MEMR proposes export tariff for iron ore concentrates
Monday, March 7 2016 - 01:41 AM WIB
The Ministry of Energy and Mineral Resources (MEMR) has proposed the export tariff for iron ore concentrates to the Ministry of Finance for approval.
The move is part of plans to allow the export of iron ore concentrates following the introduction of export ban policy early in 2014. A revised policy introduced last year allows iron ore concentrates to be able to continue export until 2017, when the required domestic smelters are expected to be already built. But the export of the commodity is subject to export tariff, according to existing regulation.
?It (the proposed export tariff) has been submitted to the Ministry of Finance,? said Director General of Mineral and Coal, Bambang Gatot Ariyono over the weekend.
According to Minister of Finance Regulation No 153/2014, export tariff of concentrates are classified into three stages linked to the progress of smelter development.
An export tariff of 7.5 percent is applied on concentrate producers whose smelter construction progress accounts for up to 7.5 percent of total investment for the smelter. A lower tariff of 5 percent is applied if progress, or investment absorption, reaches 7.5-30 percent, and 0 percent tariff if progress reaches beyond 30 percent.
Editing by Reiner Simanjuntak