to Indonesian
that to implement the provisions of Article 96 and Article 111 of Government Regulation No. 23/2010 concerning the Implementation of Business Activities of Mineral and Coal Mining, it is necessary to stipulate Regulation of the Minister of Energy and Mineral Resources concerning Increasing of Mineral Value Added through Mineral Processing and Purification Activities;
1. Law No. 4/2009 concerning Mineral and Coal Mining (Statute Book of the Republic of Indonesia No. 4/2009, Supplement to Statute Book of the Republic of Indonesia No. 4959);
2. Government Regulation No. 23/2010 concerning the Implementation of Business Activities in Mineral and Coal Mining (Statute Book of the Republic of Indonesia No. 29/2010, Supplement to Statute Book of the Republic of Indonesia No. 5111);
3. Government Regulation No. 55/2010 concerning Fostering and Supervision of Business Management of Mineral and Coal Mining (Statute Book of the Republic of Indonesia No. 55/2010, Supplement to Statute Book of the Republic of Indonesia No. 5142);
4. Presidential Decree No. 59/P/2011 dated October 18, 2011;
5. Regulation of the Minister of Energy and Mineral Resources No. 34/2009 concerning Prioritization Supply for Domestic Mineral and Coal Needs (State Gazette of the Republic of Indonesia No. 546/2009);
6. Regulation of the Minister of Energy and Mineral Resources No. 18/2010 concerning Organization and Administration of the Ministry of Energy and Mineral Resources (State Gazette of the Republic of Indonesia No. 552/2010);
REGULATION OF THE MINISTER OF ENERGY AND MINERAL RESOUCES CONCERNING INCREASING OF MINERAL VALUE ADDED THROUGH MINERAL PROCESSING AND PURIFICATION ACTIVITIES
In this Ministerial Regulation:
1. Minerals are inorganic compounds that are formed in nature, which have specific physical and chemical characteristic and composition of the crystals or a combination of them that form the rock, either loose or solid form.
2. Metallic minerals are minerals that contain the main elements of metal, have a metallic luster, and generally act as conductor of heat and electricity.
3. Nonmetallic minerals are minerals that are not the main element consists of a metal, such as bentonite, calcite (limestone), silica (quartz sand), etc
4. Rock is a solid mass consisting of one or more types of minerals that form the earth's crust, both in the massive or loose conditions.
5. Concentrate is the concentration product that is rich in valuable minerals as a result of the separation of mineral ore processing.
6. Ore is a collection of minerals that contain 1 (one) or more metals that can be processed profitably.
7. Byproduct is the product of mining other than the main product that is a side product of mining processing and purifying that has economic value.
8. Slag is the waste material from the process of smelting or purifying of metals that float on the surface of the molten metal that is formed from a mixture added, impurities ore/metal, fuel ash, and furnace coating materials.
9. Exploration IUP is a business permit granted to conduct a stage of public inquiry, exploration and feasibility study activities.
10. Production Operation IUP is business permit granted after operating completion of an Exploration IUP to conduct production operations phase.
11. People Mining Permit, hereinafter called as IPR, is permit to carry out mining business in the region of people area with limited area and investment.
12. Exploration IUPK is business permit granted to conduct a stage of public inquiry, exploration and feasibility study activities in the area of special mining business permit.
13. Operation Production IUPK is business permit granted after completion of Exploration to conduct operations activities phases in the area of special mining business permit.
14. Processing and purifying are mining business activities to improve the quality of mineral and to use and obtain byproduct mineral.
15. Value added is the added of minerals value as a result of a process performed on the mineral.
16. Increase in value added is the increase in the value of minerals to produce economic, social and cultural benefits.
17. Research and development institutions are institutions that conduct research and development in the field of mineral.
18. Minister is the minister who held government affairs in the field of mineral mining.
19. Director General is Director General who has duties and responsibilities in the field of mineral mining.
(1) Class of mineral commodities that value added can be increased consists of:
(2) Increasing the value added of mining commodities as intended in paragraph (1) implemented through the following activities:
(1) Increasing the value added of mining commodities as intended in Article 2 may in the form of:
(2) Processing and/or purification for each specific type of mineral mining commodity as intended in paragraph (1) are based on consideration:
(3) Consideration to perform processing and/or purification for each specific type of mineral commodity as intended in paragraph (2) is as a basis to determine minimum limit of processing and/or purification of certain mineral mining commodity.
