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Indonesian mining company Amman Mineral Internasional, backed by billionaires Anthoni Salim and Agus Projosasmito, is planning to increase its capital expenditure by 31.5% to $2 billion this year in order to boost copper and gold output. The company reported full-year results for 2023, revealing a capex of $1.52 billion. Much of the increased spending will go towards key projects such as a processing plant expansion, construction of a gas and steam power plant, and completion of a copper smelter, as well as building supporting infrastructure like a new townsite, port, and processing plant expansion.

The processing plant expansion is expected to double the firm’s production capacity to 85 million tonnes per year, with future ore supply coming from its Batu Hijau and Elang mines on Sumbawa Island. The construction of a 900,000-ton-per-year copper smelter is set to be completed in May, with plans to produce copper cathode, sulfuric acid, gold bars, silver bars, and selenium on an annual basis. The company aims to significantly increase copper production by 46% and more than double its gold output this year, driven by fresh ore from phase 7 of the Batu Hijau mine.

Despite plans for growth, Amman reported a 76% decline in net profit to $259 million in 2023, with revenue dropping by 28% to $2.03 billion due to unfavorable weather conditions and increasing compliance costs. The company went public on the Indonesia Stock Exchange last July and raised $710 million. Projosasmito, who holds a minority stake in Amman, also has interests in oil, gas, and coal companies, with a net worth of $5.4 billion. Salim, who has a substantial indirect stake in Amman through the Salim Group, has interests in various sectors like food, banking, and energy, with a net worth of $10.3 billion.

Overall, Amman Mineral Internasional is focusing on expanding its operations and increasing production to capitalize on the recent gains in copper and gold prices. With plans for significant investment in key projects and infrastructure, the company aims to boost its output and drive growth in the coming years. Despite challenges in the past year, the company’s billionaire backers are confident in its long-term success and are committed to supporting its growth and development in the mining industry.

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