Jakarta, Nov. 13 - the Indonesian Association of nickel miners said Wednesday that antitrust authorities have launched an investigation into the impact of domestic smelters on pricing.

Meidy Katrin lengkey, secretary-general of Indonesia nickel miners Association (apni), told reporters that the association had filed a complaint about this several months ago.

She said the two major smelters control 60% of Indonesia's domestic nickel ore market and control domestic prices.

"Because their demand is dominant, they control the price and other smelting enterprises, whether you like it or not, you have to obey them," lengkey told reporters

An official from the kppu, Indonesia's antitrust agency, did not immediately comment.

Apni often complains that domestic smelting enterprises keep the price of nickel ore low, making the overseas export market more attractive than the domestic market.

Lengkey also said that domestic smelters only purchase high-quality ores.

Indonesia, the world's largest exporter of nickel ore, will suspend exports from January next year, leaving more ore for domestic processing.

Lengkey said at a hearing of the parliamentary committee on Wednesday that the average price of nickel ore with 1.7% nickel content in Indonesia is $14 per ton, far lower than the benchmark of $30 per ton set by the government this year.

Last month an official from Indonesia's Ministry of Mines said the ministry would revise the rules to ensure that smelters comply with government pricing benchmarks.

Indonesia's nickel miners are ready to sell ore to domestic smelters, but only if they offer prices as competitive as those offered by overseas buyers, lengkey said Tuesday. (From CCMN)