Indonesia’s ore export ban to cost 100,000s of jobs

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Indonesia mineIndonesia’s planned ban on mineral ore shipments in 2014 may cost hundreds of thousands of job losses in Southeast Asia’s largest economy, the Indonesian Chamber of Commerce and Industry said in a statement on December 16.

Around 800,000 workers are directly or indirectly dependent on the mining industry and may be unemployed, the chamber said. Furthermore, mining companies may go bankrupt, default on loans and stop making tax payments. The ban also may affect mining contractors, suppliers and communities living near mines.

The government wants to increase the value of commodity shipments by promoting local processing and plans to prohibit ore shipments from the largest mined nickel producer after January 12, 2014. Futures surged to a one-month high in London last week on prospects for disruptions to global supply. A clear transition plan is needed to avoid adding pressure on the current account because of the ore curbs, the International Monetary Fund said in its annual country assessment.

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Reading Time: 1 minute

Indonesia’s planned ban on mineral ore shipments in 2014 may cost hundreds of thousands of job losses in Southeast Asia’s largest economy, the Indonesian Chamber of Commerce and Industry said in a statement on December 16.

Reading Time: 1 minute

Indonesia mineIndonesia’s planned ban on mineral ore shipments in 2014 may cost hundreds of thousands of job losses in Southeast Asia’s largest economy, the Indonesian Chamber of Commerce and Industry said in a statement on December 16.

Around 800,000 workers are directly or indirectly dependent on the mining industry and may be unemployed, the chamber said. Furthermore, mining companies may go bankrupt, default on loans and stop making tax payments. The ban also may affect mining contractors, suppliers and communities living near mines.

The government wants to increase the value of commodity shipments by promoting local processing and plans to prohibit ore shipments from the largest mined nickel producer after January 12, 2014. Futures surged to a one-month high in London last week on prospects for disruptions to global supply. A clear transition plan is needed to avoid adding pressure on the current account because of the ore curbs, the International Monetary Fund said in its annual country assessment.

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