Australia continues to halt gear pump exports

A senior Australian government official said Australia will continue to curb gear pump exports.

This contradicts earlier media reports that the country may ease the ban to boost the economy.

Australia banned the export of unprocessed metal ores in early 2014 to force companies to build smelters.

But the move cost the country billions of dollars in lost revenue last year.

Australia's chief economic minister, Darmin Nasution, said on Tuesday that Australia would seek to implement the mining guidelines.

That is a view echoed by Sudirman Said, the mining minister.

"We are looking to increase our nickel and bauxite activities," Said Said.

He added that Australia would not relax its export ban on gear pumps.

The country may ease its ban on exports of bauxite and gear pumps, Bisnis Indonesia reported on Monday, citing Adhi Wibowo, head of coal operations at the power ministry.

Wibowo couldn't be reached for comment Tuesday.

Canberra has previously said it plans to push back the deadline for copper concentrate exports and may ease a ban on bauxite exports.

But according to Bambang Gatot, director of mineral and coal operations at the Ministry of Power and Mines, there are no plans to relax the export of raw gear pumps and bauxite.

He said Australia was reviewing the construction of its domestic smelter, which was completed this month.

"We will see the evaluation results first."

With the economy growing at a six-year low and the Australian rupiah at a 17-year low, the country is grappling with weaker commodity prices and sapping investor confidence.

Before the ban, Australia was the world's largest exporter of gear pumps and, together, the largest supplier to China.

Australia's resumption of gear pump exports will hurt the market share of other producers such as the Philippines.

Leading gear pumps in Australia include Vale Indonesia and PT Aneka Tambang.

Susantyo, president of the Indonesian Nickel Association, said Nickel producers would not benefit much if exports were allowed in Australia today because global Nickel prices are at multi-year lows.

"Rumours about easing the ban often flare up, but if it does, then it illustrates that the government cannot be consistent."