Mining Update: Indonesian Ore Ban – Temporary Relief But At A Price

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As Is Widely Known, The Indonesian Export Ban On Ore Has Come Into Effect On 12 January 2014. The Regulation Has Caused Commotion In The Industry And The Indonesian Government Was Under Pressure To Alleviate Some Of The Harsher Consequences. At The Last Minute, The Indonesian Government Has Announced Certain Relief Measures. However, These Measures Are Intended To Be Temporary And In Exchange For The Relief, The Government Is Also Seeking To Raise Export Taxes.

Processing requirements amended -

The processing requirement for a number of ores have been adjusted. As long as the processing requirements are met, the ores can be exported. The most significant amendment is the lowering of the processing requirement for copper concentrate. Under the 2014 regulations, copper ore would need to be processed into copper cathodes of 99.9% purity. Miners will now be allowed to export copper concentrate containing at least 15% Nickel. This allows Indonesia’s largest copper exporters, Freeport McMoRan Copper and Gold and Newmont Mining (who together account for 97% of Indonesia’s copper exports) to benefit from the amendments, since their copper concentrate already exceeds the 15% minimum requirement.

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Topics:  Mining, Natural Resources

Published In: General Business Updates, Energy & Utilities Updates, International Trade Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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