Road Map Needed For Mineral law Implementation

Jakarta, April 3(Antara) - Chief Economics Minister Hatta Rajasa asked the energy and mineral resources (ESDM) ministry to immediately prepare a road map for the implementation of the law banning the export of unprocessed minerals. The law that requires producers to process their mineral ores in the country before being exported has been in force since January, 2014. "In principle is that the ESDM ministry needs to immediately provide the road map as everything has to be in line with the law and regulations," Hatta said here on Wednesday. One important thing to be studied in the road map is the obligation of every mining company to build mineral processing and refining facility, he said. "The core of the issue is the need to build smelter and after the smelter is built the road map is prepared," he said. He said he expects a report (about the road map) from the ESDM ministry in a week. He said the government wants there is certainty and guarantee from mining companies in Indonesia that they would act on the regulation to build smelters or refineries. He cited the US mining giants, Freeport McMoRun Copper & Gold and Newmont Mining Corp. together accounting for 97 percent of the country`s copper production have committed to building smelters. The two companies are allowed to continue exporting copper concentrate until 2017 when their smelter is expected to be operational. To show that they are serious, mining companies must have bank guarantee, he added. The regulation,which is aimed at promoting processing industries is potential to significantly cut export earning, but in long term the country is expected to gain from it, an official has said.