Overview

Ministry of Energy and Mineral Resources (MEMR) expects there would be 18 nickel smelters, seven bauxite smelter, three iron smelters, two copper smelter, one manganese smelter and four zinc smelters that would be developed until 2023.

Currently, Indonesia has 17 smelters that have been developed, consisting of 11 nickel smelter, two bauxite smelter, one iron ore smelter, two copper smelter, one manganese smelter and four zinc smelters.

However, the current spread of Covid-19 global pandemic have hampered the planned construction process of smelters. The pandemic have limited workforce mobilization and goods needed for project development. Many of the planned projects area also developed by Chinese firms employing Chinese workers.

In the meantime, the House of Representatives (DPR) passed major revisions to the 2009 Mining Law on May 12, 2020. The Mining Law amends 83 articles, adds 52 new articles and removes 18 articles from the 2009 Mining Law, including licensing in smelter development.

The law introduces incentives for metal ore and coal miners to develop downstream facilities. Articles 47 guarantees 30-year permits with unlimited renewals for miners integrated with downstream facilities with the Non-integrated miners’ permits are capped at 20 years with two extensions.

The third webinar series jointly organized by CoalAsia Magazine and Petromindo would explore the future of downstream development in mining sector under the new Mining Law.

Key discussion points will include

• What are implications of new mining law for smelter development?
• What is the future of coal downstream projects? Such as the future of coal gasification?
• Understanding new licensing regime in smelter development
• What is the future of export of ores under the new mining law?
• Understanding various tax incentives to lure investments in smelter development.
• Exploring tax structure for mining company integrated with downstream facility and the Non-integrated mining company with downstream project.