By Paul Ploumis 08 Sep 2015 Last updated at 08:27:52 GMT
JAKARTA (Scrap Monster): The Indonesian government yesterday announced that it has decided to withdraw plans to ease mineral export ban. It must be noted that the government had earlier proposed to consider relaxation on ban in its upcoming economic stimulus package in an attempt to boost investor sentiment and provide much needed stimulus to the country’s economy.
Announcing the decision, the Energy and Mineral Resources Minister Sudirman Said stated that the government fears that lifting of ban would bring more harm than good to the ongoing efforts to implement the 2009 Mining Law in full. The Minister cited that allowing for exports could lead to legal and environmental risks. He clarified that the government has decided to stick with the current regulations. However, he stated that the possibility of certain revisions in mineral export regulations is still open.
The Indonesian government had implemented ban on mineral ore exports in January 2014, whereby mining firms are required to process minerals in local smelters before they are being sold overseas. However, exemptions were granted on copper concentrate exports to PT Freeport Indonesia and PT Newmont Nusa Tenggara for their commitment to build local smelters.
The mining companies in the country had raised opposition to the government decision. The government advisory panel had recently recommended the government to allow exports of raw minerals for one year, especially nickel and bauxite, from miners who have completed at least 30% works on smelters. However, the government stated that it would consider other incentives to aid smelter construction.