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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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Wednesday, 03 February 16
DRY BULK MARKET CONTINUES TO BE UNDER PRESSURE - INTERMODAL
The Dry Bulk market continues to be under pressure, with the BDI remaining in search of even the slightest support, which seems to be delaying more ...
Tuesday, 02 February 16
RECORD EXPORTS THROUGH SOUTH AFRICA'S RICHARDS BAY COAL TERMINAL MADE AT EXPENSE OF SMALLER RIVALS, IHS SAYS
Five percent increase in coal exports through South Africa’s dominant Richards Bay Coal Terminal in 2015 unlikely to accelerate country&rsquo ...
Tuesday, 02 February 16
SETTING ASIDE, STRIKING OUT AND APPEALS TO THE COURT OF APPEAL IN SHIP ARRESTS - RAJAH & TANN ASIA LLP
KNOWLEDGE TO ELEVATE
The Singapore Court of Appeal once again has had to grapple with ship arrest, setting aside and appeals to the Court unde ...
Monday, 01 February 16
DRY BULK SUFFERS FROM POSEIDON'S POTENT PRONGS - CLARKSONS
It has been a grim start to 2016 for the bulkcarrier market, with the Baltic Dry Index sliding to new record lows on almost every day of the year s ...
Monday, 01 February 16
INDONESIA'S SECOND LARGEST COAL MINER ADARO ENERGY HAS PRODUCED 51.46 MT IN 2015; 8% LOWER COMPARED TO FY14
COALspot.com: Adaro Energy, the Indonesia’s second largest coal producer by volume has produced 51.46 Mt in 2015, 8% lower compared to ...
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- Globalindo Alam Lestari - Indonesia
- PTC India Limited - India
- Power Finance Corporation Ltd., India
- Planning Commission, India
- Kaltim Prima Coal - Indonesia
- Australian Commodity Traders Exchange
- LBH Netherlands Bv - Netherlands
- Carbofer General Trading SA - India
- PNOC Exploration Corporation - Philippines
- Sojitz Corporation - Japan
- Riau Bara Harum - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Parry Sugars Refinery, India
- Malabar Cements Ltd - India
- International Coal Ventures Pvt Ltd - India
- Kumho Petrochemical, South Korea
- VISA Power Limited - India
- Altura Mining Limited, Indonesia
- Krishnapatnam Port Company Ltd. - India
- Coalindo Energy - Indonesia
- Port Waratah Coal Services - Australia
- Ind-Barath Power Infra Limited - India
- CIMB Investment Bank - Malaysia
- Maharashtra Electricity Regulatory Commission - India
- Latin American Coal - Colombia
- Cement Manufacturers Association - India
- Central Java Power - Indonesia
- Essar Steel Hazira Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kideco Jaya Agung - Indonesia
- GMR Energy Limited - India
- Bangladesh Power Developement Board
- Aditya Birla Group - India
- Georgia Ports Authority, United States
- Bahari Cakrawala Sebuku - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Xindia Steels Limited - India
- Sakthi Sugars Limited - India
- Bhatia International Limited - India
- The University of Queensland
- Jorong Barutama Greston.PT - Indonesia
- Medco Energi Mining Internasional
- Alfred C Toepfer International GmbH - Germany
- Formosa Plastics Group - Taiwan
- Gujarat Sidhee Cement - India
- Cigading International Bulk Terminal - Indonesia
- Australian Coal Association
- Bhoruka Overseas - Indonesia
- Star Paper Mills Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Romanian Commodities Exchange
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Marubeni Corporation - India
- GVK Power & Infra Limited - India
- Kepco SPC Power Corporation, Philippines
- Standard Chartered Bank - UAE
- The State Trading Corporation of India Ltd
- Antam Resourcindo - Indonesia
- Attock Cement Pakistan Limited
- Coal and Oil Company - UAE
- Samtan Co., Ltd - South Korea
- Eastern Coal Council - USA
- Rio Tinto Coal - Australia
- Chettinad Cement Corporation Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Kartika Selabumi Mining - Indonesia
- Meralco Power Generation, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Videocon Industries ltd - India
- ICICI Bank Limited - India
- Ministry of Transport, Egypt
- Bank of Tokyo Mitsubishi UFJ Ltd
- Leighton Contractors Pty Ltd - Australia
- Simpson Spence & Young - Indonesia
- Vizag Seaport Private Limited - India
- Kapuas Tunggal Persada - Indonesia
- Electricity Generating Authority of Thailand
- Straits Asia Resources Limited - Singapore
- Mercuria Energy - Indonesia
- Indogreen Group - Indonesia
- Intertek Mineral Services - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- GAC Shipping (India) Pvt Ltd
- Sical Logistics Limited - India
- CNBM International Corporation - China
- Coastal Gujarat Power Limited - India
- Ambuja Cements Ltd - India
