Ministry set to issue new permits for mineral ores export

The Ministry of Energy and Mineral Resources is set to issue today new recommendation permits for the export of low grade nickel ores and washed bauxite.

This was said by Director of Mineral Development and Management at the ministry Bambang Susigit on Tuesday, but did not disclose which miners will obtain the export permit. ?Possibly tomorrow (to issue the export recommendation letter),? he said.

Miners require the key recommendation letter from the ministry to be able to obtain export permit from the Ministry of Trade. The government introduced a new regulation earlier this year to allow miners to export low grade nickel ores and washed bauxite under certain conditions including commitment to build domestic smelter. So far, five nickel miners and two bauxite miners have been given export permit.

Bambang, however, said on September 4 that realized export volume of low grade nickel ores and washed bauxite from the country remains low following the reopening of export earlier this year.

He said that out of five nickel miners given export permit with total export quota of 8.1 million tons for this year, only two have started export, namely IDX-listed mining firm PT Aneka Tambang Tbk (Antam) and PT Fajar Bhakti Lintas Nusantara.

Meanwhile, out of two bauxite miners given export permit, only Antam which has started making the export of washed bauxite.

?The (export) realization is still little. Out of the nickel (total export quota of) 8.1 million tons, only 1.1 million tons have been exported. For bauxite, it is much lower, less than 1 million tons,? he said.

Bambang said that the relatively low export realization may be due to the fact that miners have yet to complete preparations for export after they obtain the export permit.

Some industry players have protested the government?s decision to reopen export of nickel and bauxite ores saying that it would undermine the investment made in domestic smelters and would flood the export market with the commodities, thus further undermining the already weak price environment. (*)