Indonesia: Nickel Ore - Update


Published: 1 October 2012

As Members will be aware, the Association has previously advised on the issues of bulk cargo liquefaction, and in particular in respect of the potential risks involved in the shipment of nickel ore. Members are recommended to consult the previous updates and circulars published by the Association.

One of the main places from which such shipments originate is Indonesia and Members will no doubt have followed the developments in that country of May this year.

To recap, the Indonesian Government had imposed new regulations in respect of the licensing of nickel ore exports and set a deadline beyond which any further shipments had to fall within the terms of the new licensing regime.

Since that time, the Association has learned that there has been a significant reduction in the number of shipments of nickel ore from Indonesia.

One reason for this significant change is that only a small number of producers and exporters have obtained the necessary license to carry on with this trade.

In response to this development, the Indonesian Government is now reported to have increased the number of licenses which it will issue, yet a significant number of cargo producers and exporters may not yet have obtained the necessary licensing.

Members are recommended to check whether the intended cargo comes from a licensed producer - holding a valid export permit - before entering into charter and shipment contracts.

The reason for this prudence is that shipments from unlicensed operations - without export permits - may be in breach of Indonesian laws and potentially come with a higher cargo risk factor. This would then present both legal as well as practical risks for engaging in a safe and worthwhile voyage.

Separately, Members are reminded of the need to notify the Association before they undertake a shipment of nickel ore from Indonesia or the Philippines. Members are referred to the IG Group circular of 1 June 2012.

If Members have any queries in this regard they are recommended to contact the Association for further assistance.