|Title:||Indonesia nickel, gold, and bauxite reserves in metric tons and percent change for 2009 and 2010|
|Source:||Indonesian Commercial Newsletter|
Start of full article - but without data
Ore reserves and mineral resources ('XXX wmt)
Commodities Ores Change (%)
Saprolite Nickel XXX,XXX XXX,XXX -XX Limonite Nickel XXX,XXX XXX,XXX -XX Gold X,XXX X,XXX X Bauxite XXX,XXX XXX,XXX X
Source : Antam
The performance of Indonesia's metal mining industry has not been up to expectation with shrinking production in the past year because of a number of factors and unfavorable condition. The productivity of some metal mines has been on the decline. Many reserves have been almost depleted after years of intensive exploitations. Heavy rains also contributed to the decline in production in 2010.
Meanwhile, the world's demands for metals are growing although decline has been recorded in the demands for certain metal such as nickel as a result of the earthquake triggered tsunami in Japan in March, 2011. The extent of the damage caused by the tsunami on mining industry in Indonesia, however, has yet to be estimated.
The executive director of the Indonesia Mining Association (IMA) Priyo Pribadi Soemarno said so far Indonesia had supplied XX% of the Japanese nickel requirement. Now, however, many factories in Japan have been out of function after the tsunami. Nickel producers in Indonesia are forced to look for buyers outside Japan. It will take some time before exports to Japan is normal again. Japan is expected to take at least two years for recovery.
Unlike nickel, demand for copper is expected to rise in the world market. The country's copper production, however, is expected to shrink XX% to XXX,XXX tons this year. The declining trend is expected to continue through 2012 with one of the major producers PT Newmont Nusa Tenggara (NNT), has been delayed in the expansion program of the US company.
NNT President Martiono Hadianto said the company's copper production is expected to continue to decline until 2012 as it has just started work in the Xth and Xth phases of its expansion program in Bata Hiram mine in West Nusatenggara.
The country's tin production also decline din 2010 both production of concentrate and metal. Unfavorable climate was the main factor causing the decline. The production fell when the price of that commodity rose sharply.
The mining sector is a major export earner for Indonesia. It will remain a big contributor to the country's foreign exchange income in the coming years.
A number of problem, however, have remained unsolved hampering development of the mining sector such as overlapping in mining concessions and land controlled by forest concessionaires and land appropriated for industrial timber estates (HTI) and plantations and conflicting regulations issued by the central and regional administrations.
Indonesia' mineral reserves
Indonesia is known to be rich in mineral resources, but the reserves for metal mineral reserves have been reduced sharply after years of intensive exploitations. Most of the metal reserves are estimated to last only for XX-XX years. The iron ore reserves, however, still have a longer lifetime.
Gold reserves in Papua, exploited by the US Company Freeport Indonesia are one of the largest gold reserves in the world. Freeport has reported large gold production every year from Papua. Indonesia ranks among major players in gold trade in the world. The country's gold reserves, however, are estimated to have a life time of XX years. Similarly, the country's copper reserves estimated to total XX.X million tons are expected to be depleted in XX years.
Indonesia, which has supplied XX% of Japan's nickel requirement, has only remaining reserves estimated to last only for XX years to come.
Indonesia has potential reserves of iron sand, but the potentials are not yet sufficiently tapped. The potentials are believed to have an economic life of XXX years.
Grasberg gold reserves in Papua are the largest gold reserves in Indonesia even one of the largest in the world. The reserves have estimated resources of X,XXX million tons. The copper reserves in Batu Hijau, in Sumbawa, West Nusatenggara are estimated to reach XXX million tons.
Other copper mines with reserves of around XX million tons to XXX million tons are found mainly in Central Kalimantan and North Sulawesi.
Metal Mining Companies
Mining companies in Indonesia consists of local and foreign companies. Some of them have started production, but other are still in the process of construction and explorations.
Large foreign companies and state companies dominate business in metal mining industry in the country. They operate in various areas in Papua, Kalimantan, Sulawesi and Sumatra.
