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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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Tuesday, 03 May 16
HOW TO AVOID THE LATEST CARGO FRAUDS - BIMCO
BIMCO receives regular reports from members around the world about cargo fraud. This week alone we have had two reports of cargoes being fixed (or ...
Monday, 02 May 16
INDIA'S GANGAVARAM PORT SETS ALL INDIA RECORD FOR NON-COKING COAL DISCHARGE
COALspot.com: Gangavaram Port, the deepest and the most modern port in India, has created yet another historical milestone record by discharging 15 ...
Monday, 02 May 16
CS (I) 5000 GAR COAL INDEX CLOSES 0.11% HIGHER, 5700 GAR COAL RISES 0.07% W/W
COALspot.com: Average 5000 GAR coal index of Indonesian origin up 0.28 percent week over week to averaging $38.78 per ton on this past Friday, acco ...
Monday, 02 May 16
FREIGHT RATES ARE EXPECTED TO BE FLAT TO SOFT THIS WEEK
COALspot.com: The Baltic Exchange, tracking rates for ships carrying dry bulk commodities continued to rose this week.
The freight market was ...
Saturday, 30 April 16
40 YEARS OF HANDLING COAL AT THE BTW IN WILHELMSHAVEN UNDER THE RHENUS FLAG
Press Release: The first bulk carrier with coal on board docked at the Bulk Terminal Wilhelmshaven (BTW), which is operated by Rhenus Midgar ...
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Showing 2451 to 2455 news of total 6871 |
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- Gujarat Sidhee Cement - India
- PNOC Exploration Corporation - Philippines
- Mjunction Services Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Kohat Cement Company Ltd. - Pakistan
- Bank of Tokyo Mitsubishi UFJ Ltd
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Thiess Contractors Indonesia
- AsiaOL BioFuels Corp., Philippines
- Petron Corporation, Philippines
- CNBM International Corporation - China
- South Luzon Thermal Energy Corporation
- Pipit Mutiara Jaya. PT, Indonesia
- Alfred C Toepfer International GmbH - Germany
- Posco Energy - South Korea
- Ambuja Cements Ltd - India
- Georgia Ports Authority, United States
- Economic Council, Georgia
- Agrawal Coal Company - India
- Manunggal Multi Energi - Indonesia
- Intertek Mineral Services - Indonesia
- Independent Power Producers Association of India
- Vedanta Resources Plc - India
- The Treasury - Australian Government
- Simpson Spence & Young - Indonesia
- Chamber of Mines of South Africa
- Sarangani Energy Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Singapore Mercantile Exchange
- Oldendorff Carriers - Singapore
- Edison Trading Spa - Italy
- Port Waratah Coal Services - Australia
- Billiton Holdings Pty Ltd - Australia
- Orica Australia Pty. Ltd.
- Metalloyd Limited - United Kingdom
- Therma Luzon, Inc, Philippines
- Tata Chemicals Ltd - India
- Iligan Light & Power Inc, Philippines
- Vizag Seaport Private Limited - India
- Savvy Resources Ltd - HongKong
- Sakthi Sugars Limited - India
- IHS Mccloskey Coal Group - USA
- Directorate Of Revenue Intelligence - India
- Coastal Gujarat Power Limited - India
- Borneo Indobara - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Maheswari Brothers Coal Limited - India
- Miang Besar Coal Terminal - Indonesia
- LBH Netherlands Bv - Netherlands
- Bharathi Cement Corporation - India
- Ministry of Finance - Indonesia
- Cement Manufacturers Association - India
- Jindal Steel & Power Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Globalindo Alam Lestari - Indonesia
- Bangladesh Power Developement Board
- Parliament of New Zealand
- Directorate General of MIneral and Coal - Indonesia
- Indonesian Coal Mining Association
- Xindia Steels Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Bhushan Steel Limited - India
- Bhatia International Limited - India
- Gujarat Electricity Regulatory Commission - India
- Global Green Power PLC Corporation, Philippines
- OPG Power Generation Pvt Ltd - India
- Riau Bara Harum - Indonesia
- Power Finance Corporation Ltd., India
- Antam Resourcindo - Indonesia
- London Commodity Brokers - England
- Global Business Power Corporation, Philippines
- ASAPP Information Group - India
- Indian Oil Corporation Limited
- Madhucon Powers Ltd - India
- Anglo American - United Kingdom
- Kobexindo Tractors - Indoneisa
- Holcim Trading Pte Ltd - Singapore
- Mintek Dendrill Indonesia
- Heidelberg Cement - Germany
- Meralco Power Generation, Philippines
- Kideco Jaya Agung - Indonesia
- TeaM Sual Corporation - Philippines
- Pendopo Energi Batubara - Indonesia
- Commonwealth Bank - Australia
- IEA Clean Coal Centre - UK
