PYX Resources Ltd's (LSE:PYX, NSX:PYX) shares tumbled 19% following a sharp increase in royalties on mineral sands exports in Indonesia.
Local authorities in Central Kalimantan raised royalties on zircon, rutile, and ilmenite from 4% to 20% of a higher base price.
The new rate equates to $59 per tonne, up from $8, adding to an existing 1.5% export tax.
The increase affects all Indonesian mineral sands producers. PYX, alongside the Indonesian Zircon and Titanium Association, is lobbying for a reversal or changes to exemptions.
CEO Oliver Hasler called the hike a “big impact” on the industry and hopes talks with officials will yield a constructive outcome. The company is working to mitigate the financial strain.