Regulation of the Minister of Energy and Mineral Resources of RI No. 1/2014 regarding the Upgrading of Added Value of Minerals through Mineral Processing and Refinery

Article 96 and Article 112 C point 5 of Government 2014 (Statute Book of the Republic of Indone- Regulation Number 23 Year 2010 regarding the Exe- sia Year 2014 Number 1, Supplement to Statute cution of Mineral and Coal Mining Business Activities Book of the Republic of Indonesia Number 5489); as already amended twice and the latest by Govern- ment Regulation Number 1 Year 2014, it is necessary 3. Government Regulation Number 55 Year 2010 to stipulate a regulation of the Minister of Energy and regarding the Fostering and Supervision over the Mineral Resources regarding the Upgrading of Added Implementation of Mineral and Coal Mining Busi- Value of Minerals through Mineral Processing and Re- ness Management (Statute Book of the Repub- finery in the country; lic of Indonesia Year 2010 Number 55, Supple- ment to Statute Book of the Republic of Indonesia In view of: Number 5142); 1. Law Number 4 Year 2009 regarding Mineral and Coal Mining (Statute Book of the Republic of In- 4. Presidential Decree Number 59 /P Year 2011 dat- donesia Year 2009 Number 4, Supplement to ed October 11,201; Statute Book of the Republic of Indonesia Number 4959); 5. Regulation of the Minister of Energy and Mineral Resources Number 34 Year 2009 regarding Pri- 2. Government Regulation Number 23 Year 2010 re- oritization of Supply to the Domestic Need of Business News 8592/8-22-2014 25 Minerals and Coal (State Gazette of the Republic of Indonesia Year 2009 Number 546); 2 Metal Mineral shall be minerals with the main sub- stance containing metal, having metal luster and 6. Regulation of the Minister of Energy and Mineral generally having characteristic as a good heat and Resources Number 18 Year 2010 regarding Orga- electricity conductor. nization and Working Mechanism of the Ministry of Energy and Mineral Resources (State Gazette 3 Non-metal Mineral shall be mineral with the main of the Republic of Indonesia Year 2010 Number substance consisting of non-metal, such as ben- 552) as already amended by Regulation of the tonite, calcite (limestone), quartz sand and oth- Minister of Energy and Mineral Resources Number ers. 22 Year 2013 (State Gazette of the Republic of Indonesia Year 2013 Number 1022); 4. Rocks shall be solid mass consisting of one kind of mineral or more, which forms earth crust, ei- DECIDES: ther massive or loose. To stipulate: 5. Concentrates shall be a concentration product THE REGULATION OF THE MINISTER OF ENER- which is rich in valuable minerals as a result of GY AND MINERAL RESOURCES REGARDING THE the separation and processing of mineral ores. UPGRADING OF ADDED VALUE OF MINERALS THROUGH MINERAL PROCESSING AND REFINERY 6. Ores shall be a group of mineral containing one IN THE COUNTRY kind of metal or more, which may be processed profitably. CHAPTER I GENERAL PROVISION 7. By Product shall be mining product other than the

Article 1 main mining product, which constitutes by prod- Referred to in this ministerial regulation as: uct of the processing and refinery that has eco- 1. Mineral shall be an inorganic compound formed nomic value. in the nature, which has specified physical and chemical characteristics as well as regular crystal 8. Slag shall be waste of material resulting from the structure or combination thereof that forms bitu- smelting or refinery of metal, which is floating in men, either broken or integrated, the surface of liquid metal, formed from the mix- 26 Business News 8592/8-22-2014 GOVERNMENT REGULATIONS ture of extract, ore/metal polluter, fuel ash and 14. Minister shall be the minister in charge of mineral materials laminating furnace, mining affairs. 9. IUP of Production Operation shall be a business 15. Director General shall be the director general as- license granted following the completion of IUP signed to handle and responsible for mineral min- of Exploration to execute the phase of production ing affairs. operation activity. CHAPTER II 10. IUPK of Production Operation shall be a business PROCEDURES FOR UPGRADING ADDED VALUE OF license granted following the completion of IUP MINERALS of Exploration to execute the phase of production Article 2 operation activity in a special mining business Ii- (1) Group of mineral mining commodities which may cense area. have their added value upgraded shall consist of: a. Metal Mineral 11. Contract of