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Wednesday, 02 March 16
RE-EVALUATION OF MINING LICENSES CLEAN AND CLEAR STATUS IN INDONESIA
COALspot.com: In connection with the transfer of mining authority from Regents/Mayors to Governors1 and from Regents/Mayors and Governors to the Indonesian Minister of Energy and Mineral Resources ("MEMR")2 pursuant to the New Regional Government Law3, the MEMR is conducting another review of existing mining licenses (known as IUPs) previously issued by Regents/Mayors and Governors.
MEMR Regulation No. 43 of 2015 regarding Procedures for Evaluation of Issuance of Mineral and Coal Mining Business License ("MEMR 43/2015") sets forth the requirements for IUPs to be declared Clean and Clear ("CNC"), meaning they have been validly issued and conform to the requirements of the Mining Law. The requirements and consequences for failure to satisfy them are as follow:
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Requirements |
Consequence for Failure |
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application for renewal or upgrade of IUP must be submitted within its term of validity |
revocation of IUP |
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area reservation and KP (former form of IUP) application must be approved prior to the issuance of the Mining Law |
revocation of IUP |
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application for area reservation must not overlap with any active COW, CCOW, KP or IUP area for the same mining commodity |
revocation of IUP |
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Exploitation KP must derive from an upgraded Exploration KP |
revocation of IUP |
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except in the case of a public company, a company must not have more than one IUP |
(i) issuance of single IUP consolidating IUPs the areas of which are adjacent to each other, for the same mining commodity and in the same stage (exploration or production); or
(ii) transfer of IUPs to 51% owned subsidiary(-ies)
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IUP term of validity must not exceed the period prescribed under the Mining Law |
adjustment of IUP's term of validity |
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IUP area must not overlap with other IUP areas for the same mining commodity or National Reservation Area or other regency/city/province area |
(i) reduction of area reflecting partial overlap; or
(ii) revocation of IUP if the overlap covers the whole IUP area4
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Exploration IUP's coordinates must be in accordance with the area reservation |
(i) change of coordinates if there is partial non-conformance to the area reservation or Exploration IUP’s coordinates, as relevant; or
(ii) revocation of IUP if the entire IUP area does not conform to the area reservation or Exploration IUP’s coordinates
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Production Operation IUP's coordinates must be within the Exploration IUP's coordinates |
(i) change of coordinates if there is partial non-conformance to the area reservation or Exploration IUP’s coordinates, as relevant; or
(ii) revocation of IUP if the entire IUP area does not conform to the area reservation or Exploration IUP’s coordinates
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IUP's coordinates must be straight lines parallel to latitude and longitude |
adjustment of IUP's coordinates |
MEMR will only issue CNC Certificates to mining companies which have submitted the following documents:
1. exploration report and, if applicable, feasibility study report;
2. environmental documents, i.e. AMDAL or UKL-UPL; and
3. evidence of payment of dead rent and, if applicable, royalty.
Failure to submit the above documents may result in administrative sanctions in the form of written warnings, temporary suspension of mining activities or revocation of IUP.
By: Michael S. Carl & Florence G. Santoso
1(Applies to domestic mining companies having a mining area located within one province)
2(Applies to (i) domestic mining companies having a mining area located in more than one province and (ii) all foreign-owned mining companies)
3(Law No. 23 of 2014 regarding Regional Government, as lastly amended by Law No. 9 of 2015)
4(In the event of overlap between IUPs having the same mining commodity, first come, first served applies, based on the date of submission of application and satisfaction of all requirements.)
(This publication is intended for informational purposes only and does not constitute legal advice. Any reliance on the material contained herein is at the user’s own risk)
About Michael S. Carl
Michael S. Carl is a foreign legal advisor at SSEK Legal Consultants, where he is a supervising advisor for the firm’s mining practice.
He specializes in mining, energy, infrastructure, finance, insolvency and restructurings, and M&A.
Michael is named by Who’s Who Legal as one of Indonesia’s leading mining lawyers and he has been recognized as a leading lawyer by Chambers Global, IFLR 1000 and Asialaw.
About Florence G. Santoso
Florence G. Santoso is experienced in energy, infrastructure, investment and mergers and acquisitions, and has been involved in a number of acquisitions involving industrial and trading companies.
Since joining SSEK Legal Consultants in 2010, Florence has been involved in numerous major mining transactions.
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Monday, 29 February 16
BALTIC INDEX INCHES UP THIS PAST WEEK AS SMALLER VESSELS LEND SUPPORT
COALspot.com: The freight markets rose slightly this past week.
