Two Mining Companies Submit $12.3m in Deposits for Smelting Facilities

Jakarta. The government has received a total of $12.3 million in deposits from mining companies Sebuku Iron Lateritic Ores and Lumbung Mineral Sentosa as guarantee of their commitment to build smelter facilities in Indonesia, in a move that would exempt them from being banned in exporting ore abroad.

Sebuku Iron had submitted $12 million, while Lumbung Mineral placed $300,000, the Energy and Mineral Resources Ministry said on Wednesday. The deposit is a prerequisite for the government to exclude them from the mineral export ban, which was implemented in January to boost the value of exported products. 

The companies are following steps by mining giants Freeport Indonesia, the subsidiary of Phoenix-based Freeport-McMoran Copper& Gold, and Newmont Nusa Tenggara, the subsidiary of Newmont Mining.
Freeport Indonesia had deposited $115 million, while NNT had deposited $25 million last week, said R. Sukhyar, the director general of mineral and coal at the Energy Ministry, on Tuesday.

Sukhyar said that the Energy Ministry will submit the recommendations to the Finance Ministry, in which the companies will be allowed to export their mineral ore, but with a export tax that decreases in line with their smelter development progress.

“So, now these four companies are still waiting for the decision on the export tax,” he said.

By Jakarta Globe on 04:25 pm Jun 11, 2014