(4) Types of certain metallic mineral mining commodities as intended in paragraph (1) a, such as ore of:
(5) type of nonmetallic mineral mining commodities as intended in paragraph (1) b, such as:
(6) types of certain rock mining commodities as intended in paragraph (1) c, such as:
(1) Each type of certain metal mineral mining commodity as intended in Article 3 paragraph (4) shall be processed and/or purified according to the minimum limits of processing and/or purification, as listed in Attachment I that is an integral part of this Ministerial Regulation.
(2) Each type of nonmetallic mineral commodity as intended in Article 3 paragraph (5) shall be processed in accordance to the minimum limit of processing as list in Attachment II that is an integral part of this Ministerial Regulation.
(3) Each particular type of rock mining commodities as intended in Article 3, paragraph (6) shall be processed in accordance with minimum limits of processing as list in Attachment III that is an integral part of this Ministerial Regulation.
(1) byproduct or waste of the processing and/or purifying of copper metallic mineral mining commodity in the form of anode mud telurid copper shall be conducted domestic processing and/or purification in accordance to a minimum limit of processing and/or purifying of metallic mineral mining commodities as listed in Attachment I that is an integral part of this Ministerial Regulation.
(2) byproduct or waste of the processing and/or purifying of tin metallic mineral mining commodity in the form of zircon, ilmenite, rutile, monazite, xenotim and slag shall be conducted domestic processing and/or purification in accordance to a minimum limit of processing and/or purification of metallic mineral mining commodities as listed in Attachment I that is an integral part of this Ministerial Regulation.
(3) byproduct or waste of the processing and/or purifying of lead and zinc metallic mineral mining commodities in the form of gold and silver shall be conducted domestic processing and/or purification in accordance to a minimum limit of processing and/or purification of metallic mineral mining commodities as listed in Attachment I that is an integral part of this Ministerial Regulation.
(4) byproduct or waste of the processing and/or purifying of iron sand metallic mineral mining commodity in the form of slag shall be conducted domestic processing and/or purification in accordance to a minimum limit of processing and/or purification of metallic mineral mining commodities as listed in Attachment I that is an integral part of this Ministerial Regulation.
(5) byproduct or waste of the processing and/or purifying of commodities that still contains economically valuable metallic mineral shall be conducted domestic processing and/or purification in accordance to a minimum limit of processing and/or purification of metallic mineral mining commodities as listed in Attachment I that is an integral part of this Ministerial Regulation.
Metallic mineral commodities including byproducts/waste products/side mineral, nonmetallic minerals, and certain rocks that are sold to foreign countries must meet a minimum limit of processing and/or purification of certain mineral commodities as intended in Article 4 and Article 5.
(1) Holders of Production Operation IUP of metallic mineral and IUPK Production Operations of metallic mineral shall perform domestic processing and/or purification of mining for a certain metal mineral commodities as intended in Article 3.
(2) Holders of Production Operation IUP of nonmetallic minerals and rocks shall perform domestic processing for certain nonmetallic mineral and rocks commodities certain rocks as intended in Article 3.
(3) Processing and/or purification of the mining products that are produced by the holder of Production Operation IUP and Production Operations IUPK as intended in paragraphs (1) and (2) can be done directly or through cooperation with other Production Operation IUP, other Operations Production IUPK and/or holder of Production Operation IUP specifically for processing and/or purification.
(1) In the case of holder of Production Operation IUP and Production Operations IUPK as intended in Article 7 are not economical to do their own mineral processing and/or purifying, can cooperate processing and/or purification with the other parties whose have:
(2) The cooperation of processing and/or purification as intended in paragraph (1) can be:
(3) Plan of cooperation for processing and/or purification as intended in paragraph (2) can only be implemented after obtaining approval from the Director General on behalf of the Minister.
(4) Production Operation IUP specifically for processing and/or purification as intended in paragraph (1) c is given by the Director General on behalf of the minister, governor, or regent/mayor in accordance with the provisions of the rules.
(1) Holders of Production Operation IUP and Production Operation IUPK as intended in Article 7 can get partner with another business entity to establish facilities of processing and/or purification.
(2) The Partnership as intended in paragraph (1) may include stock ownership.
