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Existing and Planned Smelter Capacity (2019)
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As of the end of 2018, Indonesian mining companies only had 27 existing smelters (mineral processing plants). Of these, 17 smelters processed nickel ore and 4 processed iron ore. The remainder were smelters for copper, bauxite, and manganese, with 2 smelters each. Meanwhile, 30 smelters were still under planning, as shown in the graph below.
In 2009, the government mandated the construction of smelters, as stipulated in Law Number 4/2009 concerning Minerals and Coal (Minerba). This regulation prohibited the export of raw mining materials starting January 2014.
This ban aimed to increase the added value of mining exports, thus supporting the country's foreign exchange reserves. However, in 2015, the government issued regulations relaxing smelter construction requirements, resulting in the current limited number of mining companies with mineral processing facilities.
"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy,
but please note that automated translations may contain errors or slight inconsistencies."