The Baltic Dry Index (BDI) of dry-bulk shipping freights, a measure of global ...
Monday, 29 February 16
LOSS OF EARNINGS IN THE WAKE OF A COLLISION - GARD
KNOWLEDGE TO ELEVATE
A shipowner’s loss of earnings can form a significant part of a collision claim. Awareness of the ways of calculati ...
Friday, 26 February 16
U.S WEEKLY COAL PRODUCTION UP SLIGHTLY
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 13.4 million shor ...
Thursday, 25 February 16
DRY BULKERS ARE SCRAPPED AT RECORD PACE - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The newbuilding market is at a lull these days, as ship owners are focusing on two fronts, getting rid of excess dry bulk tonnage and snapping up b ...
Wednesday, 24 February 16
HOW IS THE FUEL MIX FOR U.S. ELECTRICITY GENERATION CHANGING? - EIA
In recent years, there have been changes in the mix of fuels used to generate electricity in the United States. Natural gas and renewable energy so ...
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- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Mercator Lines Limited - India
- Indonesian Coal Mining Association
- Sical Logistics Limited - India
- Sarangani Energy Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- Indian Oil Corporation Limited
- Toyota Tsusho Corporation, Japan
- Kepco SPC Power Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- GVK Power & Infra Limited - India
- Tamil Nadu electricity Board
- Bulk Trading Sa - Switzerland
- ICICI Bank Limited - India
- PowerSource Philippines DevCo
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Rio Tinto Coal - Australia
- Planning Commission, India
- Directorate General of MIneral and Coal - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Bahari Cakrawala Sebuku - Indonesia
- Australian Coal Association
- Ambuja Cements Ltd - India
- Vizag Seaport Private Limited - India
- Billiton Holdings Pty Ltd - Australia
- Samtan Co., Ltd - South Korea
- LBH Netherlands Bv - Netherlands
- Bangladesh Power Developement Board
- Meenaskhi Energy Private Limited - India
- Kartika Selabumi Mining - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Marubeni Corporation - India
- Larsen & Toubro Limited - India
- Deloitte Consulting - India
- Videocon Industries ltd - India
- Petron Corporation, Philippines
- Kaltim Prima Coal - Indonesia
- Bukit Baiduri Energy - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Africa Commodities Group - South Africa
- Tata Chemicals Ltd - India
- Global Business Power Corporation, Philippines
- Electricity Generating Authority of Thailand
- Asmin Koalindo Tuhup - Indonesia
- The University of Queensland
- Mintek Dendrill Indonesia
- Directorate Of Revenue Intelligence - India
- Economic Council, Georgia
- Leighton Contractors Pty Ltd - Australia
- TeaM Sual Corporation - Philippines
- Power Finance Corporation Ltd., India
- Jorong Barutama Greston.PT - Indonesia
- Renaissance Capital - South Africa
- Karbindo Abesyapradhi - Indoneisa
- Kohat Cement Company Ltd. - Pakistan
- Maheswari Brothers Coal Limited - India
- Savvy Resources Ltd - HongKong
- Bukit Asam (Persero) Tbk - Indonesia
- Energy Link Ltd, New Zealand
- Trasteel International SA, Italy
- South Luzon Thermal Energy Corporation
- Aboitiz Power Corporation - Philippines
- Mjunction Services Limited - India
- Coastal Gujarat Power Limited - India
- Sakthi Sugars Limited - India
- Mercuria Energy - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Anglo American - United Kingdom
- Vedanta Resources Plc - India
- Sree Jayajothi Cements Limited - India
- Chettinad Cement Corporation Ltd - India
- Kumho Petrochemical, South Korea
- Indika Energy - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Madhucon Powers Ltd - India
- Straits Asia Resources Limited - Singapore
- Global Green Power PLC Corporation, Philippines
- Grasim Industreis Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Siam City Cement PLC, Thailand
- Manunggal Multi Energi - Indonesia
- OPG Power Generation Pvt Ltd - India
- Goldman Sachs - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Baramulti Group, Indonesia
- Coalindo Energy - Indonesia
- Ministry of Transport, Egypt
- SN Aboitiz Power Inc, Philippines
- Ministry of Finance - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kapuas Tunggal Persada - Indonesia
- Metalloyd Limited - United Kingdom
- Uttam Galva Steels Limited - India
