minerals refinery investment environment in indonesia … · minerals refinery investment...

Minerals Refinery Investment Environment in Indonesia

Michael Scott Carl

[email protected]

May 12, 2016 3rd Annual Smelting and Processing Summit, Jakarta

1 SSEK INDONESIAN LEGAL CONSULTANTS

Export Ban • MEMR Regulation No. 1 of 2014 regarding Increase of Mineral

Added Value through Domestic Mineral Processing and Refinery Activities as amended by MEMR Regulation No. 8 of 2015

• Mining companies must perform domestic processing and refining of mining products

• Domestic processing and refining activities may be performed: – By constructing an owned smelter; or – Through cooperation with other mining/smelter companies, in the form of:

• Sale and purchase of ore or concentrate; or • Joint construction of smelter facility

• Any cooperation must be approved by: – Minister of Energy and Mineral Resources (“MEMR”) for PMA companies; – Governor; or – Regent/Mayor


Relaxation of Export Ban

• Exception for export of certain processed minerals: o Copper o Iron ore/sand o Manganese o Lead o Zinc

• Export tax instead applies • Only until January 12, 2017 • There is no exception for nickel, bauxite, tin, gold, silver and

chromium


Export Ban Procedures • MEMR Regulation No. 5 of 2016 regarding Procedures and

Requirements for Granting of Recommendation for Implementation of Offshore Mineral Sale Resulted from Processing and Refinery Activities

• Recommendation period: 6 months and renewable • Requirements to obtain recommendation, among others:

– Clean and clear certificate; – Certificate of Analysis; – Evidence of royalty payment for the last one year; – Construction plan of refinery facility; – Audited report on expenses for constructing refinery facility; – Approved work plan and budget; – Evidence of placement of security deposit for constructing refinery facility; – Report on implementation of environmental obligations; and – Export plan.


Export Ban Procedures • Requirements to obtain renewal of recommendation, among

others: – Previous export approvals; – Report on realization of construction of refinery facility; – Audited report on expenses for constructing refinery facility accumulated

until the last one month; – Report on compliance with water quality standard; – Evidence of royalty payment for the last 6 months; and – Export plan.


Export Ban Procedures • Security deposit amount:

– 5% of the total new investment; or – 5% of the remaining investment for construction of refinery facility.

• Security deposit may only disbursed if the construction of refinery facility has reached 60% of the planned construction

• If the targeted construction period is not achieved, the company is given with an extension period of maximum one year to complete the construction, otherwise the security deposit cannot be disbursed


Shifting of Authority

• New Regional Governance Law (Law No. 23 of 2014) on October 2, 2014: o Regent’s authority in issuing mining and smelter licenses is

shifted to Governor o Regional Government (Regents and Governor) no longer

has the authority to issue mining and smelter licenses for foreign owned companies (PMA companies) MEMR’s authority

This will be reflected in the New Mining Law


Draft New Mining Law Genesis • Shift in authority of local government over mining Minerals Processing and Refinery • No change on domestic processing and refinery requirements • There will be fiscal and non-fiscal incentive for companies

conducting domestic processing and refinery activities Transitional Provisions • One year adjustment period for Contracts of Work (COW) to be

converted into Special IUPs (IUPK) • Five year adjustment period for copper COW holders and iron

sand/ore, lead and zinc IUP holders to conduct domestic processing and refinery for all of its mineral production

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Applicable Export Tax 12 Jan – 31 Des 2014

1 Jan – 30 Jun 2015

1 Jul – 31 Des

2015

1 Jan – 30 Jun 2016

1 Jul – 31 Des 2016

Copper concentrate (Cu ≥ 15%) Minimum Processing Requirements

25% 35% 40% 50% 60%

Iron concentrate (Fe ≥ 62%) Minimum Processing Requirements

20% 30% 40% 50% 60%

Iron concentrate (Fe ≥ 51% and Al2O3+SiO2 ≥ 10%) Minimum Processing Requirements Manganese concentrate (Mn ≥ 49%) Minimum Processing Requirements

SSEK INDONESIAN LEGAL CONSULTANTS 8

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Applicable Export Tax 12 Jan – 31 Des 2014

