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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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- Jorong Barutama Greston.PT - Indonesia
- Larsen & Toubro Limited - India
- MS Steel International - UAE
- Parliament of New Zealand
- Global Coal Blending Company Limited - Australia
- GVK Power & Infra Limited - India
- Kartika Selabumi Mining - Indonesia
- Wilmar Investment Holdings
- Maheswari Brothers Coal Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Coastal Gujarat Power Limited - India
- Altura Mining Limited, Indonesia
- CIMB Investment Bank - Malaysia
- Straits Asia Resources Limited - Singapore
- IEA Clean Coal Centre - UK
- Intertek Mineral Services - Indonesia
- PowerSource Philippines DevCo
- SMC Global Power, Philippines
- Commonwealth Bank - Australia
- Bukit Baiduri Energy - Indonesia
- TeaM Sual Corporation - Philippines
- Kalimantan Lumbung Energi - Indonesia
- Oldendorff Carriers - Singapore
- Meralco Power Generation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Attock Cement Pakistan Limited
- Edison Trading Spa - Italy
- Dalmia Cement Bharat India
- Chamber of Mines of South Africa
- Antam Resourcindo - Indonesia
- IHS Mccloskey Coal Group - USA
- Directorate General of MIneral and Coal - Indonesia
- Aditya Birla Group - India
- Price Waterhouse Coopers - Russia
- Bayan Resources Tbk. - Indonesia
- Energy Link Ltd, New Zealand
- Thai Mozambique Logistica
- Ind-Barath Power Infra Limited - India
- Ambuja Cements Ltd - India
- Coal and Oil Company - UAE
- Heidelberg Cement - Germany
- McConnell Dowell - Australia
- Timah Investasi Mineral - Indoneisa
- Chettinad Cement Corporation Ltd - India
- Sakthi Sugars Limited - India
- Central Java Power - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Sojitz Corporation - Japan
- Trasteel International SA, Italy
- Bhushan Steel Limited - India
- Marubeni Corporation - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Ministry of Mines - Canada
- Kepco SPC Power Corporation, Philippines
- Standard Chartered Bank - UAE
- Directorate Of Revenue Intelligence - India
- Power Finance Corporation Ltd., India
- Metalloyd Limited - United Kingdom
- Tata Chemicals Ltd - India
- New Zealand Coal & Carbon
- Semirara Mining and Power Corporation, Philippines
- Mercuria Energy - Indonesia
- Borneo Indobara - Indonesia
- LBH Netherlands Bv - Netherlands
- Merrill Lynch Commodities Europe
- Sinarmas Energy and Mining - Indonesia
- Simpson Spence & Young - Indonesia
- Kobexindo Tractors - Indoneisa
- Indika Energy - Indonesia
- Planning Commission, India
- Videocon Industries ltd - India
- CNBM International Corporation - China
- ICICI Bank Limited - India
- Bangladesh Power Developement Board
- Anglo American - United Kingdom
- Meenaskhi Energy Private Limited - India
- The University of Queensland
- Kumho Petrochemical, South Korea
- Renaissance Capital - South Africa
- Thiess Contractors Indonesia
- Port Waratah Coal Services - Australia
- India Bulls Power Limited - India
- Vedanta Resources Plc - India
- PetroVietnam Power Coal Import and Supply Company
- Indogreen Group - Indonesia
- Eastern Coal Council - USA
- Mercator Lines Limited - India
- Siam City Cement PLC, Thailand
- Barasentosa Lestari - Indonesia
- Tamil Nadu electricity Board
- Samtan Co., Ltd - South Korea
- Therma Luzon, Inc, Philippines
- Orica Australia Pty. Ltd.
