Jakarta. Copper mining giant Amman Mineral Internasional has officially commenced operations at its newly built smelter in West Sumbawa, West Nusa Tenggara, marking a major milestone in the company’s downstream expansion. The facility, which began operations several weeks ago, is designed to process up to 900,000 tons of copper concentrate annually.

By the end of March, the smelter had successfully produced its first batch of high-purity copper cathodes, with a target annual output of 220,000 tons. However, Amman is taking a cautious approach before ramping up to full production capacity.

“We successfully produced our first copper cathodes last month. However, full-scale production has not yet begun as we are prioritizing safety and a sustainable ramp-up,” said Amman spokesperson Kartika Octaviana on Tuesday.

The company is currently seeking a government permit to temporarily export copper concentrates -- the intermediate product of copper mining -- as a measure to avoid potential oversupply ahead of full operational capacity.

Indonesia’s mining downstream policy prohibits the export of copper concentrate as of January 1. However, Kartika argued that regulatory flexibility is needed to maintain revenue flow and prevent excess stockpiles until the smelter is fully operational.

“We have submitted a request for an export permit to the government,” she said. “This flexibility can offer a win-win solution -- ensuring business continuity while supporting national industrialization goals.”

Amman’s request follows a similar case involving Freeport Indonesia, which recently secured temporary export approval after a fire disrupted operations at its new smelter in Gresik. Freeport is currently permitted to export copper concentrate until September.

Kartika warned that oversupply risks could arise from either limited smelting capacity or concentrate output exceeding current processing limits.

“This measure is essential not only for the stability of our business, but also to protect the livelihoods of thousands of our workers,” she added.

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