TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Nickel mining companies agree to support ore export ban

  • Adrian Wail Akhlas

    The Jakarta Post

JAKARTA   /   Wed, November 13, 2019   /   11:58 am
Nickel mining companies agree to support ore export ban The chairman of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, together with representatives from the Indonesian Nickel Mining Association (APNI) and the Processing and Smelting Companies Association (AP3I) after a meeting on nickel ore exports in Jakarta on Tuesday. (The Jakarta Post/Adrian Wail Akhlas)

Nickel mining and smelting companies have agreed to support the government’s plan to ban nickel ore exports from January 2020 onward, as stipulated in an Energy and Mineral Resources Ministry regulation, Investment Coordinating Board (BKPM) chairman Bahlil Lahadalia has said.

Bahlil said in Jakarta on Tuesday that the BKPM had facilitated a meeting between the Indonesian Nickel Mining Association (APNI) and the Processing and Smelting Companies Association (AP3I) to resolve their differences on the nickel ore export ban.

"The meeting concluded that [nickel] mining companies and smelting companies in Indonesia have agreed we do not want to export nickel ore beginning January 2020," Bahlil told a press briefing after the meeting at BKPM's office in Jakarta on Tuesday, accompanied by representatives from the two associations.

Bahlil said the two associations had agreed that nickel ore would be sold to local companies at the international price of US$27 to $30 per metric ton on a free-on-board basis.

Meanwhile, APNI secretary-general Meidy Katrin Lengkey said during the same briefing that nickel mining companies would support the government's efforts to develop the downstream sector.

AP3I secretary-general Haykal Hubeis said members of the association agreed with the government's decision to stop nickel ore exports and would buy the commodity at the aforementioned international price.

APNI previously opposed the export ban, while AP31 urged the government to stick to its policy to protect local smelting companies.

Prior to the meeting, Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan announced on Sunday that exports would be permitted until January 2020. The government imposed a temporary ban in October amid violations of the nickel export quota.

Luhut said that once the planned permanent ban came into effect, all domestic nickel ore prices would be pegged at international prices.