Govt asked to review mineral downstream policy

The Indonesian Mining Association (IMA) has asked the government to review its policy related to the development of the country?s mining downstream industry because the processing of raw minerals at local refineries will not provide more economic values to all mineral products.

The association?s executive secretary Hendra Sinadia said that not all minerals would give added value if they are refined in the local smelters. ?Iron and nickel ores will give more economic value if they are refined, but not for copper,? he said as quoted by Bisnis Indonesia.

Hendra said that copper concentrate with 40 percent content could fetch price of US$7,500 per ton in the world market, while copper cathode with 99.9 percent content could sell only for $8,000 per ton.

With such a price, the processing of copper concentrates in local smelter will not economically feasible for copper miners, he added.

The government should therefore review its mineral downstream industry policy because not all commodities would give more economic values if they should be first refined at home before being exported.

Beginning 2014, the government will ban exports of raw minerals to support the government?s program to develop the country?s mining downstream industry. According to the government, the processing of mineral products in local smelters will not only give more added value to the mineral commodities but would also help create employment. (*)