PT Amman Mineral Internasional Company Profile
PT Amman Mineral Internasional Company Profile
PT Amman Mineral Internasional Company Profile
June 2023
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1
Management team
Alexander Ramlie, President Director
◼ Extensive experience in finance and mining sectors
◼ Former President Director and CEO of Borneo Lumbung Energi
& Metals Tbk and Vice-Chairman of PT Berau Coal Energy Tbk
◼ Played an instrumental role in the acquisition of PTNNT
Irwin Wan, Director of Operations
◼ Started career as an investment banker at Lazard Freres & Co.
◼ Over 20 years of experience in mining, civil earthworks and
◼ Master’s and Bachelor degrees in Economics from Boston
engineering
University
◼ Commenced career in Leighton (now Thiess) Contractors. Former
Head of Mining for ASX-listed Hunnu Coal Limited and SET-listed
energy company Banpu, operating mines in Mongolia
◼ Extensive experience in open-pit mining for various commodities
across Australia, Philippines, Mongolia, Central America and
Indonesia
Arief Sidarto, Director of Finance
◼ Dual degree with Honors in Engineering and Commerce from the
◼ Extensive experience in finance and corporate sectors University of Western Australia. Member of AusIMM and a
◼ Former Managing Director of Rajawali Group and former COO qualified Competent Person for reporting under 2012 JORC code
of Goldman Sachs Southeast Asia Investment Banking
◼ MBA from Harvard Business School and dual bachelor degrees
from the University of Pennsylvania's Wharton School and
School of Engineering and Applied Science with Summa Cum Dr. Naveen Chandra Lal, Director of Business
Laude and Commercial
◼ Over 25 years of experience in mining operations, commercial,
commodity trading, mergers & acquisitions and strategic
developments
◼ Extensive experience in copper, metallurgical and thermal coal,
iron ore and ceramic raw materials
David Gibbs, Director of Strategic Planning ◼ Former CEO of RAK Minerals and Metals Investments, UAE
◼ BSc degree with Honors in Mining Engineering degree from ◼ PhD in Chemistry from Jadavpur University and Advanced
Royal School of Mines, London Management Program from Harvard Business School
◼ Over 40 years of continuous international mining experience in
underground and open-pit mining and as a consultant, including
13 years with Rio Tinto companies
◼ Minerals include tin, gold, uranium, copper/gold, coal, diamonds
and talc projects located in South Africa, Namibia, Papua New
Guinea, Australia, Thailand and Indonesia
2
AGENDA
Company Overview
Appendix
3
World-class strategically located mining complex
Substantial porphyry copper-gold resources, including the established, low-cost Batu Hijau mine and the future
Elang project which has one of the world’s largest known undeveloped porphyry copper and gold deposits
Indonesia
Elang total reserves 1,436 0.33 0.33 10.51 15.13 Elang project
2
Elang total resources 2,234 0.28 0.27 13.93 19.49
2 Proven track record with a robust strategy of continuous operational efficiency and value creation
First quartile cash cost operation driven by the natural endowment of our mining deposit and operational
3 improvements
5 Strong fundamental growth tailwinds supported by demand required for the green energy-transition
5
Overview of AMI – Shareholder and organizational structure
AMI is a holding company for world-class copper-gold mining operations, including the established, high
quality and low-cost Batu Hijau mine
PT Sumber PT Pesona Sukses PT Alpha Investasi PT Medco Energi PT Sumber Mineral PT Medco Services
PT AP Investment
Gemilang Persada Cemerlang Mandiri Internasional Tbk Citra Nusantara Indonesia
(“API”)
(“SGP”) (“PSC”) (“AIM”) (“Medco Energi”) (“SMCN”) (“MSI”)
17.08% 35.57% 7.21% 7.86% 23.13% 5.12% 4.02%
