According to Mining Net ( http://www.mining.com/ On June 6, reports indicated that just days before Indonesia is set to implement a ban on the export of raw bauxite ore, miners are once again urging the government to reconsider this policy, as Indonesia’s domestic facilities are insufficient to process all of their bauxite production.
　　Indonesia is the world’s sixth-largest producer of bauxite. Starting Saturday, Indonesia will halt exports of raw aluminum ore, in accordance with a 2020 law banning all exports of unprocessed bauxite. This law aims to encourage investment in smelters.
　　Last month, the Indonesian government granted mining companies extracting copper, iron, and other ores an additional one-year extension to allow more time to complete the construction of smelters, while maintaining the ban on bauxite exports.
　　Official data show that Indonesia has three alumina refineries at the metallurgical-grade level and one at the chemical-grade level, with a combined installed capacity approaching 14 million tons. Last month, Indonesian Minister of Mining Arifin Tasrif stated that this capacity is sufficient to absorb bauxite production.
　　However, Ronald Sulistyanto, president of the Indonesian Bauxite and Iron Ore Association, told Reuters on Monday that bauxite production has reached about 30 million tons per year, and if there is no market for the surplus iron ore, miners may be forced to halt production.
　　Indonesia’s ban on bauxite exports aims to replicate the success story of the nickel-processing industry in attracting foreign investors. In 2020, Indonesia banned the export of raw ore to overseas markets.
　　However, Sulistyanto, who represents 28 mining companies, said that the minimum price for bauxite processing equipment is around US$1.2 billion, and the cost could be three times that of a nickel pig iron smelter. Since Indonesia first announced its plan to ban exports of raw minerals in 2009, miners have been struggling to secure bank financing.
　　Sulistyanto stated: “Our members hope that if the government wants the mining industry to move forward, it should reevaluate its approach.” Indonesia’s Ministry of Energy and Mineral Resources did not respond to the organization’s request.
　　Sulistyanto added, “Miners are eager to build alumina smelters, but what they need is support—not punishment.” He also called on the relevant authorities to provide guarantees for bank loans to alumina smelters.
　　However, Irwandy Arif, a special staff member of the Minister of Mining, told Reuters that mining companies have had sufficient time to prepare for the ban, and the ban will be implemented as scheduled.
　　Irwandy Arif told Reuters that if some miners have already built smelters halfway through, the government might consider exempting these miners from the ban. However, of the eight alumina projects currently underway, seven have made no substantial progress.
　　Irwandy Arif said that the Indonesian government had attempted to facilitate meetings between mining companies and banks but was unable to provide guarantees. He stated, “One of the criteria is the progress of smelter construction, and the progress of the alumina smelter has been minimal, making it very difficult for the government to consider granting exemptions.”
　　Fitch Solutions said the ban is unlikely to have a significant impact on global markets, as China—being the world’s largest aluminum producer—can source bauxite from countries such as Guinea and Australia, both of which are capable of increasing their production.
　　Industry experts say that, unlike nickel ore, Indonesia’s bauxite ban is unlikely to attract foreign investment, given the availability of alternative bauxite-producing countries.