TEMPO.CO, Jakarta - The Indonesian Government had recently approved the export requests from two mining companies regarding raw mineral exports. The total approved volume reached up to 4.7 million tons throughout the following year.

The first request was by Ceria Nugraha Indotama, a nickel mining company that operates in Kolaka, Southeast Sulawesi. The company is given a 2.3 million ton export quota of low grade nickel ore that is valid until 2018.

Ceria Nugraha Indotama had also submitted plans to construct a nickel processing facility in Kolaka with a yearly five million ton capacity.

The next mining company being approved to export its products is bauxite miner, Dinamika Sejahtera Mandiri.

Read: Govt Issues New Regulation on Mineral Concentrate Exports

This company obtained a 2.4 million ton washed bauxite sales quota after it had constructed a smelter in Sanggau, West Kalimantan, which is able to produce an amazing 7 million ton a year.

Earlier in 2016, the Indonesian Government approved the export of low grade nickel ores by Aneka Tambang, which obtained a yearly 2.7 million ton mineral export permit. This state owned enterprise was also permitted to issue an 850,000 ton washed bauxite export by the end of next year.

The overflowing export of raw minerals is the direct effect of the Energy Ministry’s Regulation No. 5 (2017) that has been valid since January. This regulation is the result of a revised regulation from the Minister of Energy that banned raw mineral exports. The export floodgates will remain opened until 2022, as long as the company is committed to build a smelter.

Robby Irfany