Low grade nickel, washed bauxite export remains low

The country?s export of low grade nickel ores and washed bauxite remains low although a number of miners have been given export permit since the past several months, Bisnis Indonesia reported on Thursday.

According to data from the Ministry of Energy and Mineral Resources, realized export of low grade nickel ores as per end September of this year stood at only 1.49 million tons, or about 17 percent of the total export quota of 8.98 million tons given to a number of miners.

Meanwhile, realized export of washed bauxite as per end of September reached only 489,030 tons, or about 5 percent of the total assigned quota of 9.66 million tons.

The government introduced earlier this year a new regulation allowing miners to export low grade nickel ores with purity of less than 1.7 percent and washed bauxite with purity of less than 42 percent under certain conditions including commitment to develop domestic smelters. Several companies have obtained export permit and quota, and a number of other firms are applying for similar permit.

Director General of Coal and Mineral at the ministry Bambang Gatot Ariyono said that the relatively low export was possibly because the miners have yet to complete preparations to make the export.

Meanwhile, Corporate Secretary of IDX-listed mining firm PT Aneka Tambang Tbk (Antam) Aprilandi Setia said the company as per end of August had exported 1.2 million tons of low grade nickel ores of the annual quota of 2.7 million tons assigned to the company. The company had also exported 270,000 tons of washed bauxite of its quota of 850,000 tons.

He said that the company exported the commodities to China. He added that Antam is seeking for additional 1.25 million tons of export quota of low grade nickel ores. (*)