(3) the Partnership as intended in paragraph (1) can only be implemented after obtaining approval from the Director General on behalf of the Minister.
(1) In the case of Exploration IUP and Exploration IUPK based on the results of a feasibility study are not economical to do the processing and/or purification or can not make cooperate or partnership as intended in Article 8 and Article 9, shall consult with the Director General to implement this Ministerial Regulation.
(2) Based on the results of consultation as intended in paragraph (1), the Director General, can appoint to other Production Operation IUP, Production Operations IUPK, and/or Production Operation IUP specifically for processing and/or purification to perform processing and/or purification of the mining commodities along meets the specifications in accordance with the capacity of processing and/or purification facilities.
Director General may facilitate the Operation Production IUP, Production Operations IUPK, and/or Production Operation IUP specifically for processing and/or purification to accommodate mining commodities of Production Operation IUP, Production Operations IUPK, and IPR that are not economical to do the processing and/or purification of their own while conform to the specifications in accordance with the capacity of processing and/or purification facilities.
(1) Holders of Production Operation IUP and Production Operations IUPK, and Production Operation IUP specifically for processing and/or purification of doing the processing and/or purifying of ores, concentrates, or intermediate products according to a minimum limit of processing and/or purification of the holder of:
(2) In the case of Holder of Production Operation IUP for processing and/or purification perform processing and/or purifying of ores, concentrates, or intermediate products according to a minimum limit of processing and/or purification based on cooperation as intended in Article 8 with the other holder of Production Operation IUP specifically for processing and/or purification that products do not meet the minimum limits of processing and/or purification in accordance with the provisions of rules, fees on side mineral production used is paid by the buyer.
(1) Holders of Production Operation IUP of copper, Production Operations IUPK of copper and Production Operation IUP specifically for processing and/or purifying of copper and Production Operation IUP specifically for the transport and sale that sell copper mining commodities, including by-products or waste of processing and/or purifying in the form of anode copper and telurid mud to foreign country must meet a minimum limit of processing and/or purifying of metallic mineral mining commodities as listed in Attachment I that is an integral part of this Ministerial Regulation.
(2) Holders of Production Operation IUP of lead and zinc, Production Operations IUPK of lead and zinc, and Production Operation IUP specifically for processing and/or purifying of lead and zinc and Production Operation IUP specifically for the transport and sell that sell lead and zinc mining commodities, including byproducts or waste of the processing and/or purification in the form of gold and silver to foreign country must meet a minimum limit of processing and/or purifying of metallic mineral mining commodities as listed in Attachment I that is an integral part of this Ministerial Regulation.
(3) Holders of Production Operation IUP of iron sand, Production Operations IUPK of iron sand and Production Operation IUP specifically for processing and/or purification of iron sand and Production Operation IUP specifically for the transport and sale that sell iron sand mining commodities, including by-products or waste of the processing and/or purification in the form of the slag to foreign country must meet a minimum limit of processing and/or purifying of metallic mineral mining commodities as listed in Attachment I that is an integral part of this Ministerial Regulation.
(4) Holders of Production Operation IUP of copper, Production Operations IUPK of copper and Production Operation IUP specifically for processing and/or purifying of copper that has byproducts or waste of the processing and/or purifying of copper in the form of anode mud and copper telurid that do not meet the minimum limit of processing and/or purification as intended in paragraph (1) shall be secured in accordance with the provisions of the rules.
(5) Holders of Production Operation IUP of iron sand, Production Operations IUPK of iron sand and Production Operation IUP specifically for processing and/or purification of iron sand that has byproducts or waste of the processing and/or purification of slag that do not meet the minimum limits of processing and/or purification as intended in paragraph (3) shall be secured in accordance with the provisions of the rules.
(1) In case of Holders of Production Operation IUP of tin, Operations Production IUPK and Operation Production IUP specifically for processing and/or purifying of tin that performs the processing and/or purifying of tin required to separate and process the side mineral in the form of mineral zircon, ilmenite, rutile, monazite, xenotim, and slag with minimum product limits of the processing and/or purifying of metallic minerals listed in Attachment I that is an integral part of this Ministerial Regulation.
