Total investments for smelters reach $555 billion

The government?s policy to ban exports of unprocessed metals beginning 2014 has encouraged the construction of smelting plants in the country.

At present, the government has received about 185 applications for the construction of smelters with estimated investments of about US$555 billion, Vice Energy and Mineral Resources Minister Rudi Rubiandini said as reported by Investor Daily.

Rudi said that investors who have submitted the applications for the construction of smelters not only came from Indonesia but also foreign countries. The proposed smelters will be built with investment of between $2 billion and $3 billion each.

The vice minister said the government would sort out the applications and would choose only those who have strong commitment and strong financial supports to build the smelters. The evaluation would be carried out as part of renegotiation of mine contracts, because the construction of a smelter is one of major points being renegotiated.

The evaluation will be carried out by Economic Coordinating Minister Hatta Rajasa after Idul Fitri. ?Major miners which have agreed to build smelters or increase smelting capacity include PT Freeport Indonesia, PT Vale Indonesia Tbk [formerly Inco], PT Eramet, and PT Aneka Tambang Tbk,? he said. (*)