Realized nickel, bauxite ore export remains low: Official

Realized export volume of low grade nickel ores and washed bauxite from the country remains low following the reopening of export earlier this year, Bisnis Indonesia.

The paper quoted Bambang Susigit, Director of Mineral Development and Management at the Ministry of Energy and Mineral Resources, as saying 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.

The government introduced a new regulation early this year, allowing the export of low grade nickel ores with purity of less than 1.7 percent and washed bauxite after export had been banned since early 2014. Miners given export permit are those who have built required domestic smelter, or those which have put in place commitment to develop domestic smelter, subject to audit by independent auditors.

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. (*)