Silo, Lumbung obtain export recommendation

By Maryati Dimursi

The Ministry of Energy and Mineral Resources has finally issued export recommendation letters for mineral concentrate producers PT Sebuku Iron Lateritic Ores (Silo) and PT Lumbung Mineral Sentosa, paving the way for the two firms to resume export.

Director General of Mineral and Coal, R. Sukhyar on Tuesday as saying that the two companies have met the requirements set by the government. ?I signed the recommendation last week,? he said.

Since the introduction of an export ban on mineral ores in January of this year, the government has applied tighter requirements for mining firms to be able to continue export of certain concentrates. The requirements include having smelter development plan in place, putting down a deposit to show commitment of seriousness in developing the domestic smelter into government account, and paying the necessary export tax.

Sukhyar said that Silo has obtained export quota of 8 million tons, while Lumbung 29,000 tons. He said Silo and Lumbung have plans to build domestic smelters and have put down the necessary deposit, respectively about US$12 million, and $300,000.

Elsewhere, Sukhyar said that the government would also issue export recommendation letters for copper giants PT Freeport Indonesia and PT Newmont Nusa Tenggara once the two firms have met the requirements including putting down the necessary deposit in the government?s account.

Freeport has expressed readiness to put down $115 million deposit and Newmont $25 million deposit, but the two are still waiting for the Ministry of Finance to approve a request for lower export tax.

Editing by Reiner Simanjuntak