Antam, Fajar obtain export recommendation letter

Petromindo|Thomas

IDX-listed mining firm PT Aneka Tambang Tbk (Antam) and privately-held nickel miner PT Fajar Bhakti Lintas Nusantara are the first companies to have obtained the key recommendation letter for the export of low grade nickel ores and washed bauxite since the government introduced a policy in January of this year allowing the export of the commodities.

Bisnis Indonesia quoted Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources Bambang Gatot Ariyono as saying Tuesday that the ministry has issued recommendation letter for Antam to export 2.7 million tons of low grade nickel ores and 850,000 tons of washed bauxite for a period of one year.

Meanwhile, Fajar obtains recommendation letter for the export of 1 million tons of low grade nickel ores, also for a year.

The export recommendation letter from the ministry is required for obtaining export permit from the Ministry of Trade.

The government in January of this year introduced a new government regulation among others allowing the export of low nickel ores with purity of less than 1.7 percent and washed bauxite with purity of less than 42 percent. To be able to obtain the export recommendation letter, the miners must have either set up domestic smelter or have put in place plan to develop domestic smelter, the progress of which would be evaluated by independent auditor. The miners must also allocate a third of nickel output for the smelter.

Bambang said that aside from the two companies, no other miners have applied for obtaining similar letter from the ministry. (*)