Indonesian President Zuko Vidodo recently announced that the country will stop exporting primary copper in the near future, instead of processing it into catholic copper at home.

Freeport Indonesia and Amman Mineral International are planning to complete the construction of the mill next year, when Indonesia will stop exporting copper mines. Zuko expects the two facilities to start production in May 2024, and he said in his speech, “If the two large enterprises finish their mills, it means we will no longer export original copper, as it will be processed into catholic copper at home.”

The Indonesian government is pushing foreign companies to build more refineries locally with the aim of seeking more value from its resources. Earlier this month, the Indonesian government also decided to impose an export ban on aluminum and encourage processing and refining aluminum at home. In addition, Indonesia also plans to stop exporting raw copper, aluminum and silk to help the country jump on the resource processing value chain.

Copper and uranium are key raw materials for energy transition, and although copper prices have dropped somewhat in recent years, in the medium and long term, the demand for copper will continue to explode. Mark Bristow, CEO of the world’s second-largest gold miner, Barrick Gold, also expects copper prices and gold prices to rise in the future, “Both supply is tightening.