ITrade ministry reported, until the end of February, the price of several mining products show a positive trend amid the pandemic - Photo: Special

JAKARTA (TheInsiderStories) – Trade ministry reported, until the end of February, the price of several mining products show a positive trend amid the pandemic. These were indicated by a significant increase in the commodity prices due to an increased demand on the global market and affected the export duty of the mining products for the period March 2021.

“The benchmark price of mining products for the period March 2021 has fluctuated, “said the director general at the ministry, Didi Sumedi, in a written statement released today.

Compared to the previous month, the mining products that experienced an average price increase in March were copper concentrate (Cu ≥ 15 percent) with an average price of US$3,115.13/WE or rose of 0.28 percent. Then, manganese concentrate (Mn ≥ 49 percent) with an average price of $208.26/WE or an increase of 0.12 percent. Lead concentrate (Pb ≥ 56 percent) with an average price of $845.37/WE or up 3.32 percent.

Ilmenite concentrate (TiO2 ≥ 45 percent) with an average price of $366.84/WE or rose of 8.21 percent, rutile concentrate (TiO2 ≥ 90) with an average price of $1,049.01/WE or jumpep of 13.22 percent; and washed bauxite (Al2O3 ≥ 42 percent) with an average price of $27.40/WE or lift up 1.17 percent.

He also announced, the products that experienced a price decrease compared to the previous month were iron concentrates (hematite, magnetite) (Fe ≥ 62 percent and ≤ 1 percentTiO2) with an average price of $144.22/WE or a decrease of 2.58 percent. While, laterite iron concentrate (gutite, hematite, magnetite) with levels (Fe ≥ 50 percent and (Al2O3 + SiO2) ≥ 10 percent) with an average price of $73.70/WE or a decrease of 2.58 percent.

Zinc concentrate (Zn ≥ 51 percent) with the average price is $728.74/WE or down 2.95 percent, and iron sand concentrate (lamella magnetite-ilmenite) (Fe ≥ 56 percent) with an average price of $86.11/WE or dropped by 2.58 percent. Furthermore, iron sand concentrate pellets (Fe ≥ 54 percent) with an average price of $117.98/WE did not change.

To support the commodity export from Indonesia, the government has give more incentives to the mining producers. According to the special staff at the energy and mineral resources (EMR) ministry, Irwandy Arief, explained that one of the incentive is the provision of royalties of up to zero percent for coal processed. Then, the special coal price formula for the gasification projects and the validity period of the Mining Business License in an accordance with the economic age of the project.

For example, an extension of 10 years from the life of the projects, he adds. The three incentives are currently being discussed by the directorate general of mineral and coal and the ministry of finance, he adds. Others is in the form of a tax holiday or corporate income tax, the exemption of value added tax (VA) for coal processing services to syngas by zero percent.

In addition, the exemption from local content engineering procurement construction VAT, the benchmark price for gasification products, the transfer of part of the Liquefied Natural Gas (LPG) subsidy to DME, and the certainty of off-takers or buyers for the downstream products.

Written by Editorial Staff, Email: theinsiderstories@gmail.com