PT Amman Mineral Internasional, the parent company of PT Amman Mineral Nusa Tenggara (formerly Newmont Nusa Tenggara), is now under the control of Salim Group, as evidenced by the company’s increased stake in PT Amman Mineral Internasional and the appointment of several of its board members.
Salim Group’s control in Amman Mineral is apparent from Agus Projosasmito’s role in the company as its president commissioner. His appointment is reportedly linked to his close relationship with Anthoni Salim and the interests of Salim Group’s investment firm, Emirates Tarian Global Ventures SPV.
This relationship is further highlighted by Emirates Tarian’s status as the largest investor in PT Bumi Resources Minerals Tbk (BRMS), where Agus also serves as president director. Agus played a crucial role in the acquisition of Newmont Nusa Tenggara by Medco Energy in 2016, securing funding and strategic investors through a local consortium.
The consortium reportedly consisted of several well-known business people, including the Kiki Barki family controlling coal mining company PT Harum Energy Tbk (HRUM) and Medco founder Arifin Panigoro, even though Medco Group was the one that secured the deal.
Meanwhile, Amman Mineral International’s president director Alexander Ramlie has a long-standing connection with the company as a member of the founding team since 2015. Previously, he worked for PT Bumi Resources Tbk, which is now owned by the Salim Group through Mach Energy (Hongkong) Limited (MEL) and Treasure Global Investments Limited (TGIL).
Alexander has also held significant roles in various BUMI subsidiaries, including PT Bumi Resources Minerals Tbk, PT Kaltim Prima Coal, and PT Arutmin Indonesia.
Amman Mineral IPO and Salim Group bigger picture
Salim Group is set to boost holdings in Amman Mineral ahead of planned IPO to fund major mine and smelter development.
The IPO is expected to raise US$3 billion for the development of the Batu Hijau mine, with US$1 billion required for the smelter construction and a further US$1.6 billion for the processing plant, according to Amman Mineral Internasional president director, Alexander on Tuesday (8/5).
The rest of the proceeds will finance gas-powered plants that will replace existing coal and diesel-fired power plants powering these projects.
Reuters previously reported that PT Mandiri Sekuritas has been appointed as the underwriter for Amman’s IPO, with BUMI as the strategic buyer. The Financial Services Authority (OJK) disclosed that Amman submitted the IPO registration documents on March 21, 2023, using the 2022 financial reports.
Although Amman’s IPO plan was almost cancelled due to the company’s export permit expiring next June, President Jokowi approved an export contract extension for Amman until May 2024, allowing the IPO plan to proceed.
A closer look at Amman Mineral’s performance
As of January 2023, Amman Mineral Internasional had seven major shareholders, according to publicly available data. These included PT Sumber Gemilang Persada (35.6 percent), PT Medco Energi Internasional Tbk (MEDC) (23.1 percent), and PT AP Investment (17.1 percent).
The remaining four shareholders were PT Alpha Investasi Mandiri (7.9 percent), PT Pesona Sukses Cemerlang (7.2 percent), PT Sumber Mineral Citra Nusantara (5.1 percent), and PT Medco Service Indonesia (4 percent).
Amman Mineral Internasional manages 25,000 hectares of concession areas containing 7.9 million tons of copper reserves and 23.9 million ounces of gold reserves. Its subsidiary PT Amman Mineral Nusa Tenggara operates the Batu Hijau copper and gold mine in West Nusa Tenggara, Indonesia.
As of September 2022, the company’s sales jumped 121 percent to reach US$1.98 billion year-on-year, while its net profit soared 253 percent to US$748 million due to a substantial increase in sales volume, despite a decline in the average selling prices of copper and gold.
Amman Mineral’s EBITDA was recorded at US$1.19 billion as of September 2022. With an enterprise value of up to five times the EBITDA, the company’s market capitalization could potentially exceed IDR 100 trillion.
Currently, Amman is building a copper concentrate smelter in West Sumbawa Regency, West Nusa Tenggara. As of January 2023, more than 51 percent of the investment has been utilized for the project. Upon completion by the end of 2024, the smelter will have an annual production capacity of 222,000 copper cathodes.