1 Jan – 30 Jun 2015

1 Jul – 31 Des 2015

1 Jan – 30 Jun 2016

1 Jul – 31 Des 2016

Lead concentrate (Pb ≥ 57%) Minimum Processing Requirements

20% 30% 40% 50% 60%

Zinc concentrate (Zn ≥ 52%) Minimum Processing Requirements

Ilmenite concentrate and Titanium concentrate (Fe ≥ 58% (sand) and Fe ≥ 56% (pellet)) Minimum Processing Requirements

SSEK INDONESIAN LEGAL CONSULTANTS 9


Final Income Tax

• Effective on August 6, 2015 • For export and domestic sale of coal and processed minerals • Rate: 1.5% of the sale price • Income Tax Article 22 Final Income Tax

– Payable upon any sale of minerals or coal – Regardless the company is profitable or not

• Only applicable to mining companies holding Mining Business License (Izin Usaha Pertambangan or IUP)

• Not applicable to the holders of COW (Contract of Work) and CCOW (Coal Contract of Work)


Foreign Shareholding Limitation and Divestment Requirement

Smelter Companies • 100% open for foreign ownership • No divestment requirement

Mining Companies • 100% open for foreign ownership if establishing a new company to bid for a

mining license • Divestment requirement after 5 years of commercial production • Divestment requirement is gradual from 6th through 10th or 15th year after

commercial production MEMR Regulation No. 27 of 2013 (September 13, 2013) • 75% maximum foreign ownership if acquiring an existing mining company in

the exploration stage • 49% maximum foreign ownership if acquiring an existing mining company in

the operation production stage

Note: Foreign ownership includes both foreign companies and Indonesian companies with direct or indirect foreign shareholders



Maximum Foreign Ownership after Divestment: (Government Regulation No. 77 of 2014) • 49% mining companies which do not conduct their own processing

and/or refining (i.e., a mining company with no internal smelting capacity)

• 60% mining companies which conduct their own processing and/or refining (i.e., a mining company with internal smelting capacity)

• 70% mining companies which conduct underground mining (in whole or combined with open-pit mining)

Divestment Requirement to sell shares to Indonesian parties, which include:

– Central Government – Regional Government – State Owned Enterprise – Regent Owned Enterprise – Indonesian private business entities



Year after commercial production

Mining companies conducting

underground mining (in whole or

combined with open-pit mining)

Mining companies conducting their own

processing and refining

Other mining companies

6th 20% 20% 20% 7th - - 30% 8th - - 37% 9th - - 44%

10th 25% 30% 51% 15th 30% 40% -

Gradual divestment from the 6th through 10th or 15th year after commercial production for Mining Companies owned by foreigners before the issuance of MEMR 27/2013 or acquired during the exploration stage:


Typical Foreign Ownership Structures

Smelter Company

Combined Smelter and Mining Company

51 % 40 %

49 %

100 %

60 %

Foreign Investor

Foreign Investor

Indonesian Investor

Indonesian Investor

Mining Company

Separate Smelter and Mining Companies Combined Smelter and Mining Company


Fiscal and Non-Fiscal Incentives Fiscal Incentive • Tax Allowance or Tax Holiday • Exemption of Import Duty, VAT and other taxes Non-Fiscal Incentive • One stop service investment licensing process • Stipulation as Industrial Vital Object • Electronic Investment Licensing and Information Service system • Customs facility:

– Rush Handling – Storage or dismantling outside customs area – Temporary import – Priority importer and Main partner importer – Prenotification


Fiscal Incentives

Type of Incentive Description

Pre-requisites to Obtain

Tax Holiday Minister of Finance Regulation No. 159/PMK.010/2015

a. Tax relief facility (10% - 100% reduction) for a period of 5 – 15 years from the Tax Year of the Commercial Operation Date

b. Extension of tax relief and reduction can be extended by the discretion of MOF considering strategic value of business activity and competitiveness of the national industry

- Pioneer Industry (e.g., basic metal, oil refinery, basic organic chemicals originating from oil and gas, machinery industry producing industrial machines, maritime transportation, IT and Communication, agriculture/forestry/fisheries based processing, etc.);

- Minimum amount of the approved investment plan: 100 million USD (IDR 1 trillion);

- Letter affirming the Commitment to place funds (at least 10% of the total plan of investment) in Indonesian bank(s).

