and reduce dependence on raw material exports.

He emphasized the drawbacks of exporting raw copper concentrate, noting that such practices primarily benefit countries with smelter facilities. In contrast, Indonesia, as the resource owner, misses out on the added value. The president commended PT Amman for its bold initiative in building the smelter, describing it as a critical step toward boosting the country's economic potential.

"If we only export raw concentrate, we lose the opportunity to gain added value from our resources. The real benefits go to countries that have processing facilities. Therefore, PT Amman’s decision to build this smelter deserves high appreciation," Jokowi remarked.

A Milestone National Project

Constructed in just 14 months, the AMNT copper smelter and precious metal refinery is regarded as one of the fastest mega-project developments globally for projects of its scale. This facility has been identified as a National Strategic Project, with a construction investment of Rp21 trillion (approximately USD1.38 billion).

Located approximately 1.5 kilometers from Benete Port, the smelter spans a vast area of 272 hectares. Utilizing advanced double flash smelting technology—which combines flash smelting and converting processes—the facility boasts an annual processing capacity of 900 thousand tons of copper concentrate. This raw material is sourced from two of Indonesia’s major mines: the Batu Hijau mine and the Elang mine. Additionally, the facility processes 139 thousand tons of silica flux annually.

Impressive Production Capacities

The copper smelter produces 220 thousand tons per year of LME Grade A copper cathode, with a purity of 99.99 percent. This high-quality copper is crucial for various industries, including electronics and construction. Alongside this, the facility produces 830 thousand tons of sulfuric acid annually, with a purity of 98.50 percent, which is widely used in industrial processes.

The precious metal refining component of the facility produces several valuable outputs. These include 18 tons of gold bars per year, with a purity of 99.99 percent; 55 tons of silver bars annually, at 99.95 percent purity; and 77 tons of selenium annually, with 99.9 percent purity. Additionally, 987 tons of anode mud are refined each year, highlighting the facility’s capacity for high-value outputs.

Supporting Downstream Industries

Minister of Energy and Mineral Resources Bahlil Lahadalia praised PT Amman for spearheading efforts to develop Indonesia’s downstream copper industry. He described the facility as marking the beginning of a long journey toward strengthening Indonesia’s position in the global mining manufacturing industry.

Bahlil called on other national companies holding mining permits to follow PT Amman’s example by constructing smelter and refining facilities. Such measures are essential for bolstering Indonesia’s mining sector competitiveness on the international stage.

Economic and Environmental Significance

Jokowi expressed hope that the smelter would not only drive economic growth but also serve as a model for sustainable industrial development. By adding value to Indonesia's raw materials and reducing reliance on exports, the facility positions the nation as a global leader in copper processing.

This milestone underscores the Indonesian government’s commitment to transforming its natural resource sector, ensuring that the benefits of the country’s wealth are maximized domestically. The copper smelter is expected to not only boost local economies in West Nusa Tenggara but also strengthen Indonesia's overall industrial capabilities, creating new opportunities for innovation, employment, and economic resilience.

In conclusion, the AMNT smelter represents a critical step in Indonesia’s journey toward economic self-reliance and global competitiveness. By fostering sustainable practices and prioritizing added value, this project has the potential to set a benchmark for future industrial initiatives in the country. (*)