Downstream industry development key to boosting mineral sector

Downstream industry development key to boosting mineral sector

Energy and Mineral Resources Minister Arifin Tasrif. (ANTARA/HO-Energy and Mineral Resources Ministry/sh)

Jakarta (ANTARA) - Energy and Mineral Resources Minister Arifin Tasrif has said the development of downstream industries is crucial for boosting the country's mineral and coal mining sector.

“In this (mining) sector, downstream industry development is one way to optimize the sector. (The question is) How can we use the raw material to process it into products with higher added value. This must be done to increase added value through the downstream industry,” Tasrif said in a statement here on Thursday.

Law no. 3/2020 on mineral and coal mining has stipulated there will be no more exports of mining raw materials, he noted.

The policy, he said, should be followed up with the development of the downstream industry to absorb mining products.

The new law on mineral and coal mining requires the development of the downstream industry, he added.

"All mining products must be processed further. For instance, coal products can be processed into synthetic gas for petrochemical industry, or its (coal's) calorific value can be increased for the steel industry," he suggested.

According to the minister, the development of the downstream industry would contribute to the state revenue.

Products from coal gasification can be used to meet domestic demand of gas for households, while copper, nickel, gold, tin, and bauxite could be processed into high value-added products.

The ministry has projected that at least 52 smelters will operate in 2022, including nickel smelters (29), bauxite (9), iron (4), copper (4), manganese (2), and zinc and lead (4) smelters. (INE)
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