2012 Minerals Yearbook
2012 Minerals Yearbook
2012 Minerals Yearbook
Indonesia is rich in reserves of copper and gold. In addition, of processing and (or) refining facilities or infrastructure
the country has abundant mineral resources, such as coal, (Surowidjojo, 2012b).
natural gas, nickel, tin, and, in smaller amounts, bauxite, The regulation to restrict ore exports went into effect
petroleum, and silver. Indonesias tin output was ranked second on May 1, 2012, beginning with bauxite and certain other
in the world after China (Carlin, 2013). The country was ranked unprocessed metal ores. Tin ore exports were banned in 2010,
among the worlds 5 leading producers of copper and nickel and PT Timah had built smelters and exported refined tin. It was
and among the worlds top 10 producers of gold and natural estimated that the export ban that began in May could result in a
gas. Indonesia was one of the worlds leading exporters of 75% decrease in the exports of bauxite and nickel ore (together)
bituminous coal, liquefied natural gas (LNG), and refined tin for the year (Yieh Corp., 2012).
(Ministry of Industry, 2013, p. 9). On May 6, the Government also imposed a 20% duty on
14 mineral ore exports that were not yet subject to the export
Minerals in the National Economy ban, including copper, gold, and nickel. Later in the year, the list
was extended to include 21 other mineral commodities. In total,
Indonesias real gross domestic product (GDP) growth 65 specific types of mineral ores and concentrates were subject
was 6.2% in 2012. The countrys industrial output accounted to the duty. The export duty does not apply to coal. The duty is
for 23.9% of its total GDP. The value of mineral commodity designed to increase revenues from the mining sector and is part
production accounted for 11.8% of the GDP. The countrys of the Governments effort to push mining companies to process
mineral industryprimarily the cement, metal mining, and oil raw ore domestically and export higher-value finished metals
and gas industriescontributed mostly to domestic industrial (Mining Weekly, 2012).
production. The industrial sector grew by 5.7% in 2012. The Under additional new rules that went into effect in 2012,
fertilizer industry and the mining and quarrying industries grew the Government requires foreign companies to reduce their
by 10.3% and 1.5%, respectively, during the year. The cement stakes in mines by the 10th year of production so that domestic
and iron and steel industries increased by 7.9% and 6.5%, ownership is at least 51%. The move is part of a global trend
respectively, whereas the oil and gas industry registered negative toward increased resource nationalization but is likely to
growth of 2.7% (Ministry of Industry, 2013, p. 9, 5051). hinder new investments in mining (Thaher and Chatterjee,
2012). Meanwhile, the Government was renegotiating existing
Government Policies and Programs contracts with Freeport McMoRan Copper & Gold Inc. and
Newmont Mining Corp., both of the United States. Freeport
In 2012, the Government established a team to evaluate the McMoRan owned 90.64% of the joint venture that operated the
adjustment of contracts of work (COW) and coal contracts Grasberg copper and gold mine and the Government owned
of work (CCOW), as required by the 2009 Law on Mineral 9.36%; the company agreed to divest a 9.36% interest to a
and Coal Mining. In addition, the evaluation team was to potential acquirer, such as the Province of Papua. Rio Tinto plc
determine the Governments position on mining work areas and of the United Kingdom was expected to retain the rights to 40%
Government revenue and to enforce COW and CCOW holders of production from the Grasberg Mine from 2021. Newmont
obligations regarding processing and refining of minerals and Mining had already divested some of its interest in PT Newmont
coal. Funding of the team would come from the Ministry of Nusa Tenggara in 2009 and owned only a minority stake in
Energy and Mineral Resources (Surowidjojo, 2012a). 2012. Newcrest Mining Ltd. of Australia, which owned an
Regulation No. 7 of 2012 on increasing the added value 82.5% stake in the Gosowong Mine [state-owned PT Antam Tbk
of minerals through processing and refining was passed on (Antam) owned 17.5%], would not be affected until its existing
February 6, with the aim of developing the countrys domestic COW runs out in 2029. Kingsrose Mining Ltd. of Australia under
mineral processing industry and deriving more revenue from its its existing COW was supposed to start selling down its 85%
mineral sector. Value-added minerals affected by the regulation stake in PT Natarang Mining to 49% beginning in 2012. Intrepid
include metals, nonmetallic minerals, coal, and stone. The Mines Ltd., also of Australia, which had a mining concession for
regulation sets out the minimum levels of processing that the the Tujuh Bukit copper-gold-silver mine in East Java Province,
minerals must be subjected to prior to export and prohibits might also be affected (Australias Paydirt, 2012a).
the export of unprocessed minerals (minerals in raw form).
