Login ID:
Partner Login
Contact Us : 7066511911

Indonesia's Nickel Ore Exports Must Be Comparable to Smelting Capacity: Mining Minister -- Market Talk

14 Jan 2017 10:29 am

1029 GMT [Dow Jones] Indonesia's minister of energy and mineral resources, Ignatius Jonan, on Saturday sought to clarify new mining rules allowing for the limited export of nickel ore, saying they had been "misinterpreted." Under the new rules, nickel miners that had outlined plans to build smelters in the country could export low-grade ore after supplying 30% of the capacity of existing domestic smelters. The amount of low-grade ore they could export must be comparable to their committed smelter capacity, he added. Low-grade ore is defined in the rules as 1.7% or below. Allowing for limited exports eases a total ban on nickel ore exports that began in 2014. Investors and smelting associations say the change would prevent further investments and harm companies that had put money into smelters. Mr. Jonan said it was needed because existing smelters in the resource-rich country were only taking in high-grade ore. The new rules were aimed at compelling smelters to expand capacity. "Otherwise, they have to face the reality that things will be exported," he said. (sara.schonhardt@wsj.com)

(END) Dow Jones Newswires

January 14, 2017 05:29 ET (10:29 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
Top 5 Special Reports
USD/INR (Jul ‘20) – Inflection Point: Retesting Resista...
CRB Index & U.S. Dollar Index