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Govt issues eagerly awaited rules on mineral export ban relaxation
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Energy and Mineral Resources Minister Ignasius Jonan (left), accompanied by his deputy Arcandra Tahar (right), prepares for a hearing with House of Representatives Commission VII in Jakarta on Nov. 22. (Antara/Agung Rajasa)
T
he government issued a fourth revision of Government Regulation No. 23/2010 on the management of mineral and coal businesses on Wednesday, allowing miners to continue exporting copper concentrates, certain amounts of low-grade nickel ore and washed bauxite.
The newest revision, Government Regulation No. 1/2017, provides an export exception to those semiprocessed minerals as long as companies have converted their permit status from a contract of work (CoW) to a special mining license (IUPK).
“There is no obligation [to convert] as long as they do not ask for a recommendation to export mineral ores or concentrates,” Energy and Mineral Resources Minister Ignasius Jonan said during a press conference on the revised regulation on Thursday.
Furthermore, mining companies holding IUPK must officially sign a commitment to build a smelter within five years. Foreign-owned mining companies must also commit to divesting 51 percent of shares to the government a decade after production in order to continue exports.
“If they want the export recommendation for any of the minerals, then first they must convert to an IUPK with all the consequences, they must build a smelter within five years and they must also divest up to 51 percent,” Jonan explained. (ags)