This ban on unprocessed mineral exports was to be imposed Production
gradually, beginning in May 2012, with full implementation
in 2014. The regulation provides for cooperation among the In 2012, production of bauxite decreased by an estimated
holders of mining permits and other parties with respect to the 27.5% owing to Governments restriction on bauxite exports,
sale and purchase of ores or concentrates, activities to undertake which led to a cutback in output. Production of mined copper
processing and (or) refining, and the joint development decreased by 33.7% owing to the lower grade of the ore mined
TABLE 2
INDONESIA: STRUCTURE OF THE MINERAL INDUSTRY IN 2012
Annual
Commodity Major operating companies and major equity owners Locations of main facilities capacitye
Aluminum:
Bauxite PT Antam Tbk (Government, 65%) Kijang, Bintan Island, Riau 1,300
Metal PT Indonesia Asahan Aluminum (Nippon Asahan Aluminum Co. Kual Tanjun, North Sumatra 250
Ltd., 59%, and Government, 41%)
Cement PT Indocement Tunggal Prakarsa Tbk Cirebon and Citeureup, West Java; Tarjun, 18,600
South Kalimantan
Do. PT Semen Andalas Indonesia (Lafarge S.A., 99%) Besar, Aceh 1,400
Do. do. Lhok, Aceh 1,600
Do. PT Semen Baturaja Baturaja-Ogan Komering Ulu, South Sumatra 1,250
Do. PT Semen Bosowa Maros Kabupaten Maros, Sulawesi Selatan 1,800
Do. PT Holcim Tbk Narogong, East Java 9,700
Do. PT Semen Gresik Tbk Gresik and Tuban, East Java 10,700
Do. PT Semen Padang West Sumatra 5,440
Do. PT Semen Tonasa Pangkep and Tonasa, South Sulawesi 6,000
Coal PT Adaro Indonesia (New Hope Corp., 50%; PT Asminco Bara Paringin and Tutupan, South Kalimantan 35,000
Utama, 40%; Mission Energy, 10%)
Do. PT Arutmin Indonesia (PT Bumi Resources Tbk, 80%, and Mulia, Senakin, and Satui, South Kalimantan, and 20,000
Bakrie Group, 20%) Asam-Asam, East Kalimantan
Do. PT Berau Coal (PT United Tractor, 60%; PT Armadian, 30%; Berau, East Kalimantan 13,000
Nissho Iwai, 10%)
Do. PT Kaltim Prima Coal Co. (PT Bumi Resources Tbk, 100%) East Kutai Regency, East Kalimantan 36,000
Do. PT Kideco Jaya Agung (Samtan Co. Ltd., 100%) Pasir, East Kalimantan 12,000
Do. PT Tambang Batubara Bukit Asam (state-owned) Tanjung Enim and Ombilin, South Sumatra 19,000
Do. United Tractors Central Kalimantan and East Kalimantan 6,500
See footnotes at end of table.
Annual
Commodity Major operating companies and major equity owners Locations of main facilities capacitye
Copper:
Concentrate PT Freeport Indonesia Co. (Freeport-McMoRan Copper & Gold Ertsberg and Grasberg, Papua 800
Inc., 81.28%; Government, 9.36%; others, 9.36%)
Do. PT Newmont Nusa Tenggara (Newmont Mining Corp., Sumbawa Island, West Nusa Tenggara 300
45%; Sumitomo Corp., 35%; PT Pukuafu Indah, 20%)
Metal PT Smelting Co. (Mitsubishi Materials Corp., 60.5%; PT Gresik, East Java 270
Freeport Indonesia Co., 25%; others, 14.5%)
Gas:
Natural millon cubic ExxonMobil Oil Indonesia Arun and Aceh, North Sumatra 48
meters per day
Do. do. Roy M. Huffington (subsidiary of HUFFCO Group) Badak, East Kalimantan 28
Do. do. Total Indonesie Offshore East Kalimantan 59
Liquefied PT Arun LNG Co. Ltd. (Government, 55%; Mobil Oil Co., 30%; Balang Lancang amd Aceh, North Sumatra 12,500
Japan Indonesia LNG Co., 15%)
Do. PT Badak LNG Co. Ltd. (Government, 55%; HUFFCO Group, Bontang, East Kalimantan 22,500
30%; Japan Indonesia LNG Co., 15%)
Coalbed methane Ephindo Energy Pvt. Ltd. (PT Pertamina, 52%; Dart Energy Ltd., Sangatta, East Kalimantan 22,600
24%)
Gold metric tons Aurora Gold Ltd. (100%) Balikpapan, Central Kalimantan 60
Do. do. Archipelago Resources plc (95%) Tok Tindung, North Sulawesi 5
