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Friday, 10 July 09
INDONESIAN MINING LAW IN TRANSITION
Further to the enactment of Law No. 4 of 2009 on Mineral and Coal Mining (“Law 4/2009”), the enactment of various implementing regulations is awaited, including regulations providing further details on the status of the existing mining structures, i.e. Contract of Work (known as Kontrak Karya or KK) (“CoW”), Coal Contract of Work (known as Perjanjian Karya Pengusahaan Pertambangan Batubara or PKP2B) (“CCoW”), and Mining Concessions (known as Kuasa Pertambangan) (“KP”). While the general framework for the adjustment of CoW and CCoW is provided, Law 4/2009 remains silent on the status of KP.
As the Indonesian mining community is still waiting for legal certainty in this sector, the Government of Indonesia through the Department of Energy and Mineral Resources initiated several policies to bridge the gap during this transition period by issuing Circular Letter of the Director General of Minerals, Coal and Geothermal Energy No. 03.E/31/DJB/2009 on Permits for Mineral and Coal Mining Before The Issuance of Government Regulations As The Implementation of Law No. 4 of 2009 (“SE 3/2009”).
SE 3/2009 is dated 30 January 2009 and was issued by the Director General of Minerals, Coal and Geothermal Energy (“DGMCG”) and signed for and on behalf of the Minister of Energy and Natural Resources (“Minister”). SE 3/2009 provides several guidelines for mineral and coal mining activities as follows:
i. KPs issued prior to enactment of Law No. 4 of 2009 (“Law 4/2009”) including any escalations thereof will remain valid for the remainder of their term and are to be converted to Mining Business Permits (Izin Usaha Pertambangan or “IUP”) within one year of issuance of Law 4/2009 (i.e., by 12 January 2010);
ii. The issuance of new IUPs is suspended pending the issuance of implementing regulations;
iii. Governors and Regents are to liaise with the DGMCG in respect of the processing of all applications for escalations and
extensions of KPs in accordance with Law 4/2009;
iv. Governors and Regents must submit to the Minister all applications for KPs, whose reserved mining areas were approved
before the enactment of Law 4/2009, for evaluation and verification in order to prepare the WIUP (Mining Business Permit Territories) in accordance with national spatial planning;
v. Governors and Regents must notify KPs holders who have done exploration and exploitation stages to submit their activity plan for approval by the KP grantor with a copy to the DGMCG at the latest 6 (six) months after the enactment of Law 4/2009;
vi. All KPs issued after 12 January 2009 are null and void;
vii. The DGMCG will issue a format for Exploration (IUP Eksplorasi) and Production Business Licences (IUP Operasi Produksi);
viii. New applications and extensions for Group C Mineral Mining Permits submitted before Law 4/2009 will be processed in accordance with Law 4/2009 after coordination with Governors;
ix. Applicants for CoW and CCoW must establish an Indonesian legal entity at the latest 6 months after the enactment of Law 4/2009 in order for their IUPs to be processed.
Following the enactment of SE 3/2009, and considering that there are still uncertainties among the mining stakeholders regarding the actions to be taken prior to the enactment of the implementing regulations of Law 4/2009, the DGMCG again issued Letter No. 1053/30/DJB/2009 dated 24 March 2009 addressed to all Governors and Regents/Mayors in Indonesia (“Letter 1053/2009”).
Letter 1053/2009 sets out the format for IUP (“IUP Format”) and stipulates as follows:
i. All KPs which are still valid must be adapted to become IUP, the format of which will be based on the IUP Format;
ii. The extension of KPs will be coordinated by the DGMCG based on the IUP Format;
iii. KP applications which were submitted prior to 12 January 2009 and obtained a territory reservation (pencadangan wilayah) will be processed to IUP, but without being required to participate in a tender process;
iv. CoW and CCoW which were submitted 6 (six) months prior to the enactment of Law 4/2009 and obtained principal approval
will be adjusted to IUP and must form an Indonesian legal entity, and may undergo the next steps to commence the designated mining activities without being required to participate in a tender process;
v. In order to obtain a corporate and investment approval related to the establishment of an Indonesian legal entity (foreign investment company) from the Department of Law and Human Rights and the Investment Coordinating Board (“BKPM”), a company must also obtain a recommendation from the DGCMG;
vi. The Governor and Regent/Mayor must submit all of the mining information (KP, CoW, CCoW) within each of their respective areas for the Government to formulate the Mining Business Permit Territory (“WIUP”).
