Apemindo seeks export quota for low grade nickel ores

Petromindo

The Indonesian Minerals Entrepreneurs Association (better known as Apemindo) called on the government to provide an export quota of as much as 20 million tons per year for low grade nickel ores as domestic nickel smelters have declined to absorb the commodity.

Apemindo Executive Director Ladjiman Damanik was quoted by bisnis.com as saying Friday that the export quota should only be given to mining firms which are developing domestic smelters.

Ladjisman made the remarks as the government plans to relax the current export ban on mineral ores and concentrates. He added that the government could impose export duty on the overseas shipment of low grade mineral ores.

Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources, Bambang Gatot Ariyono, however, said recently that the government would not allow the export of low grade nickel ores. He said that the ministry is currently in the process of revising a ministerial regulation that would force domestic smelters to buy low grade nickel ores with purity of 1.7 percent up to half of their installed production capacity.

But Director of Development of PT Indoferro, Jonatan Handojo said the planned policy would create difficulties for the smelter operators as only the blast furnace can absorb the low grade nickel ores, while the electric furnace (RKEF) smelters cannot. There are currently 15 blast furnaces in the country, and five RKEF smelters, which have much higher capacity than the former group. (*)