Indonesia – Export of unrefined mineral products
Tuesday, 10 July 2012 | 00:00
It may be recalled that on 6 May 2012 the Indonesian Ministry Regulation No. 7 of 2012 (the Regulation) came into force. The Regulation required mines which produced ores such as nickel, iron, copper or tin to put in place plans to develop their own processing and purification plants by 2014.
If a mine failed to have these plans in place then those mines were effectively banned from exporting these unrefined ores from Indonesia and the advice to Members contracted to carry these ore cargoes from Indonesian ports was to obtain from the shipper an Export Declaration (PEB).
Following the Regulation coming into force reports were received from Gard's local correspondents that some vessels which were loading and which did not have a PEB were being detained; there were also reports of some vessels being able to load and sail without having to show any PEB which fuelled confusion as to what Members could or could not do and how the Regulation was being enforced. It would appear that the confusion surrounding the Regulation has now prompted the Indonesian Government to implement a new regulation which may serve to amend and dilute the provisions of Regulation No. 7 of 2012.
The Decree of Minister of Energy and Mineral Resources Mineral Republic of Indonesia No. 11 of 2012 amends the Regulation by adding two new articles. The effect of these additional articles appears to be that a mine which fulfils certain criteria may sell and therefore export ore out of the country on the recommendation of the Minister.
The criteria for which a recommendation to export may be granted seems to include a requirement to deliver a work plan for the refining of minerals in the country or co-operation with others, presumably, mines in refining ores. Therefore, the extent to which this addition to the Regulation allows mines to export ores remains to be seen.
Source: The Gard P&I Club
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