The Energy and Mineral Resources Ministry’s technical and environment director, Bambang Susigit, said the government’s ban on exports of unprocessed mineral ore would take effect on Jan.12, 2014.
“Up till now, there has been no change in the plan although various parties have asked for the plan to be delayed for two or three years,” he said on Wednesday as quoted by Antara news agency.
Bambang said the unprocessed ore export ban had been mandated in Law No.4/2009 on Mineral and Coal Mining and its implementing regulations.
“The government has given five years for the development of factories or shelters to smelting unprocessed ore into half-finished metal. It’s long enough to develop the smelters,” said Bambang.
He further said currently several smelters in East Java and South Kalimantan had been operating at 80 percent .
Meanwhile, smelters in Gresik, East Java, could accommodate only 40 percent of the ores produced by Freeport and 30 percent from Newmont.
Bambang acknowledged that such a ban would potentially reduce both ore production and state income and would create employment problems. However, this policy would protect the environment better.
“Decreases in state income from the mineral sector are predicted to occur within the next two or three years and after that the state would gain maximum results from the smelting process of the unprocessed ores,” he said.
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