Vale opposes plan to relax mineral ores export ban policy

By Tri Subhki R

IDX-listed nickel mining company PT Vale Indonesia Tbk opposed the government?s plan to relax the existing mineral ores export ban policy particularly for nickel ores as it would undermine the domestic nickel smelter industry.

PT Vale President Director Nico Kanter urged on Friday the government to be consistent in implementing the export ban policy, which was launched in early August as mandated by the 2009 Mining Law in a bid to push for the development of domestic smelters and to generate greater value added for the country from its mineral commodities.

"For nickel commodity, in particular, the mineral ore export relaxation will harm the people and country. So, it would be better if the government is consistent in implementing value added policy for nickel "Nico said to Petromindo.com.

Nico believes that a consistent implementation of in-country mineral value added policy can support the sustainability of mining and mineral sector.

Nico also mentioned that the implementation of the mineral ores export ban since 2014 has attracted significant investment in the domestic nickel smelter industry.

"If the nickel ore export ban is relaxed, many investors will be harmed," Nico said.

Some investors have earlier feared that the relaxation could trigger lack of raw material supply for the domestic smelters as miners would be tempted to export the ores.

Interim Minister of Energy and Mineral Resources Luhut Panjaitan said recently the government has proposed to the House of Representatives to relax the current mineral ores export ban policy as part of the planned revision of the 2009 Mining Law by lawmakers. He said that the move is necessary to help some miners raise proceeds from export to complete their smelter projects.

Editing by Reiner Simanjuntak