Export permits to be given only to miners which own smelters

The energy and mineral resources ministry has decided to ease the restriction of exports of unprocessed mineral ores next year because many mining companies have faced a number of problems in the construction of their smelting plants, Kontan reported on Monday.

Director General of Minerals and Coal, Thamrin Sihite, said in Jakarta last week that exports of unprocessed minerals would be still allowed next year but the permits would be given selectively only to those which have started the construction of their smelting plants.

According to the mining law, exports of unprocessed minerals will be banned beginning this year. In order to be able to comply with the regulation, miners should build smelting plants or cooperate with other smelters to process their mineral production.

Thamrin acknowledged that many mining companies had faced a number of problems in the construction of the smelting plants. Difficulties in land acquisition and in securing power supply have for example hampered the construction of the smelting plants, he added.

?The most important thing for us is mining companies show their commitment in building the smelters,? he said, adding that miners, which showed no commitment in the construction of smelting plants would not be allowed to export unprocessed minerals. But, if such companies were found to have exported their raw mineral production, they could face 10 jail terms or fine of Rp 100 million. ?The punishment should be imposed beginning next year,? he added. (*)