The Government has announced that Cabinet has approved a limited shipment of stockpiled bauxite from the Rennell mine, operated by PT Mega Bingtang Borneo Company.
The decision was made late last week.
A statement issued by the Office of the Prime Minister yesterday said, Cabinet has considered the pros and cons surrounding the consignment, concluding that exporting the bauxite was in the best interest of the stakeholders including the landowners and the nation as each would derive benefits from the exports.
The Government statement said, Cabinet’s decision was based on advice tendered by the Attorney General’s Chambers.
PT Mega Bingtang Borneo Company has been stockpiling the bauxite it dug from the West Rennell pit since last year.
“The export of the stockpile is in the best interest of the country and the landowners,” the statement said.
“The government will impose a 20 percent Export Duty on the shipment, and the permit shall only apply for the stockpile,” the statement said.
The Ministry of Finance and Treasury has been advised to release the shipment.
Meanwhile, the Government is waiting to hear from the company as to why its license should not be cancelled.
PT Mega Bingtang Borneo Company faces cancellation of its mining lease if it fails to respond to a 14-day notice issued on 7th May this year.
The company’s mining lease and prospecting licence were cancelled by the Minister of Mines, Energy and Rural Electrification on 7th May 2015 following advice by the Mines and Minerals Board.
– PMO Press Secretariat