Ministry to publish minerals reference price next month

Petromindo|Thomas

The Ministry of Energy and Mineral Resources plans to start publishing the minerals reference price (or better known as HPM) next month, ministry?s Director General of Mineral and Coal Bambang Gatot Ariyono said.

Speaking at the Mining and Energy Expo 2017 in Jakarta on Tuesday, Bambang said that in line with the Minister of Energy and Mineral Resources Regulation No 44/2017, the minister will publish the HPM every month. ?The HPM will be implemented (issued) starting October,? he said.

He said the HPM will be based on a number of indices including that of London Metal Exchange (LME), London Bullion Market Association (LBMA), Asian Metal, and Indonesia Commodity & Derivatives Exchange.

He added the HPM will cover several mineral commodities including nickel, cobalt, lead, zinc, bauxite, gold, silver, tin, copper, manganese, chrome, titanium, and other metals. ?The (HPM) formula for each commodity will be different,? he said, but did not disclose the formula.

Bambang explained that the HPM is aimed at protecting domestic smelter operators and miners in the transaction of mineral commodities as not all miners have smelters. ?That?s way the reference price is determined by the government,? he said, adding that the government doesn?t want to see one side to be more dominant in determining the price.

The HPM will also be used as reference to determine mining royalty so that the government can make better projection of revenue from the mineral sector. (*)