Indonesia will ban exports of 14 raw
minerals effective from 6th May 2012, with an exception for miners that plan to
build local processing facilities. Those miners will be assessed at an average
tax of 20% on ore shipments.
The regulation applies to copper, lead, nickel, gold, silver, zinc, chromium,
bauxite, manganese, molybdenum, platinum, antimony, iron ore and sand iron,
Energy and Mineral Resources Minister Jero Wacik said at a press briefing in
Jakarta today.
The largest nickel-ore and bauxite supplier to China announced the prohibition
in February, two years ahead of schedule. The new rules apply to holders of
mining business licenses issued after 2009. Companies with a so-called contract
of work, including Phoenix-based Freeport-McMoRan Copper & Gold Inc. (FCX)
and Newmont Mining Corp. (NEM), will be allowed to ship ores until 2014.
“Miners will still be allowed to export after meeting some requirements,
including obtaining permits, Edi Prasodjo, a director of coal at the Energy and
Mineral Resources Ministry, said at a conference in Jakarta earlier today.
“The IUP must be clean and clear, paying taxes and royalties,”
Prasodjo said, referring to a mining business license by its Indonesian
initials.
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