https://www.miningweekly.com

Indonesia to issue rules on nickel ore price around late March

28th February 2020

By: Reuters

  

Font size: - +

JAKARTA – Indonesia aims to issue around late next month a regulation governing selling prices of nickel ore, a Ministry of Energy and Mineral Resources official said on Friday, following complaints by miners.

The rules are aimed at preventing local smelting companies from buying ore at price levels that are too low.

A monthly metal benchmark price set by the ministry will be used as floor price for nickel ore transactions under the new rules, said Yunus Saefulhak, the ministry's Director of Minerals.

The Ministry will allow for some buffer below the floor price, but it has not decided yet how far below the floor the selling price can go, he said.

"We are optimistic we will conclude it by the end of March," Saefulhak said. Previously, the ministry had targeted to issue the rules in January, as Indonesia, a major nickel ore exporter, stop outbound shipments of unprocessed nickel.

The country banned exports of nickel ore two years ahead of schedule as it aims to establish a fully integrated nickel industry at home by processing the ore into metals and chemical used in batteries for electric vehicles.

Miners have said that prices paid by local smelters were too low, below the ministry's benchmark price, which is also used by the government to calculate royalties that miners have to pay.

Edited by Reuters

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION