T

he Trade Ministry has granted permits for nine mining companies to export half-processed mineral ore, a concession that will enable overseas mineral shipments for the first time since the raw ore export ban took effect on Jan. 12.

A release from the ministry made available on Thursday shows that the nine companies have been added to the official exporters list and thus are able to export ore until 2016 and 2017, depending on the duration of each permit.

In accordance with a new regulation, the companies will have to pay an export duty of 20 percent in the first year.

The listed companies are nickel producers PT Aneka Tambang (Antam), PT Indoferro and PT Vale Indonesia; gold miners PT J Resources Bolaang Mongondow and PT Nusa Halmahera Minerals; manganese producer PT Anugerah Nusantara Sejahtera; copper producer PT Smelting; zinc and lead manufacturer PT Long Xin Group Resources; and PT Global Multi Tambang.

The Energy and Mineral Resources Ministry'€™s director general for mineral and coal R. Sukhyar said in a statement that his ministry had previously recommended six mining companies be granted export permits.

He told The Jakarta Post that the six companies were Antam, J Resources, Nusa Halmahera, Smelting, Vale and PT Agrincourt Resources.

Of the six companies, only Agrincourt Resources was not granted export permit.

Meanwhile, PT Freeport Indonesia, a subsidiary of US-based Freeport McMoran Copper & Gold. Inc., and PT Newmont Nusa Tenggara (NNT), also a US subsidiary, were conspicuously absent from the list.

Freeport did not respond to the Post'€™s request for comment.

Indonesia Mining Association (IMA) deputy chairman Tony Wenas said on Thursday that giant miners such as Freeport and Newmont would not likely seek export permits as export duties for half-processed minerals were too high.

'€œMost mining companies usually have a profit margin of around 30 percent. With the current export duties of 20 percent or 25 percent of total sales, they can earn only 10 or 5 percent in profits,'€ he said.

'€œBoth Freeport Indonesia and NNT are stockpiling their current production and I think they will soon stop their operations when their reserves are full.'€

According to a report released by Freeport McMoran on Jan. 22, the firm expects to sell 1.1 billion pounds of copper from its Indonesian unit this year, a 24 percent increase from 885 million pounds last year.

It also expects to sell 1.6 million ounces of gold this year, surging by 45 percent from 1.1 million ounces in 2013.

Those estimates, however, do not take into account the export duty.

The high duties are meant to push mining firms to immediately build smelters to process their raw minerals domestically.

Both Freeport Indonesia and NNT have opposed the new export tax, saying that the duty violates their contracts of work (CoW) to mine in the country.

NNT has also previously warned the government that the ban and the duty would lead to massive layoffs.

NNT community relations manager Syarafuddin Jarot said his firm could process only 30 percent of its ore products at its smelter in Gresik, East Java. (koi)