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Indonesian Medco to invest USD 500 mln to build copper smelter after Newmont deal-2017 China(Guangzhou)Int’l Non-Ferrous Metal（Copper）Exhibition
8/23/2016 有色金属展-铜材展-non-ferrous metals expo |
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Mr Muhammad Lutfi president commissioner, said that Indonesian oil and gas producer PT Medco Energi Internasional Tbk plans to invest $500 million to build a copper smelter following its deal to buy control of Newmont Nusa Tenggara (NNT).
Mr Muhammad Lutfi said in an interview the smelter, which will have an annual capacity of 500,000 tonnes, is expected to start operations in 2021,. Part of the funds to build the smelter will come from bank loans.
A consortium consisting of oil and gas tycoon Arifin Panigoro, who founded Medco, and banker Agus Projosasmito announced in late June that it will spend $2.6 billion to buy 82.2 percent of NNT, which operates Indonesia''s second-biggest copper and gold mine.
The Indonesian group is buying 56 percent of NNT from U.S. miner Newmont Mining Corp and Japan''s Sumitomo Corp and its partners. It will buy the remaining 26.2 percent from local companies.
He said that the Jakarta-listed Medco, which will own at least 50 percent of NNT, is targeting a 25 percent increase in copper concentrate production at the mine to 500,000 tonnes by 2019.
He added that copper and gold may contribute 30-50 percent to Medco''s revenue in future as part of its diversification, adding that the company is planning to sell its products mainly to the domestic automotive, electronics and cable industries.
He further added that oil and gas will nevertheless remain a core business for Medco, which is currently exploring the acquisition of offshore oil and gas blocks in Indonesia.
-2017 China(Guangzhou)Int’l
Non-Ferrous
Metal（Copper）Exhibition
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