Indonesia gearing for mineral export ban
Jan 06, 2014 | 12:49 PM
| Shivani Singh
SINGAPORE A last-minute presidential or Supreme Court intervention might add another dimension to the much talked about and hugely convoluted Indonesian minerals export ban, which is slated for a Jan. 12 rollout but isnt yet set in stone.
The argument about the need for resource nationalism isnt unique to Indonesia, but the country still needs infrastructureincluding roads, ports and energy plantsto be able to attract more investment in the downstream industry.
If the ban goes through, shipments of mineralsincluding nickel ore, copper, bauxite and goldwill be affected to varying degrees.
The government will issue a regulation before Jan. 12 noting the minerals that can be exported, but it isnt yet clear if big producers like Freeport-McMoRan Copper & Gold Inc., Phoenix, and Greenwood, Colo.-based Newmont Mining Corp. will be able to ship copper concentrates after this date.
There have been various lobbying efforts by companies and officials alike to delay the ban, clarify it or allow for exports if there were plans for building downstream plants.
Three broad scenariosa complete ban on Jan. 12, a partial ban or postponing the banare being widely discussed in the market.
In December, the Indonesian parliament voted against changing the 2009 Mining Law and said the export ban would proceed as scheduled.....
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