New Draft Regulation of the President to Regulate By-Products and Tailings

The Mineral Industry Agency (“BIM”) is currently preparing a new Draft Regulation of the President (“Draft Regulation”) that specifically regulates the management of by-products, including production residues or tailings from mining industries such as tin.

“This Draft Regulation will regulate rare earth metals, radioactive metals, and metals related to strategic industries,” said Deputy for Systems and Management of BIM, Julian Ambassadur Shiddiq, to Hukumonline.

According to Julian, the Draft Regulation aims to provide legal certainty and facilitate other industries in developing by-products that still contain Rare Earth Metals (“LTJ”) and radioactive materials. This is especially for the needs of strategic industries, such as energy and defense.

The Head of BIM, Brian Yuliarto, said this step was taken to address the regulatory vacuum that has been an obstacle to investment in the strategic mineral sector. Until now, Mining Business Permits (“IUP”) have generally only been granted for primary minerals, so the management of by-products such as monazite found in tin tailings often faces administrative obstacles or risks being considered illegal.

“So, this Draft Regulation is about how to manage it so that it facilitates industry development,” explained Brian.