ESDM Preparing Special Provisions on the Utilization of Rare Earth Elements

The Ministry of Energy and Mineral Resources (“ESDM”) is currently evaluating Regulation of the Minister of ESDM No. 25 of 2018 (“PermenESDM 25/2018”) on Mineral and Coal Mining Business Activities (“Minerba”) with a view to amending the regulation. The evaluation focuses on provisions governing the utilization of associated minerals derived from the processing and refining of mining commodities.

“There has indeed been such a proposal. The revisions will not only address export-related matters; a number of new provisions will also be consolidated and revised,” said a Hukumonline source at the Ministry of ESDM.

Challenges, including the absence of a minimum threshold for the primary mineral content, the lack of a list of commodities containing Rare Earth Elements (Logam Tanah Jarang - “LTJ”), the absence of a designated reference testing method for LTJ, and the lack of further provisions regarding the results of LTJ testing, have become the basis for the Ministry of ESDM’ evaluation of this Regulation. The forthcoming regulation will further implement inventory provisions for products by referring to the list of commodities, types of LTJ content, and geological characteristics.

In addition, the standard methodology for LTJ testing and threshold requirements are also among the key issues being discussed in the preparation of this new regulation.

To provide legal certainty regarding the utilization of LTJ contained in associated minerals, the drafting process for this Regulation of the Minister of ESDM involves several ministries and government institutions, including the Directorate General (“Ditjen”) of Mineral and Coal, the Directorate General of Customs and Excise of the Ministry of Finance, tekMira of the Ministry of ESDM, Mineral Surveyors, and the Ministry of Trade.