Indonesia releases latest detailed rules and regulations on raw ore export
2017-03-16 14:03:27 [Print]
On March 2nd, Indonesia lifted the ban on the export of raw ore and released detailed rules and regulations on raw ore export
a) Mines which have conducted mining activities, just need to make a research report to make applications if they are willing to establish plants.
b) Mines which have not only conducted mining activities, but also established cooperation relationship with enterprises which have founded plants, just need a long long-term supply agreement or contract to make applications.
Mines which have their own plants (just need to make research report), or have established plants jointly with several other mines, shall offer articles of incorporation to prove the allocation of their shares to apply for recommendation letter.
Holders of the license on mining and production or of special license on mining and production as well as holders of license on mining and production who are specialized in mineral processing and (or) extracting and others, have to use nickel ore which accounts for at least 30% of the total input capacity of domestic processing and extracting facilities with nickel content less than 1.7%.
Nickel ore and bauxite
Example 1:
Shares of XYZ Company are jointly held by 3 companies (A holds 40% shares, B holds 20% shares and C holds 40% shares) which hold the license on mining and production, are specialized in mineral processing and (or) extracting and have constructed or are constructing extracting facilities with an annual input capacity of 1 million tons. XYZ Company owns raw material of 35 million tons (known reserves) and its extracting facilities can be operated for 20 years.
Thus, the export volume based on the Recommendation Letter for Export Agreement can be calculated as follows:
?Based on input capacity, the annual largest export volume=input capacity of extracting facilities=1 million tons per year
Example 2:
FRS Company which is a hoder for the license on mining and production and has established cooperation relationship with XYZ, is a holder of the license on mining and production and is specialized in mineral processing and (or) extracting. RFS holds 50% shares and has 35 million tons of raw materials (known reserves) . The extracting facilities of RFS (or XYZ) Company can be operated for 20 years (according to economic performance).
Then the export volume based on the Recommendation Letter for Export Agreement will be calculated as follows:
?Based on input capacity, the annual largest export volume=1 million tons per year
? Recommended export volume:
The recommended export volume for RFS Company will be 1 million tons per year.
The recommended export volume will be 30% of the input capacity if shares held by RFS are less than 30%.
. According to the regulations, those applicants who hold IUP, IUPK and IUP OPK (IUP OPK means special IUP, the owner of which holds no mines and is specialized in purchasing & selling, processing, transportation and extraction) are qualified applicants. a) Mines which have conducted mining activities, just need to make a research report to make applications if they are willing to establish plants.
b) Mines which have not only conducted mining activities, but also established cooperation relationship with enterprises which have founded plants, just need a long long-term supply agreement or contract to make applications.
Mines which have their own plants (just need to make research report), or have established plants jointly with several other mines, shall offer articles of incorporation to prove the allocation of their shares to apply for recommendation letter.
Holders of the license on mining and production or of special license on mining and production as well as holders of license on mining and production who are specialized in mineral processing and (or) extracting and others, have to use nickel ore which accounts for at least 30% of the total input capacity of domestic processing and extracting facilities with nickel content less than 1.7%.
Nickel ore and bauxite
Example 1:
Shares of XYZ Company are jointly held by 3 companies (A holds 40% shares, B holds 20% shares and C holds 40% shares) which hold the license on mining and production, are specialized in mineral processing and (or) extracting and have constructed or are constructing extracting facilities with an annual input capacity of 1 million tons. XYZ Company owns raw material of 35 million tons (known reserves) and its extracting facilities can be operated for 20 years.
Thus, the export volume based on the Recommendation Letter for Export Agreement can be calculated as follows:
?Based on input capacity, the annual largest export volume=input capacity of extracting facilities=1 million tons per year
Example 2:
FRS Company which is a hoder for the license on mining and production and has established cooperation relationship with XYZ, is a holder of the license on mining and production and is specialized in mineral processing and (or) extracting. RFS holds 50% shares and has 35 million tons of raw materials (known reserves) . The extracting facilities of RFS (or XYZ) Company can be operated for 20 years (according to economic performance).
Then the export volume based on the Recommendation Letter for Export Agreement will be calculated as follows:
?Based on input capacity, the annual largest export volume=1 million tons per year
? Recommended export volume:
The recommended export volume for RFS Company will be 1 million tons per year.
The recommended export volume will be 30% of the input capacity if shares held by RFS are less than 30%.