Minister of Energy and Mineral Resources: Coal and Mineral downstreaming is going according to plan

Minister of Energy and Mineral Resources: Mining and coal downstreaming is going according to plan

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif ensured that the downstream steps as an effort to increase the added value of minerals and coal went according to plan.This was conveyed by Arifin when opening the1st International Seminar on Mineral and Coal Technology(ISMCT) 2021 on Wednesday (23/6).

“The government ensures an increase in added value so that minerals and coal are not only commodities for state revenue, but also as supplies in developing domestic industries,” said Arifin in the seminar entitled‘Suistanable Development on Mining, Processing, and Environment’.

Arifin emphasized that minerals and coal still play an important role in driving the national economy.”I hope this commodity can meet domestic needs as a source of energy and industrial raw materials, so that it can become a national development capital,” said Arifin.

Arifin explained that one of the priorities for mineral downstreaming that is being pushed is rare earth and nickel.Later, nickel development will be aligned with the government’s plan to encourage the use of electric cars and is targeted to become a supply country for Electric Vehicle (EV) batteries by 2025.

“The establishment of the Indonesian Battery Corporation is a supply chain entity for battery production from upstream to downstream or the final product of batteries and circular economic activities in the mining sector,” said Arifin.

Meanwhile, the utilization of rare earth elements can support components of wind turbines, electric vehicles, and energy-efficient fluorescent lamps.”The government has targeted the construction of 53smeltersby 2024. Currently 19smeltershave been builtand most of them are used for nickel processing (13 facilities), followed by bauxite and copper,” Arifin added.

In the coal sector, downstreaming is also a major concern for the government throughDimethyl Ether(DME), methanol, fertilizer and syngas.Moreover, Indonesia is blessed with potential resources and coal reserves of around 149 billion tons and 38 billion tons, respectively.

The coal downstream target is 27 million tons by 2030. “This must be developed immediately so that coal can be used as industrial raw materials or energy sources that are more environmentally friendly,” said Arifin.

Arifin revealed that several companies have carried out coal gasification projects to realizedimethyl ether(DME) in order to reduce imports ofLiquified Petroleum Gas(LPG).”This is the right step to implement strategic policies in the energy sector in order to realize energy security,” he explained.

The Indonesian government, continued Arifin, has issued various policies to accelerate the downstreaming of minerals and coal such as a limited export permit policy for washed bauxite, the provision oftax allowanceand holidaytax facilities, anonline single submission(OSS)application, and the imposition of royalties proportionally in accordance with the resulting product.

This seminar is the first international-scale mineral and coal technology seminar organized by the Mineral and Coal Technology Public Service Agency (tekMIRA) of the ESDM Research and Development Agency.”It is an honor for us at the Ministry of Energy and Mineral Resources to hold this international seminar even though it is held virtually due to the pandemic outbreak,” said Arifin.