Investment in smelter construction off-target: Energy Ministry

Investment in smelter construction off-target: Energy Ministry

PT Bintan Alumina Indonesia has developed a port at the smelter construction site in Galang Batang, Bintan, Riau Islands Province. (Doc.ANTARA/Nikolas Panama/sh) 

The impact on production (in the mining sector) is yet (to) be seen, but there will be a slowdown in reaching the target in investment and facility, if the COVID-19 pandemic lasts until the end of the year
Jakarta (ANTARA) - Indonesia expects to miss the investment target of US$3.7 billion for smelter construction in 2020 due to the COVID-19 pandemic, and hopes to reach the target only in 2021.

 

"The impact on production (in the mining sector) is yet (to) be seen, but there will be a slowdown in reaching the target in investment and facility, if the COVID-19 pandemic lasts until the end of the year," special advisor to the Minister of Energy and Mineral Resources for Mineral and Coal Management, Irwandy Arif, said here on Tuesday.

 

Until the end of May this year, he said, the ministry was yet to record the direct impact of the pandemic on production in the mining sector.

 

However, if the pandemic continues until the end of the year, the contribution of the mineral and mining sector to the state revenue may decline by 20 percent, he projected.

 

According to the ministry, the nation’s coal production has reached 228 million tons as of May, 2020, while coal consumption for Domestic Market Obligations (DMO) has been recorded at 53.55 million tons.

 

Ministry spokesperson Agung Pribadi said coal production is still on target, and is projected to reach the national production target of 550 million tons in 2020.

 

"Realization of coal production as of May 31 is still on target, where it has reached 42 percent of the national coal production target. Coal production is projected to reach the target of 550 million tons by December, 2020," he elaborated.

 

Meanwhile, coal exports have reached 175.15 million tons, worth about US$7.77 billion, as of May this year. The total export volume is forecast to touch 435 million tons in 2020. (INE)

Related news: Ferronickel smelter in Sulawesi established

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