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Jakarta Post

Latest draft regulation to allow partly processed mineral exports

  • Rendi A. Witular
    Rendi A. Witular

    The Jakarta Post

Jakarta   /   Fri, January 6, 2017   /  03:45 pm
Latest draft regulation to allow partly processed mineral exports A copy of the draft revision to Government Regulation No. 23/2010 on the management of mineral and coal businesses obtained by The Jakarta Post late on Thursday. (The Jakarta Post/Rendi A. Witular)

As the deadline nears for the total ban on any raw and partly processed mineral product exports after Jan. 11, a draft government regulation dated Jan. 4 will continue the current easing of exports for partly processed mineral products.

"Holders of IUPK (former contracts of work), as stated in point 1a, which are carrying out mining activities of metal mineral and whose products have been partly processed (pengolahan) can export the products within certain limits," said article 112C point 3a of the draft, a copy of which was obtained by The Jakarta Post late on Thursday. 

A similar stipulation is also applied on companies with a mining license (IUP).

(Read also: Minister Luhut opposes ease in raw mineral exports)

The extension to the export relief is provided despite an article requiring holders of IUP and IUPK to have their products entirely processed in smelting facilities before export.

According to the draft, a more detailed list of procedures for exports will be issued through a ministerial decree, including the list of commodities prohibited for export.

Maintaining the current policy will only benefit gold and copper miner PT Freeport Indonesia, a subsidiary of United States giant Freeport McMoRan, and copper producer PT Newmont Nusa Tenggara, which was recently taken over by local energy firm PT Medco Energi Internasional from US-based Newmont Mining Corp.

(Read also: New regulation on raw mineral exports inches away from becoming official: Minister)

Despite the ban as required by the 2009 Mining Law, the companies have been allowed to export copper concentrates as they have pledged to construct smelting plants and agreed to pay export taxes with rates linked to the progress of construction, which has been stalled.

However, under the draft, the companies are required to convert their contracts of work (signed prior the 2009 Mining Law) into IUPK before they can receive similar facilities.

 

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