Mineral and Coal Performance Report 2020: Successful Downstreaming Process and Reclamation

MINISTRY OF ENERGY AND MINERAL RESOURCES

PRESS RELEASE

NUMBER: 022.Pers/04/SJI/2021

Date: 15 January 2021

Mineral and Coal Performance Report 2020: Successful Downstreaming Process and Reclamation

The Indonesian Government through its Ministry of Energy and Mineral Resources (EMR) has set a target to build 53 smelters--installations or factories for taking metal out of rock by smelting it--by 2024. The statement was made by Director General of Mineral and Coal, Ridwan Djamaluddin, at the virtual Press Conference on Performace Report of 2020 and Work Plan for 2021.

Until 2020, a total of 19 smelters have been constructed, and additional 23 smelters are planned for 2021. In 2022, the target is to build 28 smelters, and another 53 smelters in 2023-2024.

The investment in smelter construction is projected to amount to USD 2.228 billion in 2021, USD 4.883 billion in 2022, and USD 2.055 billion in 2023.

"These smelters have been built to comply with the Mining Law, which requires that all minerals must be processed and refined in the country. The government has made every effort to achieve this goal. The development has indeed shifted slighty from the original plan. Because of the Covid-19 pandemic, mining businesses have adjusted their work plan to build smelters, but the final target is still the same, that is, by the end of 2023, all smelters must finish construction and become operational," Ridwan explained on Friday (15/1).

Downstream coal processing has also continued to be done. Coal Gasification and Underground Coal Gasification (UCG) are in the planning or development stage. Coal upgrading, coal briquetting, and cokes making have all finished construction. Still, other downstreaming potentials include coal liquefaction and coal slurry.

These processes have been initiated to increase coal utilization while using coal in cleaner ways.

A quite advanced downstream coal processing is the development of Coal to Dimethyl Ether (DME). The project is run by state coal company PT Bukit Asam in collaboration with state energy company PT Pertamina and Air Products. Located in Tanjung Enim, South Sumatra Province, the plant is set for a COD target in 2024.

"This plant can reduce LPG import of 1 million tonne per year or equivalent to Rp 9.2 trillion per year if we can carry out this program successfully," Ridwan said.

Besides downstream processing, Law Number 3 of 2020 on Mining gives reclamation or post-mining restoration a serious attention. In 2020, mine reclamation had been realized by 100%.

"Out of 7,000 hectares planned to be reclaimed, 7,000 hectares had been reclaimed," Ridwan concluded.

For 2021, DG Mineral and Coal has given a priority on reclamation monitoring and assessment with remote-sensing technologies. The target is to reclaim 7,025 hectares of ex-mines. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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