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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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Friday, 19 February 16
U.S. WEEKLY COAL PRODUCTION ROSE 2.6% FROM LAST WEEK - EIA
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 13.2 million shor ...
Thursday, 18 February 16
INDIA NEEDS INTERNATIONAL SUPPORT ON HIGH EFFICIENCY COAL - WORLD COAL ASSOCIATION
Speaking at a conference in New Delhi today, World Coal Association Chief Executive Benjamin Sporton said the critical role of coal in driving econ ...
Thursday, 18 February 16
CHINA COAL SECTOR - 2015 RESULTS BLEAK, 2016 UNLIKELY TO BE ANY BETTER - FITCH
COALspot.com: China Coal Sector’s Financial Woes to Worsen in 2016.
Fitch Ratings says that the 2015 full-year result previews issued by ...
Thursday, 18 February 16
PANAMAX RATES OUT OF ECSA WERE STILL GAINING A PREMIUM OVER THE REST OF THE MARKET - INTERMODAL
The BDI moved further down last week, fact that hardly took anyone by surprise as the lunar year holidays in Asia on top of the already depre ...
Wednesday, 17 February 16
TAP ON OPPORTUNITIES IN GROWING ELECTRICITY DEMAND AND NEW COAL POWER PROJECT DEVELOPMENTS IN THE PHILIPPINES - IBC
Tap on Opportunities in Growing Electricity Demand and New Coal Power Project Developments in the Philippines
Coal Power Generation 2016
19- ...
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- Jaiprakash Power Ventures ltd
- Jindal Steel & Power Ltd - India
- Commonwealth Bank - Australia
- Ministry of Mines - Canada
- Mintek Dendrill Indonesia
- Parliament of New Zealand
- Bangladesh Power Developement Board
- Antam Resourcindo - Indonesia
- Kideco Jaya Agung - Indonesia
- Bhushan Steel Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Aditya Birla Group - India
- Maharashtra Electricity Regulatory Commission - India
- SN Aboitiz Power Inc, Philippines
- Kapuas Tunggal Persada - Indonesia
- SMG Consultants - Indonesia
- European Bulk Services B.V. - Netherlands
- Thiess Contractors Indonesia
- Kobexindo Tractors - Indoneisa
- Xindia Steels Limited - India
- Global Business Power Corporation, Philippines
- ICICI Bank Limited - India
- Mercator Lines Limited - India
- Port Waratah Coal Services - Australia
- Wood Mackenzie - Singapore
- Tamil Nadu electricity Board
- Economic Council, Georgia
- Orica Australia Pty. Ltd.
- AsiaOL BioFuels Corp., Philippines
- Bukit Baiduri Energy - Indonesia
- Carbofer General Trading SA - India
- Pipit Mutiara Jaya. PT, Indonesia
- Siam City Cement - Thailand
- Independent Power Producers Association of India
- Marubeni Corporation - India
- LBH Netherlands Bv - Netherlands
- Singapore Mercantile Exchange
- Kalimantan Lumbung Energi - Indonesia
- PTC India Limited - India
- Indian Oil Corporation Limited
- Electricity Generating Authority of Thailand
- Edison Trading Spa - Italy
- Energy Development Corp, Philippines
- Simpson Spence & Young - Indonesia
- Mercuria Energy - Indonesia
- International Coal Ventures Pvt Ltd - India
- Posco Energy - South Korea
- Cigading International Bulk Terminal - Indonesia
- Central Electricity Authority - India
- Rio Tinto Coal - Australia
- Krishnapatnam Port Company Ltd. - India
- Ceylon Electricity Board - Sri Lanka
- Petron Corporation, Philippines
- Meralco Power Generation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- CNBM International Corporation - China
- Agrawal Coal Company - India
- Holcim Trading Pte Ltd - Singapore
- Electricity Authority, New Zealand
- Africa Commodities Group - South Africa
- Indonesian Coal Mining Association
- Vijayanagar Sugar Pvt Ltd - India
- Pendopo Energi Batubara - Indonesia
- Madhucon Powers Ltd - India
- Parry Sugars Refinery, India
- GAC Shipping (India) Pvt Ltd
- Kepco SPC Power Corporation, Philippines
- Therma Luzon, Inc, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- PowerSource Philippines DevCo
- PNOC Exploration Corporation - Philippines
- Ministry of Finance - Indonesia
- Sical Logistics Limited - India
- Ministry of Transport, Egypt
- Eastern Coal Council - USA
- Indika Energy - Indonesia
- TeaM Sual Corporation - Philippines
- Power Finance Corporation Ltd., India
- Formosa Plastics Group - Taiwan
- Australian Commodity Traders Exchange
- Coastal Gujarat Power Limited - India
- Bhatia International Limited - India
- Lanco Infratech Ltd - India
- Standard Chartered Bank - UAE
- IHS Mccloskey Coal Group - USA
- Planning Commission, India
- Directorate General of MIneral and Coal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Medco Energi Mining Internasional
