Indonesia Mining 2012 - GBR

produced 1.3 million mt/y of nickel. With a
producing concession in nickel-rich Halmahera
Island and a newly acquired exploration
permit in South East Sulawesi, the
company is looking to ramp up production
in the near future. Nevertheless, a lack of
infrastructure stands between the company
and its goal. According to Burhan Tajuddin,
director, Bumi Makmur Selaris, government
support can go a long way in helping the
company complete this task. “Infrastructure
is a problem across all mining sectors. As
mush as 20% to 30% of our project investment
is earmarked purely for infrastructure,
so it would be a great help if the government
contributed. We need to build the entire
transport system, from the roads, to the
bridges, to the port itself.”
Once the necessary infrastructure is in
place, the company plans to significantly
ramp up production. “We have already
ramped up production at our concession
in Halmahera Island. With respect to our
newly acquired concession in Southeast Sulawesi,
we aim to start producing by the end
of the year. Bumi Makmur Selaras wants to
increase overall production to 2.5 million
mt/y, almost doubling its current production
level,” said Tajuddin.
The archipelago’s nickel potential has
attracted a wide range of companies. Vale,
the Brazilian mining giant, has a long history
in Indonesia. The company signed
a CoW that awarded it a land package of
6.6 million hectares, spread throughout the
provinces of South, Southeast, and Central
Sulawesi. After progressive exploration, the
concession was reduced to 218,000 hectares.
This CoW was renewed in 1996, and
will remain valid until 2025.
Describing the importance of Indonesia
to the multinational’s global growth strategy,
Nico Kanter, president director, Vale
Indonesia, said: “in Indonesia, Vale produces
an intermediate nickel product with 78%
nickel content; our entire product is exported
to Japan. Currently, our monthly production
is 72,000 mt per month; small when
compared to the giant mining operations in
other parts of the world. Nevertheless, the
company remains committed to Indonesia,
seeing it as a fundamental component of
their global nickel production strategy. We
will invest $2 billion over the next five to
seven years to increase that rate of production
to 120,000 mt/month.” This $2 billion
will be used on a range of projects. Vale intends
to expand its existing operations, especially
in Sorowako, where its smelter and
processing plant are located, yet new areas
are also attracting the company’s interest.
“Beyond [Sorowako], we want to expand
64 E&MJ • JULY 2012 www.e-mj.com