Prohibition on ore export overburdens sales volume

Jumat, 27 Juli 2012 | 11:16


The decline of nickel and copper exports during June 2012 compared to May has shown significant effects of tightening policy on of raw material or ore exports.Executive Director of the Indonesian Mining Association (IMA) Syahrir AB said the factor of the decline of mineral exports is also due to the low market demand.

"There are two factors, one external factor is the global economy is deteriorating so the demand is decreasing and makes the price declines. Second is internal factor since the enactment of the tightening on mineral export and the imposition of export tax on 20%," he said when contacted by Bisnis.
 
Citing from Bloomberg, Ministry of Trade noted the nickel exports fell 80% from 2.85 million tons in May to 572,106 tons in June. Meanwhile, copper exports recorded severe decline as much as 89% of 193,941.34 tons in May to 20,000 tons in June. According to Syahrir, the current decline of mineral export is extreme.

"This fall in the range of 80%, is the extreme result of internal problems and external collaboration," he said.

Syahrir expects this downward trend in mineral export will still continue until the end of the year, even it will get worse starting this July. Because, there is an issuance of the Decree of Minister of Energy and Mineral Resources No. 7/2012 replacing the Decree of Minister of Energy and Mineral Resources No.11/2012, the exporters will wait in order to get the recommendation from the Minister in this case General Directorate of Mineral an Coal as an export requirement. (T03/aph)

by Vega Aulia Pradipta, Hadijah Alaydrus
source http://en.bisnis.com