- Bharathi Cement Corporation - India
- GVK Power & Infra Limited - India
- Central Java Power - Indonesia
- Attock Cement Pakistan Limited
- Mjunction Services Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Gujarat Sidhee Cement - India
- Grasim Industreis Ltd - India
- Global Coal Blending Company Limited - Australia
- Heidelberg Cement - Germany
- Aboitiz Power Corporation - Philippines
- Eastern Energy - Thailand
- Larsen & Toubro Limited - India
- Wilmar Investment Holdings
- Miang Besar Coal Terminal - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Directorate Of Revenue Intelligence - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Anglo American - United Kingdom
- Bayan Resources Tbk. - Indonesia
- Ambuja Cements Ltd - India
- Price Waterhouse Coopers - Russia
- Kumho Petrochemical, South Korea
- Oldendorff Carriers - Singapore
- Metalloyd Limited - United Kingdom
- Timah Investasi Mineral - Indoneisa
- McConnell Dowell - Australia
- White Energy Company Limited
- South Luzon Thermal Energy Corporation
- GMR Energy Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Vizag Seaport Private Limited - India
- CIMB Investment Bank - Malaysia
- Trasteel International SA, Italy
- Baramulti Group, Indonesia
- Karaikal Port Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Billiton Holdings Pty Ltd - Australia
- Orica Mining Services - Indonesia
- San Jose City I Power Corp, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Savvy Resources Ltd - HongKong
- Australian Coal Association
- Sree Jayajothi Cements Limited - India
- Globalindo Alam Lestari - Indonesia
- Barasentosa Lestari - Indonesia
- The State Trading Corporation of India Ltd
- Gujarat Electricity Regulatory Commission - India
- Bhoruka Overseas - Indonesia
- Uttam Galva Steels Limited - India
- Sinarmas Energy and Mining - Indonesia
- MS Steel International - UAE
- Borneo Indobara - Indonesia
- Maheswari Brothers Coal Limited - India
- Indian Energy Exchange, India
- IEA Clean Coal Centre - UK
- Toyota Tsusho Corporation, Japan
- Coalindo Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Videocon Industries ltd - India
- Binh Thuan Hamico - Vietnam
- Altura Mining Limited, Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Sojitz Corporation - Japan
- Deloitte Consulting - India
- Tata Chemicals Ltd - India
- SMC Global Power, Philippines
- VISA Power Limited - India
- Makarim & Taira - Indonesia
- Thai Mozambique Logistica
- Gujarat Mineral Development Corp Ltd - India
- The University of Queensland
- Intertek Mineral Services - Indonesia
- Coal and Oil Company - UAE
- Siam City Cement PLC, Thailand
- Malabar Cements Ltd - India
- Chamber of Mines of South Africa
- Rashtriya Ispat Nigam Limited - India
- Ind-Barath Power Infra Limited - India
- Semirara Mining Corp, Philippines
- ASAPP Information Group - India
- India Bulls Power Limited - India
- Star Paper Mills Limited - India
- Indo Tambangraya Megah - Indonesia
- Global Green Power PLC Corporation, Philippines
- Goldman Sachs - Singapore
- Merrill Lynch Commodities Europe
- Essar Steel Hazira Ltd - India
- Dalmia Cement Bharat India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kartika Selabumi Mining - Indonesia
- London Commodity Brokers - England
- Georgia Ports Authority, United States
- Chettinad Cement Corporation Ltd - India
- The Treasury - Australian Government
- Sakthi Sugars Limited - India
- Latin American Coal - Colombia
- Bukit Makmur.PT - Indonesia
- Banpu Public Company Limited - Thailand
- Straits Asia Resources Limited - Singapore
- Kohat Cement Company Ltd. - Pakistan
- Romanian Commodities Exchange
- Renaissance Capital - South Africa
- Interocean Group of Companies - India
- Cement Manufacturers Association - India
- Bulk Trading Sa - Switzerland
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sarangani Energy Corporation, Philippines
- Vedanta Resources Plc - India
- Asmin Koalindo Tuhup - Indonesia
- Kaltim Prima Coal - Indonesia
- Salva Resources Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Minerals Council of Australia
- OPG Power Generation Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Samtan Co., Ltd - South Korea
- New Zealand Coal & Carbon
- Meenaskhi Energy Private Limited - India
- Manunggal Multi Energi - Indonesia
- Sindya Power Generating Company Private Ltd
- Energy Link Ltd, New Zealand
- Alfred C Toepfer International GmbH - Germany
- Riau Bara Harum - Indonesia
- Indogreen Group - Indonesia
- Iligan Light & Power Inc, Philippines
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