Work shall be an agreement between b. Non-metal Mineral; and the Government of the Republic of Indonesia and c. Rocks. company in the form of Indonesian legal entity in the framework of foreign investment in order to (2) The upgrading of the added value of the mineral undertake mining business of extracted minerals, mining commodities as meant in paragraph (1) excluding oil, natural gas, geothermal, radioactive shall be executed through activity: and coal. a. processing and refinery, in the case of metal- mineral mining commodity; 12. Added Value shall be an addition to the value of b. processing, in the case of non-metal mineral minerals as a result of the mineral processing and/ mining commodity; or or refinery. c. processing, in the case of rock mining com- modity. 13. The upgrading of added value shall be the increase in the value of minerals through the processing (3) The processing of minerals as meant in para- and/or refinery so as to result in economic, social graph (2) shall constitute an effort to upgrade and cultural benefits. the quality of minerals or rocks which result in products with the physical and chemical -2R-2014 27 characteristic unchanged from the minerals or in the proven phase; rocks of origin, in the form of , among others, d. end product of the processing and/or refinery metal mineral concentrates and polished rocks. as raw material of industry for the domestic need; (4) The refinery of minerals as meant in paragraph e. by product constituting rest of the processing (2) shall constitute an effort to upgrade the qual- and/or refinery production for raw material of ity of metal minerals through extraction as well domestic chemical and fertilizer industry; as advanced purity enhancement process in or- f. as raw material of domestic mineral-based der to produce products physically and chemically strategic industry; different from minerals of origin, in the form of, g. contributing multiplier effects to the state ec- among others, metal and alloy metal. onomically and socially and culturally; and/or h. increasing state revenue.

Article 3 1) The upgrading of the added value of the mineral (3) The considerations about the execution of the mining commodity as meant in Article 2 may be processing and/or refinery of every kind of the in the form of: specified mineral mining commodities as meant in a. processing and refinery in the case of speci- paragraph (2) shall become a basis for the stipu- fied metal minerals, including associated min- lation of the minimum content of the processing erals; and/or refinery of the specified mineral mining b. processing, in the case of specified non-metal commodities. minerals; or c. processing, in the case of specified rocks. (4) The specified mineral mining commodities as meant in paragraph (1) letter a shall be processed (2) The processing and/or refinery of every kind of and refined in the country in accordance with the the specified minerals as meant in paragraph (1) minimum content of the processing and refinery shall be executed on the basis of considerations: as contained in Attachment I, which constitutes a a. having ore resources and reserves in a large part inseparable from this ministerial regulation. quantity; b. driving up metal production capacity in the (5) The specified non-metal mineral mining commodi- country; ties as meant in paragraph (1) letter b shall be c. processing and/or refinery technology already processed in the country in accordance with the 28 Jusiness News 8592/8-22-2014 minimum content of the processing as contained (3) By product or rest of the purification of tin con- in Attachment II, which constitutes a part insepa- centrates in the form of slag shall have refined rable from this ministerial regulation. in the country in accordance with the minimum content of the purification of metal mineral com- (6) The specified rock mining commodity as meant modities as contained in Attachment I, which in paragraph (1) letter c shall be processed in the ' constitutes a part inseparable from this ministerial country in accordance with the minimum content regulation. of the processing as contained in Attachment Ill, which constitutes a part inseparable from this (4) By product or rest of the purification of metal mm- ministerial regulation. eral lead and zinc in the form of gold and silver shall have refined in the country in accordance

