July 18, 2019 / 10:27 AM / 4 months ago

Indonesia will enforce 2022 ban on raw mineral ore exports - official

    JAKARTA, July 18 (Reuters) - A senior Indonesian mining
ministry official pledged on Thursday that authorities would
enforce a ban on the export of raw ore exports by 2022 to make
miners process minerals in the country.
    Based on a 2017 mining regulation, Indonesia is due to stop
allowing the export of unprocessed ore starting Jan. 12, 2022,
after giving miners a five year period to build smelters
onshore.
    "They must finish building (smelters)," Bambang Gatot, the
mining ministry's Director General of Coal and Minerals, said on
Thursday.
    "If they don't finish in time, they should continue
building, but they won't be allowed to export ore," he told
reporters.
    Indonesia stopped exports of raw ore such as nickel, bauxite
and concentrates of other minerals from 2014 to 2016, and the
revenues of mining companies such as PT Aneka Tambang have
declined following the ban. (reut.rs/2OFsX2H)
    Given the impact, the government then relaxed the ban in
January 2017 under certain conditions including that companies
put forward plans to build smelters.
    Nickel prices have climbed in both London and Shanghai on
concerns about the 2022 ban in ore exports. 
    As of July, there were 41 smelter projects being constructed
with more than half of them nickel smelting projects, data from
Indonesia's mining ministry showed. 
    Twenty-two nickel smelting plants are currently being
developed with an estimated 46.33 million tonnes of input
capacity. Three of these are near completion, while the others
are mostly still in the early stage of construction.
    
    Indonesia has 13 existing nickel smelting facilities with a
combined input capacity of 24.52 million tonnes, which mostly
produce nickel pig iron (NPI).
    
    Below are details of ongoing smelter projects:       
 Mineral        Existing  Planned   Input capacity of
                smelters  smelters  planned smelters
                                        (mln T/year)
 Nickel               13        22              46.33
 Copper                2         2               3.30
 Bauxite               2         6              21.82
 Iron ore              2         4               8.86
 Manganese             1         1               0.10
 Lead and zinc         -         4               0.13
 Anode slime           -         2              0.005
 TOTAL                20        41  
 
 (Reporting by Wilda Asmarini; Writing by Fransiska Nangoy;
Editing by Ed Davies and Christian Schmollinger)
  
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