The steep, last minute metal concentrate tax slapped on copper miners has brought exports to a standstill.
Indonesia Mining News
The reaction of the nickel price has been subdued and a new report suggests China may enter the political fray in Indonesia to protect its steel industry.
Top exporter Indonesia's ban on ore shipments largely off-set by record global stockpiles of ore and metal and rising mine output.
Against expectations of a last minute climbdown by authorities, Indonesia's nickel, bauxite and tin ore ban went into effect Sunday.
The spot market for copper is extremely tight with premiums over 3-month contracts touching 18-month highs and Indonesia's export ban adding uncertainty.
Terrorism, regime instability and resource nationalism, are the main risks mining investors will face in 2014.
The miner would need to lay off about 30,000 employees and dozens of contractors if it is not allowed to ship concentrates from the Indonesia.
With record ore and metal stockpiling in anticipation of supply disruptions, if Indonesia's January 1 ban proves a damp squib, nickel prices could tumble again.
Miner called shareholders to approve the long-sought separation on December 4.
Nickel price up 5% in October as Indonesia stays firm on 2014 unprocessed mineral and metal export ban.
Output may be affected by a ban on unprocessed ore exports that takes effect in 2014.
As a result of the almost two months stoppage at Grasberg, the miner lost about 125 million pounds of copper and 125,000 ounces of gold in the quarter.
Halt was triggered by the coal miner’s failure to publish its 2012 audited full-year results.
But 2013 output will be 20% less than planned.
PT Newmont Nusa Tenggara, a subsidiary of Newmont Mining Corporation, is ready to supply concentrate for national mineral processing and refining plant (smelter).
Measure seeks to avoid liability on existing orders after production was suspended due to an accident.
Small coal miners are already under financial pressure coming from falling prices and their rather higher costs.
China’s third largest copper producer announcement comes only a few weeks after outages at two large copper mines in Indonesia and the US.
Indonesia, South Africa and Australia show no signs of slowing down exports despite prices at 3-and-half year lows and heading lower still.
Between 100–150kt of copper will be off the market.
The world's 40 largest miners announced a massive $45 billion in writedowns last year.
The world's No. 2 copper mine has been practically halted from May 14 at estimated cost of about $15 million a day in lost production.
Indonesia orders all production stopped at Freeport mine until an independent investigation – which is expected to take two months – is completed.
Strained relations between the company and labour unions casts doubt on whether the mine will be able to ship to customers.
Underground mining is still suspended while a safety inspection is conducted.