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JAKARTA - The metal mineral processing plant (smelter) construction project developed by PT Amman Mineral Nusa Tenggara (AMMAN), until early November 2022 almost reached 50 percent.

The amount of funds that have been disbursed has reached 465 million dollars out of the total investment requirement estimated at US $ 982 million or equivalent to Rp. 14.7 trillion.

Head of Corporate Communications of PT Amman Mineral Nusa Tenggara, Kartika Octaviana said the construction of the smelter was completed in 2024 from the initial projection set by the government in June 2023.

Kartika added, the construction of a smelter in Batu Hijau, West Sumbawa Regency, West Nusa Tenggara, should have been delayed a little from the schedule due to the COVID-19 pandemic.

This creates a number of face-to-face meetings to discuss the specifications of delayed smelter engineering and engineering which will have an impact on the construction work timeline, as well as delays in the negotiation process and financial statement decision.

"As a result, the mobilization of large equipment and equipment that is very important for the construction of smelters, especially from Europe, has been delayed from the initial schedule," Kartika said as quoted by Antara, Monday, November 7.

This year, Kartika continued, the challenges are even greater with the Ukraine-Russia conflict affecting the delay in supply chain, in the form of increasing cost of mobilizing goods and humans, lack of containers, to closing ports.

Considering that almost 50 percent of investment has been disbursed, Kartika continued, it is impossible for the mineral mining company, which is affiliated with PT Medco Energi Internasional Tbk, to withdraw from the smelter project.

"This means that we remain committed to completing the construction of the smelter, especially since the funding is also available," he said.

The Green Stone smelter project is projected to have a production capacity of 222,000 tons of copper cathode. In addition, the smelter will produce 17.8 tons of gold, 54.7 tons of silver and 830.000 sulfate acid.

AMMAN's Head of Social Impact Priyo Pramono added that the six-month verification achievement always exceeded the target and the construction of the camp was completed in October 2022.

"The smelter construction and supporting facilities have also started since July 2022 with the installation of stake poles, including the installation of special water facilities, in the form of desalized water and dem generalization. The mobilization of contractors to the construction area has also been carried out," he said.

Priyo added that the purchase order for the long lead equipment has been executed. Moreover, there has been a signing of an agreement to finance syndicates from banks and companies that have processed recruitment in stages according to the construction stage, in collaboration with the West Sumbawa Regency Government (KSB) and NTB.


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