Govt to relax export ban on manganese, iron ore concentrates

The government plans to relax the planned mineral export ban policy for manganese and iron ore concentrates, industry associations said as reported by Kontan daily on Wednesday.

This was the result of a meeting Tuesday between the Ministry of Energy and Mineral Resources and the related industries. According to industry associations, the miners would still be allowed to continue export until 2017 when construction of the planned domestic smelters is expected to be completed.

As mandated by the 2009 Mining Law, the government plans to ban the export of mineral ores starting January 12, 2014, forcing miners to build domestic smelters in a bid to generate greater value added for the country.

But lengthy lobbying and protests by the miners, culminated in the Tuesday meeting with the government agreeing for the miners to continue exporting manganese and iron ores, which have been processed into concentrates with certain level of purities. Export of lead and zinc concentrates will also be allowed, the paper said. The government plans to revise the existing Minister of Energy and Mineral Resources Regulation No 20/2013 to accommodate the new policy.

Kontan quoted Sale A. Rais, Secretary General of the Association of Indonesian Manganese Businesses (Aspemindo) as saying that manganese concentrate with purity level of at least 40 percent can still be exported. Under the existing regulation, export is only allowed for ferromanganese (with manganese content of 60 percent), and silica-manganese (with manganese content of 60 percent).

Meanwhile, Didie Suwondho of the Indonesian Chamber of Commerce and Industry (Kadin) said that a similar policy will also be applied for iron ore concentrate. Export of processed iron ores with iron ore content of 51 percent (laterite) and 62 percent (primary) will still be allowed for export. In comparison, under the existing regulation, starting this year, export can only be allowed for processed products with high level of iron content including sponge iron (75 percent purity), and pig iron (90 percent).

Dede Ida Suhendra, a director for mineral at the Ministry of Energy and Mineral Resources, said that the ministry will still have to consult this new policy with Office of the Coordinating Minister for the Economy. (*)