Energy and Mineral Resource Minister Arifin Tasrif said the government will fully ban the export of bauxites and iron ores because based on the ministry inspections , there were no progress in the construction of eight bauxites smelters and also iron smelters.
"They are still in green field. We give relaxation for copper smelters because they have progress and they have spent a lot of money, more than 60 percent," Tasrif said on June 9,2023.
President Joko “Jokowi” Widodo announced the ban on raw mineral exports on January 10, 2023. The government already banned the export of nickel, followed by bauxite and then copper that would be effective by June 2023.“We have been frightened by the nickel issue at the World Trade Organization (WTO) but we will continue to act accordingly. We will also stop exporting bauxite. By mid-2023, we will cease exports of copper. We need to be brave,” the president said on January 10, 2023.
Tasrif said that so far there is no complains from foreign nations on the planned ban of the raw bauxites and irons. " Hopefully, there will be no complains from other countries. Will they ask us to sells stones (raw minerals)" he added.
By the ban, he hoped that foreign investors will invest more in the construction of bauxite and iron smelters in Indonesia. Because the development of mineral downstream industry is a way for Indonesia to create more values for its minerals.
Based on the data of the Indonesia 's Investment Coordinating Board, there are currently five bauxite projects underway in Indonesia that is part of national strategic projects (PSN).Not all smelter projects are part of the PSN. Two alumina refineries have been operating: PT Well Harvest Winning (Smelter Grade Alumina Products) and PT Indonesia Chemical Alumina (Chemical Grade Alumina Products).
1. PT Borneo Alumina Indonesia in Mempawah
2. PT Kalbar Bumi Perkasa in Sanggau
3. PT Dinamika Sejahtera Mandiri in Sanggau
4. PT Laman Mining in Ketapang
5. PT Well Harvest Winning Alumina Refinery (Expansion)
While there are one Iron Sands and Vanadium Smelter project by PT Alchemist Metal Industry in North Halmahera
Allows Export of Copper Concentrate
On the contrary, Indonesia government granted relaxation for copper miners including PT Freeport Indonesia and PT Amman Mineral Nusatenggara to export their concentrate ahead of the deadline set by the mining law for raw minerals export ba on June 10, 2023. Energy and Mineral Resource Minister Arifin Tasrif said the government consider the physical progress of the construction of the smelters and the fund that the companies have spent .
" Yes, they can still export because we see the progress of the smelter is above 50% , and and averagely the progress of copper smalters
are above 50%. They have spent a lot of money for the smelters and we can verify the money. It is a pitty if the smelters are stalled," said Arifin Tasrif
on June 9,2023, adding that the ministry has issued a ministerial regulation for the relaxation.
However the ministry will still impose fine for the cooper companies for their delays in completing the smelter progress by June 2023 as set by the mining law.
"They still have to complete the construction of the smelter for 100% in the middle of the next year, "said Tafsir.
Freeport Indonesia is developing a smelter that can turn copper concentrate into cathodes with a capacity of 1.7 million tons per year. The smelter will cost about US$3 billion. The funds for the smelter would come from a loan and the company’s equity. Pratama said the firm raised overseas bonds for the project. Meanwhile, PT Chiyoda International Indonesia is the contractor for this project.
While PT Amman Mineral Nusa Tenggara is developing copper smelters in West Nusa Tenggara province. By 2022, the smelter will produce 250,000 tons of copper cathode, 1 million tons of sulfuric acid, 0.5 million tons of slag, and 60,000 tons of gypsum. By June 2022, the PT Amman Mineral Nusa Tenggara smelter had achieved 35% progress, according to Energy and Mineral Resources Ministry data.