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Indonesian mining market set to grow at a CAGR of 8.27%

Press Release   •   Jul 31, 2012 16:13 BST

Production within the Indonesian mining market, which primarily consists of coal, tin, copper, gold, and ammonia mining, recorded a compound annual growth rate (CAGR) of 12.27% between 2007 and 2011, and in 2010, the size of Indonesia's mining industry was valued at US $32 billion.

Between 2012 and 2016 this amount is expected to increase further, with the industry set to grow at a CAGR of 8.27%.

The Indonesian mining market has seen production levels increase due to the introduction of the Mining Law in 2009, which encouraged investment in the Indonesian mining industry, while industry growth has also been driven by continued demand for key products and robust commodity prices.

Coal accounts for the vast majority of production within the Indonesian mining market. Indonesia accounted for 2.8% of global hard coal production in 2010, and in terms of lignite production, Indonesia was the second-largest producer in the world, behind only Germany.

Indonesia is also the second- largest producer of tin in the world. The country accounted for 20.2% of global tin production in 2010.

The Indonesian government plans to introduce a tax on all 65 different forms of minerals currently mined in the country, a move that is expected to reduce the industry's total exports and deter future foreign investment.

For more information on the Indonesian mining market, see the latest research: Indonesian Mining Market Report

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