Vale suggests limit on export of low grade nickel ores

By Thomas Sembiring

IDX-listed integrated nickel mining company PT Vale Indonesia Tbk has suggested to the government to limit the export low grade nickel ores at a minimum level per year.

Ratih Amri, Director of Legal and Corporate Secretary at PT Vale told Petromindo.com, that the company would suggest an export quota to help preventing negative impact on nickel price in the international market.

She also said that export permit of low grade nickel ores should only be given to mining firms which are truly committed in developing the required domestic smelters.

The government last month introduced a new regulation allowing the export of low grade nickel ores with purity of less than 1.7 percent.??The regulation, however, said that the export can only be made after a third of the country?s low grade nickel ores has been absorbed by domestic smelters.

The new policy is expected to benefit nickel miners particularly IDX-listed mining giant PT Aneka Tambang Tbk (Antam), which has been unable to sell its low grade nickel ores at home since the government banned export of mineral ores in early 2014 due to limited demand.

Japanese nickel smelters, which process low grade nickel ores, will also benefit from the policy as many of the smelters have been left idle since the introduction of the Indonesian export ban policy as they primarily sourced their raw materials from Indonesia.

But other companies such as PT Vale has previously raised concerns on the new policy, saying it would among others undermine existing and planned investment in domestic smelter industry.?

Meanwhile, Antam President Director Tedy Badrujaman told Petromindo.com?recently that the company has yet to apply for export permit of low grade nickel ores as the company is still waiting for the implementing ministerial regulation of the new policy.

Editing by Reiner Simanjuntak