The Indonesian government will press on with a plan
to ban raw-mineral exports next year, while signaling
that the proposed curb may be amended in practice, according to two officials
who addressed an industry conference.
“If we look at the existing law, yes by 2014 we are
sure to implement this, but we also consider the effect and discuss it with
parliament, how to deal with this,” said Bambang Adi, deputy to the coordinating minister for economic
affairs. Dede Suhendra,
director of mining at the Energy and Mineral Resources Ministry, told the
gathering: “We have to appreciate companies that are serious about building
smelters.”
The largest mined-nickel producer is seeking to
boost the value of commodity sales, and while a blanket ban is mandated by the
2009 Mining Law the government may exempt companies that are operating or
planning to build processing plants. Nickel is this year’s worst base-metal
performer on the London Metal Exchange amid a global glut and record
stockpiles. Citigroup Inc. raised its nickel forecast for 2014 on 18 November,
saying the proposed shipment curb is being mispriced by the market.
The government has received 89 proposals for
nickel-processing plants with potential capacity of about 50 million metric
tons, Suhendra said. The plants will be located in
Kalimantan, Sulawesi, Papua and Maluku, he told delegates.
The trade policies in Indonesia are a focal point
for the industry, Bank of America Merrill Lynch said in a report on Oct. 14. Of
three possible scenarios, the more likely were the ban being implemented over
the short term before new rules were introduced and the start of illegal
shipments, it said.
The impact from the planned ban on shipments won’t
be as big as people expect, Deputy Trade Minister Bayu
Krisnamurthi told reporters in Jakarta on Nov. 7. The
ban will raise prices, which will offset lower export volumes, Krisnamurthi said.
Nickel-ore exports may increase to an estimated 52
million tons this year from 41 million tons in 2012, Suhendra
told reporters on 19 November. Shipments may gain in 2013 after the government
removed quotas earlier this year, and as mining companies boost sales before
the ban, Suhendra said, without giving an estimate
for volumes next year.