Miners asked to show their commitment to build smelters

The government again warned mining companies to show their serious commitment to build smelting plants as required to ensure that they will be able to export processed mineral products when the government?s ban to export unprocessed mineral starts to take effect in 2014.

Many mining companies do not show any serious commitment to meet the requirement, Deputy Minister of Energy and Mineral Resources Rudi Rubiandini said as reported by Bisnis Indonesia on Saturday.

Without building smelting plants, it would be difficult for the mining companies to respect the ban on the export of unprocessed mineral products, he said.

Meanwhile, Rudi estimated that most of the mineral products would increase this year thanks to recovery of commodity prices in the world market. In 2013, copper production is expected to reach 716,000 tons. The realized copper production totaled 804,000 tons in 2012, up from the initial target of 595,000 tons.

Rudi said the government also estimated gold production would increase to 88 tons this year from 66 tons in 2012, while tin production would rise to 100,000 tons from 91,000 tons in 2012. Like other mineral commodities, production of nickel is also expected to increase to 37 million tons from 35 million tons in 2012 and bauxite would rise to 30 million tons from 29 million tons in 2012. Iron ore production is projected to increase to 11 million tons from 10 million tons.(*)