What's Happening?
Amman Mineral Internasional, a major copper miner in Indonesia, has received backing from the country's energy ministry to export 480,000 dry metric tons of copper concentrate. This recommendation is valid for six months starting October 31, 2025. The
company is seeking an export permit from the trade ministry, which has not yet been applied for. This development comes after Indonesia's mid-2023 ban on raw mineral exports to promote domestic processing. Amman was initially allowed to export until December 2024, by which time it was expected to have a smelter operational. However, the smelter faced operational halts in July and August due to damage, with repairs expected to conclude in the first half of 2026. The smelter is currently operating partially.
Why It's Important?
The backing from the energy ministry is crucial for Amman Mineral as it allows the company to manage its concentrate storage capacity and continue mining operations. This is significant in the context of Indonesia's broader strategy to enhance domestic mineral processing capabilities. The temporary operational issues at the smelter highlight the challenges faced by the industry in meeting government mandates. The ability to export during this period provides a financial lifeline to Amman Mineral, potentially stabilizing its operations and workforce. The situation underscores the tension between national policy goals and the operational realities of the mining sector.
What's Next?
Amman Mineral is expected to apply for the export permit from the trade ministry soon. The completion of smelter repairs by mid-2026 will be a critical milestone for the company. The Indonesian government may continue to monitor and adjust its policies to balance domestic processing goals with the economic needs of mining companies. Stakeholders, including local communities and industry players, will be watching closely to see how these developments impact the broader mining sector in Indonesia.
