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Seven companies investigated over alleged nickel export violations
The regulation only allows exports of ore with less than 1.7 percent nickel content and the export quota will only be granted to companies that are building smelters in the country.
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Activities at a nickel mining site. (Kontan/Cheppy A. Muchlis)
T
he government is moving fast in investigating alleged nickel export irregularities that prompted its high-ranking officials to announce a sudden temporary export ban of the commodity, which plays an important role in a plethora of industrial operations, including the production of electric car batteries and stainless steel.
Seven raw nickel-exporting companies are under scrutiny for allegedly violating Energy and Mineral Resources Regulation No. 11/2019.
“Not seven ships but seven companies,” Customs and Excise Directorate General spokesman Deni Surjantoro clarified with The Jakarta Post via text message on Thursday. “We’re now conducting an investigation with a task force from Bakamla [Maritime Security Agency] and the process is being carried out through laboratory tests.”
The tests are needed to determine whether the companies’ nickel ore exports adhere to provisions stipulated in the 2019 regulation.
The regulation only allows exports of ore with less than 1.7 percent nickel content and the export quota will only be granted to companies that are building smelters in the country.
Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan ordered on Tuesday evening a ban on nickel exports effective immediately. The ban is to last up to two weeks in order to give authorities time to investigate alleged foul play among nickel industry players. The decision comes two months prior to an official nickel export ban on Jan. 1, 2020.
He said exports skyrocketed threefold ahead of the ban, with between 100 and 130 shipments occurring each month since September from the usual 30 shipments, exceeding the government’s export quota.
