Indonesiato extend deadline for raw mineral export ban
JAKARTA: Rules will be put in place to allow case-by-case extensions to next year's deadline meant to end exports of non-value-added minerals, a top official said last Friday.
Susilo Siswoutomo, the deputy Minister of Energy and Mineral Resources, said miners who prove their commitment to processing mineral commodities domestically will be allowed to continue exporting for a specified period.
"For example, we estimate that smelter construction can be completed in three years, during which time the miners will be allowed to continue to export (raw minerals)," he said.
Details of the conditions for the deadline extensions are being drawn up, Susilo said.
He said the government had resigned itself to a temporary fall in state revenue from the mining sector as an immediate impact of next year's raw mineral export ban.
"But in the long run, the additional value generated from the policy will compensate for the fall," Susilo added.
While the government will be flexible on several issues, he said, it will not budge on the underlying issue of requiring miners to process or refine their commodities domestically.
Mining companies have already had several years to plan for the local processing requirement, since the law requiring it was enacted in 2009.
The law also included a requirement for miners still operating under the generous New Order-era contract of work system to enter into negotiations to alter royalties schedules and other provisions.