Value-added policy could not be implemented yet, says ICMA
Friday, February 24 2012 - 02:10 AM WIB
Indonesian Coal Mining Association (ICMA) insisted that the newly-issued regulation on value-added would still be difficult to be implemented due to the absence of commercially proven technology in the market.
The association chairman Bob Kamandanu warned that the implementation of export ban of low rank could create economic, social and political issues since domestic demand for the low rank coal was still very limited.
?The policy (on value-added) is difficult to be implemented, due to the unavailability of commercially proven technology,? he said.
He said the association and the government are still in discussion on how to move forward on the value-added policy.
Energy and Mineral Resources Minister (ESDM) Jero Wacik has asked the miners to submit proposal of projects aimed to increase the value-added of coal and mineral commodities ahead of the implementation of the planned export ban on raw materials by 2014.
The ESDM Ministerial Regulation No.7/2012 stipulates prohibition of export and requirement to process or purify the mineral and coal commodities to increase their added value.
Under the regulation, all metal?based and non-metal based mineral commodities should be processed to their minimum form of processed product.
Editing by David Mustakim