The Indonesian Government is reviewing five copper and gold mining concessions that President Prabowo Subianto says contain deposits with an estimated in-ground value of Rp5.4 quadrillion ($426.7 billion).
Energy and Mineral Resources Minister Bahlil Lahadalia says the concessions include areas in West Nusa Tenggara and Papua.
Bahlil, who also serves as Coordinating Minister for Downstreaming and Energy Transition, says Prabowo instructed his ministry to evaluate the concessions, according to Indonesian state news agency Antara.
The government has not identified the concession holders, disclosed all their locations, or released the underlying reserve reports.
In an official speech on 22 October, Prabowo described the deposits as “proven reserves” that had been assessed under the JORC Code.
He cautioned that the estimated mineral wealth remained underground and had yet to generate economic returns.
Prabowo also called for greater scrutiny of companies receiving mining business licences, arguing that some concessions had remained undeveloped for decades.
“We must not be too quick to hand out concessions,” he says, translated from Indonesian.
Prabowo has instructed the ministry to revoke concessions showing no substantive activity for more than two years. Officials have not said whether any of the five under review fall into that category.
The review comes as Indonesia prepares to reduce nickel mining quotas to support prices, while Chinese-backed producers consider steep production cuts.
Separately, Indonesia has proposed a critical minerals partnership with Chile covering joint industrial projects, mining technology, and investment.
Indonesia is a major producer of nickel, coal, copper, gold, tin, and bauxite.
Write to France Pinzon at Mining.com.au
Main image: President of the Republic of Indonesia
