At a Glance
- Outright bans on the export of unprocessed products are uncommon.
- Downstream Activities: The Possibilities and the Realities (Anton Lof, Olle Ostensson)
- Economic Effects of Indonesia's Mineral-Processing Requirements for Export (Nathan Associates Inc.)
- Zimbabwe Hopes to Transform Mining Sector with $4.2 Billion Platinum Deal (MacDonald Dzirutwe)
- Zimbabwe's Beneficiation Policy Part 1: Understanding the Drivers and Objectives (Claude Baissac, Ferdinand Maubrey, JP van der Merwe, Jessica van Onselen)
- Export Restrictions on Industrial Raw Materials (Organisation for Economic Co-operation and Development)
- Linkages to the Resource Sector: The Role of Companies, Government, and International Development Cooperation (Columbia Center for Sustainable Investment, Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ))
This report examines the economic implications of the export ban on unprocessed mineral resources that took effect in Indonesia in 2014. The ...
This article discusses Zimbabwe’s $4.2 billion platinum mine deal and how the investment will change the landscape of Zimbabwe’s ...
This online inventory tool contains information on export regulations in minerals, metals, and woods. The database records measure that ...
Linkages to the Resource Sector: The Role of Companies, Government, and International Development Cooperation
This publication includes information for key linkages in the resource sector. Each linkage explored includes a literature review and case ...
This resource provides information on the possibilities and realities of increased downstream processing. Related policies are analyzed ...
This report provides an in-depth case study of Zimbabwe’s beneficiation policy, particularly contrasting the country’s efforts ...
Outright export bans on unprocessed products are uncommon. In a recent example, Indonesia banned the export of a number of mineral ores, such as nickel and bauxite, in 2014. Exports of mineral concentrates were permitted for a period of three years and during this time export taxes were levied at rising rates. In addition, a number of positive supports were provided to investments in processing, including no tariffs on imports of capital goods and inputs required for processing, and a variety of tax reductions. These measures resulted in a dramatic fall in Indonesia’s mineral exports. The value of unprocessed exports of bauxite, copper, and nickel fell from US$7 billion in 2013 to just under US$2.9 billion in 2014. Nickel exports, which declined by 97 percent, were particularly hard hit. The export bans were introduced at a time when global prices were falling and there was widespread oversupply of the minerals concerned, which exacerbated the negative impacts.
Indonesia quickly modified its rules. For example, bauxite producers were allowed to resume exports while they were in the process of building aluminum refineries, but they would have to pay export taxes. In January 2017, the government announced that it would end the prohibition on the export of nickel ore and bauxite and extend a temporary deal to allow the export of copper concentrate.
A similar scenario played out in Zimbabwe, which banned the export of chrome ore in 2011, only to lift it again in 2015 after admitting the ban had failed to stimulate the refining of chrome. In 2013, the government proposed a tax on raw platinum exports to compel mining companies to invest in smelting and refining capacity in Zimbabwe. The tax was supposed to come into effect in January 2015 but was pushed to 2018 to allow the miners time to set up the facilities. MacDonald Dzirutwe explained:
 Columbia Center for Sustainable Investment (CCSI), Linkages to the Resource Sector. The Role of Companies, Governments and International Development Cooperation (Bonn: Deutsche Gesellschaft fur Internationale Zussamenarbeit, 2016), 39.
 Olle Östenson and Anton Löf, “Downstream Activities: The Possibilities and the Realities,” WIDER Working Paper 2017/113, World Institute for Development Economic Research (UNU-WIDER), Helsinki, 2017, 17-18.
 Nathan and Associates, Economic Effects of Indonesia’s Mineral-Processing Requirements for Export, U.S. Agency for International Development (Nathan and Associates, 2013).
 MacDonald Dzirutwe, “Zimbabwe Hopes to Transform Mining Sector with $4.2 Billion Platinum Deal,” Reuters, March 22, 2018.