Govt to impose export tax on 14 mineral products in early May

The government will impose export tax of between 20 and 50 percent on 14 kinds of mineral ores to ensure that there will be no over exploitation of mineral resources ahead of the implementation of the ban to export unprocessed minerals in 2014.

The 14 commodities will include ores of copper, gold, silver, tin, lead, chromium, molybdenum, platinum, bauxite, iron ore, iron sand, nickel, manganese and antimony.

Energy and Mineral Resources Minister Jero Wacik said as quoted by Investor Daily that the government would issue a regulation on May 6 to begin the implementation of the export tax.

Jero said the government would also clarify the government regulation No. 78/2012 issued on February 6, 2012 on the increase in the added value of mineral products so that there would be no confusion regarding the export ban.

The regulation prohibits exports of unprocessed mineral products and the ban becomes effective three months after its issuance. It was issued in order to encourage miners to make concrete plans for the processing of their mineral products in the country before the government?s ban on exports of unprocessed metal becomes effective.

According to the 2009 law on minerals and coal, starting in 2014 all mining companies in Indonesia will be prohibited to export unprocessed ores.(*)