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View all search results‘No compromise on nickel ban’: Govt acts firmly on price floor
Analysts and economists have said that Indonesia’s downstream goal has potential, but the fallout between small nickel miners and nickel smelters points at pricing as a key point of contention.
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T
he government has threatened to sanction nickel businesses that fail to comply with nickel ore pricing regulations and, therefore, pose a risk to the country’s plan to develop its downstream mining industry.
Nickel smelters are required to purchase nickel ore at government-pegged prices and nickel miners have to comply with a nickel ore export ban, the Office of the Coordinating Maritime Affairs and Investment Minister’s undersecretary of mining, Septian Hario Seto, warned in a statement on July 23.
“Noncompliant companies will be sanctioned, which can be in the form of a warning, cut in export quotas or even permit termination,” he said.
“The government will not compromise on the nickel export ban.”
Indonesia, the world’s largest nickel ore producing country, has banned exports of the commodity since January to push miners to develop smelters and refine the metal ore domestically so they can export higher-value products.
Analysts and economists have said that Indonesia’s downstream goal has potential, but the fallout between small nickel miners and nickel smelters points at pricing as a key point of contention in the plan.
Read also: Ban on unrefined nickel exports positive in long run: Economist
