Ruling on independent auditor expected this week: Official

By Thomas Sembiring

The Ministry of Energy and Mineral Resources expects to issue this week ruling on the appointment of independent auditors that would among others verify progress of domestic smelter projects.

The independent auditors will also verify whether miners wishing to export low grade nickel ores and washed bauxite have met the requirements set by the government.

Director for Mineral Development and Management at the ministry, Bambang Susigit said on Monday that the criteria to be used in selecting the independent auditors by the miners have been finalized. The criteria for the auditors include experience in working at state-owned enterprises and expertise in evaluating smelter projects. ?Our target is for this (ruling) to be completed this week,? Bambang said.

The government in January introduced a new mining policy allowing miners to continue export of mineral concentrates for another five years on certain condition including commitment to build domestic smelter. Independent auditors will be assigned to evaluate the domestic smelters promised by the miners every six months. Failure to show significant progress in the smelter project could risk their export permit revoked.

The new mining policy will also allow miners low grade nickel ores with purity of less than 1.7 percent and washed bauxite with purity of less than 42 percent under the condition that miners exporting the commodities have allocated part of their output to fulfill a third of installed capacity of domestic smelters. The independent auditors will verify whether the miners have fulfilled this requirement.

IDX-listed mining firm PT Aneka Tambang Tbk has said it plans to export low grade nickel ores but has yet to apply for export permit pending the completion of technical guidelines in the appointment of the independent auditors.

Editing by Reiner Simanjuntak