Government mulls allowing export low grade nickel ores
Thursday, October 6 2016 - 03:11 AM WIB
The paper quoted Interim Minister of Energy and Mineral Resources Luhut Panjaitan as saying that the ministry is considering to allow the export of nickel ores with purity of less than 1.8 percent as it can?t be processed at domestic smelters. ?Because it can?t be processed at home, we?re considering to allow it for export,? he said.
The government is currently finalizing a revision of Government Regulation No 1/2014, which would allow mineral ore concentrates such copper concentrates produced by giants including PT Freeport Indonesia and PT Newmont Nusa Tenggara to be exported for the next five years. Under the current GR No 1, mineral concentrates can no longer be exported after January 12, 2017.
The previous government introduced a ban on the export of mineral ores including nickel in early 2014, but allowed the export of mineral concentrates until January 2017, by which time companies such as PT Freeport and PT Newmont were expected to have already completed the required domestic smelter. However, construction of the required smelters have yet to be completed, thus the need to revise GR No 1/2014. The current government expects the smelters to be completed in five years.
Meanwhile, Kontan quoted President Director of IDX-listed integrated nickel mining firm PT Vale Indonesia Tbk Nico Kanter as appealing to the government not to allow the export of low grade nickel ores. He said that PT Vale?s smelter can process nickel ores with purity level of 1.5-1.6 percent.
IDX-listed mining firm PT Aneka Tambang Tbk has proposed to the government for allowing the export of its low grade nickel ores, claiming it can?t be processed at home.
Antam President Director Tedy Badrujaman said recently that while the company?s high grade nickel ores can be processed at its own smelters or other domestic smelters, the low grade nickel ores can?t be processed at home either due to economic consideration or technology.
He said that if the low grade nickel ores still have value overseas, and if it can be exported, it would provide additional revenue for Antam.
Antam has total nickel resources of 988.30 million wet metric tons, comprising of 580.20 million wmt of high grade nickel ores, and 408.10 million wmt of low grade nickel ores. The company said with the huge resources, it would be able to supply the requirement of domestic smelters. (*)