Indonesia's Internal Affairs Minister Tito Karnavian on Monday said he has asked the country's mining ministry to ease a copper concentrate export ban for Amman Mineral International (AMMN.JK), citing its effect on the local economy.
Tito said the economy of Nusa Tenggara Barat province, where Amman operates, contracted by 1.47% annually in the first quarter, and was impacted by the company's inability to export its concentrate output.
Amman said in February that it had around 200,000 metric tons of concentrate inventory available for export.
"I have asked the energy and mineral resources minister whether there is a possibility to allow exports while we are waiting for the smelter to be completed," Tito told a weekly government meeting without disclosing the response.
Indonesia has banned exports of copper concentrates and other raw minerals to encourage metal processing at home.
It was imposed from mid-2023, but Amman was allowed to export till December 2024 by when it was expected to commission a smelter to process concentrates into copper cathodes, a material used to manufacture wires, cables and electronics.
Officials at the mining ministry did not immediately respond to Reuters seeking comment.
In March, Amman's new smelter produced its first copper cathode.
However, the smelter, which has an annual capacity to produce 220,000 metric tons of copper cathode, is yet to reach full capacity due to a number of technical constraints that needed to be addressed first, Amman spokesperson Kartika Octaviana said on Monday.
She said the company has reported the issues to the government.
"Government's discernment and policy flexibility, especially regarding copper concentrate sales, will greatly assist the company in maintaining financial strength while seeking to optimise the smelter," she said.
