Creation of Value Added Must Differentiated From Each Commodities

Indobusiness - Indonesia Mining Association urged the government to differentiate the handling and preparation of policies for each commodity mining. Therefore, not all types of mining commodities have large reserves and the level of investment needs for processing and refining of the same.

Chairman of the Indonesian Mining Association Martiono Hadianto deliver it, in his presentation, the seminar entitled "Acceleration Event Added Value Minerals initiated by the Ministry of Energy and Mineral Resources, Wednesday (10/4), at the Balai Sudirman, Jakarta.

Results of the study team and the Research Institute of Industrial Affiliates Bandung Institute of Technology (LAPI-ITB) in 2012 shows, the creation of added value was significantly different in each commodity.

In general, the creation of added value for the commodities of iron, bauxite and nickel on the stage of purification (smelting) is greater than in the processing of the mining phase. But in reality, it's different with copper, in which the creation of value added in mining phase ranges from 93 per cent compared with the creation of added value in the purification stages that only about 7 percent.

"So, the treatment given to copper can not be equated with the treatment of other minerals that value added is low that require further processing," he said.

LAPI-ITB results of the study also concluded, for the purification of iron materials, bauxite and nickel is still possible to do. But the problem that then arises is, the need for cheap electricity prices and the required value of investments can have a value of 1 billion U.S. dollars.

In addition to investment costs, operating costs and expenses (treatment charges, refining charge / TCRC) is a determinant of the economic feasibility of the construction of the smelter. While the cost of TCRC fully controlled international market. "The investment cost will be cheaper if the supporting infrastructure is available," he said.

"We hope the support of all stakeholders, especially the government, so that the spirit of the mineral value addition can be achieved without sacrificing the mining industry who have demonstrated commitment and contribution to the state," he asserted.

Support from the government, especially in terms of regulation, very vital and determining the fate of the mining industry.

For example, if the implementation of the Regulation of the Minister of Energy and Mineral Resources No. 7 of 2012 is not delayed or fitrbidi, then in 2014 the country has the potential gross revenue loss of 4.3 billion U.S. dollars to 8.1 billion dollars. For that it recommends that the government revise the code of conduct as thorough derivatives Law No. 4 of 2009 on mineral and coal mining.

"We hope, the creation of added value for the mineral can form a long-term benefit for the community," said Martiono.