Factbox Indonesia issues regulations easing mineral export ban

Factbox Indonesia issues regulations easing mineral export ban
Business & Markets 2014
Written by Reuters
Monday, 13 January 2014 21:02

(13/01/14 19:22:03)

JAKARTA (Jan 13): Indonesian President Susilo Bambang Yudhoyono this weekend, signed last-minute regulations that dilute a controversial export ban for some minerals.

The following are details of those regulations released on Monday:

* Exports of copper, iron ore, lead, zinc and manganese concentrates are allowed to continue until 2017, said Sukhyar, director general of coal and minerals, at the energy and mines ministry.

* Nickel and bauxite must be processed and refined domestically. Exports are banned as of Jan 12.

* Government to introduce a progressive export tax for copper, iron ore, lead, zinc and manganese concentrates, to limit exports, says Bayu Krisnamurthi, deputy trade minister.

* The higher the purity of the processed minerals, the lower the export tax.

* Export tax to rise every six months, towards 2017.

* For copper ore, the export tax rises to 25 percent for the first half of 2014, from 20 percent previously. The tax increases to 35 percent in H1 2015, 40 percent in H2 2015, 50 percent in H1 2016, and a maximum of 60 percent in H2 2016.

* Refined metals will not be subjected to export taxes and will not need export permits.

* There will be no export quotas on processed minerals and refined products.

* Sixty-six companies are allowed to continue to export mineral concentrate, because they already have smelters or plan to build them.
Of that total, 16 are in the process of environmental assessment studies, 15 have conducted ground breaking, 10 are under construction and 25 have completed construction.