Requirements hamper crude mineral exports

February 03, 2017, 05.26 PM  | Reporter: Pratama Guitarra
Requirements hamper crude mineral exports


JAKARTA. None of mining companies has secured license of crude mineral export from the Ministry of Energy and Mineral Resources (ESDM).

Director General of Mineral and Coal at Ministry of ESDM Bambang Gatot Ariyono said that the companies have not yet applied for recommendation to export crude mineral due to inclompete requirements.Therefore, some companies, which used to export crude mineral, have not yet cotinued the export activities.

“The exporters have to complete three main requirements to be allowed to export crude mineral,” Bambang said, Thursday (1/3).

Those three requirements include the requirement of establishing smelter. In this case, a company that applies for export has to report the progress of smelter construction development. Aside of the smelter construction, the exporter has to make integrity pact.

Furthermore, the exporter has to verify its mineral reserves through Indonesia’s Mineral Reserves Code (KJMI). “So it is not easy to obtain export recommendation,” Bambang said.

The mining companies also have to secure the mining license (IUP) of clean and clear (CnC), as well as to complete the requirement of non-tax state revenues (PNBP).

Subsequently, Ministry of ESDM will inspect the process of smelte development in every six year. Bambang said, the export license will be revoked if the company fails to show the progress.

Minister of ESDM Ignasius Jonan said that the government gives a deadline of five years to the mining companies to establish smelter. “We expect that there will be no more ore exports in 2022. We give a five-year time period. After five years, no more (ore exports). You have to build the smelter,” Jonan said.

President Director of PT Aneka Tambang (Antam) Teddy Badrujaman said that the company is finalizing the advance downstream projects to use nickel and bauxite ores reserves.

The downstream projects include the development of smelter grade alumina refinery (SGAR). This is the cooperation project between Antam and PT Indonesia Aluminium (Inalum). "We will take advantage of the mineral export policy to continue the downstream industry to enlarge production capacities,” said Teddy. (Muhammad Farid/Translator)


 

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