Indonesia will revise the rules of the ban on the export of ores

Indonesia will consider rules banning the export of partially processed metal ores, including copper and zinc, as they fell short amid low commodity prices, the country's mining minister said.

Indonesia banned the export of metal ores in early 2014 to encourage firms to build factories that will provide jobs and move from exporting raw materials to higher value-added finished metals. However, the ban did not benefit the country, formerly the world's leading exporter of nickel ore and a major supplier of bauxite. This resulted in billions of dollars of lost revenue.

Since the ban, many of Indonesia's nickel and bauxite miners have postponed smelting projects amid falling commodity prices. Up to seven projects are expected to be completed this year.
While the 2014 ban remained unchanged for the export of nickel ores and bauxite, the government gave producers of partially processed metals known as concentrates until 2017 to continue exporting if they pay export tax and develop domestic processing facilities.
“Metallurgical plants should be built within three years, despite the fact that prices for mineral raw materials have fallen. Many mining companies face challenges, ”he told reporters.

Mineral export regulations have sparked flares between the government, which is constitutionally obligated to maximize resource profits, and mining companies, including the US Freeport McMoRan Inc and Newmont Mining Corp.

So, the Indonesian government in the course of revising the mining rules may weaken the ban on the export of nickel ores or bauxite.

When asked if the planned revision of mining legislation would affect the export of bauxite and nickel, coal and other minerals, the minister told a group of reporters, "Let's see ... If this is not regulated in detail, then we can make new rules."