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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, 30 October 15
INDONESIA'S COAL EXPORTS DROP ON LOW PRICES - THE JAKARTA POST
Indonesia's coal exports significantly dropped in the first nine months of the year as coal companies continued to suffer from low prices in ad ...
Friday, 30 October 15
CHINESE MINERAL IMPORTS: MOVING ON FROM INDONESIA? - CLARKSONS
China has accounted for almost 90% of global imports of nickel ore and bauxite in recent years and was therefore heavily hit by the Indonesian mine ...
Friday, 30 October 15
COAL PRODUCTION IN THE UNITED STATES INCREASED THIS WEEK - EIA
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 17.5 million shor ...
Thursday, 29 October 15
IRAN'S RETURN TO OIL MARKETS WILL HAVE TEMPERED IMPACT FOR THE TANKER SHIPPING INDUSTRY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
While many analysts appear to be fearful of a potential incremental rise in tanker ships’ supply, as a result of the imminent return of Iran ...
Thursday, 29 October 15
Q2' 16 FOB INDONESIA COAL SWAP CLOSED US$ 37.40 PER TON; DECLINED 5.56 PER CENT M-M
COALspot.com: Indonesian coal swap for delivery Q4 2015 declined month on month and week over week.
The Q4 swap declined $ 2.13 (-5.34%) per t ...
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- The State Trading Corporation of India Ltd
- Krishnapatnam Port Company Ltd. - India
- Indogreen Group - Indonesia
- Port Waratah Coal Services - Australia
- OPG Power Generation Pvt Ltd - India
- Borneo Indobara - Indonesia
- Antam Resourcindo - Indonesia
- Bharathi Cement Corporation - India
- IHS Mccloskey Coal Group - USA
- Larsen & Toubro Limited - India
- Australian Commodity Traders Exchange
- Agrawal Coal Company - India
- Parry Sugars Refinery, India
- GVK Power & Infra Limited - India
- Gujarat Electricity Regulatory Commission - India
- Straits Asia Resources Limited - Singapore
- Meralco Power Generation, Philippines
- Kumho Petrochemical, South Korea
- Banpu Public Company Limited - Thailand
- MS Steel International - UAE
- Price Waterhouse Coopers - Russia
- Siam City Cement - Thailand
- Directorate General of MIneral and Coal - Indonesia
- Rio Tinto Coal - Australia
- AsiaOL BioFuels Corp., Philippines
- Neyveli Lignite Corporation Ltd, - India
- Trasteel International SA, Italy
- Simpson Spence & Young - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sarangani Energy Corporation, Philippines
- Renaissance Capital - South Africa
- European Bulk Services B.V. - Netherlands
- PetroVietnam Power Coal Import and Supply Company
- Bulk Trading Sa - Switzerland
- SMG Consultants - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Orica Australia Pty. Ltd.
- Coal and Oil Company - UAE
- Pipit Mutiara Jaya. PT, Indonesia
- McConnell Dowell - Australia
- GMR Energy Limited - India
- The Treasury - Australian Government
- Grasim Industreis Ltd - India
- Kepco SPC Power Corporation, Philippines
- Global Green Power PLC Corporation, Philippines
- ICICI Bank Limited - India
- Kideco Jaya Agung - Indonesia
- IEA Clean Coal Centre - UK
- Kobexindo Tractors - Indoneisa
- Goldman Sachs - Singapore
- Commonwealth Bank - Australia
- Karbindo Abesyapradhi - Indoneisa
- The University of Queensland
- Jaiprakash Power Ventures ltd
- Electricity Generating Authority of Thailand
- Karaikal Port Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Chettinad Cement Corporation Ltd - India
- Eastern Energy - Thailand
- Xindia Steels Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Latin American Coal - Colombia
- Sindya Power Generating Company Private Ltd
- New Zealand Coal & Carbon
- Star Paper Mills Limited - India
- ASAPP Information Group - India
- International Coal Ventures Pvt Ltd - India
- Carbofer General Trading SA - India
- Wood Mackenzie - Singapore
- PNOC Exploration Corporation - Philippines
- Aditya Birla Group - India
- Petron Corporation, Philippines
- Independent Power Producers Association of India
- India Bulls Power Limited - India
- Ceylon Electricity Board - Sri Lanka
- Minerals Council of Australia
- Bhushan Steel Limited - India
- Electricity Authority, New Zealand
- Timah Investasi Mineral - Indoneisa
- Vizag Seaport Private Limited - India
- Kartika Selabumi Mining - Indonesia
- South Luzon Thermal Energy Corporation
- PTC India Limited - India
- Sojitz Corporation - Japan
- Bukit Asam (Persero) Tbk - Indonesia
- Energy Link Ltd, New Zealand
- Bukit Makmur.PT - Indonesia
- Marubeni Corporation - India
