Indonesia penalises laggard construction of smelters before 2020 ore export ban-Shanghai Metals Market

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Indonesia penalises laggard construction of smelters before 2020 ore export ban

Industry News 01:33:27PM Sep 05, 2019 Source:SMM

SHANGHAI, Sep 5 (SMM) – The Energy and Mineral Resources Ministry (ESDM) of Indonesia announced means of punishment for smelters that progress slowly in their facilities construction, according to a decree released and effective on August 26.

The move aims to accelerate the establishment of domestic smelters, as ESDM will stop exports of nickel ore of all grades from January 1, 2020, two years earlier than initially indicated. Any unexpired quota or newly-approved one during the rest of this year will be invalid by the end of December.

Indonesian smelters engaged in export business that fail to meet 90% of the construction progress as scheduled, in every six months, will face potential export suspension and an administrative fine of 20% of the cumulative mineral export sales during the past six months. 

The smelter’s license will be revoked if the smelter is unable to pay the fine during a provisional 60-day period.

Key Words:  Market commentary  Nickel 

Indonesia penalises laggard construction of smelters before 2020 ore export ban

Industry News 01:33:27PM Sep 05, 2019 Source:SMM

SHANGHAI, Sep 5 (SMM) – The Energy and Mineral Resources Ministry (ESDM) of Indonesia announced means of punishment for smelters that progress slowly in their facilities construction, according to a decree released and effective on August 26.

The move aims to accelerate the establishment of domestic smelters, as ESDM will stop exports of nickel ore of all grades from January 1, 2020, two years earlier than initially indicated. Any unexpired quota or newly-approved one during the rest of this year will be invalid by the end of December.

Indonesian smelters engaged in export business that fail to meet 90% of the construction progress as scheduled, in every six months, will face potential export suspension and an administrative fine of 20% of the cumulative mineral export sales during the past six months. 

The smelter’s license will be revoked if the smelter is unable to pay the fine during a provisional 60-day period.

Key Words:  Market commentary  Nickel