Source: HPRP
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Wednesday, 15 July 09
BANGLADESH TO IMPORT COAL FROM INDIA FOR 1 MORE YR
Bangladesh has decided to import coal from neighbour India for another year to save foreign exchange and time, a commerce ministry official said on ...
Wednesday, 15 July 09
INDONESIAN FIRM SUBMITS LOWEST BID FOR NAPOCOR COAL
ABS-CBN News reported that, An Indonesian firm offered to supply 195,000 tons of thermal coal to top Philippine electricity producer National Power ...
Wednesday, 15 July 09
INDIAN COAL MINISTRY TO CONSIDER POWER PLANT ALTERATION PROPOSALS
PTI reported that the coal ministry has agreed to consider applications of power plants seeking long term coal linkage due to enhancement in electri ...
Wednesday, 15 July 09
SHENHUA STARTS WORK ON INDONESIA POWER PLANT
Bloomberg reported that China Shenhua Guohau Power a unit of China’s biggest coal producer started construction of a power plant and mine in I ...
Wednesday, 15 July 09
PLN OPENS TENDERS FOR SUPPLY OF LOW - GRADE COAL
The Jakarta Globe, a Indonesian new paper reported that, State power utility PT PLN has opened a tender for the supply of low-grade coal for the nat ...
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- Petron Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- Larsen & Toubro Limited - India
- Indika Energy - Indonesia
- Marubeni Corporation - India
- GVK Power & Infra Limited - India
- Sakthi Sugars Limited - India
- SN Aboitiz Power Inc, Philippines
- London Commodity Brokers - England
- Ministry of Finance - Indonesia
- Ministry of Transport, Egypt
- Essar Steel Hazira Ltd - India
- Savvy Resources Ltd - HongKong
- Sindya Power Generating Company Private Ltd
- Kideco Jaya Agung - Indonesia
- Simpson Spence & Young - Indonesia
- Bhoruka Overseas - Indonesia
- Intertek Mineral Services - Indonesia
- Holcim Trading Pte Ltd - Singapore
- PowerSource Philippines DevCo
- Petrochimia International Co. Ltd.- Taiwan
- Vizag Seaport Private Limited - India
- Straits Asia Resources Limited - Singapore
- Indian Energy Exchange, India
- Heidelberg Cement - Germany
- Agrawal Coal Company - India
- Karaikal Port Pvt Ltd - India
- Rashtriya Ispat Nigam Limited - India
- TeaM Sual Corporation - Philippines
- Port Waratah Coal Services - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Anglo American - United Kingdom
- Uttam Galva Steels Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Bukit Makmur.PT - Indonesia
- Thiess Contractors Indonesia
- Jindal Steel & Power Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Altura Mining Limited, Indonesia
- Indonesian Coal Mining Association
- Lanco Infratech Ltd - India
- Indo Tambangraya Megah - Indonesia
- Coal and Oil Company - UAE
- Bayan Resources Tbk. - Indonesia
- Eastern Coal Council - USA
- Kepco SPC Power Corporation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Maheswari Brothers Coal Limited - India
- Bulk Trading Sa - Switzerland
- Makarim & Taira - Indonesia
- Aditya Birla Group - India
- Toyota Tsusho Corporation, Japan
- Neyveli Lignite Corporation Ltd, - India
- Mercator Lines Limited - India
- Posco Energy - South Korea
- Energy Development Corp, Philippines
- Antam Resourcindo - Indonesia
- Bhushan Steel Limited - India
- Binh Thuan Hamico - Vietnam
- Miang Besar Coal Terminal - Indonesia
- Bangladesh Power Developement Board
- Price Waterhouse Coopers - Russia
- Gujarat Electricity Regulatory Commission - India
- Ceylon Electricity Board - Sri Lanka
- Rio Tinto Coal - Australia
- MS Steel International - UAE
- Chamber of Mines of South Africa
- Mintek Dendrill Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Merrill Lynch Commodities Europe
- Bharathi Cement Corporation - India
- Salva Resources Pvt Ltd - India
- Indogreen Group - Indonesia
- The Treasury - Australian Government
- Coalindo Energy - Indonesia
- Global Green Power PLC Corporation, Philippines
- VISA Power Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kohat Cement Company Ltd. - Pakistan
- Samtan Co., Ltd - South Korea
- Africa Commodities Group - South Africa
- ASAPP Information Group - India
- Thai Mozambique Logistica
- Central Java Power - Indonesia
- White Energy Company Limited
- Directorate General of MIneral and Coal - Indonesia
- Mercuria Energy - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- SMG Consultants - Indonesia
- Bhatia International Limited - India
- Central Electricity Authority - India
- Madhucon Powers Ltd - India
- Standard Chartered Bank - UAE