- San Jose City I Power Corp, Philippines
- Madhucon Powers Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Malabar Cements Ltd - India
- Heidelberg Cement - Germany
- Mercuria Energy - Indonesia
- Salva Resources Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- TeaM Sual Corporation - Philippines
- Bukit Baiduri Energy - Indonesia
- Ambuja Cements Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Intertek Mineral Services - Indonesia
- Sical Logistics Limited - India
- Attock Cement Pakistan Limited
- Maheswari Brothers Coal Limited - India
- Bangladesh Power Developement Board
- Standard Chartered Bank - UAE
- Power Finance Corporation Ltd., India
- Indian Energy Exchange, India
- Bhoruka Overseas - Indonesia
- Vedanta Resources Plc - India
- Jorong Barutama Greston.PT - Indonesia
- Economic Council, Georgia
- Anglo American - United Kingdom
- CNBM International Corporation - China
- CIMB Investment Bank - Malaysia
- Therma Luzon, Inc, Philippines
- Maharashtra Electricity Regulatory Commission - India
- SN Aboitiz Power Inc, Philippines
- Aboitiz Power Corporation - Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Thai Mozambique Logistica
- Siam City Cement PLC, Thailand
- GAC Shipping (India) Pvt Ltd
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- Makarim & Taira - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Cement Manufacturers Association - India
- Edison Trading Spa - Italy
- Savvy Resources Ltd - HongKong
- Ministry of Mines - Canada
- Leighton Contractors Pty Ltd - Australia
- Merrill Lynch Commodities Europe
- Singapore Mercantile Exchange
- Eastern Coal Council - USA
- Romanian Commodities Exchange
- Africa Commodities Group - South Africa
- Indika Energy - Indonesia
- Medco Energi Mining Internasional
- Oldendorff Carriers - Singapore
- Coalindo Energy - Indonesia
- Central Java Power - Indonesia
- Globalindo Alam Lestari - Indonesia
- Energy Development Corp, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Central Electricity Authority - India
- Kapuas Tunggal Persada - Indonesia
- Australian Coal Association
- Thiess Contractors Indonesia
- Essar Steel Hazira Ltd - India
- Coastal Gujarat Power Limited - India
- Miang Besar Coal Terminal - Indonesia
- Baramulti Group, Indonesia
- Orica Mining Services - Indonesia
- Alfred C Toepfer International GmbH - Germany
- White Energy Company Limited
- Mjunction Services Limited - India
- Samtan Co., Ltd - South Korea
- Ind-Barath Power Infra Limited - India
- Riau Bara Harum - Indonesia
- Kaltim Prima Coal - Indonesia
- Ministry of Finance - Indonesia
- Ministry of Transport, Egypt
- Meenaskhi Energy Private Limited - India
- Bhatia International Limited - India
- Manunggal Multi Energi - Indonesia
- Wilmar Investment Holdings
- London Commodity Brokers - England
- Sakthi Sugars Limited - India
- LBH Netherlands Bv - Netherlands
- Interocean Group of Companies - India
- Posco Energy - South Korea
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Deloitte Consulting - India
- Dalmia Cement Bharat India
- PowerSource Philippines DevCo
- TNB Fuel Sdn Bhd - Malaysia
- Indonesian Coal Mining Association
- Chamber of Mines of South Africa
- Asmin Koalindo Tuhup - Indonesia
- VISA Power Limited - India
- Billiton Holdings Pty Ltd - Australia
- Metalloyd Limited - United Kingdom
- Binh Thuan Hamico - Vietnam
- Indian Oil Corporation Limited
- Iligan Light & Power Inc, Philippines
- Gujarat Sidhee Cement - India
- Rashtriya Ispat Nigam Limited - India
- Formosa Plastics Group - Taiwan
- Barasentosa Lestari - Indonesia
- Lanco Infratech Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Altura Mining Limited, Indonesia
- Videocon Industries ltd - India
- Mercator Lines Limited - India
- Semirara Mining Corp, Philippines
- Tamil Nadu electricity Board
- Directorate Of Revenue Intelligence - India
- Parliament of New Zealand
- Vijayanagar Sugar Pvt Ltd - India
- Tata Chemicals Ltd - India
- Uttam Galva Steels Limited - India
- Global Business Power Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Planning Commission, India
- SMC Global Power, Philippines
- Bayan Resources Tbk. - Indonesia
- Toyota Tsusho Corporation, Japan
- Indo Tambangraya Megah - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Pendopo Energi Batubara - Indonesia
- Georgia Ports Authority, United States
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Mintek Dendrill Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
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