Indonesia considering imposition of export duties on ferronickel & nickel pig iron
13 Jan 2022 16:08 reported by Joy Liu
Septian Hario Seto, Indonesia's Deputy of Investment and Mining Coordination to the Coordinating Minister for Maritime Affairs and Investments, said the government is considering imposing export duties on ferronickel and nickel pig iron as soon as this year. A 2% export duty might be imposed if the nickel price is above US$15,000/ton, equivalent to US$300/ton. The duty rate will increase along with the nickel prices.
The decision to impose export duties was to push nickel miners to process products before exporting, or Indonesia's nickel ore reserves will be exhausted quickly.
Indonesia has been focusing on the development of the local nickel industry chain and the increases in products’ added value, which might raise the probability to impose export duties. However, it needs time to consider many factors such as market acceptance. Market participants should be well prepared for this issue.
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