Jakarta, LOGIC.co.id – Indonesia is set to achieve a historic milestone in its mining industry with the capability to produce up to 70 tons of gold bars annually. This achievement is made possible through the Precious Metal Refinery (PMR) facility owned by PT Freeport Indonesia (PTFI), located at the Manyar Smelter in Gresik. The facility is part of a strategic project developed by MIND ID, Indonesia’s state-owned mining holding company.
Hendi Prio Santoso, President Director of MIND ID, highlighted that previously, Indonesia was unable to utilize the valuable by-products contained in the copper concentrate exported abroad. However, with the completion of the copper smelter and PMR, this has become feasible.
“In the past, when PTFI exported concentrate, the by-products could not be processed domestically. Now, with the Manyar Smelter and this precious metal refinery, Indonesia is ready to produce its own gold, with a capacity of 50-70 tons per year,” Hendi stated during a meeting with Commission XII of the Indonesian Parliament on Wednesday (December 4, 2024).
Gold Production and Other Precious Metals
Tony Wenas, President Director of PTFI, added that the facility will not only produce gold but also other valuable metals, including:
- Silver: Over 200 tons annually.
- Platinum: Approximately 30 kilograms annually.
- Palladium: Around 375 kilograms annually.
- Additional minerals: Selenium and bismuth.
“The gold production depends on the ore grade being mined, but it averages 50-60 tons per year. Additionally, there is significant potential from silver, platinum, palladium, and other by-product minerals,” Tony explained during the signing event for a gold bullion sales agreement in Jakarta.
Agreement Between Antam and PTFI
To strengthen the domestic industry, PT Aneka Tambang Tbk (Antam) has officially agreed to purchase 30 tons of gold bullion from the Manyar Smelter. This deal is expected to save the country hundreds of trillions of rupiah in foreign exchange reserves.
“We have reached an agreement with Antam for an offtake of around 30 tons of gold. If Antam requires more, we are ready to support them,” Tony stated. This agreement highlights the strong synergy between two major entities to maximize the value of domestic minerals.
A Significant Step Towards Mining Independence
The construction of the PMR facility represents PTFI’s tangible efforts to enhance the value-added processing of domestic minerals. Previously, by-products from PTFI’s copper concentrate were processed abroad. Now, Indonesia can independently produce precious metals, significantly increasing state revenue from the mining sector.
This facility also strengthens Indonesia’s position as a key player in the global metals market. With substantial copper reserves and the support of advanced technology and investments, the production of gold and other valuable metals in Gresik is expected to have a broad economic impact.
Major Economic Benefits
The ability to process minerals domestically not only boosts state revenue but also creates new jobs, saves foreign exchange, and strengthens the competitiveness of the domestic industry. Producing valuable metals locally opens opportunities for Indonesia to become a major player in the global market, particularly in gold and precious metal trading.
The construction of the PMR facility at the Manyar Smelter is a significant achievement for Indonesia’s mining industry. With the capacity to produce up to 70 tons of gold annually, along with various other precious metals, the facility not only promotes industrial independence but also contributes significantly to the national economy.
