Wednesday, May 29, 2024

Govt initiates extension of mineral export relaxation to boost domestic processing

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The Indonesian government has formulated regulations to extend the relaxation of rules regarding the export of mineral raw materials, aimed at offering mining companies the opportunity to finalize the construction of processing and refining facilities, commonly known as smelters.

Arifin Tasrif, the Minister of Energy and Mineral Resources (ESDM), disclosed that the regulatory process is underway, with adherence to the terms and conditions previously established.

The relaxation of raw mineral export regulations is mandated by Law No. 3/2020 on Mineral and Coal Mining, which also mandates the construction of smelters by mining companies.

Earlier, the Ministry of Energy and Mineral Resources had issued relaxation regulations for mineral exports through Minister Regulation No. 7/2023.

This allows five companies, including PT Amman Mineral and PT Freeport Indonesia (PTFI), to export copper concentrate and conduct iron ore refining, lead, and zinc refining until May 2024.

The government’s relaxation of regulations comes with the condition that mining companies promptly complete the construction of smelters. Arifin Tasrif stated that the mechanical work phase is expected to be completed by the end of May, with production testing scheduled until the year’s end, with smelter construction progress already surpassing 90 percent.

In addition to extending the export relaxation, the government is awaiting the completion of Government Regulation (PP) No. 96/2021, which is expected to regulate on export duties.

Previously, President Joko Jokowi” Widodo approved the extension of export permits for copper concentrate from PTFI and PT Amman Mineral Nusa Tenggara, with a focus on accelerating the downstreaming process of domestic mining mineral commodities.

Jokowi praised the efforts of PTFI and Amman Mineral in fostering a climate conducive to downstreaming, emphasizing the importance of domestic processing for the nation’s economic development.

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