Article 4 with the minimum content of the purification of (1) By product or rest of the processing of metal min- metal mineral commodities as contained in At- eral copper in the form of anode mud and copper tachment I, which constitutes a part inseparable telluride shall have the purity upgraded further from this ministerial regulation. in the country in accordance with the minimum content of the purification of metal mineral com- (5) By product or rest of the purification of metal modities as contained in Attachment I, which mineral iron sand in the form of slag shall have constitutes a part inseparable from this ministerial refined in the country in accordance with the min- regulation. imum content of the purification of metal mineral commodities as contained in Attachment I, which (2) By product or rest of the processing of metal constitutes a part inseparable from this ministerial mineral tin in the form of zircon, ilmenite, rutile, regulation. monazite, and senotim concentrates shall have processed and/or refined in the country in ac- (6) By product or rest of the processing of non- cordance with the minimum content of the pro- metal minerals which still contain economical- cessing and/or refinery of metal mineral mining ly valuable substances or metal minerals shall commodities as contained in Attachment I, which have processed and refined in the country in constitutes a part inseparable from this ministerial accordance with the minimum content of the regulation. processing and refinery of metal mineral min- ing commodities as contained in Attachment I, Busfness News 8 2l 29 which constitutes a part inseparable from this Article 6 ministerial regulation. (1) The joint cooperation in the processing and/or re- finery as meant in Article 5 paragraph (3) may be CHAPTER III in the form of: THE UPGRADING OF ADDED VALUE a. selling and buying raw ores (raw material or

Article 5 ores) or concentrates; or (1) Holders of IUP of Metal Mineral Production Opera- b. processing and/or refinery. tion and IUPK of Metal Mineral Production Opera- tion shall be obliged to process and refine their (2) The plan of joint cooperation in the processing mining production in the country in accordance and/or refinery as meant in paragraph (1) shall be with the minimum content of the processing and only executable after securing approval from: refinery of the specified metal minerals as meant a. the Minister, in the case of: in Article 3 paragraph (4). 1. the plan of joint cooperation between holders of IUP of Production Operation or (2) Holders of IUP of Non-Metal Mineral and Rock IUPK of Production Operation issued by Production Operation shall be obliged to process the minister and: their mining production in the country in accor- a) Other IUP of Production Operation or dance with the minimum content of the process- IUPK of Production Operation issued ing of the specified non-metal minerals and rocks by the Minister; as meant in Article 3 paragraph (5) and paragraph b) Other IUP of Production Operation is- (6). sued by governor or regent/mayor; c) Special IUP of Production Operation (3) The processing and/or refinery of mining prod- for the processing and/or refinery is- ucts produced by the holders of IUP of Produc- sued by the Minister. tion Operation and IUPK of Production Operation as meant in paragraph (1) and paragraph (2) may 2. the plan of joint cooperation between be executed directly or through cooperation with holders of IUP of Production Operation is- other holders of IUP of Production Operation and/ ; sued by 2 (two) different governors; or holders of special IUP of Production Operation for the nrocessina and/or refinery. 3. plan of joint cooperation between hold- ers of IUP of Production Operation issued 30 Business News 8592/8-22-2014 by 2 (two) regents/mayors with different holders of IUP of Production Operation is- province; sued by regent/mayor and special IUP of Production Operation for the processing 4. the plan of joint cooperation between and/or refinery issued by governor; holders of IUP of Production Operation issued by regent/mayor or IUP of Produc- c. regent/mayor in the case of the plan of joint tion Operation issued by governor and cooperation between holders of IUP of Pro- special IUP of Production Operation for duction Operation issued by the regent/mayor the processing and/or refinery issued by and: the minister. 