SILO suspends iron concentrates export to China

Mining firm PT Sebuku Iron Lateritic Ores (SILO), which operates iron ore mining and smelter on Sebuku Island, Kotabaru Regency, South Kalimantan, has suspended the export of iron concentrates to China due to falling price of the commodity.

Operational Manager Henry Yulianto was quoted by a local media as saying that price of the iron concentrates has recently dropped from around US$35 per ton to $20 per ton.

In addition, he said, Indonesia?s iron concentrates are less competitive compared to products from Australia and the Philippines.

?Our products are less competitive than products from Australia and the Philippines, which have Fe content of 60 percent, while ours is maximum 51 percent, thus making the price down,? he explained.

SILO resumed export of concentrates in July after meeting a number of requirements set by the government as part of a wide ranging export ban policy introduced in January of this year. The company was given an export quota of 8 million tons for this year, estimated to worth US$120 million.

However, Henry said that after making one shipment in September, the company then suspended export due to the drop in price.

He said that the company has yet to determine when to resume export again, but he hopes that it could be made once the price recovers. (*)