Mineral Export Bans Starting

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Mineral Export Bans Starting

Postby Hoser John » Fri Jan 10, 2014 6:45 am

.....Indonesia braces for impact of mineral export ban



JAKARTA (Reuters) - Indonesia's government was scrambling to pass last-minute regulations to limit the impact of a controversial ban that could halt billions of dollars worth of unprocessed mineral ore exports from Sunday.

The Southeast Asian nation is the world's biggest exporter of nickel ore, refined tin and thermal coal and home to the fifth largest copper mine and top gold mine. Mineral shipments totaled $10.4 billion in 2012, or around 5 percent of Indonesia's total exports, according to the World Bank.

The ban aims to boost Indonesia's long-term returns from its mineral wealth, but officials fear a short-term cut in foreign revenue could widen the current account deficit, which has undermined investor confidence and battered the rupiah currency.

Despite having more than five years to prepare for the mining law, officials just days ahead of the ban were rushing to try to soften the potential blow of the new policies.

"The government of Indonesia will still implement the mining law consistently. But we also want to make sure its effect won't be too troublesome and lead to the laying off of workers," said Susilo Siswoutomo, vice minister of the energy and mines ministry.

Mining companies, such as Freeport McMoRan Copper & Gold , have been ramping up shipments ahead of Sunday's deadline, uncertain whether they will be able to continue after that.

"We are still on to ship through January 11. Obviously, the only thing we will try is to maximize our shipments," said Daisy Primayanti, spokeswoman for Freeport Indonesia.

The mining ministry has approved regulations that would allow Freeport, Newmont Mining Corp and others to continue to ship copper, manganese, lead, zinc and iron ore concentrate until 2017.

But nickel ore and bauxite exports worth more than $2 billion annually would still be banned from Sunday, while coal and tin shipments would not be affected.

"We have been preparing two trade ministerial regulations on the ore export ban -- one is about the procedure for processed and refined ore exports and the other one is about the ore export ban itself," said Bachrul Chairi, director general of foreign trade at the trade ministry.

The regulations could still be tweaked and must be approved by President Susilo Bambang Yudhoyono, who is facing one of his biggest economic policy decisions in his nearly 10 years in office.

FINANCIAL HIT

Even if the president approves the changes, Southeast Asia's largest economy will still take a financial hit.

Finance Minister Chatib Basri told reporters the proposed regulation would still cut government revenue by as much as 10 trillion rupiah ($820.34 million) this year due to lost royalty payments and export taxes. That translates to around 1 percent of gross domestic product.

The central bank also said there would be an economic impact but that the ban would pay dividends in the long run.

"We will keep a close eye on how it develops and will discuss its impact on Indonesia's economy," Agus Martowardojo told reporters on Thursday shortly after announcing the central bank would keep its benchmark interest rate unchanged at 7.50 percent.

Any major economic impact could make the ban a hot political issue in this year's legislative and presidential elections, especially if it sparks a wave of layoffs throughout the world's fourth most populous country.

Thousands of mine workers have already been laid off as more than 100 junior miners halt operations ahead of the ban.

Freeport, the country's dominant copper producer with 73 percent market share, last month warned an unrevised ban would cut output at its Grasberg mine by 60 percent and lead to layoffs of half of its 15,000 Indonesia employees.

As the trend extends and prices spiral where does this leave the US which has crippled it's mineral indusrty almost beyond saving with insane enviro restrictions,plans,rules,exclusions blah blah blah?? Up a crik with no paddle...John :?
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Re: Mineral Export Bans Starting

Postby DJR » Fri Jan 10, 2014 7:25 am

Prices will go up, the ruling class will make more money, screw the rest
Apparently not only our country is governed by corruption.
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Re: Mineral Export Bans Starting

Postby russau » Fri Jan 10, 2014 12:42 pm

this is just what obama wants!! he helped the wacoenviromentalitsa get what they wanted, and like DJR and John says, our price for these ores are going to skyrocket !!!obama wants to get all underdeveloped countrys up to speed , i originally thought he wanted to bring us down to their level. and it may happen that way down the road.i also can see other countrys doing the same thing to get their prices up also!
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Re: Mineral Export Bans Starting

Postby Bonaro » Fri Jan 10, 2014 7:42 pm

The last remaining lead smelter in the USA was shut down December 31. The USA is now 100% reliant on recycled lead and all of out domestic ore must be exported for processing or sale. Any industry that requires new lead must import it. This is all a result of Obama's directive to the EPA to tighten air emissions. His attempt at banning assault rifles was a distraction because he has been making lead for ammo less available for years now
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Re: Mineral Export Bans Starting

Postby russau » Sat Jan 11, 2014 4:17 am

That lead smelter was in Missouri and it still employed some of my wifes family! most of my wifes family had worked for the St.Joe /Doe Run mining company over the years.Very sorry to see them go!
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