Indonesia is having a surplus in copper production with the existing copper smelters capable of producing 1.3 million tons of copper cathode a year, far above the local market need of 250,000 tons that Indonesia needs to take advantage of global copper commodity deficit in the next couple of years at the time when the need for green technology of copper as raw materials increases.
“Indonesia need to have strategy to get benefits from copper export that will generate revenue for the state and also to bring investtors that will absorb the oversupply of copper cathode,” Chairman of Indonesia Mining Association (IMA) Rachmat Makkasau said in a statement on Thursday, October 2, 2024.
With growing downstream industry, copper chatode that is produced by smelters can be absorbed optimally.
“We support the government’s policy on downstream industry. Indonesia should take the opportunity from global copper commodity deficit,’ Rachmat said.
He cited that Indonesia has three to four locations with huge copper reserves that Indonesia needs to leverage this commodity.
“With additional potential of new copper mines that will start production, Indonesia will have a bigger share in global copper supply. Currently Indonesia produces around 3-5 percent of the world copper and it is believed that it can reach 7-10 percent in several coming years. It is estimated that the global copper deficit will continue,” Rachmat said.
Coal potential
Rachmat also highlighted Indonesia’s huge potential of coal that the country can still exploit for another 500 years.
“By good application of technology, coal will support the country’s long-term energy resilience, while continuing to encourage the growth of renewable energy,” he said.
He cited that China currently builds coal power plants and has a policy to use coal in boosting its economy.
“China has long term plan for coal, a gradual policy that requires sulfur, carbon capture and to generate their coal fired power plants. Why don’t we do the same?” he asked.
National coal reserve reaches 35 billion tons and its resources is 99 billion ton or totally 135 billion tons that is estimated can be used as the domestic source of energy between 200 years to 500 years more with the condition that Indonesia consume the coal in the good way.
“Our coal (reserve) will last until 500 years if we consume them ourselves. Indonesia is blessed with coal resource and reserver of 134 billion tons that if we consume for our serve will be available for 500 years more. For long term interest, our strategy is we optimize the consumption of coal by eliminating and capturing pollution it is produced as targeted by China for the sake of economic growth. I believe the technology will be available and affordable. Indonesia position in the coal commodity is unique and cannot be compared with other country. We can decide best strategy for the progress of Indonesia and we cannot follow the steps of other countries that do not have coal and Our benchmark should be China and India.”he concluded.
