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Indonesia Unlikely to Ban Ore Exports, Says Macquarie’s Lennon
Sep. 25, 2013 10:10AM PST
Base Metals Investing
Bloomberg reported that Jim Lennon, commodities consultant at Macquarie Group Ltd. (ASX:MQG), said today at the Jakarta-based Metal Bulletin Asian Nickel Conference that he does not expect that Indonesia’s plan to ban exports of ore — including nickel and bauxite — will go through.
Bloomberg reported that Jim Lennon, commodities consultant at Macquarie Group Ltd. (ASX:MQG), said today at the Jakarta-based Metal Bulletin Asian Nickel Conference that he does not expect that Indonesia’s plan to ban exports of ore — including nickel and bauxite — will go through. “They will have to work out a political compromise,” he said.
As quoted in the market news:
Indonesia is seeking to increase the value of commodity exports and strengthen control over pricing. While the country plans to ban exports of ores, including nickel and bauxite, the government is studying some exemptions for mining companies that already have smelters or are planning to build them. The chances that Indonesia will ban ore sales are 50-50, according to Glencore Xstrata Plc.
‘Ahead of elections in April 2014, it’s hard to imagine the government creating mass unemployment in Sulawesi and Kalimantan,’ Lennon said, referring to the country’s top producers of nickel and bauxite.