1. other IUP of Production Operation issued by regent/mayor in one regency/city; b. governor, in the case of: 2. special IUP of Production Operation for 1. the plan of joint cooperation between the processing and/or refinery issued by holders of IUP of Production Operation is- the regent/mayor in one regency/city. sued by the governor and: a) other IUP of Production Operation is- (3) The Special IUP of Production Operation for the sued by the governor in one province; processing and/or refinery as meant in Article 5 b) other IUP of Production Operation paragraph 3 shall be granted by the minister, gov- issued by regent/mayor in one prov- ernor or regent/mayor in accordance with the pro- ince; vision of legislation. c) special IUP of Production Operation for the processing and/or refinery is- , (4) In the case of holders of IUP of Production Opera- sued by the governor in one province; tion, IUPK of Production Operation and Special IUP of Production Operation for the processing 2. the plan of joint cooperation between and/or refinery processing and/or refining ores holders of IUP of Production Operation (raw material or ores), concentrates or intermedi- issued by regent/mayor and IUP of Pro- ate product of minerals resulting from other coun- duction Operation issued by other regent/ tries, the plan of joint cooperation with supplier , mayor in one province; shall be obliged to secure approval from the min- ister. 3. the plan of joint cooperation between Business News 8592/8-22 2014 31 CHAPTER IV part inseparable from this ministerial regulation. OBLIGATION OF HOLDERS OF IUP OF PRODUCTION OPERATON, IUPK OF PRODUCTION OPERATION AND SPECIAL IUP OF PRODUCTION (3) Holders of IUP of Iron Sand Production Operation, OPERATION FOR THE PROCESSING AND REFINERY IUPK of Iron Sand Production Operation and Spe-

Article 7 cial IUP of Production Operation for the processing (1) Holders of IUP of Copper Production Operation, and/or refinery of iron sand as well as special IUP IUPK of Copper Production Operation and Spe- of Production Operation for the hauling and sales cial IUP of Production Operation for the process- that sell mining commodity iron sand, including ing and/or refinery of copper as well as special by product or rest of the purification in the form IUP of Production Operation for the hauling and of slag to other countries shall be obliged to fulfill sales that sell mining commodity copper, includ- the minimum content of the purification of met- ing by product or rest of the purification of cop- al minerals as contained in Attachment I, which per concentrates in the form of anode mud and constitutes a part inseparable from this ministerial copper telluride to other countries shall be obliged regulation. to fulfill the minimum content of the purification of metal minerals as contained in Attachment I, Article 8 which constitutes a part inseparable from this (1) In the case of holders of IUP of Tin Production ministerial regulation. Operation, IUPK of Tin Production Operation and Special IUP of Production Operation for the pro- (2) Holders of IUP of Lead and Zinc Production Op- cessing and refinery of tin processing and refining eration, IUPK of Lead and Zinc Production Opera- tin metal, the holders shall be obliged to separate tion and Special IUP of Production Operation for the associated minerals such as zircon, ilmenite, the processing and/or refinery of lead and zinc rutile, monazite, senotim, and process slag with as well as special IUP of Production Operation for the minimum content of the processing and/or re- the hauling and sales that sell mining commodity finery of metal minerals as contained in Attach- lead and zinc, including by product or rest of the ment I, which constitutes a part inseparable from purification in the form of gold and silver to other this ministerial regulation. countries shall be obliged to fulfill the minimum content of the purification of metal minerals as (2) Holders of IUP of Tin Production Operation, IUPK contained in Attachment I, which constitutes a of Tin Production Operation and Special IUP of 32 Business News 8592/8-22-2014 GOVERNMENT REGULATIONS Production Operation for the processing and re- duction for the domestic interest. finery of tin processing and refining tin metal as well as Special IUP of Production Operation for Article 10 the hauling and sales that sell tin, including by Mineral mining commodities not yet men- product or rest of the processing and refinery as tioned in Article 3 paragraph (4), Article 3 paragraph well as the associated minerals such as zircon, (5), and Article 3 paragraph (6) may only be sold to ilmenite, rutile, monazite, senotim, and