Japan is preparing for additional costs in connection with the decision of the Indonesia Government to prohibit mineral ore exports

Japan, being the world's largest stainless steel manufacturer, is preparing to take a blow to new prices associated with the prohibition of export of unprocessed nickel ores from Indonesia. The world prices for nickel and shares of mining companies are growing after Indonesia declared new rules for the export of mineral ores from the country.

For the first time in 2009, the Law on the restriction of the export of nickel and bauxite suggested the introduction of the ban in 2014, but the analysts were not sure that the House of Indonesia would “go to the end”, since in this case about 800 thousand people may lose their work to assess the Indonesian Industrial Chamber.

The largest nickel consumer in Japan Sumitomo Metal Mining Co Ltd (SCM) said that at the current level of production of its reserves, it will be enough until May this year. “We have enough reserves until the beginning of May. Perhaps we will have to reduce production later,” said SKM spokesman.

Recall that in 2012, Japan imported 44 percent of the entire need for Nickel ore from Indonesia, and 16 percentage points is less than 2009, when the import of nickel ore from Indonesia to Japan was 60 percent of the total.

China managed to fill the nickel ore stores for the next 8 months by increasing the import of minerals from Indonesia last year by a third to 36 million 10 thousand tons. However, after the ore reserves are exhausted, Chinese metallurgists, like Japanese, will have to reduce stainless steel production.