House rejects request to delay mineral export ban

All factions at the House of Representatives Commission VI on mining and energy rejected a proposal from the government to delay the planned mineral ores export ban into 2017.

Minister of Energy and Mineral Resources Jero Wacik said on Thursday following a hearing with the lawmakers, as quoted by the Kontan daily, that starting January 12, 2014, miners would no longer be allowed to export mineral ores as mandated by the 2009 Mining Law.

The government had requested for a delay following complaints from many miners that the planned construction of domestic smelters could not be completed by 2014 due to various problems. Kontan said that of the proposed 117 smelters, only 23 have made significant progress, where more than 80 percent of the targeted works have been completed.

Jero said that the government would not back down from the planned January 2014 export ban, despite threats from miners to file lawsuit against the government. Some miners such as the giant copper mining firm PT Newmont Nusa Tenggara has warned that if the ban would proceed as planned in 2014, it may have to suspend production amid the limited capacity of domestic smelter, risking massive layoffs in the industry. (*)