SSEK INDONESIAN LEGAL CONSULTANTS

Fiscal Incentives

Type of Incentive Description Pre-requisites to Obtain

Tax Allowance Government Regulation No. 18/2015

- Reduction in deemed taxable net income in the amount of 30% (thirty percent) of the investment in tangible fixed assets, in installment over 6 (six) years at 5% (five percent) per year;

- Accelerated amortization and depreciation of assets.

- Minimum amount of investment value;

- high absorption of workforce; - high local components; or - certain project location (especially

outside Java island).

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Fiscal Incentives

Type of Incentive Description Pre-requisites to Obtain

Import Duty Facility Minister of Finance Regulation No. 76/PMK.011/2012 amending MOF Regulation No. 176/PMK.011/2009

Exemption from import duty on the import of machines, goods and materials for production for a period of 2 years Import duty facility for a period of 4 years is granted to a company using locally-produced machines at least 30% of the total value of machines for its production

a. Eligible business sectors: Production of goods, Tourism, Public Transportation, Mining Port, Telecommunication, Construction, Public Health Services

b. The machines, materials are not produced in Indonesia or produced in Indonesia but do not meet required specification or the quantity of the machines or materials produced in Indonesia is not sufficient

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Existing Special Economic Zones


Special Economic Zones (SEZ)

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a. 8 existing SEZs and 17 planned SEZs; b. Incentives provided for the business entities in SEZ: Tax, Custom and Excise Facilities; Import Duties facilities; Regional Tax and Retribution Facilities; Assistance on the procurement of land; Facilitation of business licensing, immigration and provision of

security; and Exemption from the rule regarding the Business Sectors that are

Conditionally Opened for Foreign Investment .


Issuance of Mining Licenses by BKPM

• MEMR Regulation No. 25 of 2015 regarding Delegation of Authority for Granting of Mineral and Coal Business License in the Framework of One Integrated Licensing System at the BKPM

• MEMR has delegated issuance of the following mining licenses to BKPM: – Exploration License – Operation Production License and its extensions – Trading License and its extensions – Smelter License and its extensions – Principal License for Smelter – Temporary License for transportation and sale – Mining Service License


Smelter Licenses (MOI v MEMR)

Difference

Smelter licensed by MOI (Ministry of Industry)

Smelter licensed by MEMR (Ministry of Energy and Mineral

Resources) Location Must be located in an industrial estate or

an area zoned for industrial activities, unless due to its raw materials and/or production process, a special location is required (i.e., if the smelter is to be located near the mining area).

Must be located in an area zoned for mining activities.

Minimum amount of investment

Minimum investment (equity and loan): IDR 10 billion and up Minimum equity: IDR 5 billion and up

Minimum investment (equity and loan): IDR 10 billion and up Minimum equity: IDR 5 billion and up

Reporting obligation

Only periodic reports (“LKPM”) to BKPM.

Other than LKPM, there are additional reporting obligations to MEMR: • Annual Work Plan and Budget.

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• A smelter may be licensed by the Minister of Industry (MOI) or the Minister of Energy and Mineral Resources (MEMR)

• The principal differences are as follows:


Smelter Licenses (MOI v MEMR) Difference

Smelter licensed by MOI Smelter licensed by MEMR

• Monthly, Quarter and Annual report. • Term sheet/MOU for any mineral sale

agreement.

Term

As long as the smelter company continues in business.

20 years and can be extended, each for maximum 10 years.

Transfer of shares

Does not require recommendation from MOI.

Requires recommendation from MEMR.

Application procedures

Additional requirements: • Ore supply plan and MOU with ore

supplier. • Experts in mining or metallurgy having

at least 3 years experience. • MOU with the refined products

purchaser. • Feasibility study. • Corporate documents and mining

license of ore supplier.

