The prospects for the copper and gold mining industry in Indonesia are predicted to remain bright, providing a significant impact on both the national economy and the surrounding mining areas. Two major mining companies, PT Amman Mineral Internasional Tbk (AMMAN) and PT Freeport Indonesia (PTFI), are key players, making substantial contributions to copper and gold production in the country.
As of the third quarter of 2024, AMMAN has produced 335 million pounds of copper and 707,930 ounces of gold. Meanwhile, Freeport Indonesia has reported production of 1.37 billion pounds of copper and 1.43 million ounces of gold.
Mining and Energy Analyst, Ferdy Hasiman, stated that both companies have the capital, technology, and skilled human resources to sustain the industry. "These two major producers are highly competent in their field. The future of the copper and gold industry looks very promising, especially since both have established copper concentrate processing plants that provide an extraordinary multiplier effect for the national economy," Ferdy said on Monday (30/12/2024).
Furthermore, Ferdy explained that copper plays a key role in the development of the electric vehicle ecosystem, including as a primary material for batteries, contributing up to 10.8% of their components. "By-products of copper also power industries such as fertilizers, cables, and others. This is a strong reason why the future of the copper and gold industry remains very bright," he explained.
AMMAN, which is currently developing the Elang mine in West Sumbawa, West Nusa Tenggara (NTB), shows great potential. This site is expected to become one of the largest porphyry copper and gold mines in the world, with a projected increase in reserves of 43% for copper and 48% for gold based on the feasibility study. Production from the Elang mine is expected to begin after the completion of Phase 8 mining at Batu Hijau in 2030.
Meanwhile, Freeport Indonesia still holds large reserves at the Kucing Liar underground mine, with a total of 29 billion pounds of copper and 24 million ounces of gold expected until 2041.
Ferdy added that the global geopolitical conditions must still be anticipated, as they could affect demand and supply in the industry. "However, overall, the prospects for the copper and gold industry, both nationally and internationally, remain very promising" he said.
