Indonesian metal exports face delays due to rare earths checks
Rare earths are prioritised for domestic use under a regulation issued last year
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EXPORTS of some metal products from Indonesia are being held up by new checks on rare earths and radioactive elements like uranium, snarling supplies from the major commodity producer.
Several shipments have been delayed this month as Indonesian customs request additional testing for certain critical minerals, according to people familiar with the matter. Exports of alumina, which can be processed into aluminum, and nickel pig iron have been affected, said the people, who asked not to be named speaking on private matter.
It’s unclear how long the disruption will last or how much export volume is affected.
A spokesperson for the customs office said the government is engaging independent surveyors to identify the composition of mineral exports, including to detect the presence of rare earth metals.
The government isn’t arbitrarily suspending or banning exports of mineral commodities such as alumina and nickel, and is ensuring the smooth flow of exports for commodities that have met requirements, the spokesperson said.
Indonesia has historically leveraged trade measures to promote domestic refining of minerals, with the export of raw materials like nickel ore and bauxite banned several years ago. The government has since turned its focus to rare earths, requiring them to be prioritised for domestic use under a regulation issued last year.
Earlier this month, Indonesian prosecutors named suspects in a case centring on the illegal export of rare-earth-bearing materials, according to state news agency Antara. The three allegedly hid the presence of rare earths in lab results used to obtain export permits.
The South-east Asian country is not a significant supplier of rare earths and uranium, though both can be found in byproducts made from processing some of its major metals. Tin mining, for example, produces large quantities of monazite, a mineral from which rare earth elements can be extracted. BLOOMBERG
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