• 4 minutes Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 9 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 17 minutes Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 19 hours Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 3 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 4 hours Saudi Arabia turns to solar
  • 14 hours Could oil demand collapse rapidly? Yup, sure could.
  • 1 hour Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 8 hours Corruption On The Top: Netanyahu's Wife Charged With Misuse of Public Funds for Meals
  • 14 hours Gazprom Exports to EU Hit Record
  • 3 hours Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 14 hours OPEC Meeting Could End Without Decision - Irony Note Added from OPEC Children's Book
  • 18 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 10 hours U.S. Withdraws From U.N. Human Rights Council
  • 12 hours What If Canada Had Wind and Not Oilsands?
  • 12 hours "The Gasoline Car Is a Car With a Future"
  • 1 day EVs Could Help Coal Demand
  • 7 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 13 hours Sell out now or hold on?
Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

Indonesia Boosts A Couple of Base Metals

For those of you following the Indonesian mineral export saga lately, it looks like we have a final resolution. Sort of.

Reports over the weekend are that Indonesia's politicians have reached a compromise on the proposed ban.

The new export law took effect on Saturday at midnight. Effectively outlawing the shipment of unprocessed mineral products outside of Indonesia. Copper miners like Freeport-McMoRan had reportedly shut down production ahead of this deadline.

But the copper sector got an eleventh-hour reprieve. When lawmakers put through amendments to the export law.

The patch will allow producers of copper, iron, zinc, lead and magnesium to continue exporting unprocessed or semi-processed ore until 2017. Giving these mining companies time to build facilities for final upgrading in order to comply with the new laws.

Such miners will be subject to a higher tax on exports of unprocessed mineral concentrates.

But the news wasn't so rosy for a couple of metals. Namely nickel and alumina.

Indonesia is sticking to its guns on export bans for these commodities. Unprocessed shipments of ore will be banned immediately.

That's a significant development for global markets. Indonesia produced over 15% of the world's nickel in 2012. And 11% of the world's bauxite and alumina.

That supply is now largely in jeopardy. There is some upgrading capacity for nickel in the country, which may allow select producers to keep exporting under the news laws. But it appears the majority of output will be scuttled for the foreseeable future.

Nickel prices are up over 1.5% on the news. Absent some sort of last-minute change to the rules, expect that trend to continue.

Here's to a metal on the rise,

By. Dave Forest




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News