Do. do. G-Resurces Group Ltd. Martabe, North Sumatra 8
Do. do. PT Antam Tbk (Government, 65%) Bogor, West Java 3
Do. do. PT Freeport Indonesia Co. (Freeport-McMoRan Copper & Gold Ertsberg and Grasberg, Papua 110
Inc., 81.28%; Government, 9.36%; others, 9.36%)
Do. do. PT Indo Muro Kencana (Straits Resources Ltd., 100%) Balikpapan, Central Kalimantan 4
Do. do. PT Newmont Nusa Tenggara (Newmont Mining Corp., Sumbawa Island, West Nusa Tenggara 16
45%; Sumitomo Corp., 35%; PT Pukuafu Indah, 20%)
Do. do. PT Nusa Halmahera (PT Aneka Tambang Tbk, 17.5%, and Halmahera Island, Maluku 24
PT Newcrest Mining Ltd., 82.5%)
Do. do. PT Prima Lirang Mining (Billiton BV, 90%, Lerokis, Wetar Island 3
and PT Prima Maluku Indah, 10%)
Do. do. Sumatra Copper & Gold plc Tembang, West Sumatra NA
Nickel:
Ferronickel metric tons PT Antam Tbk (Government, 65%) Pomalaa, South Sulawesi 100
In ore PT Antam Tbk (Government, 65%) Pomalaa, South Sulawesi, and on Gebe Island 80
Do. PT Vale Indonesia Tbk (Vale Canada Ltd., 59%; Soroako, South Sulawesi 70
Sumitomo Metal Mining Co. Ltd., 20%; others, 21%)
In matte PT Antam Tbk (Government, 65%) Pomalaa, South Sulawesi 24
Do. PT Vale Indonesia Tbk (Vale Canada Ltd., 59%; Soroako, South Sulawesi 68
Sumitomo Metal Mining Co. Ltd., 20%; others, 21%)
Nickel-iron, ore PT Yiwan Mining (China Nickel Resources Holdings Mekarsari, West Java 3,000
Co. Ltd., 80%)
Nitrogen PT Asean-Aceh Fertilizer (Government, 60%, and other members Lhokseumawe, North Sumatra 506
of the Association of Southeast Asian Nations, 40%)
Do. PT Pupuk Iskandar Muda (Government, 100%) do. 506
Do. PT Pupuk Kalimantan Timur (Government, 100%) Bontang, East Kalimantan 1,850
Do. PT Pupuk Kujang Cikampek, West Java 330
Do. PT Pupuk Sriwijawa (Government, 100%) Palembang, South Sumatra 1,440
See footnotes at end of table.
Annual
Commodity Major operating companies and major equity owners Locations of main facilities capacitye
Petroleum:
Crude thousand BP Indonesia (a subsidiary of BP p.l.c.) Arjuna and Arimbi, offshore West Java 170
barrels per day
Do. do. China National Offshore Oil Co. Offshore southeastern Sumatra 100
Do. do. Maxus Southeast Asia Ltd. (subsidiary of Maxus Energy) Cinta and Rama, offshore southeast Sumatra 95
Do. do. PT Pertamina (Government, 100%) Jatibarang, West Java, and Bunyu, offshore East 80
Kalimantan
Do. do. PT Caltex Pacific Indonesia (Texaco Inc., 50%, and Minas, Duri, and Bangko, central Sumatra 700
Chevron Corp., 50%)
Do do. Total Indonesie (subsidiary of Total S.A.) Handi and Bakapai onshore and offshore East 180
Kalimantan
Refined do. PT Pertamina (Government, 100%) 6 locations 1,047
Silver PT Antam Tbk (Government, 65%) Bogor, West Java 25
Do. PT Freeport Indonesia Co. (Freeport-McMoRan Copper & Gold Ertsberg and Grasberg, Papua 220
Inc., 81.28%; Government, 9.36%; others, 9.36%)
Do. PT Kelian Equatorial Mining (Rio Tinto Group, 90%, and 180 kilometers west of Samarinda 10
PT Harita Jaya Raya, 10%)
Steel, crude PT Ispat Indo Sidoarjo, Surabaya 700
Do. PT Krakatau Steel (Government, 100%) Cilegon, West Java 2,400
Do. PT Komatsu Indonesia Tbk Jakarta 8
Do. PT Wahana Garuda Lestari Pulogadung, Jakarta 410
Tin:
In ore PT Koba Tin (Malaysia Smelting Corp., 75%, and PT Tambang Koba, Bangka Island 25
Timah Tbk, 25%)
Do. PT Tambang Timah Tbk (Government, 65%) Onshore and offshore islands of Bangka, 60
Belitung, and Singkep
Metal Mentok Tin Smelter (PT Tambang Timah Tbk) Mentok, Bangka Island, South Sumatra 68
Do. Koba Tin Smelter (PT Koba Tin) Koba, Bangka Island, South Sumatra 25
e
Estimated; estimated data are rounded to no more than three significant digits. Do., do. Ditto. NA Not available.