Indonesian bauxite miners stop production

 

 

According to the bank, bauxite miners are to stop producing until there are clearer export regulations. The miners, particularly in Riau and Kalimantan islands, are said to be concerned about the risk of being left with large stocks as they are not allowed to export production. 

 

 

Traders have also frozen purchases due to uncertainty over whether they would be able to export, leading to a widespread stoppage of activity in the sector, they added. 

 

 

It is reported that all Indonesian bauxite miners work by permit as opposed to legal contract, which could make them more vulnerable to a ban. 

 

 

Indonesia’s main export market is China. In fact, during the first two months of this year, almost 80% of Chinese bauxite imports came from Indonesia and, perhaps not surprisingly, they had increased sharply, likely in anticipation of a possible ban, Barclays concluded.