- Global Green Power PLC Corporation, Philippines
- Trasteel International SA, Italy
- GN Power Mariveles Coal Plant, Philippines
- Commonwealth Bank - Australia
- Indika Energy - Indonesia
- Price Waterhouse Coopers - Russia
- Edison Trading Spa - Italy
- Neyveli Lignite Corporation Ltd, - India
- Baramulti Group, Indonesia
- Eastern Energy - Thailand
- Vijayanagar Sugar Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Aboitiz Power Corporation - Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sinarmas Energy and Mining - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Maheswari Brothers Coal Limited - India
- IHS Mccloskey Coal Group - USA
- Wood Mackenzie - Singapore
- Tata Chemicals Ltd - India
- Binh Thuan Hamico - Vietnam
- Kalimantan Lumbung Energi - Indonesia
- Manunggal Multi Energi - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Thiess Contractors Indonesia
- Sarangani Energy Corporation, Philippines
- Bhushan Steel Limited - India
- Pendopo Energi Batubara - Indonesia
- Larsen & Toubro Limited - India
- Therma Luzon, Inc, Philippines
- Tamil Nadu electricity Board
- Minerals Council of Australia
- Energy Link Ltd, New Zealand
- Electricity Authority, New Zealand
- Jindal Steel & Power Ltd - India
- Directorate Of Revenue Intelligence - India
- Madhucon Powers Ltd - India
- Bayan Resources Tbk. - Indonesia
- Billiton Holdings Pty Ltd - Australia
- TeaM Sual Corporation - Philippines
- Merrill Lynch Commodities Europe
- Barasentosa Lestari - Indonesia
- Savvy Resources Ltd - HongKong
- Africa Commodities Group - South Africa
- Petrochimia International Co. Ltd.- Taiwan
- Petron Corporation, Philippines
- SMG Consultants - Indonesia
- Sindya Power Generating Company Private Ltd
- Karbindo Abesyapradhi - Indoneisa
- Goldman Sachs - Singapore
- Toyota Tsusho Corporation, Japan
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Agrawal Coal Company - India
- Chamber of Mines of South Africa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Wilmar Investment Holdings
- Global Business Power Corporation, Philippines
- San Jose City I Power Corp, Philippines
- Energy Development Corp, Philippines
- Posco Energy - South Korea
- Dalmia Cement Bharat India
- Deloitte Consulting - India
- Uttam Galva Steels Limited - India
- Central Electricity Authority - India
- IEA Clean Coal Centre - UK
- SN Aboitiz Power Inc, Philippines
- PowerSource Philippines DevCo
- Grasim Industreis Ltd - India
- Interocean Group of Companies - India
- Orica Australia Pty. Ltd.
- Oldendorff Carriers - Singapore
- The Treasury - Australian Government
- Kobexindo Tractors - Indoneisa
- Parliament of New Zealand
- Mintek Dendrill Indonesia
- Jaiprakash Power Ventures ltd
- Mercator Lines Limited - India
- Siam City Cement PLC, Thailand
- New Zealand Coal & Carbon
- Miang Besar Coal Terminal - Indonesia
- ASAPP Information Group - India
- Economic Council, Georgia
- South Luzon Thermal Energy Corporation
- OPG Power Generation Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- SMC Global Power, Philippines
- Independent Power Producers Association of India
- Sree Jayajothi Cements Limited - India
- Singapore Mercantile Exchange
- Ministry of Finance - Indonesia
- Orica Mining Services - Indonesia
- Salva Resources Pvt Ltd - India
- London Commodity Brokers - England
- Iligan Light & Power Inc, Philippines
- Metalloyd Limited - United Kingdom
- Kohat Cement Company Ltd. - Pakistan
- Indian Energy Exchange, India
- Semirara Mining Corp, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Global Coal Blending Company Limited - Australia
- Vedanta Resources Plc - India
- Bharathi Cement Corporation - India
- Heidelberg Cement - Germany
- Makarim & Taira - Indonesia
- MS Steel International - UAE
- Siam City Cement - Thailand
- Bukit Baiduri Energy - Indonesia
- Bukit Makmur.PT - Indonesia
- Indo Tambangraya Megah - Indonesia
- Lanco Infratech Ltd - India
- Mjunction Services Limited - India
- McConnell Dowell - Australia
- Anglo American - United Kingdom
- Pipit Mutiara Jaya. PT, Indonesia
- Renaissance Capital - South Africa
- Borneo Indobara - Indonesia
- White Energy Company Limited
- PetroVietnam Power Coal Import and Supply Company
- Indonesian Coal Mining Association
- Indian Oil Corporation Limited
- European Bulk Services B.V. - Netherlands
- Karaikal Port Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- Thai Mozambique Logistica
- Timah Investasi Mineral - Indoneisa
- India Bulls Power Limited - India
- Rashtriya Ispat Nigam Limited - India
- Ministry of Mines - Canada
- Meenaskhi Energy Private Limited - India
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