Bauxite miners urge Indonesia govt to reconsider the export ban

Bauxite miners have once more pleaded with the Indonesian government to rethink the policy since domestic facilities are insufficient to process their output. However, this is to be noted that Indonesia is scheduled to restrict unprocessed bauxite exports in the next few days.

Indonesia, the world's sixth-largest bauxite producer, is set to halt bauxite shipments from June 10, 2023, as part of a 2020 law prohibiting all metal ores exports to spur investment in refineries.

The government last month granted miners of other ores, such as copper and iron, a one-year reprieve to provide extra time to complete smelter development, but it maintained the bauxite export prohibition.

According to government data, Indonesia has three smelter-grade alumina refineries and one chemical-grade alumina refinery with a total input capacity of roughly 14 million tonnes, which mining minister Arifin Tasrif stated last month was sufficient to absorb ore production.

On June 5, the head of the Indonesian Bauxite and Iron Ore Companies Association, Ronald Sulistyanto, stated that production had reached about 30 million tonnes annually and that miners would be forced to stop operations if there was no market for their extra ore.

Indonesia's ban on bauxite exports was intended to emulate the success it experienced in attracting foreign investors to nickel processing following a ban on the export of unprocessed ore in 2020.

According to Sulistyanto, whose association represents 28 miners further added, "However, an alumina refinery may cost up to $1.2 billion, which is nearly three times as much as a nickel pig iron smelter, and miners have had trouble getting bank funding ever since Indonesia initially announced a plan to limit exports in 2009."

“Our members are hoping that there will be a re-evaluation by the government if they want this mining industry to move forward."

"The miners want to develop these smelters, but they need support instead of punishment," he continued, pleading with the government to guarantee bank loans for alumina smelters.

The special staff of the mining minister, Irwandy Arif, stated that companies had been given adequate time to comply and the ban would be implemented as planned.

Bauxite miners have once more pleaded with the Indonesian government to rethink the policy since domestic facilities are insufficient to process their output. However, this is to be noted that Indonesia is scheduled to restrict unprocessed bauxite exports in the next few days.

Indonesia, the world's sixth-largest bauxite producer, is set to halt bauxite shipments from June 10, 2023, as part of a 2020 law prohibiting all metal ores exports to spur investment in refineries.

The government last month granted miners of other ores, such as copper and iron, a one-year reprieve to provide extra time to complete smelter development, but it maintained the bauxite export prohibition.

According to government data, Indonesia has three smelter-grade alumina refineries and one chemical-grade alumina refinery with a total input capacity of roughly 14 million tonnes, which mining minister Arifin Tasrif stated last month was sufficient to absorb ore production.

On June 5, the head of the Indonesian Bauxite and Iron Ore Companies Association, Ronald Sulistyanto, stated that production had reached about 30 million tonnes annually and that miners would be forced to stop operations if there was no market for their extra ore.

Indonesia's ban on bauxite exports was intended to emulate the success it experienced in attracting foreign investors to nickel processing following a ban on the export of unprocessed ore in 2020.

According to Sulistyanto, whose association represents 28 miners further added, "However, an alumina refinery may cost up to $1.2 billion, which is nearly three times as much as a nickel pig iron smelter, and miners have had trouble getting bank funding ever since Indonesia initially announced a plan to limit exports in 2009."

“Our members are hoping that there will be a re-evaluation by the government if they want this mining industry to move forward."

"The miners want to develop these smelters, but they need support instead of punishment," he continued, pleading with the government to guarantee bank loans for alumina smelters.

The special staff of the mining minister, Irwandy Arif, stated that companies had been given adequate time to comply and the ban would be implemented as planned.