• 2 minutes U.S. Presidential Elections Status - Electoral Votes
  • 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 minutes United States LNG Exports Reach Third Place
  • 3 hours https://www.prageru.com/video/whats-wrong-with-wind-and-solar/
  • 58 mins The World Economic Forum & Davos - Setting the agenda on fossil fuels, global regulations, etc.
  • 22 hours Here it is, the actual Complaint filed by Dominion Voting Machines against Sydney Powell
  • 2 days Pollster Frank Luntz released a poll today showing 90% of those that voted for Trump in November would vote for him again.
  • 15 hours Tonight Twitter took down Trump's personal account permanently. Trump responded on the POTUS account.
  • 21 hours A Message from President Donald J. Trump - 5 minutes from The White House directly
  • 2 days Do Republicans like Liz Cheney, Adam Kinzinger, Mitt Romney and now McConnell think voting for Impeachment can save the party ? Without Trump base what is the Republican constituency ? It's over.
  • 3 hours Researchers Are Harvesting Precious Metals From Industrial Waste
  • 20 hours CNN's Jake Tapper questions double amputee purple heart recipient GOP Rep's commitment to democracy. Tapper is a disgrace.
  • 2 days a In 2020, we produced and delivered half a million cars.
  • 2 days Trump Supporters Just Handed a Huge Propaganda Victory to China
  • 2 days ICE Engines Hear to Stay Regardless of War Against
  • 2 days Minerals, Mining and Industrial Ecology
Dave Forest

Dave Forest

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

More Info

Premium Content

Metals Markets Set For Another Shock From This Key Producer

One of the most ground-breaking changes in metals the last year was the Indonesian export ban.

The government-mandated halt to shipments of unprocessed concentrates caused widespread disruptions in several global markets. And triggered bull runs for metals like nickel, as buyers worldwide scrambled to find alternate supplies.

Now it looks like Indonesia's policies may be shifting again. At least for one metal.

Aluminum. Related: The Most Challenging Oil And Gas Projects In The World

Local press reported this week that government officials are considering a reversal of the export ban on unprocessed bauxite -- the feedstock that goes into making alumina and aluminum.

The reports cited comments from a special team established last month by the Indonesian Energy and Mineral Resources Ministry. Which has been studying the effects of the export ban so far.

The head of that group, Said Didu, said Monday they may recommend allowing bauxite miners to once again ship their concentrates overseas. With the group noting that the government's goal of forcing mining firms to build in-country aluminum smelting capacity is not advancing. Largely due to a shortage of funding needed for such projects. Related: T. Boone Pickens Points The Finger At U.S Shale

Officials are thus proposing temporary relief from the export ban as a way to help miners raise funds. At which point the issue of smelter construction could come back onto the table.

A reversal of the export ban would be huge news for the global aluminum market. In 2013, prior to the ban being implemented, Indonesia was the world's second-largest bauxite producer. As the chart below shows, the difference in output under the new rules in 2014 was striking.

IndonesiaAluminum

Source: USGS Related: A Look At The Future Of Nuclear Power

If a right-sizing of exports causes a return of that supply to market, it's going to be great news for aluminum producers -- who will suddenly have good access to raw materials. But bad news for competing bauxite producers in places like Australia and Brazil. Watch for a final decision from Indonesia's government over the coming weeks.

Here's to opening the spigots,

Dave Forest

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




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