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Application Process/ Requirements (MOI) No. Licenses/Permits

Issuing Authority Remarks

1. Principal License

BKPM

2. Nuisance Permit

Regional Government Unless located in Industrial Estate

3. Location Permit

Regional Government Unless located in Industrial Estate

4. Building Construction Permit (IMB)

Regional Government

5. AMDAL / UKL-UPL (Environmental Impact Study)

Regional Government

6. Environmental Permit

Regional Government If an AMDAL is required, then an Environmental Permit will also be required.

7. Industrial Business License (IUI)

BKPM


Application Process/ Requirements (MEMR)

No. Licenses/Permits

Issuing Authority Remarks

1. Principal License

BKPM Required documents, among others: - Ore supply plan; - MoU with ore suppliers (mining companies); - Experts having minimum 3 years experience in

mining or metallurgy; and - Bank reference from State-owned bank and/or

national private bank.

2. Nuisance Permit

Regional Government

3. Location Permit

Regional Government

4. Building Construction Permit (IMB)

Regional Government


Application Process/ Requirements (MEMR) No. Licenses/Permits

Issuing Authority

Remarks

5. AMDAL

Governor

6. Environmental Permit

Regional Government

7. IUPOPKPP (MEMR smelter license)

BKPM Required documents, among others: - Cooperation agreement with ore suppliers (mining

companies); - Purchase agreements with buyers of finished product; - Documents evidencing bona fides of ore suppliers

(mining companies), such as evidence of payment of deadrent and royalty, clean and clear certificates, etc.;

- Experts having minimum 3 years experience in mining or metallurgy; and

- Bank reference from State-owned bank and/or national private bank.


Benchmark Pricing

Metal Minerals Non-Metal Minerals and Stone

Calculation Formula Has been stipulated

Has not been stipulated

Benchmark Price Not yet issued

Enforcement Pending issuance of monthly benchmark price

Pricing Reference 1. London Metal Exchange (LME);

2. London Bullion Market Association (LBMA);

3. Asian Metal (AM); and/or 4. Indonesia Commodity &

Derivative Exchange (ICDX)


Benchmark Pricing

* Benchmark Price (HPM) is calculated based on the average mineral price from the 20th day in the second month before a given HPM period up to the 19th day of the month before the HPM period, as published in the relevant price reference (LME, AM, LBMA or ICDX)

Type of Minerals Price Reference*

Nickel

London Metal Exchange (LME) Lead

Bauxite

Copper

Iron Asian Metal (AM) Manganese

Chromium

Gold London Bullion Market Association (LBMA)

Silver

Tin Indonesia Commodity & Derivative Exchange (ICDX)


Benchmark Pricing

• Any sale agreement must first be submitted to MEMR for approval • The mandatory Benchmark Price assumes FOB Mother Vessel • If sold on other terms, the Benchmark Price may be adjusted to

reflect the following costs: o barging o surveyor o transshipment o processing and refinery o insurance


Letter of Credit

• Effective April 1, 2015: o Letter of Credit (L/C) must be used as method of payment for export of

minerals and coal o The L/C must be accepted by Indonesian foreign exchange bank or

Indonesian export finance agency

• Exemption from L/C Requirement: o Existing contracts between the exporter and its foreign buyers using

another method of payment entered into before January 5, 2015; o Statement from the exporter that it is able to change its payment method

to L/C within a certain period of time; and o Statement letter stating the originality of the exporter’s contract and its

ability to change the payment method.


Land Acquisition

Evidence of land ownership: Land certificate issued by National Land Agency (Badan Pertanahan

Negara)

Right to Build (Hak Guna Bangunan or HGB) • HGB title is available to smelter companies • HGB title may exist on State Land • HGB title may be sold, exchanged or otherwise transferred, and may be

encumbered with a Hak Tanggungan (i.e., a land mortgage)

Limitation • HGB title is not available on forest land


Land Acquisition

Adat Rights / Rights in Possession

• Government of Indonesia acknowledges Adat (Indigenous) Community rights over land and also acknowledges rights in possession

• Where land is subject to Adat Community rights and rights in possession, compensation must be paid to acquire or use the land

• Adat Community rights and rights in possession are generally not certificated • Compensation must be paid even though there is no evidence of land

ownership, i.e. no Land Certificate • There is no official registry of Adat Community rights or rights in possession • Land must be acquired by execution of a deed of relinquishment, witnessed

by the Head of District or Notary in role as PPAT (Land Deed Official) • PPAT will then submit a Land Certificate Application to the Local Land Office


