Recently, the Indonesian Ministry of Mines and Energy confirmed that the authorities willFrom June 10, the export of Bauxite raw products was suspended. It is reported that the export ban was announced by the end of December 2022 and received the support of President Zuoko. For those enterprises unable to export Bauxite raw ore products, they can choose to supply them to the four existing domestic mineral smelters, and it is estimated that 90% of the output can be absorbed.

Meanwhile, from this year onFrom June 10 to May 2024, the Government of Indonesia will,Regarding the construction progressMore than 50% of the five beneficiation and refining facilities smeltersRelax the restrictions on export licenses for processing minerals.

Bauxite, also known as bauxite, is the most important aluminous mineral in the world. It is mainly composed of Gibbsite and monohydrate, and is also the best raw material for producing metal aluminum. The downstream application demand of this industry is mainly concentrated in multiple industries such as communication, automobiles, electrical appliances, instruments and meters, machinery, aerospace, etc. The aluminum industry is also an important basic industry in the country.

The survey shows that the global Bauxite resources are about55-75 billion tons, with a reserve of 28.1 billion tons, mainly distributed in Africa, Oceania, South America, and Southeast Asia. The country with the highest Bauxite reserves is Australia, and Indonesia's Bauxite reserves rank sixth in the world.

Published by the New Thinking Industry Research Center《Research Report on Market Status of Indonesian Bauxite Industry in 2021 and Feasibility of Overseas Enterprises' EntryIt shows that the reserve of Bauxite resources in Indonesia is close to2 billion tons, but due to the limitation of mining technology and equipment, the actual proved resource reserves are less than 30 million tons, and are mainly distributed in Bangka Island Island, Belitung, West Kalimantan Province and Riau Province.

However, Indonesia is still in the early stage of aluminum industry development, and the domestic demand for Bauxite applications is very small. Most of Bauxite is exported to overseas markets. According to the Indonesian Ministry of Energy and Mineral Resources, IndonesiaIn 2021, the production of bauxite reached 26.3 million tons, with an export volume of 22.8 million tons, and only 1.74 million tons were used domestically.

Bauxite exports bring aboutThe economic benefits of 21 trillion dong have also brought a series of economic problems to Indonesia's aluminum industry.

Indonesia focuses on exporting Bauxite raw materials and does not finish processing in China, which leads to the loss of high added value of Bauxite, the lack of downstream aluminum industry and unbalanced development. According to statistics, the existing bauxite processing and smelting plants in Indonesia are only4.

At the end of 2022, the Indonesian authorities decided to suspend the export of Bauxite raw ore products in the middle of 2023, and at the same time, relax the export license restrictions on processing minerals. President Zuoko expressed support for this, saying that this is an important measure to promote the Bauxite processing industry in Indonesia, which is conducive to refining the aluminum industry structure of the country, improving the added value of Bauxite, especially promoting the development of downstream industries.

It is understood that Indonesia already has anotherEight bauxite processing plants are under construction. After completion, Indonesia will have 12 bauxite processing plants. By then, the country's demand for Bauxite will reach 37.5 million tons/year.

However, some industry insiders are not optimistic about this. They believe that the primary task for Indonesia's aluminum industry structure to transform towards a high value-added direction is to cultivate relevant technical talents, while also requiring a large amount of capital investment. From this perspective, the transformation of the aluminum mining industry structure in Indonesia still has a long way to go.