New Mineral Benchmark Price Formula Takes Effect Today, ESDM Reveals the Calculation

The Ministry of Energy and Mineral Resources, through Director General of Minerals and Coal, Tri Winarno, has announced the implementation of a new formula for determining the Mineral Benchmark Price (HPM) starting today, Wednesday, 15 April 2026. He emphasised that this move aims to introduce adaptive, fair, and transparent regulations based on in-depth evaluations to optimise state revenues. “The re-determination of this formula is based on in-depth evaluation results, with the primary goal of optimising state revenues and ensuring fairness for all stakeholders,” said Tri, as quoted from the official website of the Directorate General of Minerals and Coal of the Ministry of ESDM, Wednesday, 15 April 2026. These changes are enshrined in Ministerial Decree No. 144 of 2026 on Amendments to Ministerial Decree No. 268.K/MB.01/MEM.B/2025 regarding Guidelines for Determining Benchmark Prices for the Sale of Metal Mineral and Coal Commodities. The regulation outlines three substantial changes, namely the adjustment of the nickel ore formula through adjustments to the Corrective Factor (CF) and the addition of associated minerals (iron, cobalt, and chrome) in the HPM calculation. Additionally, there is an adjustment to the bauxite ore formula, involving a reduction in the reactive-silica factor (R-SiO2) in the HPM calculation. The third change is the unit of price, namely the transition of the HPM unit for ore from the previous US dollars per DMT (Dry Metric Ton) to US dollars per WMT (Wet Metric Ton). “This unit change applies to various commodities, including nickel ore, bauxite, cobalt, lead, zinc, iron, copper, manganese, chrome, and iron sand,” said Tri. He explained that the current dynamics of the global commodities market are moving very quickly and are fluctuating. Global economic uncertainty requires us to have adaptive, fair, and transparent regulations. The government periodically evaluates the Mineral Benchmark Price (HPM) formula. Tri urged all mining companies, especially those in nickel and bauxite, to immediately conduct intensive coordination with surveyors. Coordination is a crucial step so that surveyors can present complete mineral quality data, such as associated minerals iron, cobalt, and chrome in nickel ore and reactive-silica levels in bauxite ore, in accordance with these latest regulations.