929 - 12/13 - Update on Nickel Ore Cargoes - Indonesia

The Club has been advised that a law banning the export of raw ore from Indonesia has been endorsed by lawmakers in early December 2013. The ban is reportedly to take effect on 12th January 2014.


From this date mining firms must process ores locally but we understand very few appear to be at the stage of being able to do this.


Recently the Mineral Resources Minister proposed an exemption for miners committed to building smelters, but this was rejected.


The situation remains unclear even with Agencies drafting the implementation and enforcement of the ban.


Prime Minister Susilo Bambang Yudhoy is reportedly to discuss the issue with Ministers shortly to try and resolve the matter.


Members trading to the area should be aware of the possible ban and effect it might have on vessels loading ore on around the date of the ban. They should ensure their agents keep them fully updated of developments.


The Club will keep Members updated as and when information is received.


Source of information


UK P&I Club Loss Prevention Department



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