PT Amman Mineral
Internasional
(“AMI”)
99.99% 99.99%2 99.99%1 99.60% 51.00% 50.00%
PT Amman Mineral PT Amman Mineral PT Amman Mineral PT Amman Nusa PT Macmahon Labour PT Medcopower Solar
Integrasi Industri Nusa Tenggara Propertindo Services Sumbawa
(“AMIG”) (“AMIN”) (“AMNT”) (“ANP”) (“MLS”) (“MSS”)
99.99% 100.00%
Amman Mineral
Contractors Singapore
Pte Ltd (“AMCSPL”)
Macmahon Holdings
Limited
(“MAH”)4
Note: Structure presented above is a simplified corporate structure and not exhaustive
The history and future of our assets
Following a successful transition to today’s shareholders, Batu Hijau has been optimized into a low-cost
operation with fiscal stability
Optimized operations to 2021:
1986: Signed Contract of
improve productivity • Phase 8 cutback started
Work (“CoW”) with the
and achieve significant • Elang project ore reserves estimate 1,440Mt
Government of Indonesia
mining cost savings • Commissioned solar power plant
2020:
• First Phase 7 ore produced
• Scoping, pre-feasibility and Developing expansion projects
2000 to 2016: Mined Phases 1 to 6 including a recently commissioned
feasibility studies for Elang
November 2016: A consortium of 26.5MW solar farm, smelter
project completed
API and Medco Energi acquired a construction, processing plant
• Phase 8 design increased Batu
majority stake in NNT and became expansion, power plant expansion
Hijau’s reserves by 460Mt
the sole operator of Batu Hijau mine and LNG storage and regasification
facilities
Quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Mining activities
Elang mine
Infrastructure
Processing plant
expansion
Combined cycle power plant $447 $111 $336 Q4 2024 • Progress continues as expected
Smelter progress Combined cycle power plant progress Ore processing expansion progress
Appendix
14
A globally significant copper-gold producer with large,
1 world-class reserves
Large, long-life, high quality “tier-one” copper-gold projects with diversified dual commodity exposure,
reducing price volatility risk
Overview of Batu Hijau mine and Elang project 2023 largest copper and gold mines by production
Grasberg
◼ Batu Hijau mine is the second largest copper and gold mine Escondida
Batu Hijau
in Indonesia, and the combined mineral reserves at the Batu Polish Copper
Norilsk
Hijau mine and the Elang project are one of the largest Cobre Panama
Salobo
copper-gold complexes in the world Cadia Hill
Boddington
Ok Tedi
◼ Historically, Batu Hijau mine contributed approximately 1.0% of Olympic Dam
Kansanshi
the global primary copper production Oyu Tolgoi
Bingham Canyon
Centinela
◼ Elang project is one of the world’s largest undeveloped Dexing
Candelaria
porphyry copper and gold deposits Antapaccay
Timok
Bystrinskoe
◼ Batu Hijau mine and Elang project are strategically located to
serve key regional demand centres, such as China, Japan and 0 200 400 600 800 1.000 1.200 1.400
South Korea Copper equivalent (kt)
Batu Hijau
15.4 and Elang
copper reserves
33.5
20.5 9.0 4.6
14.72 15.7 13.4 13.1 12.8 11.9
6.0 9.03
Escondida Grasberg Polish Copper Kerr Sulphurets AMNT Oyu Tolgoi Cobre Panama Norilsk El Arco NuevaUnion
(PT Freeport Mitchell (Rio Tinto)
Indonesia)
2 Represents FCX’s net equity interest in PTFI of 48.8% from 2022 onwards; 3 Represents Rio Tinto’s net equity in Oyu Tolgoi of 66%
Proven track record with a robust strategy of continuous
2 operational efficiency and value creation
Significant work completed to improve cost efficiency by optimizing the labour force, enhancing
operational efficiency and judicious control of capital expenditures
75%
304 318 0.00 0.20 0.40 0.60 0.80 1.00 1.20
263 252 275
226 218 239
178
146 Ore head grade (Cu %)
AMNT Phase 7
2018 2019 2020 2021 2022
Pre-rebuild
Post-rebuild
Before
After
100
600
2.89 3.5
2.28
