Indonesia Mineral Ore Export Policy Concerns Japan Industry

Japan Mining Industry Association’s chairman Masao Yamada said at regular press conference on Thursday the industry aims no damage from Indonesian new regulation on ore export while Indonesian government launches 20% export tax for mineral resources. The president of Dowa Holdings warns such resource nationalism move could spread to other resource rich countries.

Indonesian new regulation on mineral resource export could increase cost for the buyers and could reduce the export. Japan depends on Indonesia for 50% of nickel ore import while Indonesia is also important source for copper concentrate for Japan.

Mr. Yamada said Indonesia didn’t impose 20% export tax on the export yet and Japanese industry had no damage yet. However, 20% tax would cost additional US$ 3,000 per tonne for miners or smelters based on current nickel price at London Metal Exchange. Mr. Yamada said the cost impacts on smelters’ profitability.

Mr. Yamada warns such resource nationalism could spread to other Asian countries including Vietnam. He said the industry cooperates with Japan Iron and Steel Federation and other interests to avoid damage from such nationalism.