The Government this week has announced a Cabinet approval to allow a limited shipment of stockpiled bauxite extracted from a pit on Rennell Island operated by PT Mega Bingtang Borneo Company.
The cabinet decision was reached late last week following advice from the Office of the Attorney General.
In its deliberation, Cabinet has considered issues surrounding the consignment and concluded that exporting the bauxite is in the best interest of stakeholders including both the landowners and the Government who would derive benefits from the export.
PT Mega Bingtang Borneo Company whose mining lease and prospecting license was cancelled by the Minister of Mines on May 7 has been stockpiling bauxite extracted from a pit in West Rennell since last year.
The government will impose a 20 percent Export Duty on the shipment, and the export permit shall only apply for the current stockpile.
The Ministry of Finance and Treasury has been advised to release the shipment.
Source: Press Release, Government Communications Unit