(Minews) - Indonesia wants to have 63 processing and refining plants for minerals such as copper, lead, bauxite, iron, nickel and manganese by 2017, a senior government official said.
This is a large increase from the ten facilities in the country at the end of 2013, Hersonyo Prio Wibowo, deputy director for mineral production supervision from the ministry of energy and mineral resources, told delegates at the 3rd Annual Indonesia Mining conference in Bali on Monday February 17.
Indonesia will have four copper smelters by 2017 and one bullion lead plant by 2016, he said during a presentation.
Currently, there is only one copper smelter in Indonesia, which is PT Indosmelt’s Gresik, and no bullion lead smelters.
PT Nusantara Smelting, PT Indosmelt and PT Indovasi Mineral Indonesia have plans to build copper smelters in the country.
Antam has held informal talks with Freeport McMoRan Copper & Gold and Newmont Mining about building a copper smelter in Indonesia, Metal Bulletin understands.
Export ban
The Indonesian ore export ban kicked in at midnight on January 12 to push mining companies to build downstream plants, and the government has since come up with minimum ore processing requirements and a progressive export duty.
All exports are at a standstill and only six companies have applied for recommendation letters in order to be issued with export licences, which are expected to be granted by March.
“More than 253 companies have already signed integrity pacts for processing and refining facilities [but] only 178 companies have seriously committed to build processing and purification facilities,” Wibowo said.
Southeast Asia’s largest economy is expected to have four smeltergrade alumina plants by 2016, and five by 2017, according to Wibowo.
Building plans
There will be only one chemical-grade alumina plant in the foreseeable future, according to the official.
Indonesian state-owned mining conglomerate PT Antam’s 300,000-tpy, chemical-grade alumina plant is expected to start production in April this year.
In terms of iron ore processing, there will be one pig iron plant by 2015, and estimates suggest an increase to three plants by 2016 and four by 2017.
The country currently has two sponge iron processing plants, and is expected to have an additional plant by 2016, while two further billet plants are expected to be added to the current single facility by 2016.
The government expects to have three ferro-nickel plants in the country by the end of 2014, eight by 2015 and 15 by 2016.
It also sees two nickel pig iron plants being built by 2015 and one sponge nickel plant by 2015 and two such plants by 2016.
There is one existing nickel matte plant and the existing silicomanganese plant is expected to continue producing in the near-term.
A second ferro-manganese plant is expected to be built by 2016.
