Indonesian mining company Amman Mineral Internasional, backed by billionaires Anthoni Salim and Agus Projosasmito, plans to increase its capital expenditure by 31.5% to $2 billion this year to boost copper and gold output following recent gains in metal prices. The company, which operates Indonesia’s second largest copper and gold mine, reported full-year results for 2023 with capex at $1.52 billion.
Much of the increased spending will be allocated to key projects, including a processing plant expansion, construction of a gas and steam power plant, and completion of a copper smelter. The processing plant expansion aims to double production capacity to 85 million tonnes per year by utilizing ore supply from the Batu Hijau and Elang mines on Sumbawa Island. The copper smelter, set to be completed in May, will produce copper cathode, sulfuric acid, gold bars, silver bars, and selenium.
Amman is targeting a 46% increase in copper production and more than doubling gold output this year through increased mining and processing from its Batu Hijau mine. Despite a 76% decrease in net profit and a 28% revenue decline in 2023 due to unfavorable weather conditions and compliance costs, the company remains focused on expansion and production growth.
The company went public on the Indonesia Stock Exchange in July, raising $710 million. Projosasmito, currently the president commissioner of Amman, holds a minority stake in the company along with his interests in other energy and mining companies. His net worth of $5.4 billion ranked him 8th on Indonesia’s 50 Richest list in December. Salim, who indirectly holds a stake in Amman through the Salim Group, has diverse interests in food, banking, and other sectors, with a net worth of $10.3 billion ranking him 5th on the same list.
