Home ECONOMY AMMN Awaits Amount of Sanction from the Ministry of Energy and Mineral Resources

AMMN Awaits Amount of Sanction from the Ministry of Energy and Mineral Resources

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AMMN Awaits Amount of Sanction from the Ministry of Energy and Mineral Resources

Jakarta, Timerilis.com – PT Amman Mineral International Tbk (AMMN) through its subsidiary PT Amman Mineral Nusa Tenggara (AMNT) has submitted a report on the results of the verification of the physical progress of smelter construction conducted by the Independent Verifier to the Director General of Mineral and Coal (Dirjen Minerba) of the Ministry of Energy and Mineral Resources.

Corporate Communications and Investor Relations of PT Amman Mineral International (AMMN) Kartika Octaviana said that her party had submitted a report from the Independent Verifier by the Ministerial Decree (Kepmen) of ESDM Number 89 of 2023 which requires reporting 60 days after the enactment of the regulation.

“We have submitted all supporting documents and verification reports according to the deadline of July 15 according to the relevant regulations,” Kartika said on Tuesday (18/7/2023).

AMMN is still waiting for an order to pay administrative fines from the Director General of Mineral and Coal of the Ministry of Energy and Mineral Resources, then make direct deposits to the state treasury through a perception bank per applicable regulations.

“The certainty of the fine is still waiting for the results of the assessment and calculation from the government. Various documents that are the company’s obligations have been completed and submitted to the government under the Ministerial Decree,” Kartika explained.

In addition to AMMN, PT Freeport Indonesia (PTFI) (copper), PT Amman Mineral Nusa Tenggara (copper), PT Sebuku Iron Lateritic Ores (iron), and two smelters owned by PT Kapuas Prima Coal, namely PT Kapuas Prima Cita (lead) and PT Kobar Lamandau Mineral (zinc) are also subject to sanctions for delayed smelter construction.

Acting Director General of Mineral and Coal (Minerba) of the Ministry of Energy and Mineral Resources Muhammad Wafid has reminded the companies to be able to pay their commitments per applicable regulations.

“Everything must be by coordination, we continue to remind smelter builders. Be careful if you are not following what has been regulated, some consequences are conveyed,” Wafid said when met at the Ministry of Energy and Mineral Resources, Monday (17/7/2023).

The imposition of administrative fines for delays in refining facilities is 20 of the cumulative value of overseas sales for each period of delay by considering the impact of the Covid-19 pandemic.

Referring to the Decree of the Minister of Energy and Mineral Resources Number 89 of 2023, the period of imposition of administrative fines for delays in smelter construction starts from October 2019 to June 2023, equal to three years and eight months.

Administrative fines take into account activities affected by the Covid-19 pandemic based on the Independent Verifier report with the following formula:
Fine =((90% -A-B)/90%) x 20& x C
A = percentage of cumulative achievement of physical progress according to verification
B = total weight affected by Covid19 according to verification results
C = cumulative value of overseas sales during the construction period

Previously, Minister of Energy and Mineral Resources Arifin Tasrif said, there is already a way for imposing fines for companies that get export relaxation and waiting for companies to deposit.

“The sanctions must be deposited, there is a formula, then we will convey it later,” Arifin said at the Ministry of Energy and Mineral Resources, Friday (23/6/2023).

In addition to late fines, the company is also required to provide a guarantee of 5 percent of the total sales for the period October 16, 2019, to January 11, 2022, in the form of an escrow account. If on June 10, 2024, the company does not reach the 90 percent target, the guarantee will be deposited into the state treasury.

After obtaining export relaxation, companies are also subject to fines during the extension period which is currently being regulated by the Ministry of Finance. (Eva/Rd)