Main players in metal mining industry
Some of the metal mining companies operating in the country are world class players. They are dominant in reserves, production and market. Among them are PT Freeport Indonesia, PT Timah Tbk, PT Antam Tbk and PT Inco Tbk
PT Freeport Indonesia
PT Freeport Indonesia (PTFI) is a local unit of the US giant Freeport-McMoRan Copper & Gold Inc. PTFI has big copper, gold and silver mines in the regencies of Mimika in Papua. The mining complex of PTFI in Grasberg is one of the largest producers of copper and gold in the world. It has the largest proven copper reserves in the world and the world's largest gold reserves.
Currently PTFI uses two mining methods--open-pit mining using only trucks and big electric shovels in Grasberg, and block-caving mining for underground mining or Deep Ore Zone (DOZ).
Open pit mining in Grasberg
PTFI uses big shovels and trucks in Grasberg to produce materials classified as ores or waste depending on the economic value of the materials.
The ores are put into ore crushing equipment before being transported to processing mill. The overburden is disposed of using trucks in a certain places.
DOZ underground mining
In the DOZ block cave, the LHD equipment loads the mud into an ore pass leading to a sliding channel to be loaded into trucks which will carry the material to the crushing equipment. After being pulverized the ores are sent to the processing mill through a conveyor.
PT Timah Tbk
PT Timah Tbk, which is XX% owned by the state and XX% by investing public, is the largest tin miner in the country. It is the second largest tin company in the world in production capacity. It has an annual production capacity of XX,XXX tons with a XX% share of the world tin market.
In 2008, PT Timah Tbk verified its tin mineral reserves at X.XX million tons estimated by Micromine, an independent consultant form Australia. The reserves are estimated to have an economic life of more than XX years. However, part of the reserves has been damaged as a result of illegal mining. The operations of illegal miners are still a threat to both onshore and offshore reserves.
There are different types of tin produced by PT Tambang by quality known as Banka Tin (with XX.X% Sn content), Mentok Tin (XX.XX% Sn content), Banka Low Lead (Banka LL) and Banka Four Nine (XX.XX% Sn content). There are also different types by forms including Banka Small Ingot, Banka Tin Shot, Banka Pyramid and Banka Anoda
PT Timah Tbk is also developing downstream tin industry. The company has built a factory to produce chemical tin in Cilegon, Banten. The factory has a production capacity of XX,XXX tons per year. The capacity will be expanded later.
PT ANTAM Tbk
PT Aneka Tambang Tbk (ANTAM) is a publicly traded state mining company XX% owned by the government and XX% by investing public. The company produces several types of metal minerals mostly exported. Its products in clued ferronickel, low and high grade nickel ores, gold, silver and bauxite.
Antam also offers mineral processing and refining services. Currently it has four business units--nickel mining business units, (UBPN) in Southeast Sulawesi, UBPN in North Maluku, gold mining business units (UBP) and precious metal refining and processing business units.
Antam has closed the bauxite UBP in Kijang, on the island of Bintan, but later opened the Tayan unit in West Kalimantan to develop the reserve and process the bauxite into Chemical Grade Alumina in cooperation with Japan's Showa Denko K.K.
Antam's nickel commodities include ferronickel and nickel ores. Nickel ores are produced from its mining units in Southeast Sulawesi and North Maluku and ferronickel is produced from its factories in Southeast Sulawesi. Antam operates two nickel mines in Southeast Sulawesi including Pomalaa and Tapunopaka, and two in North Maluku including in Gee and Buli, and three processing plants producing ferronickel in Pomalaa, Southeast Sulawesi.
Antam's production of nickel ores for exports has a nickel content of X% to more than X%. All nickel production of Antam including nickel ores and ferronickel has been exported. Ferronickel has been exported to South Korea and Europe, and high grade nickel ores are exported mainly to Japan and Europe and low grade ore to Japan and China.
Antam has nine subsidiaries with majority share directly owned, one with majority share indirectly owned, and two other companies owned by the subsidiaries. Those with majority share directly owned by Antam are :
PT Antam Resourcindo which is a mineral exploration company and operator of mines with XX.XX% controlled by Antam.
PT Indonesia Chemical Alumina (ICA), which is an alumina processing company and mining contractor now developing the Tayan Chemical Grade Alumina project with Antam having a XX% stake.