The Ministry of Energy and Mineral Resources plans to include by-product minerals generated during nickel mining—such as cobalt and iron—into the calculation scope of the Mineral Base Price (HPM), in order to clarify the economic value of by-product resources and drive an overall increase in mineral reference prices. The Director General of Minerals and Coal at the Ministry stated in Jakarta that this adjustment is in response to a proposal from the Indonesian Nickel Miners Association (APNI), by reasonably valuing by-product minerals like cobalt and iron and incorporating them into the pricing formula, thereby raising the overall mineral reference price. He emphasized that the focus of this reform is on modifying the pricing calculation formula, not on adjusting the frequency of price announcements.
Currently, Indonesia's Mineral Reference Price (HMA) references international market prices such as the London Metal Exchange (LME), combined with correction factors, and is announced periodically. After the new regulation takes effect, the announcement mechanism will remain unchanged, still twice a month, with only the calculation method being altered. He revealed that the government is still studying the most reasonable calculation approach, including assessing the specific impact on mining costs, industry added value, and state revenue, and the relevant formula has not yet been finalized.
Previously, the Minister of Energy and Mineral Resources has repeatedly stated that the government is pushing to increase mineral reference prices, aiming to boost state revenue while providing mining investors with more stable business expectations. Incorporating by-product minerals into the pricing system will not only more accurately reflect the comprehensive value of nickel but also enable enterprises to obtain more reasonable returns from resource utilization, further improving the price formation mechanism of Indonesia's nickel industry chain.
The Ministry of Energy and Mineral Resources plans to include by-product minerals generated during nickel mining—such as cobalt and iron—into the calculation scope of the Mineral Base Price (HPM), in order to clarify the economic value of by-product resources and drive an overall increase in mineral reference prices. The Director General of Minerals and Coal at the Ministry stated in Jakarta that this adjustment is in response to a proposal from the Indonesian Nickel Miners Association (APNI), by reasonably valuing by-product minerals like cobalt and iron and incorporating them into the pricing formula, thereby raising the overall mineral reference price. He emphasized that the focus of this reform is on modifying the pricing calculation formula, not on adjusting the frequency of price announcements.
Currently, Indonesia's Mineral Reference Price (HMA) references international market prices such as the London Metal Exchange (LME), combined with correction factors, and is announced periodically. After the new regulation takes effect, the announcement mechanism will remain unchanged, still twice a month, with only the calculation method being altered. He revealed that the government is still studying the most reasonable calculation approach, including assessing the specific impact on mining costs, industry added value, and state revenue, and the relevant formula has not yet been finalized.
Previously, the Minister of Energy and Mineral Resources has repeatedly stated that the government is pushing to increase mineral reference prices, aiming to boost state revenue while providing mining investors with more stable business expectations. Incorporating by-product minerals into the pricing system will not only more accurately reflect the comprehensive value of nickel but also enable enterprises to obtain more reasonable returns from resource utilization, further improving the price formation mechanism of Indonesia's nickel industry chain.
