Ministry: Not many miners interested in applying for export permit

Petromindo|Thomas

The Ministry of Energy and Mineral Resources said that not many mineral mining companies in the country are interested in applying for export permit as they will be required to develop domestic smelters.

Director for Mineral Development and Management at the ministry, Bambang Susigit said on Tuesday that while miners which have put in place plans to develop domestic smelters will be given export permit, their smelter projects will be reviewed by an independent team every six months. And if they fail to show significant progress in implementing their projects, the export permit will be revoked by the government.

He explained that if their permits are revoked, the miners will suffer as they have signed export agreements with overseas buyers. With such condition, he predicted that not many mineral mining companies will be interested in applying for export.

The government launched a new regulation in January of this year, allowing miners to continue export of mineral concentrates and to export low grade nickel ores and washed bauxite for another five years under certain condition including putting in place commitment to develop domestic smelters.

So far only PT Freeport Indonesia and PT Amman Mineral Nusa Tenggara which have been given export permit for copper concentrates, and PT Antam for low grade nickel and washed bauxite, and PT Fajar Bhakti Lintas Nusantara for low grade nickel ores.

Elsewhere, Bambang said that the government will soon set up the independent team that will be assigned to verity domestic smelter projects. The team will comprises of 20 technical and administrative auditors. (*)