New | Ore ban threatens Chinese factories
Move to boost domestic processing of minerals puts US$2b annual trade at risk and particularly endangers mainland stainless-steel makers
Indonesia, among the world's biggest suppliers of natural resources, halted all mineral ore exports yesterday to try to promote domestic processing in a move that threatens nickel and bauxite industries worth more than US$2 billion in annual shipments.
Halting exports of nickel ore could spark the biggest shake-up in the global nickel trade in more than five years, with Chinese stainless-steel factories that make everything from kitchenware to cars and buildings set to hurt the most.
In one of his most far-reaching economic policy decisions since taking office nearly 10 years ago, President Susilo Bambang Yudhoyono approved the mineral ore export ban.
But in last-minute changes at the weekend, he diluted it to allow exports of copper, iron ore, lead and zinc concentrates to continue, giving a reprieve to United States mining giants Freeport McMoRan Copper & Gold and Newmont Mining, which together produce 97 per cent of Indonesia's copper.
No such relief was offered to the nickel and bauxite industries, clouding the future for state-owned nickel miner Perusahaan Perseroan Aneka Tambang (Antam) and hundreds of other smaller miners.
"Minerals that have to be refined before export are bauxite, nickel, tin, chromium, gold and silver because they don't have intermediate products," said Sukhyar, director general of coal and minerals at the ministry.