3
1.89 2.5
400
304 1.5
300
226 252 1
218
146
0.5
200
100
64 -0.5
(200)
0 -1
- 10.000 20.000 30.000 40.000
2017 2018 2019 2020 2021 2022 Cumulative copper production (Mlb)
Processing facilities
Metals usage by clean energy technology type Copper demand growth for key energy transition applications
Copper Cobalt Nickel Lithium 2021 to 2035 CAGR
Solar PV l l l l Weighted average: 8.2%
l l l l
Distribution 2.7%
Wind
Hydro l l l l Transmission 7.1%
CSP l l l l Onshore wind 9.8%
Bioenergy l l l l
Solar PV 11.9%
Geothermal l l l l
Nuclear l l l l EVs 14.0%
Electricity networks l l l l Battery storage 21.8%
EVs and battery storage l l l l
Offshore wind 23.3%
Hydrogen l l l l
High: l Moderate: l Low: l 0% 5% 10% 15% 20% 25%
Copper in reserves, resources and past production Projected new copper in major discoveries Copper exploration budgets
150 5.000
Copper exploration
120 4.000
discoveries (Mt)
Copper major
budgets ($m)
90 3.000
60 2.000
30 1.000
0 0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
40
35
30
25
20
15
10
0
2010 2015 2020 2025 2030 2035 2040
Appendix
24
Driving shareholder value with strong cash generation and
multiple sources of capital
2 Months Ended
12 months ended December 31,
$m or unless otherwise stated February 28,
2020 2021 2022 2023
Income statement highlights
Average selling price – copper, net ($/lb)1 2.92 4.52 3.56 5.00
Average selling price – gold, net ($/oz)1 1,794 1,762 1,737 1,952
Sales volume – copper (Mlb) 271 228 451 54
Sales volume – gold (Koz) 118 152 703 89
C1 cash cost ($/lb Cu)2 0.83 1.20 (0.21) 0.30
2000 118%
Freight and marketing costs Others1
1500
1.978
2.830 Capex
30%
1000
1.299
500 1.003
695
0
29 36
EBITDA and EBITDA margin
1,063 134
$m EBITDA EBITDA margin 946 87
155 65
3000
61% 70%
107 35 17
55% 41 7 57
2500
60%
30 27 61
46% 54 63
50%
2000
40%
1500 932
30%
143%
1000
679 676
1.734 20%
466 713
0 0%
Debt Maturities
146
630 607
315
160 169 183
7 16
2023 2024 2025 2026 2027 2028 2029 2030
Appendix
29
Batu Hijau mine
AMI owns 99.99% of AMNT which operates Indonesia’s 2nd largest copper and gold concentrate producer
Overview of AMNT and Batu Hijau Batu Hijau open pit copper-gold mine
◼ AMNT’s core business activities include exploration, mine
development and mining and processing of copper-gold ore
◼ Batu Hijau is a large open pit mine located in West Sumbawa that has
been producing copper-gold concentrate since 2000. It was operated
by Newmont Corporation (“Newmont”) through PT Newmont Nusa
Tenggara (“PTNNT”), renamed AMNT since 2016
o As of December 31, 2022, Batu Hijau has produced 9.4Blb of
copper and 9.5Moz of gold
o AMNT has expanded the Batu Hijau mine which has remaining
reserves of 6.6Blb of copper and 8.1Moz of gold
o Batu Hijau produces high-grade, extremely clean copper
concentrate that is a highly desirable feedstock for smelters
◼ Batu Hijau mine is planned to produce until 2030 from open pit Batu Hijau reserves and resources estimates1
cutbacks known as Phase 7 and 8
Grades Contained
o AMNT accelerated Phase 7 waste removal from 2017 until 2020.
Total Cu Au Cu Au
During Phase 7 pit cutback, the process plant feed was sourced (Mt) (%) (g/t) (Blb) (Moz)
from 334Mt of legacy ore stockpiles
Stockpiles 283 0.33 0.13 2.03 1.20
o Commenced lower-grade ore production from 2020 and higher-
grade ore from 2022 Phase 7 reserves 59 0.58 0.89 0.76 1.70
o Phase 8 cutback commenced in mid-2021 and ore production is
planned to commence from 2025 until 2030 Phase 8 reserves 460 0.38 0.35 3.81 5.17
2
Batu Hijau total resources 1,642 0.25 0.11 8.97 5.87
Total Cu Au Cu Au
(Mt) (%) (g/t) (Blb) (Moz)
2
Elang total resources 2,234 0.28 0.27 13.93 19.49
Engineers
Source: Company information, China Nonferrous Metal Industry’s Foreign Engineering and Construction Co., Ltd.
