Indonesia – Nickel Ore Exports and Liquefaction

6 September 2019

Members will be sad to learn of the tragic likely loss of 25 crew members aboard the Indonesian Flagged 52,400 dwt bulk carrier “Nur Allya”, which was reported missing on 20 August in Indonesian waters loaded with Nickel Ore. For the report from Intercargo on the incident, please click here.

Members may be aware that, having banned the export of unrefined ores in January 2014 (click here for the News Alert reporting this), the Indonesian authorities announced a limited lifting of the export ban in 2017. The limited lifting was due to expire in 2022 but it has recently been announced that the ban will be re-implemented in full in January 2020 (click here for details). Whilst the causes of the potential loss of the Nur Allya are still being investigated by the Indonesian Authorities, the Club would like to take this opportunity to remind Members of the Circular of January 2011 which sets out that:

(a) a Member must comply with the IMSBC Code and/or local regulations when not in conflict with the Code; and

(b) Club cover is potentially prejudiced by failing to do so due to the Rules excluding cover for liabilities, costs and expenses arising from unsafe or unduly hazardous trades or voyages.

The Circular also sets out a list of recommended steps to be taken before and during the carriage of Nickel Ore (click here for the full Circular which includes the recommendations). It should be noted that, whilst the Circular indicates that Nickel Ore should be treated as a Group A cargo for the purposes of the IMSBC Code (as it had yet to be classified as such as at January 2011), Nickel Ore has since been classified as a Group A cargo in any event. Members are strongly urged to review and implement the recommendations for the carriage of Nickel Ore and any other ore classified as a Group A cargo, to help prevent any such tragic incidents in the future. Members are also reminded that the wet season in Indonesia is October-April, when the likelihood of experiencing wet cargo increases greatly (as per our News Alert of January 2018 – click here).