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Jakarta mulls lifting bauxite export ban

Jakarta: There could be a relaxation of Jakarta’s 14-month long bauxite ban. The government is looking to allow miners to raise cash to finance aluminium smelters.

The ban had been brought in place in January last year to try and develop Indonesia’s aluminium manufacturing supply chain. All but processed metal shipments were banned from export in an effort to force miners to build smelters on Indonesian soil. However, 14 months on miners have complained that the ban has slashed funds so much that they are unable to complete construction of the smelters.

Any exports that do happen, an advisory team to the government said Monday will require miners to pay export taxes and provide surety bonds to ensure that all export proceeds get spent on the construction of the smelters.

Indonesia produced 58m tons of bauxite in 2013 and just 2.8m tons following the introduction of the ban.

Indonesia only has one bauxite processing smelter in operation. Another four are in development.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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