34
1 Next verification will be conducted in July 2023
CCPP and LNG storage and regasification facilities
AMNT is constructing a new CCPP and associated LNG storage and regasification facilities to replace
existing coal-fired power plant and support expansion projects
◼ The CCPP is planned to start operations in a phased fashion in 2024 ◼ The Terminal Use Agreement with MPI has been signed
to support the commissioning of and the ramping up of the smelter
and processing plant expansion ◼ The LNG storage and regasification facilities will include an LNG
receiving terminal, storage facilities and a regasification plant located
◼ The power plant will be capable of meeting the power demand of the at Benete Port
following consumers:
◼ The LNG storage and regasification facilities will supply gas for fueling
o Smelter: expected peak demand of 78MW the gas turbines in the CCPP and firing the smelter furnace
o Processing plant expansion: expected peak demand of ◼ The LNG storage will accommodate LNG buffer for 15 days to ensure
235MW that mining, processing and the future smelting operations will not be
disrupted with LNG supply issue
o The existing Batu Hijau processing plant and facilities: a peak
demand of 118MW ◼ Limited Notice to Proceed for the Engineering and Procurement works
has been issued to PT JGC Indonesia
o Smaller support and auxiliary loads of approximately 8MW,
supplied at 11kV
◼ Total capital expenditure for the CCPP is $442m, which will be funded
by internal cashflow
Properties of AMNT tailings and compliance with permits Monitoring and sampling
◼ AMNT uses a pure physical process to separate metals from the ore
and does not use leaching, cyanide, mercury or other dangerous
chemicals that would contaminate the tailings
◼ The tailings is transported through a DSTP pipeline, which is 6.2km
overland to the coast and 3.4km subsea on the seabed, into a deep
canyon in Senunu Bay in the Indian Ocean (south of Sumbawa) and
the majority of the tailings will settle at >3,000m depth
◼ AMNT’s tailings complies with standards set in the DSTP permit in
terms of physical parameters (pH, solid fraction, flow) and dissolved
metals. Continued seawater, sediment quality, and marine ecology
monitoring programs to ensure compliance
◼ AMNT’s current tailings license is evergreen for the remaining life of
mine of Batu Hijau
Advantages of DSTP vs. surface tailings (Greencorp study) Deep-sea tailings facility
◼ Batu Hijau is located in a seismic zone – surface tailings would require
construction of high tailings retention structure, which is highly unsafe
in the event of an earthquake
◼ The area also has seasonal high rainfall, which may cause overflows
in a surface tailings facility
◼ Surface tailings may lead to acid rock drainage, while acid is more
manageable in the deep sea as oxygen solubility in deep waters is
very low
◼ Surface tailing disposal for AMNT would affect land and forest area of
over 2,000ha vs only 29ha for DSTP
Boliden 7.26
Sibanye Stillwater 7.10
Alcoa 6.34
JX Nippon & Mining 5.39
Codelco 5.29
South32 4.48
BHP 3.89
African Rainbow Minerals 3.60
Freeport-McMoRan 3.48
Hydro 3.32
Teck 3.29
Newcrest 2.87
Glencore 2.36
Antofagasta Minerals 2.29
Orano 2.25
Anglo American 2.24
Gold Fields 2.16
AngloGold Ashanti 2.14
Minera San Cristóbal 2.11
Rio Tinto 1.98
Newmont 1.75
Minsur 1.50
Barrick 1.47
Vale 1.41
Sumitomo Metal Mining 1.24
MMG 1.09
Amman 0.99 Weighted average ICMM members: 2.90
Source: Company information, 2021 International Council on Mining and Metals (“ICMM”) TRIFR
37