Barclays: Indonesian Quake Far From Most Base-Metals Mining, But Some Impact Expected

A powerful Indonesian earthquake appears to be far from the major base-metals mining centers in the region, although given the dispersed nature of mining operations in Indonesia, it is likely there has been some level of disruption, say analysts with Barclays Capital. Indonesia is a significant base-metals mining region that produces nickel, copper, tin and bauxite. “The earthquake was off the west coast of Northern Sumatra, which on a preliminary basis seems to be away from the major mining centers,” Barclays says. The major nickel areas are to the east and southeast and would seem to be far from the source of the quake. The Grasberg copper mine is inland and at high altitude is unlikely to be affected, while the Batu Hijau copper mine is located far south of the quake in West Nusa Tenggara, Barclays says. “Given that tin mines are more commonly found in coastal locations, tin production could have been the most affected, though many of PT Timah's mines are located in the southeast so may not be affected,” Barclays says. The 8.6 magnitude quake has triggered a tsunami warning.


Source:Kitco