UPDATE 2-Indonesia gives Vale, Antam and 7 others permits to ship minerals

Thu, 20 Feb - 11:56pm

(Increases number of approved firms to nine, adds names)

By Yayat Supriatna

JAKARTA, Feb 20 (Reuters) - Vale Indonesia INCO.JK and PT Aneka Tambang (Antam) ANTM.JK were among the first group of companies to receive government approval to export processed mineral ore and refined metal under a new mining law, a senior government official said.

Bachrul Chairi, director general of foreign trade, said a total of nine companies were given export permits as of Thursday, allowing one of the world's largest mining industries to resume shipping some minerals and metals.

Around $500 million worth of monthly metal ore and concentrate exports have ground to a halt in Indonesia due to confusion surrounding the implementation of the Jan. 12 mining law, which includes a mineral ore export ban and a progressive tax on concentrate shipments.

Before the ban, Indonesia was the world's top exporter of nickel ore. It is also a major producer of refined tin, thermal coal, iron ore and bauxite.

The government granted the export permit to Vale Indonesia because the company processes all of its nickel ore at its four smelters in South Sulawesi, which have a capacity of more than 70,000 tonnes.

Indonesia's second biggest nickel producer, Antam, was also given approval to export from its three ferronickel smelters. But the company's smelting capacity only covers a small fraction of Antam's overall nickel ore production, which had been exported before last month's ban.

Moody's Investors Service and Standard & Poor's Rating Services said last month they were reviewing Antam for a possible credit-rating downgrade because of the ban's impact on the company's export business. News Search ID:nL3N0KP2IY

PT Smelting, Indonesia's only copper smelter, and PT Indoferro, the country's first nickel pig iron smelter, were also granted export permits, Chairi said.

The other mining companies were PT Anugerah Nusantara Sejahtera, PT Global Multi Tambang, PT J. Resources Bolaang Mongondow, PT Long Xin Group Resources and PT Nusa Halmahera Mineral.

U.S. mining giants Freeport-McMoRan Copper & Gold Inc

FCX.N and Newmont Mining Corp were not on the list.

Freeport and Newmont have both been in high-level talks with the government regarding the new export rules, which include a punitive escalating export tax.

(Additional reporting by Fergus Jensen; Writing by Randy Fabi; Editing by Muralikumar Anantharaman, Jane Baird and David Evans)

((Randolph.Fabi@thomsonreuters.com)(+62 21 3199 7170)(Reuters Messaging: randolph.fabi.thomsonreuters.com@reuters.net))

Keywords: INDONESIA MINERALS/PERMITS

URN: 
urn:newsml:reuters.com:20140220:nL3N0LP33I:3
Topics: 
EEU INDS METL TRAD RTRS GDM ID BMAT GOL REGS STEE ENER MEMI US COM POL GEN BACT PREMTL WEU ASEAN STL MTAL AMERS TRD JP EZC PIA GB CMPNY BASMTL LEAD1 PREC MINE FR MIN EUROPE CISC MET EUROP DIP COAM WHO ASIA EMRG LEN NEWS1 CH RU ISER CONG CEEU

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