Liquefaction risk remains despite export ban of mineral ore from Indonesia

The Japan P&I Club has issued  news alert to its members informing that a bulk carrier laden with nickel ore cargo from Indonesia to China, sank off the Philippines. As evidenced by this latest tragedy, the great reduction in the quantity of nickel ore shipped from Indonesia by the regulations has not lessened the risk of liquefaction of the relevant cargo, the Club notes and urges operators to take more precautious measures.

Since it is too risky to easily accept the cargo certificate for water contents issued by an exporter’s individual standard, it is advisable for prudent shipowners to obtain independent samples for analysis and results prior to the vessel’s arrival in order to ascertain that the cargo is fit for loading by judging from Flow Moisture Point and Transportable Moisture Limit governed by an international code, the IMSBC.

According to Club’s correspondents, SPICA Services, whilst the Indonesian Government implemented measures for an export ban of raw minerals including nickel ore from Indonesia by introducing the regulations on 12 January, 2014, it has been reported that the “ban” was not a complete trade embargo, and only exporters who could adhere to the requirements specified in the regulations have been allowed to continue to export dry bulk minerals. The most aggressive of these requirements was the one that the exporters must build a smelter in Indonesia.