- Tamil Nadu electricity Board
- Central Java Power - Indonesia
- Aditya Birla Group - India
- Bukit Baiduri Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- Ind-Barath Power Infra Limited - India
- International Coal Ventures Pvt Ltd - India
- Planning Commission, India
- Toyota Tsusho Corporation, Japan
- Australian Commodity Traders Exchange
- GN Power Mariveles Coal Plant, Philippines
- Meenaskhi Energy Private Limited - India
- Makarim & Taira - Indonesia
- Thai Mozambique Logistica
- Kapuas Tunggal Persada - Indonesia
- Marubeni Corporation - India
- Sinarmas Energy and Mining - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Barasentosa Lestari - Indonesia
- Africa Commodities Group - South Africa
- Electricity Generating Authority of Thailand
- Indogreen Group - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- White Energy Company Limited
- Standard Chartered Bank - UAE
- PowerSource Philippines DevCo
- Bukit Asam (Persero) Tbk - Indonesia
- Straits Asia Resources Limited - Singapore
- Mercator Lines Limited - India
- Central Electricity Authority - India
- Chettinad Cement Corporation Ltd - India
- Karaikal Port Pvt Ltd - India
- Kumho Petrochemical, South Korea
- Indika Energy - Indonesia
- Merrill Lynch Commodities Europe
- Coalindo Energy - Indonesia
- Samtan Co., Ltd - South Korea
- Trasteel International SA, Italy
- Maharashtra Electricity Regulatory Commission - India
- Energy Link Ltd, New Zealand
- Semirara Mining and Power Corporation, Philippines
- Sojitz Corporation - Japan
- India Bulls Power Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Uttam Galva Steels Limited - India
- Medco Energi Mining Internasional
- Malabar Cements Ltd - India
- Jaiprakash Power Ventures ltd
- Interocean Group of Companies - India
- Orica Mining Services - Indonesia
- Eastern Coal Council - USA
- Kartika Selabumi Mining - Indonesia
- Romanian Commodities Exchange
- Essar Steel Hazira Ltd - India
- SMC Global Power, Philippines
- Salva Resources Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- Wood Mackenzie - Singapore
- Attock Cement Pakistan Limited
- Ceylon Electricity Board - Sri Lanka
- Timah Investasi Mineral - Indoneisa
- Aboitiz Power Corporation - Philippines
- GMR Energy Limited - India
- Bukit Makmur.PT - Indonesia
- Kepco SPC Power Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- McConnell Dowell - Australia
- GVK Power & Infra Limited - India
- Semirara Mining Corp, Philippines
- Ministry of Transport, Egypt
- Wilmar Investment Holdings
- VISA Power Limited - India
- Australian Coal Association
- Cigading International Bulk Terminal - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- GAC Shipping (India) Pvt Ltd
- Energy Development Corp, Philippines
- SMG Consultants - Indonesia
- New Zealand Coal & Carbon
- The University of Queensland
- Coal and Oil Company - UAE
- Global Coal Blending Company Limited - Australia
- Electricity Authority, New Zealand
- Eastern Energy - Thailand
- Star Paper Mills Limited - India
- Sindya Power Generating Company Private Ltd
- Larsen & Toubro Limited - India
- Videocon Industries ltd - India
- Mercuria Energy - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Siam City Cement PLC, Thailand
- Baramulti Group, Indonesia
- Banpu Public Company Limited - Thailand
- The State Trading Corporation of India Ltd
- Siam City Cement - Thailand
- Bhoruka Overseas - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indian Energy Exchange, India
- PTC India Limited - India
- Formosa Plastics Group - Taiwan
- European Bulk Services B.V. - Netherlands
- Price Waterhouse Coopers - Russia
- Renaissance Capital - South Africa
- Bayan Resources Tbk. - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Parry Sugars Refinery, India
- San Jose City I Power Corp, Philippines
- Sree Jayajothi Cements Limited - India
- Grasim Industreis Ltd - India
- Indo Tambangraya Megah - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Ministry of Mines - Canada
- Dalmia Cement Bharat India
- Sical Logistics Limited - India
- Lanco Infratech Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Deloitte Consulting - India
- Kaltim Prima Coal - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Altura Mining Limited, Indonesia
- Goldman Sachs - Singapore
- Krishnapatnam Port Company Ltd. - India
- ICICI Bank Limited - India
- Latin American Coal - Colombia
- MS Steel International - UAE
- Carbofer General Trading SA - India
- Minerals Council of Australia
- Asmin Koalindo Tuhup - Indonesia
- Rio Tinto Coal - Australia
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