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Amman, Pertamina sign LNG supply deal to power smelters
Publicly listed miner Amman Mineral has inked a deal with Pertamina to supply liquified natural gas (LNG) to power its smelters, a move that indicates its shift away from coal.
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Fill it up: A floating storage regasification unit (FSRU) belonging to PT Nusantara Regas (left) receives its first LNG supply in 2018 from LNG carrier Aquarius operated by PT Pertamina Hulu Mahakam in Jakarta Bay. Gas prices for industry remain high in Indonesia, despite the country being one of the world’s major gas producers. (JP/Ben Latuihamallo)
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ublicly listed copper and gold miner Amman Mineral, through its wholly owned subsidiary PT Amman Mineral Nusa Tenggara (AMNT) in Sumbawa, West Nusa Tenggara (NTB), has signed an agreement with state-owned oil and gas holding company Pertamina to supply liquefied natural gas (LNG) to power its smelters.
The LNG will be used at Amman’s 450-megawatt (MW) gas power plant to power its copper smelter and other facilities at the company’s Batu Hijau mine in NTB.
Earlier in April, Amman, along with Freeport Indonesia, obtained government approval allowing it to continue exporting copper concentrate until May 2024 amid the export ban that took effect in June, as the two companies had reached 60 percent of their smelter development projects.
Read also: Indonesia to allow Freeport, Amman Mineral to ship copper concentrate until 2024
AMNT president director Rachmat Makkasau said on Wednesday that the gas power plant would be almost three times larger than its previous capacity once it went online next year. He also said the new plant was a critical step to help the miner reduce its carbon emissions, as LNG was deemed to produce lower emissions than coal.
“As one of the largest coppers and gold producers in the world, Amman is committed to conduct its operations [in line] with sustainable mining practices,” Rachmat said during the 4th International Convention on Indonesian Upstream Oil and Gas on Wednesday.
The gas power plant is also to support the company’s plan to expand the capacity of its ore-processing plant to handle the expected output from its Elang exploration project in Batu Hijau, as well as and the project’s Phase 8, which is expected to extend the mine’s lifespan to at least 2030.
