The Indonesian Association of Nickel Miners (APNI) said Thursday it will continue to require the government to abide by the 2022 ban on nickel exports. Meanwhile, Indonesian President Joko Widodo is considering the possibility of early implementation of the measure.
Indonesia, the main exporter of nickel, is discussing the possibility of implementing ahead of schedule a ban on ore exports due in 2022, raising supply concerns among investors on the Shanghai Futures Exchange and the London Metal Exchange.
In a speech last week, President Victor said he wanted more ore to be processed within the country to increase the value of the country's mineral resources before exporting them. Victor was re-elected in April.
Meidy Katrin Lengkey, secretary-general of the Indonesian Nickel Miners Association, told reporters that the association had asked for a meeting with the President and ministers to defend itself because an early ban on nickel ore exports would reduce their income needed to finance the development of smelters.
"We will continue to work hard to increase our voice by October," Lengkey said. He added that if many small miners were unable to export unprocessed ore, they would be forced to close their mines.
Victor asked ministers not to make strategic decisions before their second term officially begins in October.
Indonesian officials did not give a timetable for President Victor's decision to ban nickel ore exports.
In a statement Thursday, Luhut Binsar Pandjaitan, the coordinating minister in charge of mining supervision, said that when the president made a decision, he would release information.
"The point is, as I said before, that value should be added," it said in a statement.
Members of the Indonesian Nickel Miners Association also called on the government on Thursday to regulate the pricing of nickel ore at existing local smelters.
The group complained that local smelters priced high-grade nickel ore much cheaper than low-grade nickel ore exports.
That's not right. They want high-quality ore, but the price is unfair and mining companies are facing difficulties, "said Antonius Setyadi, an APNI official.
According to the association, the average price of nickel ore purchased by domestic smelters is $24 per ton, while that of overseas buyers is about $34 per ton.(From CNFEOL)