Forestry Licensing

No activity is allowed within a forest area, except based on a Borrow-Use permit issued by the Minister of Forestry (MOF)

Type of forest: • Conservation Forest cannot be used for any purpose

– Natural Forest – Peat Land

• Protected Forest can be used for underground mining activities based on Borrow-Use Permit

• Production Forest can be used based for open pit mining and/or smelter activities based on on Borrow-Use Permit

• Non-Forest Land can be used for mining and/or smelter activities based on zoning classification


Forestry Licensing Terms of Borrow-Use Permits for Nickel Smelters: • Principal License

– for 2 years and may be extended • Borrow-Use Permit

– for so long as the underlying license period (MEMR) or – for 20 years (MOI)

Procedures to obtain Borrow-Use Permits: • Technical Consideration from the Head of Provincial Forestry Office • Recommendation from Governor • Technical Consideration from MEMR (for smelter under MEMR) • Review of Application by MOF • Issuance of Principal License • Fulfillment of obligations under Principal License • Issuance of Borrow-Use Permit


Forestry Licensing

Compensation to be paid under the Borrow-Use Permit: • Non-Tax State Revenue

– IDR 1.6 – 3.5 million per hectare • Compensation for trees

– based on benchmark price stipulated by MOF • Reforestation Fund

– USD 12-20 per m3 of wood • Provision of forest resources

– 6-10% of the benchmark price • Land Compensation, only required if the total forest area in the province

for which the Borrow-Use Permit is to be issued is less than 30%.


Local Government Relations and CSR

Company Law and its implementing regulations (i.e. Government Regulation No. 47 of 2012 regarding Social and Environmental Corporate Social Responsibility) • CSR is implemented by the Board of Directors according to the annual

work plan of the Company, after being approved by the General Meeting of Shareholders and the Board of Commissioners

• Realization of budget for the CSR shall be counted as the company’s costs • This obligation is applicable to companies which manage and use natural

resources in their business activities


Local Government Relations and CSR

Mining Law and its implementing regulations • to help the development and empowerment of community affected by

the smelter activities • the community development and empowerment program is to be

incorporated in the annual Work Plan and Budget and approved by MEMR

• there will be administrative sanctions for failure to comply with this obligation

Obligation under Borrow-Use Permit • to empower community surrounding the Borrow-Use Permit area


Minimum Refinery/Processing Level No. Commodity Processing

and/or Refinery

Product Quality Ore Mineral

1. Copper (smelting process)

a. Chalcopyrite b. Digenite c. Bornite d. Cuprite e. Covelite

Processing Copper Concentrate ≥ 15% Cu

Refinery a. Copper cathode Metal Cu ≥ 99%

b. Anode mud

a. Metal Au ≥ 99%; b. Metal Ag ≥ 99%; c. Bullion Pb ≥ 90%; d. Metal Pd ≥ 99%; e. Metal Pt ≥ 99%; f. Metal Se ≥ 99%; g. Metal Te ≥ 99%; h. TeO2 ≥ 98%; i. Te(OH)4 ≥ 98%; j. PbO ≥ 98%; k. PbO2≥ 98%; l. SeO2 > 98%; and/or m. Rare metal and rare earth (refer to the

requirement for rare earth metal in tin).

c. Telluride Copper a. Metal Cu ≥ 99%; b. Metal Te ≥ 99%; c. TeO2 ≥ 98%; d. Te(OH)4 ≥ 98%; and/or e. Metal alloys of Telurid copper ≥ 20% Te


Minimum Refinery/Processing Level

No. Commodity Processing and/or

Refinery Product Minimum Limit Ore Mineral

Copper (leaching process)

a. Chalcopyrite b. Digenite c. Bornite d. Cuprite e. Covelite

Refinery Metal a. Metal Cu ≥ 99%; b. Metal Au ≥ 99%; c. Metal Ag ≥ 99%; d. Metal Pd ≥ 99%; e. Metal Pt ≥ 99%; f. Metal Se ≥ 99%; g. Metal Te ≥ 99%; h. TeO2 ≥ 98%; i. Te(OH)4 ≥ 98%; and/or j. Rare metals and rare earth