- Interocean Group of Companies - India
- Romanian Commodities Exchange
- Aboitiz Power Corporation - Philippines
- Siam City Cement PLC, Thailand
- Chettinad Cement Corporation Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- South Luzon Thermal Energy Corporation
- Siam City Cement - Thailand
- Metalloyd Limited - United Kingdom
- Kalimantan Lumbung Energi - Indonesia
- The University of Queensland
- SMC Global Power, Philippines
- Malabar Cements Ltd - India
- India Bulls Power Limited - India
- PNOC Exploration Corporation - Philippines
- Semirara Mining and Power Corporation, Philippines
- Tamil Nadu electricity Board
- Kapuas Tunggal Persada - Indonesia
- GMR Energy Limited - India
- Eastern Energy - Thailand
- Orica Mining Services - Indonesia
- Kartika Selabumi Mining - Indonesia
- Independent Power Producers Association of India
- CIMB Investment Bank - Malaysia
- San Jose City I Power Corp, Philippines
- Jaiprakash Power Ventures ltd
- Meenaskhi Energy Private Limited - India
- New Zealand Coal & Carbon
- Wilmar Investment Holdings
- IEA Clean Coal Centre - UK
- Ambuja Cements Ltd - India
- Carbofer General Trading SA - India
- Timah Investasi Mineral - Indoneisa
- Medco Energi Mining Internasional
- Australian Coal Association
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sree Jayajothi Cements Limited - India
- Electricity Generating Authority of Thailand
- Orica Australia Pty. Ltd.
- LBH Netherlands Bv - Netherlands
- Global Coal Blending Company Limited - Australia
- Power Finance Corporation Ltd., India
- Singapore Mercantile Exchange
- Sarangani Energy Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Banpu Public Company Limited - Thailand
- OPG Power Generation Pvt Ltd - India
- Vedanta Resources Plc - India
- Pipit Mutiara Jaya. PT, Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Formosa Plastics Group - Taiwan
- Goldman Sachs - Singapore
- Sical Logistics Limited - India
- Sinarmas Energy and Mining - Indonesia
- Australian Commodity Traders Exchange
- Dalmia Cement Bharat India
- Asmin Koalindo Tuhup - Indonesia
- Coastal Gujarat Power Limited - India
- Grasim Industreis Ltd - India
- Manunggal Multi Energi - Indonesia
- Trasteel International SA, Italy
- Georgia Ports Authority, United States
- Global Business Power Corporation, Philippines
- Electricity Authority, New Zealand
- The State Trading Corporation of India Ltd
- Kumho Petrochemical, South Korea
- Sojitz Corporation - Japan
- IHS Mccloskey Coal Group - USA
- Ind-Barath Power Infra Limited - India
- Globalindo Alam Lestari - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Attock Cement Pakistan Limited
- European Bulk Services B.V. - Netherlands
- Therma Luzon, Inc, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Kaltim Prima Coal - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- Latin American Coal - Colombia
- Meralco Power Generation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Indian Oil Corporation Limited
- ICICI Bank Limited - India
- Renaissance Capital - South Africa
- Ministry of Mines - Canada
- Barasentosa Lestari - Indonesia
- Directorate Of Revenue Intelligence - India
- Bukit Baiduri Energy - Indonesia
- Tata Chemicals Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Minerals Council of Australia
- Parliament of New Zealand
- Videocon Industries ltd - India
- Parry Sugars Refinery, India
- Star Paper Mills Limited - India
- CNBM International Corporation - China
- Xindia Steels Limited - India
- Oldendorff Carriers - Singapore
- PTC India Limited - India
- Alfred C Toepfer International GmbH - Germany
- International Coal Ventures Pvt Ltd - India
- Gujarat Sidhee Cement - India
- Deloitte Consulting - India
- Billiton Holdings Pty Ltd - Australia
- Economic Council, Georgia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Edison Trading Spa - Italy
- Semirara Mining Corp, Philippines
- Krishnapatnam Port Company Ltd. - India
- McConnell Dowell - Australia
- Riau Bara Harum - Indonesia
- Baramulti Group, Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Mjunction Services Limited - India
- Energy Link Ltd, New Zealand
- GAC Shipping (India) Pvt Ltd
- Cement Manufacturers Association - India
- Kobexindo Tractors - Indoneisa
- Leighton Contractors Pty Ltd - Australia
- Planning Commission, India
- Borneo Indobara - Indonesia
- Commonwealth Bank - Australia
- Wood Mackenzie - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
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