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JAKARTA - PYX Resources Limited (NSX:PYX | LSE:PYX) has suspended operations at its Mandiri mineral sands deposit in Central Kalimantan, Indonesia, after its mining license expired on August 31 amid regulatory changes by the Indonesian government.
The suspension follows a decision by Indonesia’s Ministry of Energy and Mineral Resources not to reinstate the annual RKAB (Work Plan and Budget) system until 2026, according to a company statement released Tuesday. The regulatory shift has prevented PYX from renewing its IUP license, forcing a temporary halt to production activities.
Indonesian authorities indicated the policy change aims to address oversupply, improve market stability, and enhance regulatory oversight across multiple mining sectors including mineral sands.
The company, which has been producing zircon from the Mandiri deposit since 2015, faces uncertainty regarding when operations might resume. The previous regulatory framework allowed for three-year work plans, which industry experts argue provided more stability for production planning.
According to the company statement, the lack of a clear transitional framework has left mining operators unable to proceed with license renewals despite commitments to responsible mining practices.
Industry observers have expressed concerns about the practicality of managing Indonesia’s more than 4,100 active mining permits under a yearly approval cycle rather than the previous three-year system.
PYX Resources stated it remains committed to its long-term strategy of consolidating mineral sands resources and will provide updates as the situation develops.
The information in this article is based on a company press release statement.
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