Bauxite export ban officially enforced

Jakarta – The export of bauxite commodities is officially enforced starting 10 June 2023. The policy is contained in a ministerial regulation that was signed by the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif.

Tasrif ensured that there would be no concessions for bauxite commodities like those for copper. On the other hand, copper producers can still breathe a sigh of relief as the government has agreed to extend their export licences until next year or 2024. Two companies that enjoy this policy are PT Freeport Indonesia and PT Amman Mineral Nusa Tenggara.

According to Arifin, the relaxation of the export ban policy on copper commodities is based on physical progress and funds that have been spent. “We still give him a chance, but he has to complete it by the middle of next year 100%,” said Arifin.

The bauxite commodity is under the spotlight due to the actions of unscrupulous mining businesses that outsmart smelter construction progress reports in order to be granted export licences. Arifin said there are 12 bauxite smelters targeted for completion this year. But only four smelters have been completed. Meanwhile, the verifier reported eight of them to still be under construction.

However, the companies along with unscrupulous company individuals as verifiers are suspected of colluding in reporting development progress. This is because eight of the reported seven smelters are under construction when there is no construction activity at all.

“Based on the review in the field, there are very significant differences with the results of the independent verifier, in seven smelter locations it is still a field. Although stated in the verification report, the development progress has reached a range of between 32% and 66%,” Tasrif said.

Bauxite is the best and only material for manufacturing aluminium, a highly utilised metal essential for constructing sustainable energy platforms such as solar panels and wind turbines. (Hartatik)

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