Cita Mineral Investindo Denies Selling Bauxite Below Government Benchmark Price
JAKARTA. Bauxite mining company PT Cita Mineral Investindo Tbk (CITA) has affirmed that it is not involved in the practice of selling bauxite to smelters at prices below the Benchmark Mineral Price (HPM) set by the Ministry of Energy and Mineral Resources (ESDM).
CITA Director Yusak Lumba Pardede said the company currently maintains a bauxite sales agreement with PT Well Harvest Winning Alumina Refinery (WHW) through a business-to-business (B2B) scheme.
"We currently have a sales agreement with WHW based on a B2B scheme. So far, CITA has secured a reasonably good price for its bauxite sales," Yusak said during an online public presentation on Friday (16/5).
Nevertheless, Yusak noted that cross-ministerial coordination is still needed to ensure the implementation of HPM in the bauxite sector can function optimally. He said synergy between the Ministry of Energy and Mineral Resources, the Ministry of Industry, the Investment Coordinating Board (BKPM), and industry players is essential.
"There needs to be good coordination between the Ministry of Industry, BKPM, and industry players to ensure the HPM pricing is properly implemented," he said.
Furthermore, Yusak explained that the HPM fundamentally serves as an important basis for the government in determining royalty rates for mineral and coal commodities. He therefore emphasised that industry players generally comply with these provisions.
"I don't think any company or industry player deliberately ignores the HPM. But synchronisation is indeed needed. We hope for a win-win solution between miners and smelters," he explained.
Previously, the Indonesian Bauxite Association (ABI) reported the practice of bauxite purchases by several domestic smelters below the HPM. This situation was deemed detrimental to miners, particularly since the ban on raw bauxite exports was imposed in 2023.
ABI Chairman Ronald Sulistyanto revealed that prices not aligned with the HPM have caused many mining operators to halt production. "According to our records, out of 69 mining operators, only around 15 to 20 are still in production," Ronald said on Sunday (4/5).
Ronald added that in the domestic market, WHW is one of the smelters offering prices closer to the HPM. "WHW still provides some price flexibility, but most of the others are still below the HPM," he concluded.
CITA Director Yusak Lumba Pardede said the company currently maintains a bauxite sales agreement with PT Well Harvest Winning Alumina Refinery (WHW) through a business-to-business (B2B) scheme.
"We currently have a sales agreement with WHW based on a B2B scheme. So far, CITA has secured a reasonably good price for its bauxite sales," Yusak said during an online public presentation on Friday (16/5).
Nevertheless, Yusak noted that cross-ministerial coordination is still needed to ensure the implementation of HPM in the bauxite sector can function optimally. He said synergy between the Ministry of Energy and Mineral Resources, the Ministry of Industry, the Investment Coordinating Board (BKPM), and industry players is essential.
"There needs to be good coordination between the Ministry of Industry, BKPM, and industry players to ensure the HPM pricing is properly implemented," he said.
Furthermore, Yusak explained that the HPM fundamentally serves as an important basis for the government in determining royalty rates for mineral and coal commodities. He therefore emphasised that industry players generally comply with these provisions.
"I don't think any company or industry player deliberately ignores the HPM. But synchronisation is indeed needed. We hope for a win-win solution between miners and smelters," he explained.
Previously, the Indonesian Bauxite Association (ABI) reported the practice of bauxite purchases by several domestic smelters below the HPM. This situation was deemed detrimental to miners, particularly since the ban on raw bauxite exports was imposed in 2023.
ABI Chairman Ronald Sulistyanto revealed that prices not aligned with the HPM have caused many mining operators to halt production. "According to our records, out of 69 mining operators, only around 15 to 20 are still in production," Ronald said on Sunday (4/5).
Ronald added that in the domestic market, WHW is one of the smelters offering prices closer to the HPM. "WHW still provides some price flexibility, but most of the others are still below the HPM," he concluded.