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Minister says that the increase in Indonesian mining royalties will take effect shortly

The mining minister announced on Wednesday that an Indonesian regulation will increase the royalties mine companies pay on commodities like coal, nickel and copper as well as gold, tin, and gold.

The regulation aims to improve industry governance by increasing royalties for metal products, such as nickel ore and nickel matte, based on prices.

The Miners Group has urged the Government to reconsider this hike as they already struggle with increasing operational costs.

Minister Bahlil Lahadalia said to reporters, "We are appreciating all the inputs, but we see the greater interest for our nation."

He said that the regulation would take effect during the second week in April.

According to the public consultation document of the Ministry, the government proposes a nickel ore royalty rate ranging from 14% to 19%, depending on the benchmark price level, as opposed the the 10% flat rate currently charged.

The government will raise coal royalty rates up to 13.5% if the benchmark price of coal reaches $90 per metric tonne.

(source: Reuters)