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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.”

Read more at: http://www.reuters.com/article/2014/01/12/indonesia-minerals-miners-idUSL3N0KM01S20140112

Jan 11 (Reuters) – U.S. mining giant Freeport McMoRan Copper and Gold Inc halted its copper exports from Indonesia, less than an hour before a controversial mineral export ban comes into effect, a union official told Reuters late Saturday.

Indonesia on Sunday will impose a ban on more than $10 billion worth of annual copper, nickel and other unprocessed mineral ore shipments, a move that industry officials warn could lead to mass layoffs, mine closures and depleted foreign revenue.

Read more at: http://www.reuters.com/article/2014/01/11/indonesia-minerals-idUSL3N0KL05T20140111

Jan 10 (Reuters) – An Indonesian ban on raw minerals exports is set to hurt Chinese factories making stainless steel – used in everything from kitchenware to cars and buildings – in the biggest potential industry shake-up in more than five years.

The ban, due to come in force on Sunday, may also be a boon for battered nickel miners, dogged by prices that lost 19 percent last year and are sitting stubbornly near four-year lows.

Read more at: http://www.reuters.com/article/2014/01/10/indonesia-minerals-impact-idUSL6N0KJ05U20140110

Canada’s Sherritt International said on Tuesday it would sell its coal business for C$946-million to focus on its nickel and oil businesses.

Sherritt said it would sell its entire royalty portfolio and stake in coal development assets to a group led by mining company Altius Minerals for C$481-million.

Westmoreland Coal will buy Sherritt’s operating coal assets – Prairie and Mountain Operations – for C$465-million.

Read more at: http://www.miningweekly.com/article/canadas-sherritt-to-sell-coal-business-for-c946m-2013-12-24

The deficit is high and a mineral export ban could make things worse – but there are plenty of reasons to be cheerful in Jakarta.

A political tussle over Indonesia‘s formidable mineral exports goes a long way towards illustrating the political risks of doing business in Indonesia.

On 12 January the country is due to enact legislation that will ban exports of unprocessed mineral ore, following the passing of a law in 2009. The ban is one of President Susilo Bambang Yudhoyono’s landmark economic reforms. But with Sunday’s deadline looming, last-minute exemptions are still being argued over.

Read more at: http://www.theguardian.com/world/2014/jan/09/natural-resources-high-hopes-indonesia