Govt to issue new ruling on ore export restriction

The Indonesian government plans to issue a new ruling on ore export restriction following the Supreme Court?s recent decision to annul several articles in a ministerial decree which limited exports of ores, Kontan reported on Monday.

Director for Mineral at the Energy and Mineral Resources Dede Indra Suhendar said in Jakarta last week that the issuance of the new regulation was necessary to prevent over-exploitation of mineral ores before the full implementation of the ore export ban as stipulated in the mining law.

Ha said that the government was also still waiting for the copy of the court?s decision before formally announcing the new regulation. According to him, although the Supreme Court had announced its decision, the document on the verdict had not been issued.

The Supreme Court annulled four articles of Ministerial Decree No. 7 on mineral processing that was issued in February following the request of the association of nickel ore producers.

The decree banned exports of 32 types of raw metals as part of the government?s program to encourage the downstream industry in the mining sector. However, companies which have a concrete program to build smelters are allowed to continue to export ores, albeit with export tax of 20 percent. (*)