(2) Holders of Production Operation IUP of tin, Production Operations IUPK of tin and Production Operation IUP specifically for processing and/or purifying of tin and Production Operation IUP specifically for the transport and sale that sell of tin mining commodities, including by-products or waste of processing and/or purification as well as side mineral in the form of zircon, ilmenite, rutile, monazite, xenotim, and slag to foreign country must meet a minimum limit of processing and/or purification of metallic mineral mining commodities as intended in paragraph (1).
(3) In case of holders of Production Operation IUP of tin, Production Operations IUPK of tin and Production Operation IUP specifically for processing and/or purifying of tin that have mineral by products in the form of zircon, ilmenite, rutile, monazite, xenotim, and slag that have not met a minimum limit of processing and/or purification as intended in paragraph (1) shall be secured in accordance with the provisions of rules.
(1) Holder of Production Operation IUP, Production Operations IUPK, or Production Operation IUP specifically for processing and/or purification can perform the cooperation, by giving priority to national interests, to conduct research and development in the processing and/or purification of mining commodities with:
(2) The research and development in the processing and/or purification as intended in paragraph (1) can be used as the basis for the Minister to conduct a review of a minimum limit of processing and/or purification of certain minerals as intended in Article 4 and Article 5.
(1) Holders of Production Operation IUP or Production Operation IUPK violating the provisions as intended in Article 4 paragraph (1), paragraph (2) or paragraph (3), Article 5, paragraph (1), paragraph (2), paragraph (3), paragraph (4) or paragraph (5), Article 6, Article 7 paragraph (1) or paragraph (2), Article 12 paragraph (1) or paragraph (2), Article 13 paragraph (1), paragraph (2), paragraph (3), paragraph (4), or paragraph (5), or Article 14 paragraph (1), paragraph (2), or paragraph (3) subject to administrative sanction.
(2) Holders of Production Operation IUP for processing and/or purification violating the provisions as intended in Article 4 paragraph (1), paragraph (2) or paragraph (3), Article 5, paragraph (1), paragraph (2), paragraph (3), paragraph (4) or paragraph (5), Article 6, Article 12 paragraph (1) or paragraph (2), Article 13 paragraph (1), paragraph (2), paragraph (3), paragraph (4) or paragraph (5), or Article 14 paragraph (1), paragraph (2), or paragraph (3) subject to administrative sanction.
(3) Holders of Production Operation IUP specifically for the transport and sale violating the provisions as intended in Article 6, Article 13 paragraph (1), paragraph (2), paragraph (3), or Article 14 paragraph (2) subject to administrative sanctions .
(4) The administrative sanctions as intended in paragraph (1), paragraph (2), and paragraph (3) are as follows:
(5) The administrative sanctions as intended in paragraph (4) are given by the Minister, governor or regent/mayor in accordance with their authority.
Administrative sanctions in the form of a written warning as intended in Article 16 paragraph (4) a is given at most 2 (two) times, with a warning period of at least 1 (one) month.
(1) In case of Production Operation IUP, Production Operations IUPK, Production Operation IUP specifically for processing and/or purification, or Production Operation IUP specifically for the transport and sale, which received a written warning penalty after the expiry of a written warning as intended in Article 17 have not been doing its obligations, subject to administrative sanction of suspension of activities as intended in Article 16 paragraph (4) b.
(2) The administrative sanction of suspension of activities as intended in paragraph (1) are in a maximum period of 2 (two) months.
Administrative sanction in the form revocation of Production Operation IUP, Production Operations IUPK, or Production Operation IUP specifically for processing and/or purification, or Production Operation IUP specifically for the transport and sale, as intended in Article 16 paragraph (4) c subject to the Operation Production IUP, Production Operations IUPK, Production Operation IUP specifically for processing and/or purification, or Production Operation IUP specifically for the transport and sale, which did not carry out obligations until the expiry date of suspension activities sanction as intended in Article 18 paragraph (2).
(1) The holder of a temporary permit to perform the transportation and sale of which will sell the minerals mined at the stage of exploration or feasibility study shall be sold domestically.
(2) Production Operation IUP for sale that is not engaged in the mining business that will sell the minerals mined shall sell them domestically.
At the time this Ministerial Regulation comes into force, Holders of Production Operation IUP and IPR, published before the enactment of this Ministerial Regulation are prohibited to sell the raw material or ore of minerals to the foreign country within a period of at least 3 (three) months from the enactment of this Ministerial Regulation.
