JAKARTA (TheInsiderStories) - The benchmark prices of Indonesian mining products for export in January 2021 go up again along with the increased of the global prices, said the government official last week. Compared to the previous period, mining products experienced an increased was copper concentrate (Cu ≥ 15 percent) with an average price US$3,010.54 per WE or up 4.44 percent from the previous month.
Then, ferrous concentrates (hematite, magnetite) (Fe ≥ 62 percent and ≤ 1 percent TiO2) with an average price of $124.04/WE or rose 19.41 percent and laterite iron concentrates (gutite, hematite, magnetite) (Fe ≥ 50 percent and (Al2O3 + SiO2) ≥ 10 percent) with an average price of $63.38/WE or jumped 19.41 percent.
Furthermore, lead concentrate (Pb ≥ 56 percent) with an average price of $841.10/WE or lift up 11.95 percent, zinc concentrate (Zn ≥ 51 percent) with an average price of $755.44/WE or an increased of 12.11 percent, and iron sand concentrate (lamella magnetite-ilmenite) (Fe ≥ 56 percent) with an average price of $74.06/WE or up of 19.41 percent.
There are also ilmenite concentrate (TiO2 ≥ 45 percent) with an average price of $325.16/WE or jumped 6.86 percent, rutile concentrate (TiO2 ≥ 90 percent) with an average price of $872.76/WE or an increase of 2.88 percent and washed bauxite (Al2O3 ≥ 42 percent) at an average price $27.14/WE or up 7.45 percent.
Products that experienced a decline compared to the previous period were manganese concentrate (Mn ≥ 49 percent) with an average price of $202.89/WE or a decrease of 5.03 percent. While, iron sand concentrate pellets (lamella magnetite-ilmenite) (Fe ≥ 54 percent) with an average price 117.98/WE did not change.
“The price for mining products for the period of January 2021 has fluctuated due to the rise of world demand,” said the director general at trade ministry, Didi Sumedi, last week.
To support the commodity export from Indonesia, the government has give more incentives to the producers. The country aimed to drive the value added of coal through the coal gasification scheme to become Dimethyl Ether (DME).
According to the special staff at the energy and mineral resources (EMR) ministry, Irwandy Arief, explained that one of the incentive is the provision of royalties of up to zero percent for coal processed. Then, the special coal price formula for the gasification projects and the validity period of the Mining Business License in an accordance with the economic age of the project.
For example, an extension of 10 years from the life of the projects, he adds. The three incentives are currently being discussed by the directorate general of mineral and coal and the ministry of finance, he adds. Others is in the form of a tax holiday or corporate income tax, the exemption of value added tax (VA) for coal processing services to syngas by zero percent.
In addition, the exemption from local content engineering procurement construction VAT, the benchmark price for gasification products, the transfer of part of the Liquefied Natural Gas (LPG) subsidy to DME, and the certainty of off-takers or buyers for the downstream products.
Written by Editorial Staff, Email: theinsiderstories@gmail.com.