slag to other countries after the minimum content of the pro- other countries shall be obliged to fulfill the mini- cessing and/or refinery thereof is stipulated by the mum content of the processing and/or refinery of Minister. metal minerals as meant in paragraph (1). CHAPTER VI (3) In the event that holders of IUP of Tin produc- TRANSITIONAL PROVISION tion Operation, IUPK of Tin Production Operation Article 11 and Special IUP of Production Operation for the Holders of Contracts of Work of Non-Metal processing and refinery of tin have by product Minerals and Rocks as well as IUP of Production Op- and associated minerals, in the form of zircon, eration of Non-Metal Minerals and Rocks as meant in ilmenite, rutile, monazite, senotim, and slag not Article 112C point 2 of Government Regulation Num- yet fulfilling the minimum content of the process- ber 1 Year 2014 regarding the Second Amendment ing and refinery as meant in paragraph (1), the by to Government Regulation Number 23 Year 2010 products and associated minerals shall be secured concerning the Execution of Mineral and Coal Mining in accordance with the provision of legislation. Business Activities may sell the processing results to other countries after fulfilling the minimum content of CHAPTER V the processing as meant in Attachment II and Attach- MISCELLANEOUS PROVISION ment III, which constitute a part inseparable from this

Article 9 ministerial regulation. The obligation to process and/or refine metal minerals, non-metal minerals and rocks in the provi- Article 12 sion of this ministerial regulation shall not apply to 1. Holders of Contracts of Work of Metal Minerals holders of IUP of Production Operation and IUPK of as meant in Article 112C point 3 of Government Production Operation of Metal Minerals, Non-Metal Regulation Number 1 Year 2014 regarding the Minerals and Rocks that use directly their mining pro- Second Amendment to Government Regulation ' Business Nev es 859218-22-2014 33 GOVERNMENT REGULATIONS Number 23 Year 2010 concerning the Execution to other countries as meant in point 1 and point 3 of Mineral and Coal Mining Business Activities shall not apply to metal minerals: I may sell the processing result, including the re- a. nickel ; finery result in a specified quantity to other coun- b. bauxite tries after fulfilling the minimum content of the c. tin; processing and refinery as meant in Attachment b. gold; I, which constitutes a part inseparable from this c. silver; and ministerial regulation. d. chromium. 2. Anode mud and copper telluride as by product or rest of the purification of metal mineral cop- 5. The overseas sales of the processing result in per may be sold to other countries in a specified specified quantity as meant in point 1 and point quantity as long as the refinery has not been ex- 3, including anode mud and copper as meant in 1 1 ecutable in the country in accordance with the point 2, may be executed in no later than 3 (three) minimum content of the refinery as contained in years as from the promulgation of this ministerial Attachment I, which constitutes a part insepara- regulation. ble from this ministerial regulation. 6. The overseas sales in the specified quantity as . Holders of IUP of Metal Mineral Production Opera- meant in point 5 may only be executed after se- tion as meant in Article 112C point 4 of Govern- curing recommendation from the Director General ment Regulation Number 1 Year 2014 regarding on behalf of the Minister. the Second Amendment to Government Regula- tion Number 23 Year 2010 concerning the Ex- 7. The recommendation as meant in point 6 shall ecution of Mineral and Coal Mining Business Ac- be used by holders of contracts of work of met- tivities may sell the processing result, including al minerals and IUP of Metal Mineral Production the refinery result in a specified quantity to other Operation, including other party producing anode countries after fulfilling the minimum content of mud and copper telluride as a basis to secure ex- the processing and refinery as contained in At- port approval from the Minister of Trade. tachment I, which constitutes a part inseparable from this ministerial regulation. 