Lumbung hopes to resume export soon

PT Lumbung Mineral Sentosa is hopeful to be able to resume export of zinc and lead concentrates starting end of this month as a government team is close to finalizing its verification of the company?s planned smelter, a condition to be able to obtain export recommendation from the Ministry of Energy and Mineral Resources, reports said on Friday.

Kontan quoted company Director Ricky Gowdjali as saying that the final verification process of a visit to the site of the company?s planned smelter will be conducted next week following the recent completion of document verification process. ?We hope the (field) verification process could be quick, so that export can be made end of this month,? he said.

Lumbung, which holds an IUP permit for a zinc and lead concession in Bogor, West Java, is planning to build a US$10 million domestic smelter process the concentrates into downstream products with a capacity of 5,400 tons per year. The smelter is expected to begin commercial production end of 2016.

Ricky said that the company has also allocated 5 percent of the total investment requirement for the smelter to be deposited with the government?s account as part of the requirements to obtain the export recommendation.

The government has introduced stricter export requirements for concentrates export following the introduction of the mineral ore export ban policy on January 12 by requiring miners to show serious commitments in developing domestic smelters to be able to resume export and by imposing punitive export tax.

Ricky said that while the company has not been able to export concentrates since the introduction of mineral ore export ban, it has taken various efficiency measures including reducing the working hours of its 200 employees to survive. (*)