Indonesian government, nickel miner, and smelter operator agreed the nickel ore price maximum US$30 per metric ton (MT) for domestic market - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – Indonesian government, nickel miner, and smelter operator agreed the nickel ore price maximum US$30 per metric ton (MT) for domestic market. The decision has been made after Investment Coordinating Board met 47 companies today (11/12) in Jakarta.

As known, government has decided to band ore export starting Jan. 1, 2020. Ahead of the application of the rule, energy and mineral resources (EMR) ministry still allowed nine companies export in form of raw.

Based on his calculation, the nine companies plus two undeclared companies has quota export around 2 MT of nickel. From total 47 companies, said chairman of the agency, Bahlil Lahadalia, 37 miners has and in the process build the smelters across the archipelago.

Beside nine companies, he assured, that other companies has support the government plan to stop the nickel ore export. The official data showed, until July 2019, Indonesia has export 38 MT of nickel.

In a long discussion that takes place “hot and ends with tenderness”, said the chairman, the third parties agreed to produce value added products. In addition, the companies who have get permit to export and has been declared by EMR ministry have been given the opportunity to complete the export until end of this year.

“Lastly, we settle the prices for 1.7 calorie $30 a MT of nickel until Dec. 31, with the principle that smelters not put pressure on local entrepreneurs and vice versa they press those who have smelters,” the chairman told media at his office.

Previously, the director general at EMR ministry, Bambang Gatot Ariyono, said in annual basis, Indonesia would need 81 MT of nickel ore supply for 11 working smelters and would build 25 more to builds until 2022. 

He said, that the ban of nickel ore exports was in line with the national plan to accelerate the establishment of smelters so that Indonesia could sell value-added nickel products such as stainless steel slabs. “At this rate, we would need to think about our reserves especially if we keep issuing exports permits,” said the government official.

To support the country’ consumptions, secretary general of the Association of Indonesian Nickel Miners, Meidy Katrin Lengkey, stated that the organization and the regional government in the process to secure the valid data on local nickel production and the demand.

She continued, the organization will coordinating with the miners around the countries to get inputs that will be used as a basis for EMR ministry recommendations for export data and fulfilling the domestic demand. Currently, there is three majors nickel producer in Indonesia, namely South East Sulawesi, Central Sulawesi, and North Maluku.

by Linda Silaen, Email: theinsiderstories@gmail.com