New Provision for Parties to Working Mining Contracts

The Ministry of Energy and Mineral Resources (“Ministry”) has issued Regulation No. 28 of 2017 (“Amendment”), which amends Ministry Regulation No. 5 of 2017 on the Enhancement of the Added Value of Minerals Through Domestic Mineral Processing and Refinery Activities (“Regulation 5/2017”). [1] The Amendment relaxes the standing provision covering exports of processed minerals by mining companies undertaking their business activities under Working Mining Contracts and which have not already applied for mining licenses. [2] Conversion of Mining-Business FormAs a general rule, parties to Working Mining Contracts (Kontrak Karya– “KK”) may sell and export processed minerals in certain quantities prior to the 11 January 2022 deadline, provided that they first satisfy the following requirements: [3]