Indonesia ban on unprocessed-metal exports to proceed as planned

By Yoga Rusmana, Fitri Wulandari and Femi Adi

Indonesia will ban exports of 14 raw minerals effective May 6, with an exception for miners that plan to build local processing facilities. Those miners will be assessed an average tax of 20 percent on ore shipments.

The regulation applies to copper, lead, nickel, gold, silver, zinc, chromium, bauxite, manganese, molybdenum, platinum, antimony, iron ore and sand iron, Energy and Mineral Resources Minister Jero Wacik said at a press briefing in Jakarta today.

The largest nickel-ore and bauxite supplier to China announced the prohibition in February, two years ahead of schedule. The new rules apply to holders of mining business licenses issued after 2009. Companies with a so-called contract of work, including Phoenix-based Freeport-McMoRan Copper & Gold Inc. (FCX) and Newmont Mining Corp., will be allowed to ship ores until 2014.

“Miners will still be allowed to export after meeting some requirements, including obtaining permits, Edi Prasodjo, a director of coal at the Energy and Mineral Resources Ministry, said at a conference in Jakarta earlier today. “The IUP must be clean and clear, paying taxes and royalties,” Prasodjo said, referring to a mining business license by its Indonesian initials.

‘Killing Us Slowly’

“We were shocked when the government announced in February that nickel ore would be banned, I. D. Susantyo, a member of the board of directors at the Indonesian Nickel Association, said in an interview. “Now they said we can still export but weAir Jordan Spizike 3.5