ESDM urges Tanah Laut Regent to help smooth steel ore supply
Friday, May 4 2012 - 08:37 AM WIB
The Mineral Directorate of the Directorate General of Mineral and Coal of the Energy and Mineral Resources Ministry has urged the Regent of Tanah Laut Regency of South Kalimantan to issue the required distribution permit for the regional cooperation unit to enable it to secure supply of iron ore for the iron ore smelter operated by PT Delta Prima and South Korean Posco.
The government also requested both Delta and Posco to seek special production operation IUP license so they can cooperate with other holders of production operation IUP license allowing the smelter also be used to process iron ores produced by other miners in South Kalimantan.
"Delta Prima will need to secure its operation production IUP license, having secured the related licenses for mine production, logistic and smeltering. The special operation production IUP license is needed to guarantee cooperation with other operation production IUP license holders that have complied with the clear and clean status," Mineral Director Dede Ida Suhendra told Petromindo.Com.
The regional cooperation unit of Tanah Laut regency is known to dominate the iron ore distribution market, controlling up to 300,000 tons of iron ore per day.
Dede stated that the government is currently conducting data collection of special and regular operation production IUP license holders, adding that the ministry's plan to apply mineral export tax as of May 6 has not changed.
Editing by Er Audy Zandri