Again there has emerged speculation that Indonesia may not fully implement its ban on exports of concentrates (partially processed metals) in 2017. This controversial ban, part of the country's 2009 Mining Law, aims to boost domestic processing facilities and reduce the country's dependence on raw commodity exports. The ban was originally implemented in January 2014. However, as there was insufficient domestic smelting capacity full implementation would imply a huge revenue loss. Therefore, concentrate exports were allowed to resume (until 2017) provided exporters pay higher taxes, royalties and provide evidence that they are committed to develop smelters.
9 December 2019 (closed)
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Below is a list with tagged columns and company profiles.
Today's Headlines Bauxite
Indonesian miners may be allowed to resume bauxite exports after a government official signalled that the Indonesian government is looking at relaxing its (raw) mineral export ban. This ban, implemented in January 2014, was introduced in an effort to boost domestic processing capacity, generate more revenue (by adding value to its mineral products) and enhance employment opportunities in Southeast Asia’s largest economy. However, amid the lack of domestic smelting capacity, the export ban has led to a plunge of exports.
The construction of smelting and refining facilities in Indonesia - as stipulated in the new and controversial 2009 Mining Law - remains troublesome because several mining companies have delayed construction pending the judicial review of the 2009 Mining Law by the Constitutional Court of Indonesia. Meanwhile, Indonesia's Association of Bauxite and Iron ore Entrepreneurs (APB3I) said that the construction of 5 bauxite smelters need to be postponed due to financial uncertainties.
Last Friday, the International Monetary Fund (IMF) released its January 2014 Commodity Market Monthly. This report provides an update on global commodity prices. According to the report, global commodity prices rose 2.4 percent in December 2013, with increases in most main indices. During 2013, commodity prices increased 0.8 percent, with gains concentrated in the energy sector, up 3 percent from December 2012. Metals prices declined 7 percent due to continued increases in new capacity.
The company profile of state-controlled Aneka Tambang (Antam) has been updated in the Indonesian companies' section. Antam is a vertically integrated, export-oriented, diversified mining and metals company in Indonesia. With operations spread throughout the mineral-rich archipelago, Antam undertakes all activities from exploration, exploitation, processing, refining to the marketing of its nickel ore, ferronickel, gold, silver, bauxite, coal and precious metals refining services.
Latest Columns Bauxite
The Indonesian Ministry of Energy and Mineral Resources announced that 25 miners holding a Mining Business License (Izin Usaha Pertambangan, or IUP) have finished construction of their smelters in the first half of 2014 in line with Law No. 4 of 2009 on Mineral and Coal Mining (also known as the 2009 New Mining Law), which foresees a ban on exports of unprocessed minerals. General Director at the ministry, R. Sukhyar, said that some of these 25 smelters are still in the commissioning stage, while others are already in the production stage.
Starting from 12 January 2014, the export of all mineral-ores are banned in Indonesia. This controversial new policy, stipulated by the 2009 Mining Law (on Minerals and Coal Mining), was agreed upon by the nine fractions in Commission VII of the Indonesian parliament (DPR). Through this new law, the government intends to increase the value of exports while reducing dependence on raw exports and thus becoming less vulnerable to price downswings on the global commodities market.