Expert opinion: Indonesia will not prohibit iron ore export in 2014

The Indonesia Government will most likely completely refrain from the intentions to ban the export of mineral ores in 2014. According to Jim Lennon, a consultant to the Australian investment company Macquarie Group, the reason for the abolition by the authorities of their decision is associated with the fact that such measures will stimulate unemployment in regions where the majority of the population is occupied by mining.

“I do not expect Indonesia to completely ban ore export next year. The authorities will have to offer any political compromise, ”Lennon said today at the Metal Bulletin Asian Nickel Conference conference, taking place in Jakarta.

Indonesia plans to increase the cost of commodity exports and strengthen control over pricing. At the same time, it was planned to introduce an iron ore export, including nickel and bauxites, exceptions may be mining companies that already have their own processing plants or plan to build them. The Swiss mining company Glencore Xstrata PLC suggests that the likelihood that Indonesia will impose a ban on the sale of ore is 50 by 50.



“On the eve of the elections that should take place in April 2014, it is difficult to imagine a situation in which the government will be the initiator of mass unemployment in Sulawesi and Kalimantan,” Lennon said during a speech at the conference before the top producers of Nickel and baches.

This year, Nickel, used for the production of stainless steel, sharply fell in price by 19 percent, despite the fact that nickel reserves increased to record values ​​due to the growth of its production and weak demand. Nickel reserves in warehouses are monitored on the London exchange of metals, this month they grew by 4.7 percent, which is equivalent to 222.012 thousand tons.