Govt to issue reference prices for mineral products

The energy and mineral resources ministry will issue reference prices for mineral products for the domestic market as part of the ministry?s new regulations to be introduced as the follow up of the new Presidential decree on the development of downstream mining industry in the country, Kontan reported on Monday.

Dede I Suhendra, the director for coal mine development at the ministry, said in Jakarta last week that the reference prices would be used for the sales of mineral products in the domestic market.

He said that the new regulation would be part of the new programs to be carried out by the ministry as the follow up of the Presidential decree, which among others urged the ministry to set up new policy especially related to the obligation imposed on miners to sell their mineral products in the domestic market or the domestic market obligation (DMO).

Under the new DMO rule, miners will be required to sell a part of their production for the local industries. ?We don?t want local industry import mineral products, because most of our mineral products are exported,? he said, adding that the price of mineral products to be sold to the local industries should be based on the government?s reference prices.

In addition to the price reference, the government would also issue a regulation on the obligation of miners to supply their mineral ores to domestic smelters, he said. (*)