Indonesia’s small miners feel betrayed by export ban; fear more layoffs, closures

Posted on January 12, 2014 by Nanthakumar Victor Emmanuel, P.Eng Leave a comment

Jan 12 (Reuters) – Hundreds of small Indonesian mines, like nickel miner Mobi Jaya Persada, are preparing for the worst after the government imposed a controversial mineral export ban on Sunday that could force them to close down.

Mobi Jaya Presada, which contributes to Indonesia being the world’s biggest exporter of nickel ore that is used in stainless steel production, has already laid off half of its 100 employees ahead of the ban coming into force.

“We’ve already started reducing the workforce and we’re going to continue if the regulation stops ore exports,” said Roy Kojongan, business development manager for the remote Mobi Jaya Persada, adding the company only had 44 employees left.

“It’s not fair for the people of Indonesia.”