(refer to the requirement for rare earth metal in tin).



and/or Refinery

Product Minimum Limit Ore Mineral

2. Nickel and/or cobalt (smelting process) a. Saprolite b. Limonite

a. Pentlandite b. Garnierit c. Serpenti-nite d. Karolite

Refinery Matte nickel, metal alloys and nickel metal

a. Ni Mate ≥70% Ni; b. FeNi ≥ 10%Ni; c. Nickel Pig Iron (NPI) ≥ 4% Ni; d. Metal Ni ≥ 93%; and/or e. NiO > 70% Ni.

Nickel and/or cobalt (leaching process) limonite

Metal, oxide metal, sulfide metal, mix hydroxide/sulfide precipitate, and hydroxide nickel carbonate

a. Metal Ni ≥ 93%; b. Mix Hydroxide Precipitate

(MHP) > 25% Ni; c. Mix Sulfide Precipitate (MSP) ≥

45% Ni; d. Hydroxide Nickel Carbonate

(HNC) ≥ 40% Ni; e. NiS ≥ 40% Ni and/or; f. Metal Co > 93% g. CoS ≥ 40% Co; h. Metal Cr ≥ 99%; and/or i. Cr2O3 ≥ 40%.

Nickel and/or cobalt (reduction process) a. Saprolite b. Limonite

Refinery Metal alloys a. FeNispon (Sponge FeNi) ≥ 4% Ni;

b. Luppen FeNi ≥ 4% Ni; and/or c. Nuget FeNi ≥ 4% Ni.



No. Commodity Processing and/or Refinery


3. Bauxite a. Gibbsite b. Diaspore c. Boehmite

Refinery Oxide Metal/ Hydroxide and Metal

a. Smelter grade alumina ≥ 98% Al2O3;

b. Chemical Grade Alumina ≥ 90% Al2O3 ≥ 90% Al(OH)3;

c. Alumina Hydrate ≥ 90% Al(OH)3 ;

d. Proppant: 1) Al2O3 ≥ 70%

(granulated); 2) may crack in 7,500 psi

pressure, fraction size: 20+40 mesh ≤ 5.2% 30+50 mesh ≤ 2.5% 40+70 mesh ≤ 2.0% 3) Apparent Specific

Gravity (ASG) 3.15 e. Metal Al ≥ 99%.



No. Commodity Processing and/or Refinery


4. Iron

a. Hematite b. Magnetite

Processing

Iron Concentrate ≥ 62% Fe and ≤ 1% TiO2

Goethite/ laterite Processing Laterite iron concentrate

≥ 51% Fe and Content (Al2O3 + SiO2) > 10%

Refinery Sponge, metal and metal alloys

a. Sponge iron ≥ 75% Fe; b. Pig iron ≥ 90% Fe; and/or c. Ferro alloys ≥ 83% Fe.

Lamela magnetite – ilmenite (iron sand)

Processing Iron Sand Concentrate

≥ 58% Fe and 1% ≤ TiO2 ≤ 25%

Iron Sand Concentrate Pellets

≥ 56% Fe and 1% ≤ TiO2 ≤ 25%

Ilmenite Concentrate ≥ 50% TiO2



and/or Refinery Product Minimum Limit Ore Mineral

Refinery Metal a. Sponge iron ≥ 75% Fe; and/or

b. Pig iron ≥ 90% Fe. Slag a. TiO2 ≥ 85%;

b. TiCl4 ≥ 98%; c. Metal alloys ≥ 65% Ti; d. V2O5≥ 90%; e. Vanadium metal alloys ≥

65% V; and/or f. Rare metal and rare earth

(refer to the requirement for rare earth metal in tin).

