Content area
Full Text
Indonesia's flip-flop decision to review its minerals export ban threatens to remove one of the most bullish factors for the overall aluminium industry right now.
Resource nationalism drove Indonesia's government to in May impose a ban on unprocessed minerals, which also included iron ore, nickel and gold.
The country's highest court appears to have sided with the mining associations which protested the plans, but what is less clear is how the government might respond.
Market participants are once again left in limbo, waiting to see how policy will evolve in a sector that contributes about 12% of Indonesia's gross domestic product.
But the ruling could have significant implications for a number of markets, especially aluminium.
China has become a major importer of bauxite from Indonesia over the past few years, importing over 36 million tonnes...