Government Regulates Mining Exploration Costs

The Energy and Mineral Resources Ministry continues to encourage mining companies to explore their mineral and coal reserves. For this reason, the ministry is preparing regulations for the number of costs and exploration activities in the Work Plan and Budget (RKAB) for mineral and coal mining companies.

According to the plan, these provisions are regulated under the Ministry of Energy and Mineral Resources Regulation, which will be published later this year. The ministry is still doing the evaluation and studies to determine the amount of the budget and exploration activities that will be the obligation of the mining company. There are three components in determining liabilities: mining coverage area, budget exploration to revenue ratio (BERR), and recovery reserve ratio (RRR).