President issues new decree to spur smelting projects

President Susilo Bambang Yudhoyono has issued a new decree to speed up the construction of smelting projects in the country which have been delayed due to the lack of coordination among the government?s offices and agencies, Kontan reported on Friday.

The new Presidential decree No. 3/2013 on the acceleration of the program to increase the added value of the mining sector through the construction of processing and purification plants in the country ordered eight government agencies to improve coordination in encouraging and helping mining companies obtain permits, other required licenses and obtain land areas to build and operate smelters.

The eight ministries and government agencies stated in the decree include the energy and mineral resources ministry, the industry ministry, the trade ministry, the finance ministry, the home affairs ministry, the state enterprises ministry, the environmental affairs ministry, governors, regents, mayors and coordinating minister for the economy.

?The eight government offices are asked to improve coordination and synchronization so that the acceleration of the development of the mining downstream industry could be carried according to the plan,? special assistant of the President for economy Firmanzah said.

The ministry of energy and mineral resources as the backbone of the program has for example been asked to provide data and information on potential mineral ore reserves at its website, to provide sufficient energy for the smelting projects and to create new regulations in order to support and facilitate the program.

The ministry is also required to evaluate the existing regulation which has contributed to the slow progress in the program such as in determining the minimum purification level of each mineral product that have to be achieved at the local smelters.

Ladjiman Damanik, the vice chairman of the association of mineral producers (Apemindo), said that many mining companies could not start their smelting projects due to the uncertainty related to the ministry?s regulation on the purification level.

He said that the ministry had previously issued the purification threshold of each mineral products but it could not be used because miners considered it as unrealistic and was not in line with the condition in the market.

In order to ease the problems, the purification threshold for eight main commodities should be revised. They include tin, land ores, lead and zinc, nickel, cobalt, manganese, zeolit, zirconium and kaolin. (*)