- Maharashtra Electricity Regulatory Commission - India
- Energy Development Corp, Philippines
- AsiaOL BioFuels Corp., Philippines
- Mintek Dendrill Indonesia
- Agrawal Coal Company - India
- Kaltim Prima Coal - Indonesia
- Indian Energy Exchange, India
- Pipit Mutiara Jaya. PT, Indonesia
- Krishnapatnam Port Company Ltd. - India
- Romanian Commodities Exchange
- GN Power Mariveles Coal Plant, Philippines
- Formosa Plastics Group - Taiwan
- Leighton Contractors Pty Ltd - Australia
- The State Trading Corporation of India Ltd
- Medco Energi Mining Internasional
- GAC Shipping (India) Pvt Ltd
- SN Aboitiz Power Inc, Philippines
- Rashtriya Ispat Nigam Limited - India
- Ministry of Finance - Indonesia
- Iligan Light & Power Inc, Philippines
- Riau Bara Harum - Indonesia
- Deloitte Consulting - India
- Bukit Asam (Persero) Tbk - Indonesia
- Coalindo Energy - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- PTC India Limited - India
- Bukit Makmur.PT - Indonesia
- PNOC Exploration Corporation - Philippines
- Star Paper Mills Limited - India
- Lanco Infratech Ltd - India
- Central Electricity Authority - India
- VISA Power Limited - India
- Billiton Holdings Pty Ltd - Australia
- European Bulk Services B.V. - Netherlands
- Grasim Industreis Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Electricity Generating Authority of Thailand
- Karbindo Abesyapradhi - Indoneisa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Madhucon Powers Ltd - India
- Globalindo Alam Lestari - Indonesia
- Georgia Ports Authority, United States
- Binh Thuan Hamico - Vietnam
- Neyveli Lignite Corporation Ltd, - India
- International Coal Ventures Pvt Ltd - India
- Economic Council, Georgia
- Banpu Public Company Limited - Thailand
- SMG Consultants - Indonesia
- Global Business Power Corporation, Philippines
- Interocean Group of Companies - India
- Carbofer General Trading SA - India
- Siam City Cement - Thailand
- Sical Logistics Limited - India
- San Jose City I Power Corp, Philippines
- Karaikal Port Pvt Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Independent Power Producers Association of India
- London Commodity Brokers - England
- Toyota Tsusho Corporation, Japan
- Rio Tinto Coal - Australia
- White Energy Company Limited
- Singapore Mercantile Exchange
- Miang Besar Coal Terminal - Indonesia
- Sarangani Energy Corporation, Philippines
- Posco Energy - South Korea
- South Luzon Thermal Energy Corporation
- Kideco Jaya Agung - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Indonesian Coal Mining Association
- Goldman Sachs - Singapore
- Xindia Steels Limited - India
- OPG Power Generation Pvt Ltd - India
- The Treasury - Australian Government
- Parry Sugars Refinery, India
- Sindya Power Generating Company Private Ltd
- Alfred C Toepfer International GmbH - Germany
- Salva Resources Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Ministry of Transport, Egypt
- Africa Commodities Group - South Africa
- Australian Commodity Traders Exchange
- Bulk Trading Sa - Switzerland
- Ceylon Electricity Board - Sri Lanka
- Sree Jayajothi Cements Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Makarim & Taira - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Australian Coal Association
- Uttam Galva Steels Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indo Tambangraya Megah - Indonesia
- Eastern Energy - Thailand
- Baramulti Group, Indonesia
- Bharathi Cement Corporation - India
- Gujarat Sidhee Cement - India
- Indian Oil Corporation Limited
- Vizag Seaport Private Limited - India
- Gujarat Electricity Regulatory Commission - India
- Savvy Resources Ltd - HongKong
- Global Green Power PLC Corporation, Philippines
- Bhatia International Limited - India
- GMR Energy Limited - India
- Malabar Cements Ltd - India
- Orica Mining Services - Indonesia
- Manunggal Multi Energi - Indonesia
- Minerals Council of Australia
- Mjunction Services Limited - India
- Wood Mackenzie - Singapore
- Jaiprakash Power Ventures ltd
- Cigading International Bulk Terminal - Indonesia
- Latin American Coal - Colombia
- Essar Steel Hazira Ltd - India
- Cement Manufacturers Association - India
- Semirara Mining Corp, Philippines
- Aboitiz Power Corporation - Philippines
- Petron Corporation, Philippines
- ASAPP Information Group - India
- Electricity Authority, New Zealand
- Jindal Steel & Power Ltd - India
- Pendopo Energi Batubara - Indonesia
- Bhoruka Overseas - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
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