Industry association welcomes banning of exports of mining ore

The metal and machine industry players have welcomed the government's plan to ban the export of mining ore and concentrate. This was included in the new draft law on coal and mineral mining, which is going to be approved by the House of Representatives in March 2007.

This government's move is expected to boost the local metal industry's performance.

The joint chairman of the Indonesia's Metal and Machine Industries (GAMMA) A Safiun mentioned that the export of mining ore and concentrate has proved to have made no positive contribution to the development of local metal and steel industry.

?The foreign manufacturers have been benefiting from it (exports). They buy our mining output at a cheaper price. What Indonesia gets (from it)? We don't want to be made fools (by foreigners) always,? Safiun said on Thursday when the Bisnis Indonesia contacted him.

Earlier, director general of minerals, coal and geothermal Simon F Sembiring said if the draft law is approved, mining companies can't any longer export their mining concentrate and ore to foreign countries as they have to process them into metal in Indonesia. (*)