- Orica Mining Services - Indonesia
- Minerals Council of Australia
- Dalmia Cement Bharat India
- PetroVietnam Power Coal Import and Supply Company
- The State Trading Corporation of India Ltd
- Merrill Lynch Commodities Europe
- The Treasury - Australian Government
- Altura Mining Limited, Indonesia
- Siam City Cement - Thailand
- Ind-Barath Power Infra Limited - India
- CNBM International Corporation - China
- Meralco Power Generation, Philippines
- Standard Chartered Bank - UAE
- Simpson Spence & Young - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Lanco Infratech Ltd - India
- McConnell Dowell - Australia
- Gujarat Mineral Development Corp Ltd - India
- Bayan Resources Tbk. - Indonesia
- Singapore Mercantile Exchange
- SMC Global Power, Philippines
- Xindia Steels Limited - India
- Antam Resourcindo - Indonesia
- Port Waratah Coal Services - Australia
- Formosa Plastics Group - Taiwan
- GN Power Mariveles Coal Plant, Philippines
- Intertek Mineral Services - Indonesia
- Jaiprakash Power Ventures ltd
- Star Paper Mills Limited - India
- Parliament of New Zealand
- Eastern Energy - Thailand
- Binh Thuan Hamico - Vietnam
- Salva Resources Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Romanian Commodities Exchange
- Energy Development Corp, Philippines
- Miang Besar Coal Terminal - Indonesia
- Semirara Mining Corp, Philippines
- Banpu Public Company Limited - Thailand
- ASAPP Information Group - India
- GAC Shipping (India) Pvt Ltd
- Bhoruka Overseas - Indonesia
- Central Electricity Authority - India
- SMG Consultants - Indonesia
- Oldendorff Carriers - Singapore
- Cement Manufacturers Association - India
- Central Java Power - Indonesia
- Gujarat Sidhee Cement - India
- Sindya Power Generating Company Private Ltd
- Timah Investasi Mineral - Indoneisa
- Georgia Ports Authority, United States
- Chamber of Mines of South Africa
- Global Coal Blending Company Limited - Australia
- Sojitz Corporation - Japan
- Parry Sugars Refinery, India
- London Commodity Brokers - England
- India Bulls Power Limited - India
- Makarim & Taira - Indonesia
- Karaikal Port Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- IEA Clean Coal Centre - UK
- Aditya Birla Group - India
- Agrawal Coal Company - India
- Eastern Coal Council - USA
- New Zealand Coal & Carbon
- Indogreen Group - Indonesia
- PTC India Limited - India
- Sinarmas Energy and Mining - Indonesia
- Edison Trading Spa - Italy
- Essar Steel Hazira Ltd - India
- Latin American Coal - Colombia
- Pendopo Energi Batubara - Indonesia
- Malabar Cements Ltd - India
- Iligan Light & Power Inc, Philippines
- Bukit Makmur.PT - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Thai Mozambique Logistica
- Ministry of Mines - Canada
- Bhushan Steel Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Carbofer General Trading SA - India
- GMR Energy Limited - India
- White Energy Company Limited
- Alfred C Toepfer International GmbH - Germany
- Indian Energy Exchange, India
- Bharathi Cement Corporation - India
- European Bulk Services B.V. - Netherlands
- Bhatia International Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Globalindo Alam Lestari - Indonesia
- Thiess Contractors Indonesia
- Holcim Trading Pte Ltd - Singapore
- Jindal Steel & Power Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Neyveli Lignite Corporation Ltd, - India
- Price Waterhouse Coopers - Russia
- Barasentosa Lestari - Indonesia
- Commonwealth Bank - Australia
- Medco Energi Mining Internasional
- Attock Cement Pakistan Limited
- San Jose City I Power Corp, Philippines
- Indo Tambangraya Megah - Indonesia
- Borneo Indobara - Indonesia
- MS Steel International - UAE
- VISA Power Limited - India
- Electricity Authority, New Zealand
- Wilmar Investment Holdings
- Kobexindo Tractors - Indoneisa
- Heidelberg Cement - Germany
- Independent Power Producers Association of India
- Gujarat Electricity Regulatory Commission - India
- Coal and Oil Company - UAE
- IHS Mccloskey Coal Group - USA
- CIMB Investment Bank - Malaysia
- Australian Commodity Traders Exchange
- TNB Fuel Sdn Bhd - Malaysia
- Riau Bara Harum - Indonesia
- Orica Australia Pty. Ltd.
- Posco Energy - South Korea
- Interocean Group of Companies - India
- Wood Mackenzie - Singapore
- Cigading International Bulk Terminal - Indonesia
- PNOC Exploration Corporation - Philippines
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