8. In order to secure the recommendation, holders of contract of work of metal minerals and IUP of 4. The sales of the metal mineral processirg result Metal Mineral Production Operation shall fulfill the 34 ' Business News 8592/8-22-2014 following requirements: g. plan of the sales of the processing result, a. having sufficient reserves to conduct the pro- containing, among others, kind and quality of cessing and refinery in the country in accor- product, quantity, price and port of loading. dance with age of the processing and refin- ery facility operated directly or in cooperation 10. The Director General on behalf of the Minister with other party; shall evaluate the application as meant in point 8 and point 9 to stipulate: b. showing the perseverance to build the re- a. kind and quality of product already matching finery facility directly or in cooperation with the minimum content of the processing of other party by submitting plan for the devel- metal minerals as contained in Attachment I, opment of the refinery facility; and which constitutes a part inseparable from this ministerial regulation; c. fulfilling the good environmental management performance. b. the specified quantities of the sales of the processing result, which is determined on the Application fulfilling the requirements to secure basis of consideration about: the recommendation as meant in point 8 shall be 1) environmental management performance; furnished with, among others: 2) reserves; a. feasibility study document already approved; 3) capacity of the refinery facility; and b. environmental document already approved by 4) progress of the development of the refin- the authorized institution; ery facility. c. payment form of the settlement of financial payment liabilities to the state; 11. In order to secure the recommendation, other par- d. clear and clean certificate, in the case of ty producing anode mud and copper telluride shall holder of IUP of Production Operation; meet the following requirements: e. timetable of the plan for the development a. showing the perseverance to build refinery of refinery facility in the country, which has facility directly or in cooperation with other been approved in accordance with the provi- party by submitting plan for the development sion of legislation; of the refinery facility; and f. the approved work plan and budget of cost in b. fulfilling good environmental management the current year; and/or performance; Business News 8592/8-22-2014 35 12. Application fulfilling the requirements to secure ; and point 13, the Director General on behalf of the recommendation as meant in point 11 shall be the Minister shall grant the recommendation as furnished with, among others: meant in point 6 to holders of contracts of work a. timetable of plan for the development of re- of metal minerals and IUP of metal mineral Pro- finery facility in the country already approved duction Operation, including other party produc- in accordance with the provision of legisla- ing anode mud and copper telluride for a period of tion; 6 (six) months. b. plan of sales, containing among others kind 15. The holders of Contracts of Work of Metal Miner- and quality of product, quantity, price and als and IUP of Metal Mineral Production Operation port of loading; as meant in point 1 and point 3, after 3 (three) years as from the promulgation of this ministerial c. the approved work plan and budget of cost in regulation, may only sell the production already the current year; and/or purified to other countries in accordance with the minimum content of the purification as contained d. environmental document already approved by in the attachment, which constitutes a part in- the authorized institution. separable from this ministerial regulation. 13. The Director General on behalf of the Minister 16. Other party producing anode mud and copper tel- shall evaluate the application as meant in point luride, after the 3 (three) years period as from the 11 and point 12 to stipulate the specified quantity promulgation of this ministerial regulation may of the sales, which is determined on the basis of only sell the production already purified to other consideration about: countries in accordance with the minimum con- a. environmental management performance; tent of the purification as contained in the attach- ment, which constitutes a part inseparable from b. capacity of the refinery facility; and this ministerial regulation. c. progress of the development of refinery facil- CHAPTER VII ity. CONCLUSION

