Data centers require large amounts of electricity. Transmission\nnetworks need cables, while solar and wind projects and electric\nvehicles depend on extensive electrical infrastructure and\ncomponents.<\/p>\n
Copper is central to that transformation because of its strong\nelectrical and thermal conductivity, making it essential to\nelectrification and many emerging technologies.<\/p>\n
The International Energy Agency (IEA) identifies copper as one of the\nkey minerals. Under its Stated Policies Scenario, total copper demand is\nprojected to rise from about 25.9 million metric tons in 2023 to 31.1\nmillion tons in 2030 and 36.4 million tons in 2040. Demand from clean\nenergy technologies alone is projected to increase from 6.3 million tons\nin 2023 to 12 million tons in 2030.<\/p>\n
This means the race for copper is no longer simply a matter of mining\ncommodities. The metal is becoming part of the race to build the digital\neconomy and the energy infrastructure of the future.<\/p>\n
For Indonesia, that opportunity comes with a paradox. The country has\nsubstantial copper resources but has yet to become a major player in\neither mine production or downstream copper industries.<\/p>\n
Data from the Investment and Downstreaming Ministry\/Investment\nCoordinating Board (BKPM) show that Indonesia ranks among the seven\ncountries with the world\u2019s largest copper reserves, accounting for about\n3 percent of global reserves. However, Indonesia ranks 11th in mine\nproduction and 18th in downstream copper industries.<\/p>\n
That gap gives copper downstreaming strategic importance.<\/p>\n
Pri Agung Rakhmanto, founder and adviser at the ReforMiner Institute,\nsaid at least three sectors would become major drivers of copper demand:\ninfrastructure and electricity, including cables and transformers; new\nand renewable energy, such as solar and wind power plants; and the\nautomotive industry, particularly electric vehicles (EVs).<\/p>\n
All three share one characteristic: they require electrification on a\nlarge scale.<\/p>\n
The IEA estimates that annual copper requirements for electricity\ngrids under a sustainable development scenario could approach 10 million\ntons by 2040, compared with around 5 million tons in 2020.<\/p>\n
At the same time, data centers built to support AI computing are\nadding pressure on electricity infrastructure. The AI story, therefore,\nis not only about software but also about the physical requirements for\nenergy, grids and minerals.<\/p>\n
For countries with copper reserves, this presents both an opportunity\nand a challenge.<\/p>\n
Pri Agung said the government needs to build an industrial ecosystem\ncapable of absorbing domestically processed copper.<\/p>\n
\u201cThat will eventually absorb copper and processed copper (cathode)\nproduction from copper smelters operating in Indonesia,\u201d Pri Agung\nsaid.<\/p>\n
If domestic copper-consuming industries remain underdeveloped, he\nsaid, increased production would largely be directed toward exports.<\/p>\n
Building smelters, therefore, increases value added but does not\nsolve the entire downstreaming challenge. Indonesia also needs cable\nmanufacturers, electrical component producers, energy equipment makers,\nEV manufacturers and other industries that use copper as a raw\nmaterial.<\/p>\n
A country cannot rely solely on mines and smelters. The challenge is\nto keep copper circulating longer within the domestic economy.<\/p>\n
From Batu Hijau to Cathode, From Data to Efficiency<\/p>\n
AMMAN stands at the intersection of rising copper demand and\nIndonesia\u2019s downstreaming agenda.<\/p>\n
The company operates the Batu Hijau mine, one of the country\u2019s\nstrategically important mineral assets. A new mining phase, expanded\nprocessing operations and the operation of its smelter have created a\nvalue chain stretching from the upstream mine to processed products\ndownstream.<\/p>\n
Rachmat Makkasau, president director of Amman Mineral Nusa Tenggara,\nexpects AMMAN\u2019s copper cathode production to reach 162,662 tons in 2026.\nThe figure is projected to nearly double to 310,256 tons in 2027.<\/p>\n
Gold production is projected to increase from about 16.1 tons to\n28.67 tons, while silver production is expected to rise from 45.4 tons\nto 82.4 tons.<\/p>\n
\u201cProduction will increase over the next three years because we will\nbegin processing more ore,\u201d Rachmat said at a hearing with Commission\nXII of the House of Representatives (DPR RI) recently.<\/p>\n
The targets follow the completion of the capacity ramp-up at AMMAN\u2019s\nsmelter. Cathode production stood at around 79,848 tons in 2025 before\nbeing targeted to increase to 162,662 tons in 2026. The smelter has a\nprocessing capacity of about 900,000 tons of copper concentrate per\nyear.<\/p>\n
At the mine, AMMAN is targeting about 900,000 dry metric tons (dmt)\nof Batu Hijau concentrate production in 2026, containing about 485\nmillion pounds, or around 220,000 tons, of copper and approximately\n579,000 ounces of gold.<\/p>\n
But higher production does not automatically translate into greater\nefficiency. Large-scale open-pit mining involves thousands of variables\nevery day, ranging from ore characteristics and mineral grades to\nequipment conditions, weather, material flows, reagent consumption,\nwater and energy use, and downtime.<\/p>\n
This is where technology comes in\u2014not simply to replace people but to\nhelp workers make decisions based on volumes of data that would be\ndifficult to process manually.<\/p>\n
At the Batu Hijau processing plant, AMMAN has developed the\nArtificial Intelligence Dashboard Automation (AIDA). The system uses\nhistorical and real-time operational data to analyze mineral-processing\nconditions and recommend operating parameters, including reagent dosage\nand water flow rates.<\/p>\n
According to Vice President of Corporate Communications at AMMAN\nKartika Octaviana, the transformation is part of a broader change.<\/p>\n
\u201cAMMAN\u2019s digital transformation encompasses two main layers,\u201d Kartika\nsaid.<\/p>\n
The first is the digitalization of business processes through a\ncloud-based ecosystem integrating finance, procurement, human resources,\ndata management and analytics. The second operates in the field,\ncovering mineral processing, fleet ma<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/when-ai-changes-the-worlds-demand-for-copper-1788450706", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }