The effect of entry into force of the mining law 2009 began January 2014 in the production of NPI (Nickel Pig Iron) in China

Abstract

China is the largest producer NPI (Nickel Pig Iron) obtained from the processing of the low grade laterite (oxide ore) with pyrometallurgical process. Furthermore NPI is used as substitute FeNi (Ferro Nickel) to make stainless steel (SS). The low grade laterite are imported from Philippines and Indonesia because China does not have the natural resources of laterite. China mainly imported limonite contains Ni < 1.5 % from Philippines and the low grade saprolite contains Ni > 1.5 % from Indonesia. The entry into force of the Mining Law 2009 began January 12, 2014 which prohibits the export of the raw materials of mineral, and obliged to process minerals in Indonesia. Applicability of the legislation automatically affects the production of NPI in China. The effects in the short term since the enactment of the Act, the production of NPI declined and imports FeNi increased in China in 2014/2015. So that in anticipation, the NPI producers in China are trying to relocate the NPI plant out of China especially to Indonesia. For the producers who do not relocate the NPI plant, they tried to get the low grade saprolite from the other country especially from Philippines. If the NPI factory from China is relocated to Indonesia, it seems that China is likely to relocate the NPI plant to Indonesia. So in anticipation of the government must make government regulations (GR/PP: Peraturan Pemerintah) which in principle do not harm Indonesia. The government regulation (GR/PP) is to be mutually beneficial to both parties or win-win solution. This reality will be studied in this paper.