Indonesia to give miners extra time to build smelters

Indonesia could give mining companies another three to five years to complete smelting projects before the export of minerals is banned, the mining minister said Tuesday, amid government discussions on amendments to the sector's rules.

Miners who have not yet built metallurgical plants will be able to have permits for further activities within five years, Minister Luhut Pandjaitan told reporters. “We will provide an opportunity for companies to build factories in transition, in line with the progress in the development of the industry,” he said. "They will also have to pay an export tax, which we will introduce in stages in line with the progress in smelter development."

The changes will potentially provide a breakthrough for miners such as US giant Freeport McMoRan, which under current regulations would not have been allowed to export copper concentrate since January 2017.