Antam wants additional export quota of low grade nickel
Saturday, May 6 2017 - 04:20 AM WIB
Petromindo|Lucky
IDX-listed mining firm PT Aneka Tambang Tbk said it is seeking to increase export of low grade nickel ores, and will ask for additional export quota from the Ministry of Energy and Mineral Resources.
Antam last month was given a permit to export 2.7 million tons of low grade nickel ores with purity of less than 1.7 percent. Hari Wijajanto said recently that the company wanted to apply for another 3.7 million tons of export quota to meet stronger demand from overseas buyers.
Hari said that the company is expected to start shipment of the low grade nickel ores in May of this year, at an initial volume of 150,000 tons.
The government introduced a new regulation in January of last year, among others allowing miners to resume export of low grade nickel ores and washed bauxite. But to be allowed to export, the miners must show commitment in developing domestic smelter, the progress of which will be verified by independent auditors. The ministry, however, has yet to appoint the independent auditors.
Hari said that if the government approves the request for the additional export quota, the company will adjust its low grade nickel ores production plan for this year.
Meanwhile, Kontan quoted Hari as saying that the additional export quota of low grade nickel ores is needed to particularly meet demand from Japanese buyers such as Pamco, Nippon, and Sumitomo, which in the past had been engaged with the company in nickel ore transaction.
Aside from meeting demand from overseas buyers, he said, that the additional export quota will also capitalize on the current rise in the price of nickel in the international market and to help reduce stock at home.
Director for Mineral Development and Management at the Ministry of Energy and Mineral Resources Bambang Susigit said that the ministry has yet receive request from Antam for additional export quota. He added that Antam does not need to wait for verification by independent auditors in applying for the export quota.
Editing by Reiner Simanjuntak