Rabu 06 Nov 2013 13:02 WIB

Govt to press exporters on smelter deadline

Rep: Aldian Wahyu Ramadhan/Mutia Ramadhani/ Red: Julkifli Marbun
A giant mine run by US firm Freeport-McMoran Cooper & Gold Inc., at the Grassberg mining operation, in Indonesia's Papua province. (file photo)
Foto: Reuters
A giant mine run by US firm Freeport-McMoran Cooper & Gold Inc., at the Grassberg mining operation, in Indonesia's Papua province. (file photo)

REPUBLIKA.CO.ID, TUBAN -- Government will not give more time for company that does not want to build a smelter. Company that violates the terms will not be given an export permit.

Deputy Minister of Energy and Mineral Resources, Susilo Siswoutomo said that even small company can collaborate to build a smelter. There are 97 proposals in early stage of feasibility study.

"We will work quickly," Siswoutomo said recently.

According to Law No.4 of 2009 on Mineral and Coal Mining, mineral processing and refining must be conducted in this country to increase added value production and to control the mineral commodities. The implementation is no more than five years after regulation published.

Siswoutomo said that currently mine raw materials processed in the country about 15 to 17 million tonnes per year. In fact, raw material that is exported reached 50 million tonnes per year. Therefore, the increase in value through refining process becomes very important to increase revenue.

Previously, government officially announced construction of purification plants of ferronickel owned by PT Muti Baja Industri (MBI) in Tuban, East Java. The plant will produce 110 thousand metric tonnes of ferronickel and 400 thousand metric tonnes of slags.

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