30 Sep 2014
ENERGY AND MINERAL RESOURCES REGULATION ON PROCEDURE FOR THE GRANTING OF RECOMMENDATION FOR THE SALE OF PROCESSED AND REFINED MINERALS

The above mentioned regulation was issued on 17 April 2014 by the Minister of Energy and Mineral Resources under No. 11 of 2014 (“MEMR Regulation No. 11/2014”). MEMR Regulation No. 11/2014 addresses holders of Mining Business License (Izin Usaha Pertambangan or “IUP”) for production operation; Special IUP (Izin Usaha Pertambangan Khusus or “IUPK”) for production operation; IUP for special production operation for processing and/or refining; IUP for special production operation for hauling and sale; and holders of Contracts of Work.

The following are the key points:

• In general, the above mentioned IUP and Contract of Work holders may conduct overseas sales of listed mineral products which satisfy the minimum refining and processing requirements provided that they have obtained: (1) Acknowledgement as Registered Exporter of Mining Products, and (2) Export Approval from the Directorate General of Foreign Trading of the Ministry of Trade.
• To obtain the Acknowledgement as Registered Exporter of Mining Products, the IUP holders and holders of Contract of Work must first obtain a Recommendation from the Directorate General of Mineral and Coal. The procedure for the Recommendation application is set forth in this regulation. The Recommendation is valid for 6 months with extension possibility upon its validity expiration.
• To obtain the Export Approval, an application must be submitted to the Ministry of Trade c.q. Directorate General in the form provided in Attachment IIIA and IIIB of this MEMR Regulation No. 11/2014. The requirements for the approval are stipulated under Article 9 of this regulation.
• IUP holders for production operation of metal minerals and for special production operation for processing and/or refining and holders of Contracts of Work for metal minerals which have conducted the refinery in accordance with the applicable laws may conduct the overseas sales only until 12 January 2017;
• Other parties who produce anode slime and copper telluride as byproducts may conduct overseas sales of their its products only until 12 January 2017 to the extent that the required refinery cannot be conducted domestically.
  MEMR Regulation No. 11/2014 has been in effect since the date of its issue. (by: Christine Hakim)