SMM

SMM reported on November 20 that at the Training to Miners APNI 2024 conference in November, the latest updates on the approval progress of PNBP and RKAB, which are closely related to the current operations and transactions of nickel ore miners, were discussed. Indonesia has proposed potential adjustments to the interpretation of non-tax state revenue (PNBP Royalty) for laterite nickel ore. Currently, nickel miners need to declare the transaction quantity and grade of Indonesian domestic trade laterite nickel ore based on the actual FOB price at the mine, and then pay a 10% resource fee, which some mines also refer to as a royalty. To support the new energy battery materials industry, a 2% royalty may be imposed on nickel ore with a grade below 1.5% in the future. This adjustment reflects a new policy direction aimed at promoting the development of the new energy industry. Regarding the current progress of Indonesia's RKAB approval quotas, 396 applications have been submitted, 193 have been approved for production, 74 have been approved but have zero production, and 53 are still under evaluation. Over the next three years, the approved quota volumes are 271.887 million wmt for 2024, 246.662 million wmt for 2025, and 198.539 million wmt for 2026.