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The price of imported nickel ore in China could jump more than 50%, following Indonesia’s export ban on the product which took effect January 12, Macquarie Commodities Research said in a report Tuesday.

Nickel ore stocks in China are partly held by trading companies, which are likely to immediately mark up ore prices, Macquarie said, adding that CFR China nickel ore prices are currently around $45-50/mt.

“We would not rule out a potential [more than] 50% rise in ore prices …,” it said, adding that the breakeven price to produce nickel pig iron by rotary kiln/electric furnace would increase from $12,000/mt to more than $15,000/mt.

Read more at: http://www.platts.com/latest-news/metals/singapore/chinas-nickel-ore-prices-may-rise-more-than-50-27826731

There’s been speculation that Australian companies could enter that Chinese market, but Mark Pervan, of ANZ Bank, says it’s far too soon to make that connection.

“Indonesians aren’t always fully committed to these types of events and commitments, so the market still has a fairly healthy level of scepticism that the ban on nickel and bauxite exports it will be fully adhered to.

Read more at: http://www.abc.net.au/news/2014-01-15/indonesia-minerals-ban-reality/5201294

HONG KONG, Jan 15 (Reuters) – Chinese firms are speeding up plans to build refineries inIndonesia to produce nickel pig iron, a substitute for higher grade refined nickel in stainlesssteel, after Jakarta banned exports of unprocessed ore.

However, plans by Chinese firms to build more expensive alumina refineries were proceeding less quickly, due to the much bigger investments required and caution over policy flip-flops in the Southeast Asian country, industry sources said.

Seeking to force miners to build processing plants in Indonesia, the country on Sunday banned exports of nickel ores and bauxite, the ore for alumina production, hurting its biggest buyer China.

Read more at: http://www.reuters.com/article/2014/01/15/china-nickel-indonesia-idUSL3N0KO1L520140115

JAKARTA, Jan 14 (Reuters) – U.S. miner Freeport-McMoRan Copper & Gold will be forced to lay off workers from the world’s fifth-biggest copper mine in Indonesia to offset an unexpected increase in export taxes, a union official said on Tuesday.

President Susilo Bambang Yudhoyono rushed through a last-minute regulation on Saturday giving copper miners Freeport and Newmont Mining Corp a reprieve from a controversial mineral export ban, but imposed an escalating tax to limit the amount of mineral concentrate exports over the next few years.

Read more at: http://www.reuters.com/article/2014/01/14/indonesia-minerals-freeport-idUSL3N0KO2H820140114

Japan will lend Mozambique 70-billion yen over five years, Prime Minister Shinzo Abesaid on Sunday, as the Asian nation seeks to secure access to the Southern African country’s rich coal and gas reserves.

The former Portuguese colony has seen a spike in foreign investment since it hit on huge gas reserves and hopes to use its mineral findings to develop industry and boost its economy, still scarred by the civil war which ended two decades ago.

Read more at:  http://www.miningweekly.com/article/japan-loans-mozambique-672m-to-develop-access-to-resources-2014-01-13

Unfashionable sections of the mining industry are riding a wave of investor support as law changes in Indonesia stoke demand for nickel and bauxite exposure.

Australian nickel stocks such as Western Areas, Sirius Resources and Panoramic Resources enjoyed healthy share price rises on Monday as the nickel price rose to two-week highs, while Alumina Ltd also rose on expectations that demand will increase for Australian bauxite.

Even BHP Billiton, which is keen to dispose of its nickel and bauxite assets, enjoyed a share price boost, and some believe the Indonesian ban could help the company sell its struggling nickel assets.

The ban that Indonesia implemented on Sunday is designed to stop exports of unprocessed ore in an attempt to force companies to build refineries and smelters on Indonesian soil.

While some exclusions have been granted for copper and gold miners and others who have promised to build downstream operations, Indonesia’s export of nickel and bauxite to China is expected to be significantly hampered.

Read more at: http://www.smh.com.au/business/boost-for-nickel-stocks-as-indonesia-tightens-supply-20140113-30qsd.html#ixzz2qKk4orFv

Jan 13 (Reuters) – Japan, home to some of the world’s biggest stainless steel producers, will face higher costs and a scramble to find new nickel supply after Indonesia enforced an export ban on the raw material.

Global nickel prices and mining shares rallied a day after Indonesia banned unprocessed exports of nickel and bauxite, in a move aimed at getting higher returns for its resources by forcing companies to refine the minerals on Indonesian soil.

Read more at: http://in.reuters.com/article/2014/01/13/indonesia-minerals-japan-idINL3N0KI28720140113

“Indonesia appears to be willing to allow miners who do some degree of processing or have definite plans for smelters in place to keep exporting but is still acting tough with the little guys,” Keith Loveard, a risk analyst at Jakarta-based Concord Consulting, said yesterday, pointing to about 4,000 companies with mining business licenses.

The naval base that covers the Riau Islands is intensifying patrols to prevent ore from being shipped overseas, the Jakarta Post reported today, citing the base’s commander, Rear Admiral Agus Heryana. The Riau islands and region of West Kalimantan hold most of country’s bauxite resources, the report said.

Read more at:  http://www.bloomberg.com/news/2014-01-13/indonesia-bans-ore-exports-in-compromise-push-for-smelting-1-.html