Export of raw minerals is opened, these are the companies that will benefit

Reporter: Intan Nirmala Sari | Editor: Handoyo.

KONTAN.CO.ID – JAKARTA. The opening of the tap for raw mineral exports also provides positive sentiment for the prospects for mineral mining issuers in the future. However, even though it is profitable, the impact is not felt to be significant, except for issuers related to the copper commodity.

For information, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif has reopened the tap for raw mineral exports for copper concentrate, iron concentrate, lead concentrate, zinc concentrate and zinc concentrate and bauxite. As for nickel ore that has been opened for export, nickel ore that has not met the minimum limit for refining may not be exported.

Main Services Analyst at Capital Securities, Chris Apriliony, assesses that the impact of the increase in raw mineral exports is not too significant. This is because the volume of raw minerals that are opened for export is not too large, except for copper.

“Copper itself will certainly have a significant impact on gold mining companies. Given that the copper content in the gold mine is quite large,” said Chris to Kontan, Monday (22/3).

Also Read: The Minister of Energy and Mineral Resources has reopened the tap for the export of seven raw minerals. How is the fate of the smelter?

Chris also revealed that the presence of the raw mineral export regulation helps raw mineral companies to sell mineral concentrates which have levels below the minimum limit of refining. So, the hope is that mineral issuers in the future can get additional income from concentrate exports.

On the other hand, he also views that the prospects for issuers in the commodity sector are still quite good going forward. Moreover, the upward trend in 10-year US bond interest rates, which pushed down global commodity prices, tended to be stuck at the 1.75 level so that commodity prices tended to remain stable in the current area.

Meanwhile, Chris assessed that the issuers believed to be positively affected by the raw mineral export policy in the future were MDKA, ANTM and PSAB. “You can buy MDKA with a target price of 2,600 and ANTM with a target price of 2,400. For PSAB, you can wait and see, “he said.