Indonesian nickel group seeks transition period for rare earths export checks

The Indonesian government must set a transition period before scrutinizing exports of minerals containing rare earths and radioactive materials, the Forum Industri Nikel Indonesia trade group said July 29, as several cargoes remain delayed due to tighter customs checks.

Indonesia's inspections for rare earths content in mineral cargoes have resulted in export delays in July. Businesses have flagged the lack of clear rules governing the maximum allowable content of rare-earth elements in mineral shipments.

Regulatory uncertainty over export rules is weighing on the Indonesian nickel industry, which is already under pressure from price volatility, weaker demand, and rising input costs, according to Arif Perdanakusumah, chairman of Forum Industri Nikel Indonesia.

"Given these conditions, any policy on rare earth elements should be designed proportionately and implemented in phases, with a clear transition period," Arif said in a statement.

"Such policies should also take into account technological readiness, commercial viability, and the industry's capacity to develop new value chains without undermining the sustainability of Indonesia's existing nickel downstream industry," Arif said.

Indonesian businesses have received assurances from the government that exports of processed and refined mineral products, including nickel and bauxite, would be allowed to proceed after being held up, Arif said.

The pledge was made following a July 27 coordination meeting between the state and other stakeholders. The government is preparing guidelines to resolve export bottlenecks, according to Dudung Abdurachman, Indonesia's presidential chief of staff.

However, authorities have yet to issue about 120 surveyor reports needed to clear exports of various mining commodities from operations on Sulawesi Island, as well as in West Kalimantan and Bangka Belitung provinces, Arif said.

Industry recommendations

While the industry group supports Indonesia's efforts to monitor the nation's rare earth resources, it argued that the presence of rare earths as associated minerals in processed products should not prevent the primary material from being shipped.

Instead, export policies should be determined by the primary product, its Harmonized System tariff code, and mineralogical characteristics, Arif said.

Authorities should consider whether the associated elements can be recovered economically with commercially viable technology. Commodity-specific threshold levels should also be set, Arif said.

Arif noted that existing nickel processing technologies are designed to produce intermediate nickel products, such as mixed hydroxide precipitate and nickel pig iron, rather than rare earth elements.

Platts, part of S&P Global Energy, assessed Indonesian nickel pig iron with 10% nickel content at $145.60/metric ton FOB Indonesia on July 29, unchanged day over day and week over week.