Indonesia's Amman Mineral to cut copper concentrate exports, boost local sales

Indonesian copper miner Amman Mineral Nusa Tenggara said on Tuesday it expects to export about 236,000 tonnes of copper concentrate in 2019, below its export quota, as it increases shipments to a local smelter.

Amman multiply copper concentrate supply to local smelter

New smelter on track for late 2023 operation

Adds details on new smelter

JAKARTA, June 18 (Reuters) - Indonesian copper miner Amman Mineral Nusa Tenggara said on Tuesday it expects to export about 236,000 tonnes of copper concentrate in 2019, below its export quota, as it increases shipments to a local smelter.

"This year Amman will supply more copper concentrates to Gresik smelter than last year. Amman will supply concentrates to Gresik of about 100,000 tonnes versus about 20,000 tonnes last year," Chief Executive Rachmat Makkasau said.

Makassau was referring to a smelting plant operated by PT Smelting, a unit of Mitsubishi Materials 5711.T, located in the regency of Gresik near the city of Surabaya in eastern Java.

Amman Mineral is expected to produce 336,000 tonnes of copper concentrate this year, the bulk of which will be exported to the Philippines, Japan, and South Korea.

Meanwhile, the company is currently conducting the front-end engineering design (FEED) for its new smelter near the Batu Hijau copper mine in the province of West Nusa Tenggara, on track for the start of construction in mid-2020, Makassau said.

The new plant is scheduled to start full operations from the end of 2023 with input capacity of 1.3 million tonnes of copper concentrate.

The facility is expected to have production capacity of 300,000 tonnes of copper cathode and 2,000 tonnes of anode slime annually, Makassau added.

Indonesian miners are being pushed to build smelters as the government tries to develop a downstream metals industry. Miners are given ore exports quota based on progress on their smelter development.

(Reporting by Wilda Asmarini; writing by Tabita Diela and Fransiska Nangoy; editing by Richard Pullin and Christian Schmollinger)

((Fransiska.Nangoy@thomsonreuters.com; +62 21 2992 7610; Reuters Messaging: fransiska.nangoy.thomsonreuters.com@reuters.net))

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