Indonesia is popular with many countries that want to base natural energy with all fauna, flora and hydrographic potential and abundant natural resource deposits, Indonesia’s natural resources ranging from agriculture, marine, forestry and fisheries, livestock, plantation and mining and energy sectors
Of all the natural wealth that exists in Indonesia, the wealth that is very promising to be managed is in the mining sector considering that we only need to take the available assets from inside the Earth, absorb a lot of labor, attract many supporting sectors, and sell the value of products that are taken valuable, not surprised there are so many Indonesian global mining companies looking for mining products
The Largest Mine in Indonesia
- Coal Mine
This mine is located in Sangatta, East Kutai Regency, East Kalimantan, there is a coal mine called Kaltim Prima Coal (KPC) which covers an area of 84,938 hectares and was established in 1982, in 2003, this mine was taken over by PT Bumi Resources Tbk ( EARTH) as much as 100%
At present, BUMI has 51% ownership in KPC, 30% is owned by Tata Power from India, and 19% is owned by China Investment Cooperation (CIC), KPC is the largest coal mining company in Indonesia. Its location is in Sangatta and Bengalon, last year KPC coal production was around 58 million tons. This year, production will be increased to around 60-62 million tons
In 2018, KPC dominates coal production nationally. With a production of around 58 million tons, KPC contributed around 11% of the national coal production which last year reached 528 million tons. BUMI Independent Director Dileep Srivastava, said last year KPC contributed taxes and royalties to the country up to US $ 1.5 billion
The number of KPC coal resources reached 7.055 billion tons with reserves of 1.178 billion tons. Of these reserves, 948 million tons were in Sangatta and 230 million tons in Bengalon.
- Oil and Gas Mine
Indonesia also has large oil and gas resources, this is evidenced by the existence of the Rokan block which is a giant oil and gas block in Indonesia, recorded until 30 April 2019, oil and condensate production reached 196.5 thousand barrels per day.
In addition to the Rokan block, now there is also a Cepu block whose production realization until 30 April 2019 reaches 219.7 thousand barrels per day, operators for the Rokan block are still held by Chevron Pacific Indonesia (CPI) until 2021 when the contract expires, and then switches to managed by PT Pertamina (Persero), while for the Cepu block, the current operator is ExxonMobil Cepu.
- Gold and copper mine
The Grassberg gold mine is a champion of gold mines and mines in Indonesia, this mine is in Papua owned by PT Freeport Indonesia (PTFI). In December 2018, PTFI shares divestment negotiations were finally successful, and now Indonesia has 51% of the company’s shares.
In Instagram’s social media Ignasius Jonan, the Minister of Energy and Mineral Resources (ESDM) writes, the Grasberg mine is the world’s largest gold mine and the third largest copper mine in the world, the cost of building a mine on a mountain of US $ 3 billion. In 2004, It is estimated that this mine has reserves of 46 million ounces of gold, then in 2006 its production was 610,800 tons of copper, 58,474,392 grams of gold and 174,458,971 grams of silver
The Grasberg mine was discovered after the Estberg mine. Freeport should have renewed their contract in 1997, but because the Grasberg mine was discovered they requested that the extension be done more quickly. Namely, in 1991, this was done because of the enormous potential reserves in this mine.
The Grasberg District itself has three mines, namely the Grasberg open pit, the Deep Ore Zone underground mine, and the Big Gossan underground mine. Then in September 2015, PT Freeport Indonesia initiated a Deep Mill Level Zone underground pre-commercial product.
The Grasberg mine holds 23.2 million ounces of gold reserves as of December 31, 2017, far more abundant than gold reserves in North America which are only 0.3 million ounces.