Oxide Metal, Chloride Metal and Metal Alloys

a. Synthethic TiO2 ≥ 85%; b. TiCl4 ≥ 87%; c. Metal alloys ≥ 65% Ti;

and/or d. Titanium metal alloys ≥

65% Ti. Slag Refer to the requirement for

slag in iron sand concentrate




5. Tin Cassiterite Processing Zircon concentrate Refer to the requirement for zirconium and zircon

Ilmenite concentrate Refer to the requirement for ilmenite in iron ore

Rutile concentrate TiO2 ≥ 90%

Monazite and xenotime concentrate

-

Refinery Metal Metal Sn ≥ 99.90%

Slag

a. Metal W ≥ 90%; b. Ta2O5 ≥ 90%; c. Nb2O5 ≥ 90%; and/or d. Sb2O3 ≥ 90%.

Chloride metal and metal alloys

a. TiCl4 ≥ 98%; and/or b. Titanium metal alloys ≥ 65%.

Oxide metal, hydroxide metal and rare earth metal

a. Rare earth oxide metal (REO) ≥ 99%;

b. Rare earth hydroxide metal (REOH) ≥ 99%; and/or

c. Rare earth metal > 99%.



No. Commodity Processing


6. Manganese a. Pyrolusite b. Psilomelane c. Braunite d. Manganite

Processing Manganese concentrate

≥ 49% Mn

Refinery Metal, metal alloys and manganese chemical

a. Ferro Manganese (FeMn), Mn ≥ 60 %; b. Silica Manganese (SiMn), Mn ≥ 60%; c. Manganese Mono-oxide (MnO), Mn ≥

47.5%, MnO2 ≤ 4%; d. Manganese Sulfate (MnSO4) ≥ 90%; e. Manganese Chloride (MnCl2) ≥ 90%; f. Synthetic Manganese Carbonate (MnCO3)

≥ 90%; g. Kalium Permanganat (KMnO4) ≥ 90%; h. Manganese Oxide (Mn3O4) ≥ 90%; i. Synthetic Manganese Dioxide (MnO2) ≥

98%; and/or j. Direct Reduced Manganese Mn≥49%,

MnO2 ≤ 4%.




7. Lead dan Zinc

a. Galena b. Sphalerite c. Smithsonite d. Hemimor-

phite (calamide)

Processing Zinc concentrate ≥ 52% Zn Lead concentrate ≥ 57% Pb

Refinery Metal, metal oxide/hidroxide

a. Bullion ≥ 90% Pb; b. ZnO ≥ 98%; c. ZnO2 ≥ 98%; d. Zn(OH)2≥98%; e. Bullion ≥ 90% Pb; f. PbO ≥ 98%; g. Pb(OH)2 ≥ 98%; and/or h. PbO2 ≥ 98%.

Gold and/or silver metal a. Metal Au ≥ 99% and/or b. Metal Ag ≥ 99%

8. Gold a. Native b. Associated

minerals

Refinery Gold metal

Metal Au ≥ 99%

9. Silver a. Native b. Associated

minerals

Refinery Silver metal Metal Ag ≥ 99%

10. Chromium Chromite Refinery Metal and metal alloys a. Metal Cr ≥ 99%; and/or b. Chromium metal alloys ≥ 60% Cr.




12. Zirconium Processing Ilmenite Refer to the requirement for ilmenite in iron sand

Rutile Refer to the requirement for rutile in tin Refinery a. Zircon chemical

material; b. Zircon sponge; c. Zirconia; d. Zircon metal; and e. Hafmium .

a. Zirconium Oxychloride (ZOC) ZrOCI2.8H2O > 90%;

b. Zirconium Sulfide (ZOS) Zr(SO4)2.4H2O > 90% ;

c. Zirconium Based Sulfide (ZBS) Zr5O8 (SO4)2.xH2O > 90%; d. Zirconium Based Carbonate (ZBC)

ZrOCO3.xH2O > 90%; e. Amonium Zirconium Carbonate(AZC)

(NH4)3ZrOH(CO3)3 .2H2O > 90%; f. Zirconium Acetate (ZAC)

H2ZrO2(C2H3O2)2 > 90%; g. Kalium Hexafluoro Zirconate (KFZ)

K2ZrF6 > 90%; h. Zirconium Sponge > 85% Zr; i. Zirconia (ZrO2+HfO2) > 99%; j. Zirconium > 95% Zr; and/or k. Hafnium > 95% Hf.

13. Antimone Stibnite Antimone metal a. Sb > 99%; and/or b. Sb2O5 > 95%.

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