(1) Holders of Exploration IUP and the Contract of Work of exploration phase and/or feasibility study is being compiled and/or who has prepared a feasibility study before the enactment of this Ministerial Regulation shall make adjustments to the plan a minimum of processing and/or purifying of mineral commodities as intended in Attachment I, Attachment II and Attachment III which are an integral parts of this regulation within a period of maximum 3 (three) years since the enactment of this Ministerial Regulation.
(2) Holders of Exploration IUP and the Contract of Work of exploration phase and/or feasibility study required to submit progress reports adjustments to plan a minimum limit of processing and/or purifying of mineral commodities specified in the feasibility study as intended in paragraph (1) periodically to the Director General, the governor, or regent/mayor in accordance with the authority to do an evaluation.
(3) In case the holders of Exploration IUP and the Contract of Work of exploration phase and/or feasibility study as intended in paragraph (1) can not make adjustments to a minimum limit of processing and/or purifying of mineral commodities in accordance with the provisions of this Ministerial Regulation or is unable to perform cooperation plan of processing and/or purification with the other party in accordance with the provisions of rules shall consult with the Director General for carrying out the processing and/or purification.
(1) Holders of Production Operation IUP and Contract Work that has been doing stage construction activities prior to the enactment of this Ministerial Regulation shall make adjustments to the plan a minimum limit of processing and/or purification of a certain mineral commodities as intended in Attachment I, Attachment II and Attachment III that are an integral parts of this Ministerial Regulation within a period of 4 (four) years since the enactment of this Ministerial Regulation.
(2) Holders of Production Operation IUP and construction work contract as intended in paragraph (1) shall submit progress reports adjustments to plan a minimum limit of processing and/or purification of a particular mineral commodities on a regularly to the Director General, the governor or regent/mayor in accordance with authority for evaluation.
(3) In the case of holders of IUP Production Operation and construction work contract as intended in paragraph (1) can not make adjustments to a minimum of processing and/or purifying of mineral commodities in accordance with the provisions of this Ministerial Regulation or can not perform the cooperation plan with other party in accordance with the provisions of the rules are required to consult with the Director General for carrying out the processing and/or purification.
(1) Holders of Production Operation IUP that have been in production before the enactment of this Ministerial Regulation for various types of commodities of metallic mineral, nonmetallic minerals, and certain rocks must make adjustments to the plan a minimum limit of processing and/or purification as intended in Attachment I, Attachment II, and Attachment III which are an integral parts of this Ministerial Regulation within a period of 5 (five) years since the enactment of Law No. 4/2009 concerning Mineral and Coal Mining.
(2) Holders of Production Operation IUP that have been in production as intended in paragraph (1) shall submit progress reports of adjustments to plan a minimum limit of processing and/or purification of certain minerals regularly to the Director General, the governor or regent/mayor in accordance with the authority to do the evaluation .
(3) In case of Holders of Production Operation IUP as intended in paragraph (1) can not make adjustments to a minimum limit of processing and/or purification in accordance with the provisions of this Ministerial Regulation or may cooperate with other parties in accordance with the provisions of the rules required consultation with the Director General for carrying out the processing and/or purification.
(1) The holders of a work contract have been produced before the enactment of this Ministerial Regulation shall make adjustments to the plan a minimum of processing and/or purification as listed in Attachment I that is an integral part of this Ministerial Regulation within a period of 5 (five) years from the enactment of Law No. 4/2009 concerning Mineral and Coal Mining.
(2) The holders of the Contract Work that have been submitting reports for the adjustment for a minimum limit plan of processing and/or purifying of metallic minerals as intended in paragraph (1) periodically to the Director General with a copy of the governors and regents/mayor in accordance with the authority to do an evaluation.
(3) In case that Contract holders can not make adjustments to a minimum limit of processing and/or purifying of metallic minerals as intended in paragraph (1) or can not cooperate with other parties in accordance with the provisions of the rules are required to consult with the Director General for carrying out the processing and/or purification.
This Ministerial Regulation shall come into force on the date of promulgation.
For public cognizance, this Ministerial Regulation shall be promulgated by placing it in the State Gazette of the Republic of Indonesia.
Stipulated in Jakarta
on February 6, 2012
MINISTER OF ENERGY AND MINERAL RESOURCES,
signed,
JERO WACIK