Saturday , October 31 2020


Lately, we often hear about obligatory in all mining companies to build smelters, but what it smelter? for what and whom? let’s discuss one by one. Metallic minerals in the mining industry, the smelter is part of a production process, which is mined from natural mineral usually still mixed with dirt that is innate unwanted material. In the meantime, the default material to be cleaned, but it also must be purified in the smelter.

Smelter itself is a mineral processing facility which works to increase the content of metals such as tin, nickel, copper, gold, and silver up to the level that meets the standards as raw material for the final product. The process has included the cleaning of metallic minerals from impurities and purification.

Smelter construction in the compulsory for all mining companies in Indonesia. Both large and small companies. There are at least 66 companies that are doing smelter development at this writing. Minister of Energy and Mineral Resources Jero Wacik said 66 companies are part of the 253 companies holding mining license (IUP) who sign an integrity pact since Regulation No.7 / 2012 was published.

Of the 66 companies that have been committed there are 25 companies who have been in the final stages of construction of the smelter process. 15 companies noted the government is conducting ground breaking construction and 10 construction companies midst. The rest, 16 new companies taking care of the environmental impact assessment permit. In addition to 66 companies, there are 112 companies that also have signed an integrity pact is still in the process of the feasibility study. The remaining 75 companies did not do anything.

Since 2012 the government has told us that it would be in berlakukannya law on the construction of Smelter. The Government recommends that the mining company soon build smelters, because in the year 2014 will be enforced ban on the export of raw minerals. Proven on Sunday, January 12th, 2014 the government began to impose ban on the export of raw minerals. And an estimated 5-6 years smelter will be operational.

Why the government requires the construction of Smelter?

  1. Increase the Selling Value of Mineral
  2. Increase Investor in or outside the country
  3. Opening of new jobs

After we read a little about the Smelter, raised some opinions pros and cons. Basically passage of this smelter is good government efforts to improve the nation’s economy, increase the value of life, and restore the image of mining which is sometimes simply referred to as a destroyer of nature.

In terms of economy, it is the value of mineral sales will be much different if it has been processed, no longer in the form of ore or concentrate. Not only the selling price increases, but the impurity concentrate or ore can still be utilized.

“The rules we apply in order to be able to add value. Already decades raw mineral exports we do. It no longer desired. Now there should be a process of processing and refining, “said Wacik in between attending a working meeting in the House of Representatives Commission VII, at the Parliament Complex Senayan, Monday (27/1).

But there are many obstacles in this smelter with establishment, such as:

  1. Acquisition of land is not easy. It is common knowledge, the land where the project will be built there, surely land prices soar.
  2. Availability of electricity, the electricity industry became a major staple that tetep factory produces. But we all know that the mining area is not urban areas. “It’s just automatic, contrived smelter plant make the PLN. It’s the same like chicken eggs, make first wrote a new smelternya we make PLN. The Jeneponto no electricity, but there is a power plant. Between the same electricity industry has always been a tug of war, “said Jero Wacik.
  3. Licensing smelter construction is not easy of course, such as searching for IUP permit itself is not easy.
  4. Limitations costs also become an obstacle in the construction of the smelter.