The Ministry of ESDM saw that the success of mining industry in China was on account of well integrated infra structure of various sectors including electricity, harbors, roads, bridges etc. And yet China started minery processing only since 2000. "The Government of China bought aging factories and rebuild them with advanced technology," The Director of Mineral Business, Dir. Gen. of Minery-and-Coal [Minerba], Ministry of ESDM Dede Suhendra stated to BusinessNews sometime ago.
Mining was the locomotive of development. Beside electricity supply, the Government of China also built harbors and roads on sharing basis. The communities around the construction location were involved in the project. China intensively processed various mineral products. "So Indonesia's export of nickel, bauxite etc to China increased by 100% in ten years till 2013. We have screened tightly, but they escaped."
The Ministry had made balance sheet for revenues, target and realization. Report unveiled that there was difference of IUP permit issued. In 1999 the Ministry reported there were around 600 permits. The Ministry only had 10% of the permits issued. "In 10 years from 1999 to 2009 there had been no development and there were many IUP issued by the Regents."
The Ministry finally issued a circular letter to all regional heads, which was ecpected to motivate them to make a report. It contained among others the number of IUP issued, production reserves, processing level and end result. "but there was no response. So we stated that companies which were not listed at the Ministry were 'unofficial' [illegal]. Thereafter only the truth was unveiled. There were 8,000 IUP permits reported against the initial IUP s in 1999. We as makers must know the data." Dede remarked.
Thereafter since 2009 the number of listed increased to 10,000. The Ministry was still selecting and classifying based on operational category and exploration. The Ministry was still not in a position to decide which companies were obliged to process ores before exported. "Apparently it would take a long time. We found that a company may posses 2 or 3 permits, so we apply the Clear-and-clean procedure. Region wise, it did not end up in overlapping" Dede Suhendra concluded. (SS)
Business New - May 9, 2014