Why did the Indonesian government call off 190 mining companies?

190 mining companies suddenly put on the brakes, the nickel mining association directly support the official, even the president named to clear the illegal mines. Indonesia's mining industry wants to make money, now you have to go through compliance first. The inflection point is really coming.On September 18th, the Directorate General of Mining of Indonesia's Ministry of Energy and Minerals suddenly made a big move, and all 190 mining companies were called off.To put it bluntly, there are two issues, either not enough reclamation bonds were posted or the RKAB mine work program is not compliant.

More critically, the Indonesian Nickel Mining Association has come out directly in favor of enforcement, and this is not an isolated incident. Back on August 15th, on Independence Day.President Prabowo let it slip in his address to Congress that he wants to clear 1,063 illegal mining sites.It doesn't matter what your status is, if you touch an illegal mine, check it out.

-First point, restore key information.Let's start with the core reasons why these 190 were shut down, just two, either the reclamation bond wasn't paid enough, or the mine's work plan was in violation of the rules, and in some cases, they were over-producing, that is, they dug more than they were authorized to. Thirty-nine of the companies here are nickel miners, with 25 in Southeast Sulawesi province alone, and another six in North Maluku. Most of the remaining coal companies are restored under the condition that they will be automatically released upon payment of a reclamation bond and completion of formalities.

-Second point, talk a little bit about the impact on the program that people are most concerned about.Risk reassessment, short-term disturbance to the capacity and cash flow of non-compliant mines, medium- and long-term reclamation bond and mine work plan become a hard barrier to entry. Market signals that the Indonesian Nickel Mining Association has publicly endorsed law enforcement, which is conducive to breaking through theESGWith the green financial channel, reduce policy uncertainty, discount. This wave is definitely not a gust of remediation, but the policy of the Indonesian mining industry has completely changed. From the previous incremental expansion of digging more and expanding more to compliance first and then quality. Now whoever first makes the reclamation bond, the mine work plan and the environment, the community pile of materials are clear, who will be able to dominate in the Indonesian mining track, can get a lower interest loan, can find more stable customers, and sign the contract cycle is also longer.

So don't just stare at 190 homes getting the brakes slammed on them, it's just a good sign for the money that wants to get in for the long haul that the time for compliance is here.