Article 13 14. Based on the evaluation as meant in point 10 Following the enforcement of this ministerial 36 Business News 859218-22-2014 GOVERNMENT REGULATIONS regulation, Regulation of the Minister of Energy and Mineral Resources Number 07 Year 201 2 regarding the Upgrading of Added Value of Minerals Through Mineral Processing and Refinery (State Gazette of the Republic of Indonesia Year 201 2 Number 165) as already amended twice and the latest by Regulation of the Minister of Energy and Mineral Resources Number 20 Year 2013 (State Gazette of the Republic of Indonesia Year 2013 Number 993), shall be revoked and declared null and void.

Article 14 The ministerial regulation shall come into force as from the date of promulgation. For public cognizance, the ministerial regulation shall be promulgated by placing it in State Gazette of the Republic of Indonesia. Stipulated in Jakarta On January 11, 2014 THE MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA sgd JERO WACIK Promulgated in Jakarta On January 11, 2014 THE MINISTER OF LAW AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA sgd AMR SYAMSUDIN STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2014 NUMBER 35 Business News 8592 I 8- 22- 2014 37 ATTACHMENT I REGULATION OF THE MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA NUMBER 1 YEAR 2014 REGARDING THE UPGRADING OF ADDED VALUE OF MINERALS THROUGH MINERAL PROCESSING AND REFINERY IN THE COUNTRY MINIMUM CONTENT OF THE PROCESSING AND REFINERY OF METAL MINERALS IN THE COUNTRY No. Commodities Processing and/ Ores Minerals or Refinery Products Minimum Content 1. Copper (smelting) a. Chalcopyrite Processing Copper concentrates _.15% Cu b. Digenit c. Bornit d. Kuprit e. Kovelit Refinery a. Copper cathode Metal Cu __ 99% b. Anode mud a. Metal Au 99%; b. Metal Ag 99%; c. Bullion Pb 90%; d. Metal Pd 99%; e. Metal Pt 99%; f. Metal Se _99%; g. Metal Te 99%; h. Pb0 98%; i. Pb02 98%; j. 5e02> 98%; and/or k. Rare metal and rare earth (referring to requirement for metal rare earth in tin). 38 Business News 8592/8-22-2014 c. Copper telluride a. Metal Cu __.99%; b. Metal Te .?._99%; c. Te02 _98%; and/or d. Te(OH)4 _98%. Copper (leaching) a. Chalcopyrite Refinery Metal a. Metal Cu..99%; b. Digenit b. Metal Au _99`)/o; c. Bornit c. Metal Ag ._:99%; d. Kuprit d. Metal Pd..99%; e. Kovelit e. Metal Pt _99%; f. Metal Se __99%; g. Metal Te ?._99%; and/or h. Rare metal and rare earth (referring to requirement for metal rare earth in tin). 2. Nickel and/or a. Pentlandit Refinery Nickel matte, a. Ni Matte ..:70% Ni; cobalt (smelting) b. Garnerit alloy metal b. FeNi _..10%Ni; a. Saprolite c. Serpentine-nit and nickel metal c. Nickel Pig Iron b. limonite d. Karolit (NPI)..4% Ni; e. Pyrite d. Metal Ni _. . 93%; f. Gutit e. Metal Fe 93%; and/or f. Ni0 > 70% Ni. Business News 8592/8-22-2014 39 Nickel and/or Metal, metal oxide, a. Metal Ni 93%; cobalt (leaching) metal sufide, b. Mix Hydroxide limonite mix hydroxide/ Precipitate (MHP) sulfide precipitate, > 25% Ni; and hydroxide nickel c. Mix Sulfide carbonate Precipitate (MSP) _. 45% Ni; d. Hydroxide Nickel Carbonate (HNC) 40% Ni; e. NiS40% Ni and/or; f. Metal Co >93% g. CoS 40% Co; h. Metal Cr 99%; i. Cr20340%; and/or j. Mn02 with content Mn15%. Nickel and/or Refinery Metal alloy a. FeNispon cobalt (reduction) (Sponge FeNi) a. Saprolite 4% Ni; b. Limonite b. Luppen FeNi 4% Ni; and/or c. Nuget FeNi 4% Ni. 3. Bauxite a. Gibsit Refinery Metal oxide/ a. Smelter grade b. Diaspor hydroxide and metal alumina c. Buhmit 98% Al203; 40 Business News 8592/ 8-22-2014 b. Chemical Grade Alumina 90% Al203 90% Al(OH)3; and/or c. Metal Al 99%. 4. Iron ores a. Hematite Processing Iron concentrates 62% Fe b. Magnetite c. Pyrite Gutit/ laterite Processing Leterite iron _. 51% Fe concentrates Content (Al203 + Si02) > 10% Refinery Sponge, metal and Sponge iron 75% Fe; metal alloy Pig iron 90% Fe; and/or Alloy 88% Fe. 5. Iron sand a. Titanomag- Processing Iron sand concentrates .58cY0 Fe; and/or netit b. Ilmenite Pellet >56% Fe. Refinery Metal a. Sponge iron 75% Fe; and/or b. Pig iron 90% Fe. Slag a. TiO2 _. 90%; b. T1CI4 98%; c. Metal alloy 65% Ti; d. V205 90%; Business News 8592/8-22-2014 41 e. Metal alloy 65% V; and/or f. Rare metal and rare earth (referring to requirement for metal rare earth in tin). 6. Tin Kasiterit Processing By product of zircon, Referring to the ilmenite and rutile requirement for zircon, concentrates ilmenite, rutile in non-metal mineral zircon Monazite and centime a. Metal rare earth concentrates oxide (REO)._99%; b. Metal rare earth hydroxide (REOH) .99%; and/or c. Metal rare earth > 99%. Refinery Metal Metal Sn 99,90% Slag a. Metal W 90%; b. Ta205 90%; c. Nb205 90%; and/or d. 5b205 90%. 