Minister of Energy and Mineral Resources Decree No. 363.K/MB.01/MEM.B/2026: Benchmark Price Formula for Metallic Minerals Revised Again
Introduction
On 11 September 2026, the Minister of Energy and Mineral Resources issued Minister of Energy and Mineral Resources Decree Number 363.K/MB.01/MEM.B/2026 on the Second Amendment to Minister of Energy and Mineral Resources Decree Number 268.K/MB.01/MEM.B/2025 concerning Guidelines for the Determination of Benchmark Prices for the Sale of Metallic Mineral and Coal Commodities ("MEMR Decree 363/2026"), which took effect on 15 September 2026. This Decree amends the calculation formula for the Metallic Mineral Benchmark Price (HPM) used as a reference for the sale of various metallic mineral commodities, including nickel, cobalt, lead, zinc, bauxite, iron, gold, silver, tin, copper, manganese, chromium, and titanium, whether in the form of ores, concentrates, or processed products.
The urgency of issuing MEMR Decree 363/2026 lies in the need to adjust the benchmark price formula for metallic minerals based on the results of the Ministry of Energy and Mineral Resources' review and evaluation of the previous provisions. This adjustment is necessary to ensure that the HPM formula continues to reflect market conditions and commodity characteristics, as well as to serve as a reasonable and accountable basis for transactions involving the sale of metallic minerals and the calculation of Non-Tax State Revenue (PNBP).
Key Provisions
- Subject Matter and Basis for the Amendment
As stipulated in Article I of MEMR Decree No. 363.K/MB.01/MEM.B/2026, the Minister of Energy and Mineral Resources amends the Benchmark Price Formula for the Sale of Metallic Mineral Commodities set out in Appendix I to MEMR Decree 268.K/MB.01/MEM.B/2025, as amended by MEMR Decree 144.K/MB.01/MEM.B/2026, with a new formula as set out in the Appendix to MEMR Decree No. 363.K/MB.01/MEM.B/2026. The Appendix constitutes an integral and inseparable part of the Decree and contains the HPM determination formulas for 12 groups of metallic mineral commodities, namely:
A. Nickel
The nickel group comprises eight types of products, each with its own formula:
|
Type |
HPM Formula |
|
Nickel Ore |
Combination of Ni, Fe (calculated if the content is ≤35%), Co (calculated if the content is ≥0.05%), and Cr contents, multiplied by the respective Mineral Reference Price (HMA) and Corrective Factor (CF), and then reduced by the Moisture Content (MC). The CF for Nickel Ore is progressive: 30% for a Ni content of 1.6%, increasing or decreasing by 1% for every 0.1% change in Ni content (with a Ni content threshold of >1.2%); and 14% for Ni content ≤1.2%, decreasing by 1% for every 0.1% decrease in Ni content. |
|
Ferro Nickel |
Ni content × Nickel HMA × CF of 95%. |
|
Mixed Hydroxide Precipitate (MHP) and Mixed Sulfide Precipitate (MSP) |
Ni and Co, but with different Ni CFs (60% for MHP and 65% for MSP) and different Co CFs (100% for MHP and 30% for MSP). |
|
Nickel Metal Shot (NMS), Nickel Pig Iron (NPI), and Nickel Ingot |
Ni content × Nickel HMA, with CFs of 100%, 85%, and no CF, respectively (directly using the Nickel HMA). |
|
Nickel Matte |
Constant of 78% × (Ni content + Co content) × Nickel HMA. |
B. Cobalt
Consists of Cobalt Ore (taking into account moisture content/MC, with a CF of 100%), Cobalt Ingot (directly following the Cobalt HMA), Cobalt Concentrate, and Cobalt Sulfide (both with a CF of 100%, without an MC factor).
C. Lead
|
Type |
HPM Formula |
|
Lead Ore |
Pb content × Lead HMA × CF of 30%, less moisture content. |
|
Lead Ingot |
Directly follows the Lead HMA, subject to a minimum quality of 99.97%. |
|
Lead Concentrate |
The most complex formula in this group because it also takes into account silver (Ag) content as a by-product mineral (if the Ag content is ≥500 ppm), as well as silver refining charges (RC) of USD 4/troy ounce. The Lead CF is tiered depending on the Lead HMA price level, ranging from 0.61 (price ≤USD 2,250) to 0.65 (price >USD 2,800). |
|
Lead Bullion |
Lead HMA × CF of 95%. |
D. Zinc
Zinc Ore (CF of 20%, less moisture content), Zinc Ingot (directly using the Zinc HMA), Zinc Concentrate (tiered CF ranging from 0.425 to 0.52 depending on the Zinc HMA price level, across seven tiers), and Zinc Oxide (CF of 90%).
E. Bauxite
|
Type |
HPM Formula |
|
Bauxite Ore |
Uses a constant of 1.50%, plus/minus a correction for Al2O3 content (an addition of US$1.4/DMT for each 1% increase above 47%, with an equivalent deduction for a decrease below 47%) and a correction for R-SiO2 content (a deduction of US$1/DMT for each 0.5% increase above a content of 2%, with a maximum deduction of US$3.5/DMT). |
|
Aluminium Ingot |
Directly follows the Aluminium HMA. |
|
Chemical Grade Alumina (CGA) |
CF of 17.15% for the Aluminium Oxide type and 11.15% for the Aluminium Hydroxide type. |
|
Smelter Grade Alumina (SGA) |
CF of 17.15%. |
F. Iron
Iron Ore/Iron Concentrate (Laterite/Hematite/Magnetite) and Iron Sand use tiered CFs based on Fe content, ranging from 17–22% (Fe content <48%) to 75–95% (Fe content >60%), across nine content tiers. Iron Sand Pellets, Sponge Iron, and Pig Iron each use fixed CFs of 60%, 70%, and 70%, respectively.
G. Gold and Silver
The Gold HPM directly follows the Gold HMA, and the Silver HPM directly follows the Silver HMA, without any additional corrective factors.
H. Tin
The Tin Ingot HPM directly follows the Tin Ingot HMA.
I. Copper
|
Type |
HPM Formula |
|
Copper Ore |
Cu content × Copper HMA × CF of 12%, less moisture content. |
|
Copper Concentrate |
The most complex formula because it takes into account Cu, Au, and Ag as by-product minerals, with a payable metal scheme based on content and deductions for treatment and refining charges (TC/RC). Payable Cu is capped at 96.55%, Au at 97%–97.5% depending on content, while Ag is only taken into account at a content of ≥30 ppm. |
|
Copper Metal |
Follows the Copper HMA, subject to a minimum quality of 99%. |
J. Manganese
Manganese Ore uses a tiered CF (72.61% for Mn content <40%, up to 93.75% for content of 45–49%), while Manganese Concentrate uses a fixed CF of 100%.
K. Chromium
Chromium Ore is calculated based on Cr content × Chromium Ore HMA, less moisture content, without any additional CF expressly specified in the Appendix.
L. Titanium
Titanium Concentrate is calculated based on TiO2 content × Titanium Concentrate HMA.
Closing
MEMR Decree 363/2026, in principle, updates the HPM formulas for various metallic mineral commodities by adjusting the calculation parameters based on the type and characteristics of each commodity. The adjustments include changes to the Corrective Factor (CF), mineral content, moisture content, payable metal, and treatment and refining cost components.
With the new formulas coming into force, business actors need to adjust their calculations of mineral sale prices and ensure the use of the HPM formula corresponding to the type and specifications of the product. These changes also need to be taken into account in the calculation of PNBP, considering that HPM constitutes one of the bases for determining the transaction value of mineral commodities.
Related Regulations
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