Effective 15 April 2026, Minister of Energy and Mineral Resources Decree Number 144.K/MB.01/MEM.B/2026 Amends the Mineral Benchmark Price Formula

Introduction

On 10 April 2026, the Ministry of Energy and Mineral Resources (“MEMR”) issued Minister of Energy and Mineral Resources Decree Number 144.K/MB.01/MEM.B/2026 on the Amendment to Minister of Energy and Mineral Resources Decree Number 268.K/MB.01/MEM.B/2025 on Guidelines for the Determination of Benchmark Prices for the Sale of Metal Mineral and Coal Commodities (“MEMR Decree 144/2026”), which takes effect on 15 April 2026. This decree re-establishes the formula for the Mineral Benchmark Price (“HPM”) for metal commodities, which serves as a mandatory reference for mining businesses when selling their products.

The MEMR evaluated the implementation of the previous benchmark pricing formula for metal mineral commodities as stipulated under Minister of Energy and Mineral Resources Decree Number 268.K/MB.01/MEM.B/2025 on Guidelines for the Determination of Benchmark Prices for the Sale of Metal Mineral and Coal Commodities (“MEMR Decree 268/2025”). This regulatory amendment aims to optimize state revenue from the mining sector. The Government has refined several formulas and calculation variables to ensure that the base mineral selling price in the market contributes more optimally and proportionally to state revenue, including by taking into account associated minerals and separating the weighting of moisture content.

 

Comparison

MEMR Decree 144/2026 amends provisions governing the calculation formula for metal minerals under MEMR Decree 268/2025. The following table presents a comparison between MEMR Decree 144/2026 and MEMR Decree 268/2025:

 

Key Provisions

New Nickel Ore Formula and Associated Mineral Calculation

Pursuant to the Annex of MEMR Decree 144/2026, the HPM formula for Nickel Ore commodities has been revised. Previously, businesses calculated prices solely based on nickel (Ni) content. The new formula requires businesses to include the monetary value of associated minerals contained within the nickel ore. The associated minerals that must be calculated include:

1. Iron (Fe), where the content is ≤ 35%. 
2. Cobalt (Co), where the content is ≥ 0.05%. 
3. Chromium (Cr), without a specific minimum threshold. 

In addition, the base Corrective Factor (CF) for nickel ore has been adjusted to 30% for a grade of 1.6% Ni, with values fluctuating according to changes in grade for every 0.1%.

Changes to the Bauxite Ore Formula

According to the Annex of MEMR Decree 144/2026, a new deduction component has been introduced in the HPM formulation for Bauxite Ore. Bauxite mining companies are now subject to a price reduction (Corrective Factor R-SiO2) if their processed commodities contain reactive silica (R-SiO2) exceeding 2%. Each 0.5% increase in silica content above this threshold results in a price reduction of USD 1/DMT, with a maximum reduction of up to USD 3.5/DMT.

Application of Moisture Content Variable

Based on the Annex of MEMR Decree 144/2026, the Government now requires the application of the Moisture Content (MC) variable, or percentage of water content, in nearly all HPM calculations for commodities in “ore” form. Businesses are required to multiply the result of the base formula calculation by the reduction factor (1-MC). This provision applies to Nickel Ore, Cobalt Ore, Lead Ore, Zinc Ore, Bauxite Ore, Iron Ore/Concentrate, Iron Sand, Copper Ore, Manganese Ore, and Chromium Ore.

 

Closing

Effective 15 April 2026, MEMR Decree 144/2026 revises the HPM formula to optimize state revenue in a more effective and proportional manner. These amendments include the obligation to account for the monetary value of associated minerals (Iron, Cobalt, Chromium) in Nickel Ore, the implementation of a price reduction factor (Corrective Factor R-SiO2) for Bauxite Ore containing reactive silica above 2%, and the mandatory application of a moisture content multiplier (Moisture Content) for Nickel Ore, Cobalt Ore, Lead Ore, Zinc Ore, Bauxite Ore, Iron Ore/Concentrate, Iron Sand, Copper Ore, Manganese Ore, and Chromium Ore.