JAKARTA (Yosefardi) – Investors focused buying shares of nickel producer PT Vale Indonesia Tbk (INCO) Monday (Jan 13), then the stock jumped 5.43% to Rp2425 following the government’s policy on mineral ore export ban.
Other mining stocks also gaining such as Aneka Tambang (+1%), Timah (+1.49%), Citatah (+1.6%), and Central Omega Resources (+0.53%).
President Susilo Bambang Yudhoyono has signed Government Regulation No 01/2014 about ban of mineral ores export effective January 12, 2014.
The government however still allow the miners to export mineral ores until 2017 though they are not fully smelted, or the level of concentrate are remain below 100%.
Then the miners are urged or required to build smelter for optimizing the value-added mineral products.
The government also imposes exit custom for exported mineral ores depending on their level of concentrate.
The government admits this relaxing regulation also aims to avoid the termination of employment. This also helps local miners that have commitment to build smelter to keep their operations.
The local economic development would also have rooms to grow during next three years before the regulation, to ban export of mineral ore, is fully implemented by 2017.