PYX Resources Ltd (LSE:PYX, NSX:PYX) told investors it did not undertake any production in the first half of 2025 due to weak mineral sands pricing, high operating costs, and a sharp increase in regional royalties in Indonesia.
The company also cited unresolved licensing issues following recent regulatory changes in Central Kalimantan.
Export licences for zircon, ilmenite and rutile have been suspended following the provincial government’s decision to pause RKAB approvals for all zircon producers in the region. Fourteen companies, including PYX’s subsidiaries PT Investasi Mandiri and Tisma, were affected.
Nevertheless, chief executive Oliver Hasler said PYX continues to believe in the long-term potential of the mineral sands sector.
"We are currently facing a number of complex regulatory and administrative challenges in Indonesia, including a steep increase in royalties, that need to be resolved before we can move forward with our project," Hasler said.
"We are engaging constructively with the relevant authorities and remain committed to working through these hurdles in a responsible and transparent manner."