7. Manganese a. Pirolusit Processing Manganese 49% Mn b. Psilomelan concentrates c. Braunit I , . . 42 Business News 8592/8-22-2014 d. Manganit Refinery Metal, metal alloy a. Ferro Manganese and chemical (FeMn), Mn _60 %; manganese b. Silica Manganese (SiMn), Mn 60%; c. Manganese Monoxide (MnO), Mn_47,5%, Mn02_4%; d. Manganese Sulfate (Mn504) 90%; e. Manganese Chloride (MnC12) 90%; f. Manganese Carbonate Synthetic (MnCO3) 90%; g. Kalium Permanganate (KMn04) 90%; h. Mangani Oxide (Mn304) 90%; i. Manganese Dioxide Synthetic (Mn02) 98%; and/or j. Manganese Sponge (Direct Reduced Manganese) Mn49%, Mn024% Business News 8592/8-22-2014 43 8. Lead and zinc a. Galena Processing Zinc concentrates 52% Zn b. Spalerit Lead concentrates 57% Pb c. Smitsonit d. Hemimor- fit Refinery Metal, metal oxide (kalamide) /hydroxide a. Bullion 90% Pb; b. Pb0 __98%; c. Pb(OH)2 98%; d. Pb02 98%; e. Bullion 90% Zn; f. Zn098%; g. Zn02 98%; h. ZnI0H12 98%. i. Metal Au 99% and/or j. Metal Ag 99% 9. Gold a. Native Refinery Precious metal a. Metal Au 99% b. Associated b. Metal Au 99% minerals 10. Silver a. Native Refinery Precious metal a. Metal Ag 99% b. Associated b. Metal Ag 99% minerals 11. Chromium Chromate Refinery Metal and alloy a. Metal Cr 99%; and/or b. Metal alloy 60% Cr THE MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA Sgd JERO WACIK Business News 8592/822-2O14 ATTACHMENT II REGULATION OF THE MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA NUMBER 1 YEAR 2014 REGARDING THE UPGRADING OF ADDED VALUE OF MINERALS THROUGH MINERAL PROCESSING AND REFINERY IN THE COUNTRY MINIMUM CONTENT OF THE PROCESSING OF NON-METAL MINING COMMODITIES IN THE COUNTRY No. Commodities Products Minimum Content 1. Zircon Zirconium, zircon silicate, a. (Zr02 +Hf02) > 99%; chemical substance b. Zircon sand (ZrSiO4), (Zr02 > 65,5%) zircon, sponge zircon, passing filter 60 mesh> 95%; metal zircon, and hafnium c. Zirconium Silicate (Zr5104), (Zr02> 64%) passing filter 325 mesh> 95%; d. Zirconium Silicate (ZrSiO4), (Zr02> 63%) d50 = 1,43 + 0,16 pm; e. Zirconium Silicate (ZrSiO4), (Zr02> 62%) d50 =1,1 + 0,2 pm; f. Zirconium Oxychloride (ZOC) ZrOC12.8H20 > 90%; g. Zirkonium Sulf at (ZOS) Zr(504)2.4H20 > 90%; h. Sulfate-based Zirconium (ZBS) Zr508(504)2. xH20 > 90%; i. Carbonate-based Zirconium (ZBC) Zr00O3. xH20 >90%; j. Amonium Zirconium Carbonate (AZC) (NH4)3ZrOH(CO3)3 .2H20 >90%; k. Zirconium Acetate (ZAC) H2Zr02(C2H302)2> 90%; I. Kalium Heksafloro Zirkonat (KFZ) K2ZrF6 > 90%; Business News 8592/8-22-2014 45 m. Zirconium Spon> 85%Zr; n. Zirdonium> 95% Zr; and/or o. Hafnium > 95% Hf. Associated minerals a. Ilmenite FeT1O3 > 98% b. Rutile TiO2 > 90% 2. Kaolin Processed Kaolin a. Brightness_ 79%; b. Granule size passing filter 325 mesh 99%; c. Si02 46%;and d. Al203 36%. 3. Zeolite Processed Zeolite KTK meq/100g 4. Bentonite Processed Bentonite Bleaching power ._70% 5. I Silica (quartz sand) I Cullet, gravel pack sand a. S102_ 80% in the form of cullet b. Gravel Pack Sand 1) S102_ 98,5%; 2) Roundness 60%; 3) Spherecity_ 70%; 4) Solubility in acid 1,3%; and 5) Breakable at the pressure 5000 psi, faction size -40+70 mesh_ 6,2%. 6. I Calcite (limestone) I Unslaked lime a. CaO 96%; b. Ca(OH)2, 70-74%; c. Granule size r..1000 mesh; 46 Business News 859218-22-2014 d. CaCO3 > 98%; and e. Gravity .0,7 g/cc. 7. Feldspar Processed Feldspar a. (K20 + Na20) _.. 10%; and b. Fe203_1%. 8. Diamond Jewel, metal Au, metal Ag a. Diamond; b. Metal Au ._._ 99%; and c. Metal Pt 99%. THE MINISTER OFENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA sgd JERO WACIK ATTACHMENT III REGULATION OF THE MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA NUMBER 1 YEAR 2014 REGARDING THE UPGRADING OF ADDED VALUE OF MINERALS THROUGH MINERAL PROCESSING AND REFINERY IN THE COUNTRY MINIMUM CONTENT OF THE PROCESSING AND REFINERY OF MINING COMMODITY ROCKS IN THE COUNTRY No. Commodities Minimum Content Remarks 1. Marble Cutting and/or polishing Floor tile, block, slab 2. Granite Size sorting or cutting Decorative stone, floor tile, slab and beam 3. Onyx 4. Opal Polishing Gemstone 5. Jade _ Business News 8592/8-22-2014 47 6. Agate 7. Topaz 8. Perlite Polishing and heating Perlite powder 9. Toseki Processing 10. Slate Cutting 11. Granodiorit Size sorting or cutting 12. Gabro 13. Peridotit 14. Basalt 15. Chalcedon Polishing 16. Cert. 17. Jasper 18. Krisopras 19. Garnet _ THE MINISTER OFENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA sgd JERO WACIK (R) 48 I Business News 8592/8-22-2014