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Indonesian export ban hits nickel and bauxite ore trades

Indonesian export ban hits nickel and bauxite ore trades
Indonesia’s ban on exporting unprocessed ore is largely targeting nickel and bauxite since it came into force on 12 January.

“The information available indicates that at present a limited implementation is underway with both nickel ore and bauxite ore being target for export ban enforcement. Coal, tin and copper exports appear to continue to be permitted,” P&I Club Skuld said in a circular to members.

Indonesia’s new mining law had initially sought to ban all exports of unprocessed ore, however, last week the Indonesian government made a partial back down allowing exemptions on some commodities until 2017 to give miners time to build processing facilities.

The banning of the export of nickel and bauxite ore has potential positive side effect bringing to an end what has been shipping’s most dangerous trade. Multiple casualties on the Indonesia – China nickel ore trade, caused liquefaction of the cargo have claimed the lives of 84 seafarers in recent years.

With the situation in Indonesia remaining fluid Skuld advised its members ensure that cargoes were legally allowed to be loaded. “Owners should ask charterers to confirm that any dry bulk cargo ordered to be lifted from Indonesia is legal for export, before proceeding to load port.

“It would prove very difficult to resolve a situation if a vessel gets stuck half laden with a cargo that is not permitted for export.”