Indonesian metal exports face disruptions by rare earths checks

Exports of some metal products from Indonesia are being held up by new checks on rare earths and radioactive elements like uranium, snarling supplies from the major commodity producer.

Several shipments have been delayed this month as Indonesian customs request additional testing for certain critical minerals, according to people familiar with the matter. Exports of alumina, which can be processed into aluminum, and nickel pig iron have been affected, said the people, who asked not to be named speaking on private matter.

A spokesperson for the custom office didn’t immediately respond to a request for comment. It’s unclear how long the disruption will last or how much export volume is affected.

Indonesia has historically leveraged trade measures to promote domestic refining of minerals, with the export of raw materials like nickel ore and bauxite banned several years ago. The government has since turned its focus to rare earths, requiring them to be prioritized for domestic use under a regulation issued last year.

Earlier this month, Indonesian prosecutors named suspects in a case centering on the illegal export of rare-earth-bearing materials, according to state news agency Antara. The three allegedly hid the presence of rare earths in lab results used to obtain export permits.

The Southeast Asian country is not a significant supplier of rare earths and uranium, though both can be found in byproducts made from processing some of its major metal. Tin mining, for example, produces large quantities of monazite, a mineral from which rare earth elements can be extracted.

(By Eddie Spence and Annie Lee)