Nickel-Ore, Bauxite Exports From Indonesia to Drop on Ban

Rabu, 21 Maret 2012 | 11:58


The ban, originally set for 2014, was brought forward as exports surged in the past three years, Syahrir Abubakar, executive director of the Indonesia Mining Association, said in an interview.

 


JAKARTA: Nickel-ore and bauxite shipments from Indonesia, the top supplier to China, may plunge 75 percent this year as a ban on metal-ore sales comes into force in May, two years earlier than scheduled, said an industry group.

The country shipped 33 million metric tons of nickel ore and 40 million tons of bauxite in 2011, he said. China, the world’s biggest metals user, bought about 80 percent of its bauxite and 53 percent of its nickel-ore from the Southeast Asian nation last year, customs data showed.

Declining shipments may increase competition for supplies among Chinese processors, potentially benefiting nickel-ore mining companies in the Philippines and boosting prices. The move may increase China’s demand for refined nickel as a substitute for so-called nickel-pig iron, said Barclays Capital. Nickel has dropped 29 percent in London in the past year.

“This is definitely good news for refined nickel prices in the long term,” said Xu Aidong, a nickel analyst at metals researcher Beijing Antaike Information Development Co. “We could also see ore prices rising.”

While some miners may try to boost sales before the ban, rain and port constraints will curb shipments, Abubakar said in a March 14 interview. Nickel-ore exports soared from just 4 million tons and bauxite from 8 million tons in 2008, he said. That surge prompted the government to advance the ban on companies that hold so-called mining business licenses for production operations, he said. (Bloomberg/aph)

By Newswire
Source http://en.bisnis.com