KEM, NHM may be allowed to export silver output

Mining companies PT Kelian Equatorial Mining (KEM) and PT Nusa Halmahera Minerals (NHM) would be allowed to export their silver output, if they could not find buyers in the domestic market, Bisnis Indonesia reported on Monday.

"They should first sell their silver in the domestic market. If they find no buyers, then they will be allowed to export it," said Mahyudin Lubis, the director for mineral and energy development at the Ministry of Energy and Mineral Resources. "It is the only solution possible to cope with the silver export ban.

The previous government of Megawati Soekarnoputri banned silver export four months ago to help cope with the shortage of silver supply in the domestic market, which has severely hit local handcraft producers.

"KEM and NHM should offer their silver to local handcraft producers for at least one month. If within one month period, they could not find buyers, they will be allowed to export the silver," he said.

Mahyuddin, however, did not mention the fate of other silver producers such as PT Freeport Indonesia, PT Aneka Tambang and PT Newmont Nusa Tenggara.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro has said that he could not interfere with the decision of the Minister of Trade and Industry to ban the silver. He said that he had sent a letter to the ministry to review the export ban because it had caused great problem to silver mining companies. (*)