Nickel Downstream Development is The Fastest Growing in Indonesia

Senin, 12 Juni 2023 - 18:45 WIB

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Krisna Wicaksono

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VIVA English – The Ministry of Energy and Mineral Resources (ESDM) stated that until now, the downstreaming of nickel has shown the most rapid development in the mineral industry downstreaming program.

"So, if we look at it, the most rapid development is in the downstreaming of nickel, where there are already more than 100 smelters (processing and refining industries) that are directed towards the iron and steel industry, producing nickel pig iron and ferronickel," said Irwandy Arif, the Special Staff to the Minister of ESDM for Mineral Governance Acceleration, in a webinar held by the Forum Merdeka Barat 9 and attended online on Monday 12^th June 2023.

He mentioned that there are already four smelters from the nickel downstreaming process that are directed towards the battery industry. "And there are four already, and there may be a dozen more smelters that will be directed towards the battery industry," he said.

In addition to the downstreaming of nickel, he also mentioned that the downstreaming of bauxite is currently developing, aiming for alumina and aluminum production.

"So, in the bauxite industry, there are already four companies that have produced alumina from bauxite ore. And there are a few, one of them is already operational in producing aluminum from alumina, and another one will be developed in North Kalimantan to produce aluminum," Irwandy said.

Furthermore, he also revealed that copper is another mining commodity undergoing downstreaming development. Currently, three companies are developing copper industry downstreaming, namely PT Freeport Indonesia, PT Amman Mineral Nusa Tenggara, and PT Merdeka Copper Gold.

"There are already two smelters in progress, the one in Gresik (East Java) owned by PT Freeport and the PT Amman smelter in West Nusa Tenggara," he said.

Irwandy further stated that the downstreaming progress is indeed quite rapid. However, he emphasized the need for government support for industries that are constructing smelters.

"The progress is quite fast, but they still need government support, especially for those who are currently constructing smelters," said Irwandy.

He also mentioned some challenges faced by industries that intend to establish smelters. "Based on our observations and interactions with the industry, we can categorize the obstacles they face. Firstly, there's the issue of funding," he said.

Secondly, there's the problem of electricity supply to the smelters. "The third is land acquisition, and the fourth is licensing," Irwandy added.