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Jakarta Post
The Jakarta Post
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Govt temporarily revokes export permit for 4 miners

  • News Desk
    News Desk

    The Jakarta Post

Jakarta | Mon, August 20, 2018 | 10:01 am
Govt temporarily revokes export permit for 4 miners A backhoe operates at a mine in this undated file photograph. (Kontan/Cheppy A. Muchlis)

The government has temporarily revoked four concentrate export permits because the mining companies had failed to fulfill their commitment to develop smelters as part of the permit's requirements.

Kontan.co.id reported that three of the four companies are nickel miners, all based in Southeast Sulawesi: PT Surya Saga Utama in Bombana; PT Modern Cahaya Makmur in Konawe; and PT Integra Mining Nusantara in Konawe Selatan. The other company is bauxite miner PT Lobindo Nusa Persada, based in Bintan, Riau Islands.

Another nickel miner has received a final warning letter from the Energy and Mineral Resources Ministry.

The ministry's mineral business supervision director Bambang Susigit confirmed that the export permits had been revoked. “Correct, their permits were revoked," Bambang said on Sunday in Jakarta, as the companies had not submitted any progress reports on the smelters' development.

Bambang said the government would soon reinstate the exports permits if the companies showed their commitment to fulfill the requirement.

“It depends on the company. If they submit their reports, we will clarify and review them immediately. If the reports are valid, we will reissue the permits. Otherwise, we will issue their final warning 45 days before we stop [their exports],” he said.

The requirement to develop the smelter over a certain time is stipulated in Energy and Mineral Resources Ministerial Regulation No. 25/2018 on mineral and coal mining.

Processing and Smelting Companies Association (AP3I) founder Jonathan Handojo criticized the ministry for failing to monitor progress in smelter development.

“The ministry lacks [a control mechanism]. The ministry should closely and periodically monitor the commitment of each company,” Jonathan added. (bbn)

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