Indonesian Ban on Mineral Ore Exports *Update*

We have received a news article from Reuters that claims Chinese nickel pig iron producers are aiming to get around an Indonesian ban on nickel ore exports by buying a shipment of slightly lower grade material and labelling it as “iron ore”.

Members are reminded of the precautions that should be taken to ensure that cargoes are correctly declared, loaded and carried in accordance with the IMSBC Code.

North’s Loss Prevention Briefing on the carriage of nickel ore can be read on the Club’s website here.

A copy of the full Reuters article can be read here.

13 January 2014

Further to previous advice, the mineral ore export ban came into limited effect on 12 January 2014.

The Indonesian Government has granted permission for a small number of mining companies to continue to export copper, manganese, lead, zinc and iron ore concentrate until 2017.

Tin and coal shipments are expected to be permitted, however nickel ore and bauxite cargoes will likely fall under the mineral ore export ban. It is unclear at present exactly how the ban will function or be enforced.

An extract from the Jakarta Post on the ban can be read here.

09 January 2014 

Further to previous advice on the intended mineral export ban, correspondents Spica advise that the Indonesian Government has agreed to ease the export ban for minerals that exceed certain purity levels.

Whilst these purity levels have not yet been agreed, this leaves some doubt as to what cargoes will or will not be allowed for export.

An extract from the Jakarta Post on the easing of the mineral export ban can be read here.

We will provide updates should further information become available.

02 January 2014 

Further to the message below we understand from correspondents Spica, that it has been reported in Indonesia that the proposed ban on mineral ore exports is likely to come into force on 12 January 2014.

Member’s should take steps to ensure that vessels do not find themselves in Indonesia part loaded on the 12th without the shippers having the necessary export licences in place. Clearly any cargo loading completed before that time should be unaffected, but caution should still be taken to ensure that loadings are not delayed. Loadings post the 12th should be unaffected, providing the necessary export permits are in place.

We will provide further updates should the situation change. 

11 December 2013

The Indonesian government has advised that, with effect from January 2014, Law No 4/2009 on Mineral and Coal development enters force. This law will enforce a ban on the export of all mineral ores and requires mining companies to process minerals in the country prior to export.

As processing and purification facilities are unlikely to be operational when Law 4/2009 enters force, further regulations are currently being drafted which will allow mineral ore producers to export limited quantities under license.

There is currently some uncertainty over the how the export ban will be implemented and enforced and so as a result of this there is potential for vessels to be delayed should loading not be completed prior to January 2014.