[Mining] Indonesia's main mining enterprises, policy impact, investment advantages and challenges

SMM news: As the "paradise island" and "island of poetry" in Southeast Asia, Indonesia, the world's largest archipelago country across the equator, between Asia and Australia, near the Indian Ocean and the Pacific Ocean, is a maritime hub connecting two continents and two oceans. In addition to the beautiful scenery and rich tourist resources brought by the long coastline, Indonesia also has world-class mineral reserves and many successful mining projects.

Over the years, mining has become one of the important industries in Indonesia's economic development. Mining has contributed significantly to Indonesia's GDP growth, export trade, government revenue, employment and, most importantly, economic development in the remote areas where mining projects are located.

Indonesia accounts for 9% of global coal exports and 95% of ASEAN exports. There are more than 500 mining projects and mine operating companies in Indonesia, making it the most important mining country in Southeast Asia.

Many Canadian and Chinese mining engineering companies and supply companies have taken root in Indonesia, and the local Indonesian authorities also recognize the mine operation capabilities and equipment supply services of these countries, and provide them with great opportunities for cooperation.

Indonesia has three major international mining companies with long experience in mine operations: Vale, Newmont and Freeport.

Grasberg, one of the world's three largest Copper mines, was discovered in 1988 by Freeport-McMoRan Copper & Gold. The Grasberg mine, located in Papua province, Indonesia, has 2.8 billion tons of copper reserves and 73 tons of gold reserves, and accounted for nearly a fifth of Freeport's total revenue in 2016, making it the largest mine under Freeport's portfolio.

Major mining companies in Indonesia and their types of mines

Major mining companies based in Indonesia

Adaro Energy is a development company engaged in infrastructure, trading, logistics and power generation. In addition, Adaro provides mining contractor services and material handling services. Adaro is the largest coal mining company in Indonesia and the largest truck/forklift mining company in the world, with 350 delivery trucks and 22,000 employees. The company is now planning to re-size its company through major expansion plans in the future.

Antam is an integrated, export-oriented and diversified state-owned mining and metals company with operations across Indonesia's mineral-rich islands. Antam is involved in all mining activities, including the exploration, mining, processing and marketing of nickel, ferro nickel, gold, silver, bauxite and coal. The company forms joint venture partnerships with international companies to bring in expertise and capital.

Freeport McMoran Grasberg operates mining operations at the Block cave mine as well as the Deep Mill Level Zone (DMLZ) project. The mine began production in 2015, developing it from an open-pit mine into one of the largest and long-term underground mines of the future. Freeport continues to look for the latest technologies to improve efficiency and safety in its $17 billion expansion plan. There is a huge market demand and interest for new technologies such as automation, safety and environmental solutions that provide opportunities for local suppliers and service companies.