Indonesia Invests in Rare Earth Element (REE) Processing

indonesia is making meaningful strides in teh development of its Rare Earth Element (REE) capabilities. mind ID,the state-owned mining holding company,is collaborating with PT Timah to establish a Rare Metal Mineral (LTJ) processing facility in Tanjung Snake,West Bangka Regency,Bangka Belitung Islands Province. This initiative aims to unlock the potential of Indonesia’s REE resources and position the nation as a key player in the global supply chain.

Monazite processing and Strategic Industries

The new facility will focus on processing monazite, a mineral rich in REEs. Dany Amrul Ichdan, Deputy Director of Mind ID, emphasized the importance of this development, stating that the processed monazite will be crucial for various strategic industries. Thes include the production of permanent magnets, hybrid batteries, electronics, and catalysts, all of which are experiencing surging demand globally.

The Mind ID group through tin has a mineral rare earth manage that is rarely owned by other countries. Indonesia has the ability to process this rare earth in the country so that the added value and benefits can be felt by all Indonesian people.
Dany Amrul Ichdan, Deputy Director of Mind ID

the global rare earth elements market is projected to reach $18.3 billion by 2028, growing at a CAGR of 9.5% from 2021, according to a report by Allied Market Research. This growth is driven by the increasing demand for REEs in various applications, including electric vehicles, wind turbines, and consumer electronics.

Thorium Potential and Energy Independence

Beyond REEs, the LTJ also contains thorium, a potential energy source for nuclear power plants (PLTN). Dicky Octa Zahriadi, Director of Business Development of PT Timah Tbk, highlighted the significance of thorium utilization for enhancing energy independence.

By continuing to try to utilize the potential of domestic thorium, we can contribute to increasing the added value of ground metal processing rarely to encourage energy independence.
Dicky Octa Zahriadi, Director of Business Development of PT Timah Tbk

Indonesia’s focus on thorium aligns with global efforts to explore option energy sources and reduce reliance on fossil fuels.Nuclear power, including thorium-based reactors, is gaining traction as a clean and reliable energy option.

Challenges and Future Plans

PT Timah’s Ree Development Pilot Plan has been underway since 2010, facing challenges such as limited availability of proven processing technology and the need for strategic partnerships. The revitalization of the pilot plant requires time and significant technical support. Though, PT Timah remains committed to building a commercial-scale LTJ processing factory using monazite as a raw material.

Indonesia’s Role in the Global REE Supply Chain

By developing its REE processing capabilities, Indonesia aims to become a significant contributor to the national and global LTJ-based industrial supply chain. This strategic move will not only boost the Indonesian economy but also help meet the increasing global demand for rare earth elements.

With the development of REE in the country, PT Timah seeks to contribute to the national and global LTJ -based industrial supply chain, along with increasing world demand for rare land elements.
Dicky Octa Zahriadi, Director of Business Development of PT timah Tbk