JAKARTA: Indonesia’s production of metal ores is expected to fall “drastically” due to a ban on unprocessed mineral exports set to begin in January, a government official said, as there is insufficient smelting capacity to absorb the volumes of base metal ores the country produces.

From Jan 12, mining companies must process their ore before shipping it overseas under a measure which aims to boost the value of exports from Indonesia, the world’s top exporter of nickel ore, thermal coal and refined tin.

“Ore production will fall drastically next year due to this ore export ban,” Sukhyar, the country’s newly appointed director general of coal and minerals, told reporters in Jakarta on Friday.

Ministry figures forecast that Indonesia’s nickel and bauxite production in 2014 will be slashed by 78 per cent and 97pc respectively.—Reuters