Copper cathode output far lags demand

The country?s copper cathode production is currently falling far behind demand, and is projected to remain so in the years ahead, said a senior government official.

Director General of Mineral and Coal R. Sukhyar said Wednesday that copper cathode output currently stands at 300,000 tons per annum, produced by the only smelter in the country PT Smelting, while annual demand from industries reaches 780,000 tons.

He said that output in 2025, when more copper cathode smelters are expected to be already in operation, is projected to reach 1.2-1.3 million tons.

But demand, according to the Ministry of Industry, is projected to reach 1.68 million tons. ?So there will still be a gap of about 300,000 tons,? Sukhyar said.

He said that in addition to gold and copper giant PT Freeport Indonesia, a number of other companies are also planning to build domestic copper cathode smelters including PT Newmont Nusa Tenggara, PT Gorontalo Mineral and PT Kalimantan Surya Kencana. The Papua provincial administration is also making a similar plan.

He said that while Freeport will team up with Mitsubishi Corp, the latter four will team up with Chinese investors. (*)