Japan Concern on Indonesian Mining Law

Japan Mining Industry Association’s chairman Nobumasa Kemori said at press conference on Thursday Indonesian new mining law could impact on ferronickel plant in Japan if Japanese companies cannot import ore from the country under the law, which obliges adding higher value on mineral resources in and after 2014.

Mr. Kemori said Indonesian nickel ore represents more than half of the Japanese import for ferronickel operation when Japanese ferronickel production is around 70,000 tonnes. Indonesian copper ore represents around 15% of the Japanese import while Japanese annual copper ingot production is around 1.5 million tonnes.

Indonesian government launched new mining law in January 2009. The government tries to make the detailed regulation draft, which obliges domestic smelting and other value adding process for mineral resources in and after January 2014. If the draft would be activated as the law, the country would ban low valued resources.

Japanese Mining Industry Association sent mission to Indonesia to study the move. Mr. Kemori said the mission notified the government and mining industry leaders of Japanese industry’s hope Indonesia would seek higher value added program while the country will keep exporting ore as now.

Japanese Mining Industry Association also announced request to Japanese government on better mining policy. The association seeks more flexible support by the government for private sector’s activity to get offshore mining interest. The association warns Japanese industry’s competitiveness could be damaged by attempted resource nationalism actions.