To ease the impact of the COVID-19 outbreak on the mining industry, Indonesia will allow mining companies to export unprocessed ore even if construction of their refining facilities is delayed, MiningWeekly reported, citing Reuters.
In 2020, Indonesia announced that in order to stimulate the development of the domestic high value-added refining industry, it would ban the export of raw ore by 2023, and only those companies whose smelting facilities can meet the construction schedule will be allowed to export.
The new rules lift the ban on nickel ore exports.
Indonesia banned nickel ore exports in 2020 to encourage foreign companies to help the government build an all-nickel supply chain, from mining to electric car production.
The Indonesian government has determined that if the company completes 90 percent of the construction target within a certain period of time, it is on schedule.
At present, mining companies will be allowed to export refineries even if they fail to complete them on schedule, according to a document signed March 12 by energy ministry officials.
"Companies holding mining permits for metal mineral production and operation and special mining permits for metal production and operation will be able to obtain export permits even if they do not meet the requirements of at least 90 percent of the construction schedule."
"The Energy Department said in the filing.
However, the ministry said an "administrative fine" of 20 per cent of the value of exports would be imposed on companies that failed to comply with schedule requirements but had already received export permits.
"This export incentive does not relieve the company of its obligation to continue to build smelters in Indonesia," the ministry said.
