UPDATE 1-Indonesia to issue new mining rules this week -minister – by Wilda Asmarini and Bernadette Christina Munthe (Reuters U.S. – January 10, 2017)


Jan 10 Indonesia will issue new rules for miners this week, the mining minister said late on Tuesday, which will cover contracts and permits, exports, taxes, divestment obligations and domestic processing requirements, among other issues.

Indonesia announced in 2014 a ban on ore shipments to push miners to build smelters to process ore locally, but gave some concessions to concentrate producers after protests from the industry. As part of this push, a ban on the export of mineral concentrates from Indonesia is due to kick in on Jan. 12.

Rules now being drafted will allow concentrate shipments to continue beyond that deadline in certain cases, Energy and Mineral Resources Minister Ignasius Jonan told reporters after a cabinet meeting.

The new rules were needed “to clarify agreements on downstream mineral processing and other related matters,” Jonan said, referring to directions from President Joko Widodo and rules on domestic processing set out in the 2009 Mining Law.

The rules would have to maximise returns on Indonesia’s natural resources, as mandated in the Constitution, while also considering increasing state revenues and employment opportunities, he said.

“The government hopes for the creation of new work areas,” he said. Foreign mine investors would need to divest 51 percent of their holdings “wherever possible,” he added.

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