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PYX Resources Ltd on Tuesday announced an operational disruption at its IUP license for the Mandiri deposit in Central Kalimantan in Indonesia, citing regulatory changes introduced by the country’s government. The Indonesia-focused zircon and mineral sands producer said its IUP, Izin Usaha Pertambangan, or Mining Business License, expired on Sunday, with the company forced to postpone the renewal of its license resulting in a temporary suspension of operations at Mandiri. PYX Resources said Indonesia’s Ministry of Energy & Mineral Resources has decided that the annual Work Plan & Budget system will not be reinstated until 2026, with the move according to government being driven by a need to address oversupply and improve market stability, among other reasons. ‘While PYX supports the government’s broader objectives to strengthen governance and transparency, the abrupt nature of the policy shift has created significant uncertainty for mining operators. The lack of a clear transitional framework has left companies like PYX unable to proceed with license renewals, despite a long-standing commitment to responsible mining,’ the company said. It added that the Indonesian government plans a shift to annual approvals of mining permits, away from a three-year system. According to PYX, the Mandiri deposit covers an area of 2,032 hectares and produced more than 31,000 metric tonnes of premium zircon since it began operating in August 2015. It has been mostly producing 65.5 grade zircon. PYX Resources shares fell 20% to 0.49 pence each late Tuesday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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