Copper miner Amman aims to raise Rp12.94 trillion through IPO
PT Amman Mineral Internasional has started the initial public offering (IPO) process and expects
to be listed on the Indonesia Stock Exchange (IDX) on July 5.
The copper and gold mining company plans to sell around 10 percent of its shares at a price
between Rp 1,650 and Rp 1,775, thereby raising up to Rp12.94 trillion (US$864 million).
If successful, the IPO would be the fourth-biggest fundraiser on the IDX, after PT Bukalapak, PT
Dayamitra Telekomunikasi and PT GoTo Gojek Tokopedia.
Amman aims to inject Rp 1.79 trillion from the proceeds into its subsidiary PT Amman Mineral
Industri to continue construction of a smelter that could process 900,000 tonnes of copper
concentrate per year.
Another Rp 3.05 trillion will be used to repay loans of its subsidiary PT Amman Mineral Nusa
The rest of the money would also go to AMNT to expand its processing facility and build a steam
and gas power plant of 450-megawatt capacity.
Amman president director Alexander Ramlie described the smelter as part of the firm’s
commitment to the government's push for downstream development in the metal mineral industry.
"We need more copper to be processed by the smelter, so we are building another processing
facility to increase our production capacity from 120,000 to 250,000 tonnes per year. Then, those
facilities will need electricity to run, so we plan to build a power plant," Alexander said in a press
briefing on Wednesday.
Amman is the second-largest copper and gold miner in Indonesia, after PT Freeport Indonesia. It
currently operates the Batu Hijau mine and has finished exploration at the Elang mine. Both sites
are located in Sumbawa, West Nusa Tenggara.
According to energy and mining research firm Wood Mackenzie, the copper and gold reserves of
Batu Hijau and Elang mines are the fifth-largest globally.
"We have started Phase 8, which is expected to prolong the mining lifespan [of Batu Hijau] to
2030. We are also preparing to start mining operations at the Elang mine from 2031 to 2046. The
mining duration may be extended if copper and gold prices increase," Alexander stated.
Alexander noted that two new spots in its concession areas potentially held copper and gold
reserves based on early exploration work.
"Many analysts have predicted that there will be a supply shortage of copper in 2025. It may cause
a price surge and be beneficial for us," Alexander said when asked about the prospects of the
Amman, like Freeport, has been exempted from a copper concentrate export ban until next year,
as both of them have reached more than 50 percent progress in their respective smelter projects.
Last year, Amman doubled its net sales to $2.8 billion and tripled its net profit to $1.1 billion.
Source: The Jakarta Post