On June 9, 2023, the Ministry of Energy and Mineral Resources of the Republic of Indonesia (“MEMR”) issued MEMR Regulation No. 7 of 2023 regarding Continuation on the Construction of Domestic Metal Mineral Refining Facilities (“MEMR Reg No. 7/2023”) which will take effect on June 11, 2023. MEMR Reg No. 7/2023 allows copper concentrate with a level content of ≥ 15% Cu to be exported outside Indonesia until May 31, 2024 subject to the satisfaction of certain prescribed requirements, including the obtaining the recommendation from the Directorate General of Mineral and Coal as a condition to receiving a valid export permit. The amount of copper concentrate allowed to be exported outside of Indonesia is determined based on (i) an estimate of the mineral reserves required to satisfy domestic refining facilities as referred to under the Law No. 4 of 2009 on Mineral and Coal Mining, as amended by Law No. 3 of 2020 on the Amendment of the 2009 Mining Law (“Mining Law”), (ii) the approved export amount of Processed Product (as defined below) as set out in the approved annual work program and budget (Rencana Kerja dan Anggaran Biaya or RKAB) of the relevant permit holder and (iii) the capacity of domestic refining facilities as referred to under the Mining Law. The following sets out a summary of the key conditions for the grant of an export permit:
the permit holder must have produced mineral products that have undergone a commodity quality improvement process while ensuring that such mineral products remain unchanged for the purpose of refining or to be used as industrial raw material, as referred to under the Mining Law;
the construction of the permit holder’s refining facility should have achieved at least 50% completion by January 31, 2023, as verified by an independent verifier pursuant to the applicable progress plan, and such construction must be completed by May 31, 2024;
export duty must be paid by the permit holder in accordance with applicable laws and regulations; and
the permit holder must process copper concentrate with a level content of equal to or greater than 15% Cu in accordance with the provisions of laws and regulations.
