According to a report by Mining.com, citing Reuters, Indonesia’s Minister of Mining told parliament on Wednesday that despite the imminent export ban, some raw materials will continue to be exported next year because it is difficult for companies to build smelters domestically to process the ore.
　　To encourage investment in the local processing industry, this resource-rich country had originally planned to ban the export of all metal ores starting in June.
　　Indonesian Minister of Energy and Mineral Resources Arifin Tasrif stated that before May of next year, copper, iron ore, lead, zinc, and anode slime from copper concentrates can still be exported. Therefore, most smelters whose operations have been delayed due to the pandemic should prepare themselves to handle these materials.
　　He said that prematurely banning exports has led to a decline in national revenue and the loss of employment opportunities.
　　If the export tax is paid and the smelter is at least half completed by January, the company can continue exporting. However, if the completion is delayed, the company will face fines every month, Arifin said.
　　The Indonesian government stated that Freeport Indonesia and Amman Mineral Nusa Tenggara are not affected by the ban, as the construction of these companies’ smelters has also been delayed due to the pandemic.
　　However, bauxite exports will be banned starting in June, Arifin said, because the four existing smelters are capable of processing the ore that was earmarked for export.
　　“By optimizing the process flows at these four smelters, we can increase exports by 1.9 billion U.S. dollars... Therefore, the government will still reap net benefits,” he said.
　　However, Ronald Sulistianto, president of the Indonesian Bauxite and Iron Ore Association, said that the country currently has only two operating bauxite processing plants.
　　“Our bauxite production stands at 30 million tons. Where do these products go? If this ore can’t be consumed, many people will lose their jobs,” he said. Each alumina refinery that processes bauxite can handle only about 6 million tons of ore per year.
　　In addition, Arifin pointed out that although companies claim to be 66% complete, in reality, only seven out of the eight bauxite processing plants under construction have actually broken ground.
　　Ronaldo said that due to financing difficulties—particularly the perception by state-owned banks that risks still remain—these projects have made very little progress.
　　In 2020, Indonesia banned the export of nickel ore, causing turmoil in the global market. However, this policy also spurred substantial investment in smelters, helping Southeast Asia’s largest economy boost its export revenues. 。